Chalhoub white paper shows the scale of opportunity for British luxury retail overseas

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Patrick Chalhoub, co-CEO of the Chalhoub Group, has presented the group’s first White Paper entitled ‘Luxury in the Middle East: an easy sell?’ The paper focuses on the particularities of both the economic dynamics and consumer behavior in the Middle East.

As the first white paper produced by the group, the report reveals the potential for luxury retailers in the Gulf Co-operation Council (GCC) countries, as well as the spending behaviours of the broad base of young consumers living in the region.

As a leading partner for luxury in the region, the Chalhoub Group has produced the paper using proprietary research undertaken by the Group’s Strategy & Innovation Unit  providing useful insights about the environment for luxury that the region offers, the size and structure of the market and the consumer’s approach to luxury.

Significant growth has seen the region evolve beyond a frontier market and the key to success is now in understanding the specific behaviors of each territory.

Key findings from the report include:

  • GCC national consumers display conflicting aspirations: on the one hand they are searching for individual expression and personal style while on the other hand they are bound to strong social codes and traditions. This apparent contradiction is perfectly illustrated in their constant search for the ‘unique’, the ‘latest’, the ‘newest’ among well-known iconic brands
  • Estimated GCC luxury market size: $6bn with an average growth of 10-12% per annum
  • GCC retail GLA: below 5mn sq m in 2005. Forecast at 15m sq m in 2015
  • 94% of GCC national consumers go shopping ‘whenever they feel like it’, far ahead of going shopping because ‘they need something’

Retail Times’ readers can read ‘Luxury in the Middle East: an easy sell? here Chalhoub UK White Paper