UAE is second-most attractive retail apparel market in the world


July 21, 2013 | By RetailME Bureau

China, UAE and Chile are the world’s top three developing countries in terms of market attractiveness, retail development and country risk for their clothing retail industries, according to the AT Kearney 2013 Retail Apparel Index. The Apparel Index also includes a number of countries from Latin America and the Middle East showing that these regions continue to offer compelling opportunities.


The Middle East region remains an attractive retail apparel market with the UAE (#2), Kuwait (#4), and Saudi Arabia (#6) ranking in the Index. Many retailers are testing their operations in the UAE before expanding to other Middle East countries due to its ease of doing business, sizeable retail segment, large expat community and tourism. Several notable apparel openings occurred in the UAE in 2012, including Level Shore District, Prada, Muji, COS, Gap, Pomellato, Calvin Klein, Juicy Couture, and Destination Maternity. Bvlgari and Bloomingdale’s plan new stores in 2013 in Abu Dhabi.


China remains the top apparel market due to its market size and strong growth in clothing sales. Three trends have shaped China’s apparel market: the rise of e-commerce, a boom in fast fashion, and the evolution of the luxury market. Over the last year several fast fashion retailers have aggressively expanded in China. Uniqlo opened 65 stores in China in fiscal year 2012, bringing its total count to 145, and it plans to add 100 stores a year to reach 1,000 stores. H&M opened 52 stores in 2012 and Zara opened 37 stores. Gap has plans to open 35 stores in 2013.

China’s luxury market remains strong—it surpassed Japan to become the second largest luxury market in the world in 2012—but it is not growing as fast as in the past. A key reason is that a large portion of luxury purchases are made abroad, due to lower prices and a strong renminbi.

Latin America takes a strong position in the Apparel Index, led by Chile (#3), Brazil (#5), and Mexico (#9). Apparel retailers have aggressive expansion plans for the region. Gap, which currently has 36 Latin American stores (including 28 in Mexico and four in Chile), plans to open 30 more by 2014, including its first Brazilian store in 2013. Zara has 150 stores in Latin America (including 56 in Mexico and 39 in Brazil), including 12 new stores built in 2012.


Brazil is South America’s largest apparel market, with $42 billion in sales, compared to $14 billion for Mexico. The Brazil luxury market is forecast to grow to more than $48 billion by 2025. An issue for Brazil is that 80% of luxury purchases are made outside of Brazil due to import challenges, including high tariffs that increase the cost of imported products by almost triple relative to the United States and France.

The Retail Apparel Index is calculated by analysing three metrics. (1) clothing market attractiveness (60%): this includes clothing sales, clothing sales growth, youth and urban populations, and level of international presence; (2) retail development (20%): the retail development indicator includes share of modern retailing and sales area growth; and (3) country risk (20%): country risk indicators include political and financial risk; business readiness; and the business cost of crime, terrorism, and corruption. Within each metric, a country’s value is indexed from 0 to 100 to allow for relative comparison to be made across metrics.

Comments

comments

Previous Article Next Article

YOU MAY ALSO LIKE /



Jones the Grocer set to open its doors at Dubai’s newly launched 

Continue Reading

October 18, 2020 | By RetailME Bureau

Saudi-based operators of hypermarkets and supermarkets BinDawood Holding Company has completed the 

Continue Reading

October 16, 2020 | By RetailME Bureau

The regional food and grocery delivery app Talabat has announced the expansion 

Continue Reading

October 15, 2020 | By RetailME Bureau

Walmart is hiring 10,000 new employees in Canada for positions in stores 

Continue Reading

October 14, 2020 | By RetailME Bureau

British quality grocery retailer Waitrose & Partners launched its first e-commerce platform 

Continue Reading

October 11, 2020 | By RetailME Bureau

Saudi Arabia-based operator of hypermarkets and supermarkets BinDawood Holding has priced its 

Continue Reading

October 7, 2020 | By RetailME Bureau
Miguel Angel Povedano, chief commercial officer of Majid Al Futtaim – Retail

Majid Al Futtaim announces the launch of a customer insight platform, powered 

Continue Reading

October 7, 2020 | By RetailME Bureau
New Choithrams store opens at Emerald Court, Al Barsha

A new Choithrams store opens at Emerald Court, Al Barsha in Dubai 

Continue Reading

October 5, 2020 | By RetailME Bureau
Asda has new owners

Asda has new owners, as The Issa brothers and TDR Capital are 

Continue Reading

October 5, 2020 | By RetailME Bureau
Spinneys sees “dramatic changes” in shopping patterns

UAE-based supermarket chain Spinneys sees “dramatic changes” in shopping patterns since the 

Continue Reading

October 4, 2020 | By Rupkatha Bhowmick
Food Crowd is now delivering from farm to home

A new platform in the UAE, Food Crowd is now delivering from 

Continue Reading

October 1, 2020 | By RetailME Bureau
Eagle Hills Sharjah signs up Every Day Fresh Hypermarket

Eagle Hills Sharjah signs up Every Day Fresh Hypermarket to meet the 

Continue Reading

September 14, 2020 | By RetailME Bureau




Download Images RetailME Magazine