LUXURY IN THE MIDDLE EAST
In early 2023, Business of Fashion identified that during the year ahead the Middle East would offer the most promising growth prospects for luxury fashion of all global regions.
This impressive market evolution is accounted for by societal changes such as increased social freedoms, and a Gen-Z customer base increasingly in search of luxury brands.
It is also a result of government initiatives such as Saudi Vision 2030, whose ambitions are to enable the Kingdom to develop a thriving economy and a vibrant society that are not solely based on incomes from petroleum.
One of its key growth pillars is therefore economic diversification, and this has led to a torrent of new private sector innovation, especially among a younger generation of new entrepreneurs, as well as through government-funded projects.
This sense of forward-looking change has ignited a wave of activity not only in Saudi Arabia, but across the Gulf region, in particular in the UAE and Kuwait.
As part of the BoF / McKinsey State of Fashion 2023 report, Patrick Chalhoub - Group president of Dubai-based retailer and distributor Chalhoub Group, was asked about his opinion on the nature of the fashion market in the Middle East, and his response was insightful:
“Before 2020 and 2021 — two- thirds of luxury spending by GCC shoppers happened abroad because they perhaps weren’t getting the experience, service, choice or journey they wanted when shopping locally”
“What the fashion industry needs to do is make sure we maintain relevance for our local customers.”
As a result, the retail landscape has been evolving dramatically in the last 18 months, and at SUM we have had the opportunity during this intense period, to partner with a number of ambitious, informed luxury retailers and brands as they have prepared for launches across the region.
We’ve witnessed first-hand the aspirational magnetism of international brand identities, as well as the importance of connecting on a regular basis with local events and local tastes. It is this nuanced balance between the international and local that forms the challenge which most brands that are active in the region are addressing.
This can range from partnerships with local influencers and taste-makers, to an understanding of the peaks and troughs of consumer-spending - for example during and post- the Ramadan period, and a sensitivity to significant differences in consumer attitudes across the various age cohorts and across the various countries in the region.
FABRIC OF SOCIETY
Launched in Kuwait in 2022, FoS addresses the experimental nature of GenZ consumers in its home market, and across GCC countries.
The platform offers a new home for NextGen emerging talent, and niche international designers from across the globe to access the huge market potential of young fashion-forward women in the Middle East.
FoS is a luxury eRetail platform with a shoppable online magazine that celebrates all that’s new in understated luxury and elevated streetwear.
MWAZ
MWAZ is a premium fashion hub that was launched in Saudi Arabia in Spring 2023.
It is part of the highly-impressive Via-Riyad complex, and offers an immersive retail experience that brings luxury fashion and current trends to consumers who would previously have needed to travel to Western markets to access the brands and styles that have been stocked.
The collections are curated in a way that reflects the increasingly fashion-forward consumer who is eclectic in her selection of designers, and is increasingly style-aware.
If you’d like to discuss your own luxury or fashion launch in the GCC region, please reach out to SUM