![\"\"](\"https:\/\/blog.dubaicityguide.com\/site\/wp-content\/uploads\/2021\/05\/image008.jpg\")
<\/figure><\/div>\n\n\n\nThe GCC luxury goods market dropped to\u00a0$7.4\u00a0billion USD in\u00a02020,\u00a0with di\ufb00erent country dynamics depending on exposure to tourism and repatriation\u00a0of\u00a0spending\u00a0(see\u00a0Figure\u00a02).\u00a0Although\u00a0the\u00a0decline\u00a0in\u00a0tourism\u00a0hurt the\u00a0market,\u00a0GCC\u00a0nationals\u00a0(who\u00a0usually\u00a0purchase\u00a030%\u00a0to\u00a040%\u00a0of\u00a0their\u00a0luxury\u00a0goods outside the region) repatriated spending in their respective countries. Countries with low exposure to tourism, such as Kuwait, Qatar, and Saudi Arabia,\u00a0did\u00a0not\u00a0see\u00a0such\u00a0a\u00a0sharp\u00a0drop\u00a0as\u00a0in\u00a0the\u00a0United\u00a0Arab\u00a0Emirates\u00a0(UAE), where\u00a0the\u00a0impact\u00a0was\u00a0closer\u00a0to\u00a0the\u00a0global\u00a0average\u00a0decline\u00a0of\u00a023%\u00a0vs.\u00a02019.<\/p>\n\n\n\n
Figure 2<\/p>\n\n\n\n
The\u00a0luxury\u00a0goods\u00a0market\u00a0fell\u00a0to\u00a0$7.4\u00a0billion,\u00a0but\u00a0the\u00a0drop\u00a0was\u00a0more\u00a0severe\u00a0in\u00a0some\u00a0countries\u00a0than\u00a0in\u00a0others<\/strong><\/p>\n\n\n\n Changes\u00a0in\u00a0tourism\u00a0\ufb02ows\u00a0had\u00a0a\u00a0major\u00a0e\ufb00ect\u00a0on\u00a0the\u00a0market\u00a0in\u00a02020\u00a0and\u00a0the\u00a0early\u00a0months\u00a0of\u00a02021.\u00a0In\u00a0the\u00a0UAE\u00a0especially,\u00a0where\u00a0tourists\u00a0account\u00a0for\u00a0as much\u00a0as\u00a060%\u00a0of\u00a0the\u00a0luxury\u00a0market,\u00a0an\u00a0undeniably\u00a0large\u00a0block\u00a0of\u00a0spending power\u00a0was\u00a0wiped\u00a0out\u00a0rapidly\u00a0by\u00a0ongoing\u00a0Covid-19\u00a0travel\u00a0restrictions.<\/p>\n\n\n\n Bain & Company research reveals clear di\ufb00erences in 2020 market dynamics by category.<\/p>\n\n\n\n \u2022\u00a0\u00a0\u00a0Jewelry:\u00a0<\/strong>The\u00a0category\u00a0saw\u00a0a\u00a0second-half\u00a0rebound\u00a0spurred\u00a0by\u00a0local\u00a0GCC customers,\u00a0especially\u00a0in\u00a0Saudi\u00a0Arabia,\u00a0due\u00a0to\u00a0weddings,\u00a0investment\u00a0buying, and\u00a0the\u00a0launch\u00a0of\u00a0new\u00a0collections.\u00a0Jewelry\u00a0was\u00a0the\u00a0only\u00a0luxury\u00a0category\u00a0to achieve\u00a0value\u00a0growth\u00a0in\u00a02020,\u00a0albeit\u00a0just\u00a0a\u00a01%\u00a0increase.\u00a0Spending\u00a0abroad\u00a0was\u00a0fully\u00a0repatriated,\u00a0with\u00a0top\u00a0brands\u00a0outperforming\u00a0and\u00a0growing\u00a0their\u00a0presence in Saudi\u00a0Arabia.<\/p>\n\n\n\n \u2022\u00a0\u00a0\u00a0Watches:<\/strong>\u00a0<\/strong>The\u00a0lack\u00a0of\u00a0tourists\u00a0weighed\u00a0heavily\u00a0on\u00a0this\u00a0sector,\u00a0with\u00a0Swiss\u00a0watch\u00a0exports\u00a0declining\u00a050%\u00a0in\u00a0volume\u00a0and\u00a020%\u00a0in\u00a0value.<\/p>\n\n\n\n \u2022\u00a0\u00a0\u00a0Beauty:\u00a0<\/strong>GCC\u00a0markets\u00a0were\u00a0in\u00a0line\u00a0with\u00a0the\u00a0global\u00a0decline\u00a0partly\u00a0due\u00a0to travel\u00a0retail,\u00a0with\u00a0makeup\u00a0su\ufb00ering\u00a0more\u00a0than\u00a0fragrance.\u00a0However,\u00a0there\u00a0was\u00a0one\u00a0positive\u00a0e\ufb00ect:\u00a0The\u00a0category\u00a0saw\u00a0an\u00a0e-commerce\u00a0boom\u00a0as\u00a0GCC residents\u00a0headed\u00a0online\u00a0to\u00a0shop\u00a0the\u00a0latest\u00a0trends\u00a0and\u00a0launches.<\/p>\n\n\n\n \u2022\u00a0\u00a0\u00a0Fashion:\u00a0<\/strong>Both\u00a0tourist\u00a0and\u00a0local\u00a0spending\u00a0were\u00a0a\ufb00ected\u00a0by\u00a0the\u00a0shift\u00a0toward more casual day-to-day apparel. Much like\u00a0beauty,\u00a0fashion\u00a0saw\u00a0an\u00a0e-\u00a0commerce boom, with top brands that focused on local customers outperforming.<\/p>\n\n\n\n Despite a local and global decline in the luxury goods market, e-commerce exploded in\u00a02020.\u00a0Almost 70% of high-net-worth GCC buyers, who traditionally\u00a0opt\u00a0for\u00a0in-store\u00a0luxury\u00a0shopping,\u00a0now\u00a0say\u00a0they\u00a0are\u00a0comfortable with online shopping. Thanks to the massive increase in e-commerce\u00a0during\u00a0lockdown, several brands reported that their online sales grew twofold to sixfold.