The GCC luxury market outpaced pre-pandemic levels by 23 percent to reach $9.7 billion in 2021, and is set to climb further to $11 billion by 2023, according to a recent report titled GCC Personal Luxury in 2021: A Story of Early Recovery and Growth released by Chalhoub Group.
The comprehensive report – which was was launched at Riyadh’s Retail Leaders Circle summit – takes a deep dive into Saudi Arabia, in collaboration with the Fashion Commission of the kingdom’s Ministry of Culture.
The report offers deep insights into consumption patterns and factors that will drive the growth of the GCC market.
With this report, Chalhoub Group reinforces its leading position as a thought leader, innovator, and knowledge partner keen to offer insights about the regional luxury market that’s set to grow.
Chalhoub Group and the Fashion Commission are bringing together industry propriety insights and data to support regional and international brands and businesses.
As such, 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. A few of the many drivers of growth include:
- Repatriation spend, where 60 percent of the spending now happens in-country
- Brand investments in marketing and localised events
- E-commerce market more than doubling, led by pure players
Saudi Arabia personal luxury market
Deep diving into Saudi Arabia, the largest country in the GCC, the kingdom has shown remarkable growth in personal luxury, reaching $2.2 billion and growing at 19 percent, driven by repatriation spend, female empowerment, boiling retail landscape, events and activities, and e-commerce boom.
The group president for Chalhoub Group, Patrick Chalhoub, 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.”
Commenting on the collaboration with Chalhoub Group, the chief executive of the Fashion Commission, Burak Cakmak, said: “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, fueled by several factors such as local spending by GCC nationals and development of new categories.
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