The GCC luxury goods market in 2021 showed an early recovery from COVID levels before ending the year at $9.7 billion, up 23% from 2019 figures.
Local consumers in GCC countries today spend 60% of luxury spending in their countries, a significant increase compared to pre-COVID days.
The luxury market in Gulf Coordinating Council countries is projected to reach $11 billion by 2023, growing at a compound annual growth rate of 7% for 2021-2023, according to a report titled ‘GCC Personal Luxury in 2021: The Story of Early Recovery and Growth’ published recently by Chalhoub Group. The report provides an in-depth look at Saudi Arabia
The retail market in the region saw a lot of activity last year and is expected to continue to grow over the next few years, the report said. Prestige fashion and beauty e-commerce remains strong with market shares of 11% and 15% respectively in the region.
Consumers are becoming more comfortable with shopping for luxury goods online, with growing expectations, especially at the last mile. High-end fashion outperformed 2019, growing 39%, with performance driven mainly by the absolute luxury segment at 55%.
The prestige beauty market is worth $1.58 billion, up 6% from 2019. Makeup is the only segment that hasn’t recovered in 2019.
Women in Saudi Arabia now make up 33% of the kingdom’s workforce – nearly double what they were five years ago, contributing to increased spending on luxury goods. A vibrant retail scene there has seen new stores, pop-ups and brands, as well as emerging ‘retail entertainment’, such as Riyadh Avenue.
Saudi consumers have become more familiar with online purchases, and major online players are investing in the country by opening warehouses, the report added.
Fiber2 Fashion News Desk (DS)
