Dubai's apparel, footwear market worth $12.8 billion: Report

Dubai's market for apparel and footwear registered a 5.5 per cent annual growth in sales since 2010, and is estimated to be worth around $12.8 billion, according to a report by the Dubai Chamber of Commerce and Industry.
Based on data from Euromonitor International, the report found that the apparel sector in Dubai is valued at $10.4 billion, recording a compound annual growth rate of 5.8 per cent. The report, however, stated that sales of the maturing segments of footwear and sportswear have flattened in recent years, and are roughly estimated at $2.4 billion and $1 billion, respectively. Supply has kept pace with rising demand, as retail space expansion continued in 2015, with the launch of new malls and new brands, it said.
"Growing economic prosperity, steady population growth, and rising incomes are driving sales in major retail segments of Dubai," said Hamad Buamim, president and CEO of Dubai Chamber.
The Dubai Chamber report also points out that while Dubai is known as a leading luxury shopping destination in the region and a major hub for premium brands, mid-priced brands are also starting to gain popularity. This could be attributed to the rise in the numbers of budget-minded tourists who seek to stretch their dollars, it said.
At the same time international brands have launched new stores in the city to cater to the fashion conscious consumers, and setting sights on regional growth after getting a feel of the Middle East fashion taste and needs through their presence in Dubai, the report said.
Dubai Chamber expects positive consumer confidence and increased tourist spending to continue to drive growth for Dubai retail activity in the medium term. It said in the report that sales of apparel and footwear in the emirate of Dubai are expected to reach $13.5 billion this year, and are set to enjoy growth at a CAGR of 6.6 per cent until 2020, when sales are forecast to hit $17 billion.
Sales under the apparel sub-segment are forecast to keep expanding at a faster pace of 6.9 per cent annually to exceed $14 billion by 2020; whereas modest growth will be seen in the sales of footwear and sport, which are forecast to expand by CAGR of five per cent and 5.6 per cent, to reach $3 billion and $1.3 billion respectively, by the end of the forecast period.
The report said sales of consumer electronics in Dubai are estimated to be worth $2.4 billion after expanding at a CAGR of 8.9 per cent during the past five years, and that the market size will grow at 4.7 per cent over the next five years to exceed $3 billion by 2020.
The report also valued Dubai's beauty and personal care market at $1.2 billion, with 51 per cent of this figure coming from the mass beauty and personal care sub-category, which generated $616.8 million in sales in 2015.
Premium beauty and personal care is another large contributor to this market, with sales reaching $449 million in 2015, effectively making up 37 per cent of the category's total.
- business@khaleejtimes.com