According to a recent report released by Chalhoub Group, the GCC luxury market outpaced pre-pandemic level by 23 percent in 2021 versus 2019. By 2023, the GCC luxury market is projected to reach $11 billion growing from the current $9.7 billion.
In a comprehensive report titled “GCC Personal Luxury in 2021: A Story of Early Recovery and Growth” released in collaboration with the Fashion Commission of Saudi Arabia’s Ministry of Culture, the two entities bring together industry propriety insights and data to support regional and international brands and businesses. The report offers deep insights into consumption patterns and factors that will drive the growth of the GCC market.
The GCC luxury market is under a massive transformation as brands are in a constant state of evolution to cater for young, informed and hybrid consumers. Today’s GCC luxury customers are in search of meaningful brands and personalised experiences, and like experimentation, newness, and uniqueness. According to the report, the segment is seeing the rise of local creative talents and passionate designers from the region with disruptive and innovative ideas. To resonate with local consumers, international brands are creating capsule collections, exclusives, and GCC-first launches with localisation in mind.
Deep diving into Saudi Arabia, the Kingdom has shown remarkable growth in personal luxury, reaching $2.2 billion and growing at over19 percent, driven by spend repatriation, female empowerment, boiling retail landscape, events and activities, and e-commerce boom.
Patrick Chalhoub, Group President, Chalhoub Group, said: “With over 65 years of presence in the GCC, the Group has always been invested in understanding the unique market dynamics of the region, its savvy consumers and valued partners. We are proud to collaborate with the Fashion Commission, which shares our ambition and plays a pivotal role in the region’s fashion industry. Our report on the GCC personal luxury market reinforces our commitment to sharing knowledge and supporting local and international brands to connect with the region, celebrate our culture and heritage.”
Burak Cakmak, Chief Executive at the Fashion Commission, stated: “Our mission is to develop a thriving fashion ecosystem in KSA to uphold Saudi heritage, promote local talent, designers and brands, and also attract international brands to the Kingdom. In doing so, strategic collaborations with authoritative private sector entities will play a pivotal role in supporting us with intelligence and insights on the fashion industry. Such collaborations will ultimately benefit the regional fashion industry, nurture local talents and support the growth of retail.”
Looking ahead, the GCC luxury market is projected to reach $11 billion in 2023, fuelled by several factors such as local spending by GCC nationals and development of new categories.