“Middle Eastern consumers are experienced and increasingly savvy, but the region is grappling with shifting economic currents and the rise of digital. For brands, this implies risks but also opportunities“
The fashion industry experts at MCKINSEY & COMPANY, one of the biggest consultancy firms on the planet, have rightly recognized where the path is leading for the Gulf fashion and lifestlye market.
The worldwide consolidation and diversification thinning on the retail market doesn’t stop at the GCC borders. At the same time, the GCC fashion market is among the strongest in the world, with an annual turnover of close to $ 50 billion and a highly over-average per capita spenditure of up to $1,600 per year. Against this backdrop, the momentary transition from a pure retail world to a lively and self-confident multilayer market is highly exciting.
The increasing internet awareness and confidence certainly is the strongest drive engine. GCC consumers not only become increasingly connected. A new self-conception and daily contact with the new media creates an entirely new approach and highly targeted address for marketing and sales.
The impact of e-commerce becomes bigger and bigger in the region, with an expected growth of up to 40% a year over the next five years, and with an increased penetration to 9% from the current 2%. This development augments the importance of the digital sales platforms, with digital fashion and luxury players like FARFETCH, JOLLYCHIC and YOOX NET-A-PORTER leading the way. But also the general retail platforms like AMAZON, ALIBABA and ZALANDO are growing excessively and are becoming more and more a common sales instrument. Local players, like OUNASS and NAMSHI are getting ready to take their cut.
The social media like INSTAGRAM, TIKTOK and SNAPCHAT are equally influencing the daily life and thus the shopping behavior. This opens new doors for new marketing strategies. Colorful events, influencer activations, pop-up stores, flashmob fashion shows – the range of instruments to complement the market is endless. There are no limits to the imagination and to the possibilities for successful brand positioning.
PREMIUM STUDIOS believe in a strong brand-supported approach, a profound address to creatively defined target groups. We are bringing an ultra-contemporary vision of today’s retail and shopping culture to the table and we know the peculiarities of the Gulf region inside out. We know how to position the brands and how to attract the customers in a very fast, very particular economy environment. We know about taste. About style. About glamour.