GCC Luxury Market Will Reach 11 Billion By 2023: Chalhab Group Report
The GCC luxury market in 2021 showed an initial recovery from the pre-COVID level, ending the year at 9.7 billion, an increase of 23 percent over the 2019 figure.
Local consumers in GCC countries today spend 60 percent of their country’s luxury spending, a significant increase over pre-COVID days.
The Gulf Coordinating Council countries’ luxury market is projected to reach িয়ন 11 billion in 2023, with a compounded growth rate of 7% for 2021-2023. Published. The report dives deeper into Saudi Arabia
The retail scene in the region witnessed a lot of activity last year and is expected to continue to evolve in the next few years, the report said. Prestige Beauty and high-end fashion e-commerce are strong in the region with 11 percent and 15 percent shares, respectively.
Consumers are becoming more and more comfortable with the luxury of shopping online, especially with increasing expectations in the last mile. High-end fashion surpasses 2019, growing by 39 percent, driven by the ultimate luxury segment at 55 percent.
The Prestige Beauty Market is valued at $ 1.58 billion, a 6 percent increase over 2019. Make-up is the only segment that has not recovered on the 2019 situation.
In Saudi Arabia, women now make up 33 percent of the state’s labor force – almost twice as much as five years ago – contributing to higher spending on luxury goods. A booming retail landscape has seen new stores, pop-ups and brands as well as emerging ‘retail tenements’ like Riyadh Boulevard.
Saudi consumers are becoming more familiar with online shopping and big online players are investing in the country by opening warehouses, the report added.
Fibre2Fashion News Desk (DS)
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