Apparel & footwear lead the way in retail, says Dubai Chamber

April 5, 2017 | By RetailME Bureau

In 2016, Dubai’s apparel and footwear market was valued at $11.5 billion, accounting for the largest share of the emirate’s retail sector, indicates Dubai Chamber of Commerce and Industry. Apparel accounted for 73% market share, followed by footwear at 18% and sportswear at 9%.

The high demand for apparel was supported by value and mid-range offerings, particularly during shopping festivals and sales events. This trend is expected to continue through 2021, leading the category to achieve a projected CAGR of 3.4% in the medium term.

Personal accessories were identified as the second-largest product category, with an estimated market value of $4.2 billion, owing to rising demand for smart watches and growing popularity of online retail in Dubai. The personal accessories category is projected to grow at a CAGR of 4.4% over the medium term to reach $5 billion by 2020.

Consumer electronics claimed the third-largest share of the local retail market last year, generating sales worth $2.3 billion. The category is expected to remain stable over the medium term, growing at a forecast CAGR of 0.4% amid a maturing market and an increase in the number of tourists.

Sales of consumer appliances were valued at $622 million last year, and are expected to remain relatively unchanged in the medium term, growing at a forecast CAGR of 1.1% to reach $650 million by 2020.

The value of Dubai’s home and garden market was estimated at $1.7 billion, and the segment is projected to see a steady CAGR of 3.2% over the medium term to reach $1.9 billion by 2020. Beauty and personal care market was valued at $1.53 billion, set to lead retail sector growth with a forecast CAGR of 6% until 2020.

Highlighting the underlying strength of Dubai’s retail sector, as well as the key trends that will fuel future growth within the market, president and CEO of Dubai Chamber Hamad Buamim says, “The easing of UAE visa regulations to some countries is expected to drive tourism, which will likely have a positive impact on Dubai’s retail market going forward as the emirate prepares to attract up to 20 million tourists annually by 2020.”



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