The luxury retail sub-sector was expected to be one of the leaders in the industry’s contribution to the Gulf Cooperation Council’s economy. In a region with high economic growth over the past decade and rising affluence levels, spending on luxury products has been witnessing a continuous growth. Along with a young population, the demand for luxury goods and unique shopping experiences is expected to drive the luxury market growth in the GCC.
Luxury goods market
GCC governments’ investments to enhance the leisure and entertainment, as well as tourism and hospitality sectors, contributed to the luxury sub-sector’s growth in the region. Such investments are expected to boost the retail industry, with new stores opening, pop-ups, and new malls. The
absolute high-end market size has increased by one billion U.S. dollars since 2019, corresponding to a growth of 55 percent.
Fashion luxury leads the personal luxury market in the GCC, where it represents 43 percent of the total personal luxury market, followed by watches. The
luxury jewelry market witnessed the second highest growth within the personal luxury market, after the fashion segment.
The GCC luxury consumer
The GCC region’s luxury consumers have constantly evolving preferences. They research and inform themselves about products and brands more than ever. They are also willing to experiment beyond the mainstream, as more consumers become interested in pre-loved items. Standing out is an important factor when it comes to their shopping preferences, as there is growing interest in limited editions and personalization. Moreover, online luxury shopping is gaining popularity with the rise of e-commerce, with further room for growth. The
high-end fashion share of e-commerce in the GCC reached 15 percent , with top market players including Farfetch, Ounass, and NAP. The
majority of online luxury shoppers reported that same-day delivery would enhance their online shopping experience.
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