GCC luxury market to reach $11 billion by 2023: Chalhoub Group

Chalhoub Group released its comprehensive report  “GCC Personal Luxury in 2021: A Story of Early Recovery and Growth” with a deep dive on Saudi Arabia, in collaboration with the Fashion Commission of Saudi Arabia’s Ministry of Culture at Riyadh’s Retail Leaders Circle summit.

According to the report, insights indicate that in 2021 the GCC luxury market outpaced pre-pandemic level by 23% versus 2019. By 2023 the GCC luxury market is projected to reach $11 billion growing from the current $9.7 billion.

As such, the GCC luxury market is under a massive transformation as brands are in a constant state of evolution to cater for young, informed and hybrid consumers. A few of the many drivers of growth include:

• Spend repatriation where 60% of the spending now happens in-country
• Brand investments in marketing and localized events
• E-commerce market more than doubling, led by pure players

Deep diving on Saudi Arabia, the largest country in the GCC, the Kingdom has shown remarkable growth in personal luxury, reaching $2.2 billion and growing at +19%, driven by spend repatriation, female empowerment, boiling retail landscape, events and activities, and e-commerce boom.

Patrick Chalhoub, Group President, Chalhoub Group, said: “With over 65 years of presence in the GCC, the Group has always been invested in understanding the unique market dynamics of the region, its savvy consumers and valued partners. We are proud to collaborate with the Fashion Commission, which shares our ambition and plays a pivotal role in the region’s fashion industry. Our report on the GCC personal luxury market reinforces our commitment to sharing knowledge and supporting local and international brands to connect with the region, celebrate our culture and heritage.”

Commenting on the collaboration with Chalhoub Group, Burak Cakmak, Chief Executive, Fashion Commission, stated: “Our mission is to develop a thriving fashion ecosystem in KSA to uphold Saudi heritage, promote local talent, designers and brands, and also attract international brands to the Kingdom. In doing so, strategic collaborations with authoritative private sector entities will play a pivotal role in supporting us with intelligence and insights on the fashion industry. Such collaborations will ultimately benefit the regional fashion industry, nurture local talents and support the growth of retail.”

Looking ahead, the GCC luxury market is projected to reach $11 billion in 2023, fueled by several factors such as local spending by GCC nationals and development of new categories. Chalhoub Group will be at the forefront of the future growth of luxury in the GCC by continuing to contribute to and support brands, partners, and the regional luxury fashion market.