<\/p>\n\n\n\n We\u00a0anticipate that, post-lockdown, e-commerce will continue to \ufb02ourish as retailers and brands make large investments to improve the user experience, helping to fuel\u00a0growth.<\/p>\n\n\n\n Moving\u00a0forward,\u00a02021\u00a0spending\u00a0is\u00a0expected\u00a0to\u00a0be\u00a0slightly\u00a0below\u00a02019\u00a0levels, assuming\u00a0a\u00a0gradual\u00a0return\u00a0to\u00a0travel\u00a0in\u00a0the\u00a0second\u00a0and\u00a0third\u00a0quarters.\u00a0In\u00a0the interim,\u00a0however,\u00a0much\u00a0will\u00a0depend\u00a0on\u00a0each\u00a0brand\u2019s\u00a0ability\u00a0to\u00a0keep\u00a0a\u00a0large share\u00a0of\u00a0the\u00a0luxury\u00a0spending\u00a0that\u00a0traditionally\u00a0took\u00a0place\u00a0abroad\u00a0while\u00a0also\u00a0convincing\u00a0tourists\u00a0to\u00a0spend\u00a0in\u00a0the\u00a0region.<\/p>\n\n\n\n With\u00a0about\u00a040%\u00a0of\u00a0the\u00a0population\u00a0under\u00a025,\u00a0Saudi\u00a0Arabia\u00a0will\u00a0likely\u00a0remain the\u00a0biggest\u00a0engine\u00a0of\u00a0growth\u00a0for\u00a0the\u00a0regional\u00a0luxury\u00a0industry\u00a0in\u00a0coming\u00a0years.\u00a0The\u00a0luxury\u00a0market\u00a0in\u00a0the\u00a0Kingdom\u00a0is\u00a0changing\u00a0due\u00a0to\u00a0several\u00a0factors,<\/p>\n\n\n\n including population growth, new tastes and preferences, and the emergence of\u00a0new\u00a0luxury\u00a0consumers,\u00a0including\u00a0a\ufb04uent\u00a0working\u00a0women.\u00a0Along\u00a0with\u00a0this\u00a0growing luxury shopper demographic comes a divergence of trends in\ufb02uenced by tastemakers and celebrities. More\u00a0broadly,\u00a0intensifying competition among retailers is leading to improvements in customer experience, talent, and\u00a0clienteling.<\/p>\n\n\n\n Throughout the region, companies that invest to make the most of these trends\u00a0will\u00a0view\u00a0the\u00a0rebound\u00a0as\u00a0an\u00a0opportunity\u00a0to\u00a0outpace\u00a0competitors\u00a0in\u00a0an\u00a0increasingly\u00a0dynamic\u00a0market\u00a0for\u00a0luxury\u00a0goods.<\/p>\n","protected":false},"excerpt":{"rendered":" Although the Covid-19 pandemic has taken a toll on the global luxury goods market, its impact on countries, categories, and brands in the Gulf Cooperation\u00a0Council\u00a0(GCC)\u00a0region\u00a0has\u00a0varied.\u00a0The\u00a0emergence\u00a0of\u00a0some\u00a0positive shopping trends and the ongoing recovery o\ufb00er hope for a return to relative normalcy\u00a0in\u00a02021\u00a0and\u00a0into\u00a02022,\u00a0following\u00a0a\u00a017%\u00a0decline\u00a0in\u00a0the\u00a0region\u2019s\u00a0luxury market\u00a0in\u00a02020\u00a0(see\u00a0Figure\u00a01). Figure 1 After\u00a0a\u00a0clear\u00a0rebound\u00a0in\u00a02019,\u00a0the\u00a0GCC\u00a0luxury\u00a0goods\u00a0market declined\u00a0by\u00a017%\u00a0in\u00a02020 The GCC luxury goods market dropped to\u00a0$7.4\u00a0billion USD in\u00a02020,\u00a0with di\ufb00erent country […]<\/p>\n","protected":false},"author":1,"featured_media":11651,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-11649","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/pressreleasenetwork.com\/site\/wp-json\/wp\/v2\/posts\/11649","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressreleasenetwork.com\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pressreleasenetwork.com\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pressreleasenetwork.com\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pressreleasenetwork.com\/site\/wp-json\/wp\/v2\/comments?post=11649"}],"version-history":[{"count":1,"href":"https:\/\/pressreleasenetwork.com\/site\/wp-json\/wp\/v2\/posts\/11649\/revisions"}],"predecessor-version":[{"id":11652,"href":"https:\/\/pressreleasenetwork.com\/site\/wp-json\/wp\/v2\/posts\/11649\/revisions\/11652"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pressreleasenetwork.com\/site\/wp-json\/wp\/v2\/media\/11651"}],"wp:attachment":[{"href":"https:\/\/pressreleasenetwork.com\/site\/wp-json\/wp\/v2\/media?parent=11649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pressreleasenetwork.com\/site\/wp-json\/wp\/v2\/categories?post=11649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pressreleasenetwork.com\/site\/wp-json\/wp\/v2\/tags?post=11649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/blog.dubaicityguide.com\/site\/wp-content\/uploads\/2021\/05\/image010.jpg\")
<\/figure><\/div>\n\n\n\n