Luxury brands like it haute in the UAE

It is a fact that globally the rich are only getting richer and this is substantiated by the report on the global luxury goods segment which scored a market value of $262.66 Billion in 2021. It is expected to grow at a CAGR of 5.63 per cent during the forecast period of 2023-2028 according to researchandmarkets.com. Capgemini’s World Wealth report 2022, states that the high-net-worth individuals population expanded by 7.8 per cent, and global wealth expanded by 8 per cent in the year 2021.

The beauty of the Middle-East market is its customer who is well-aware, world travelled and understands the concept of luxury and in some ways has redefined it. The size of the UAE’s luxury market reached $3.5 billion in 2021, according to data released by ResearchandMarkets.com.

The Middle East and Africa luxury goods market is projected to record a compound annual growth rate (CAGR) of 8.5 per cent during the next five years and this is the reason why several big brands are opening their stores. The high purchasing power and sustained demand is the reason why in March 2022, Kering Group’s Gucci showcased its ultra luxe jewellery pieces for the first time at Palm Jumeirah.

Couturier Tarun Tahiliani, who is opening a store in Dubai soon, believes if there is a market for Rs1.3 million (Dh58,163) sneakers from Dior, and a lot of wealthy individuals who are the fifth or sixth generation affluent from all over the world are now preferring to settle in the Middle East, it is emerging as a potent force. “Many also come to Dubai to shop. Plus, it is a popular wedding destination too. Most importantly, the Arab world understands luxury like no one else,” he says. For the Dubai store, Tahiliani will offer abayas besides his high-end couture line as well as ready-to-wear. “The Middle East is also growing as an interesting tourist destination and the UAE has blended various cultures brilliantly, making life easy for its residents,” he adds.

The king of couture was the first to predict this growth and launched Sabyasachi Jewellery at Bayt Damas on August 3, 2021. The Dubai jewellery store has his most luxurious offerings, as the Kolkata-based style guru, admitted the customer understands and is ready to pay for superlative craftsmanship.

Manish Malhotra is also looking at opening this July for his buyers, who often visit his magnificent Delhi store in Mehrauli. “My designs reflect a vision of glamour and extravagance. For me, Dubai is the epitome of grandeur, which is why we are bringing the world of Manish Malhotra to this fascinating city. Dubai plays hub to world class luxury and it has taken the spotlight as a retail and luxury hub, from world-famous fashion mavens, to cars or real estate. The market in the UAE incorporates a slew of extremely aware and knowledgeable consumers, that are both willing and able to enjoy the luxury of luxury. Dubai enjoys the finesse and quality of refined products and understands their value, making it one of the most engaging markets for luxury fashion and our next stop, which I’m thrilled about,” says Malhotra.

Real estate too is growing in the Middle East. David and Victoria Beckham own a seven-bedroom villa in the Palm Jumeirah. Bollywood star Shahrukh Khan has a six-bedroom mansion there too, while Italian designer Giorgio Armani partnered with Emaar Properties in 2004 and launched his own hotel in Dubai. The Bachchan family, Abhishek, and Aishwarya Rai Bachchan, own a luxury house in Sanctuary Falls Jumeirah Golf Estates and Lindsay Lohan has a piece of The World Islands, located off the coast of Dubai.

But that is not all. Global couturier Rahul Mishra, who is now a veteran at the Paris Fashion Week, is opening his store in the Middle East soon. His product range will include couture womenswear, men’s bespoke festive wear, ready-to-wear (RTW) womenswear, RTW menswear, bags, accessories, and footwear. “The Middle East market comprises of a diverse customer base. It is a melting pot of cultures and aesthetic influences from across the world. The consumer has an elevated understanding of luxury and craftsmanship, and is willing to invest in clothing that is individualistic and independent of mainstream trends,” says Rahul, who is working on the interiors and design space.

He further adds that the region has the right mix of culture and technology, and it is where the past and future meet. There is a strong respect and consideration for traditional craft and values alongside the anticipation for rapid growth and development. “It becomes a perfect playing field for modern day luxury brands like us, that are traditionally rooted yet contemporary — brands that want to redefine the values of sustainable living and luxury through mindful fashion,” adds Mishra.

As exclusive brands are slowly understanding customers are now global, not local, their buyers are able to live multiple lives through fashion — experiencing various silhouettes with ease. “They understand personal style and fashion trends from a unique perspective, unlike any other consumer, as their sensibility is influenced strongly by both their heritage and the modern world. This allows them a special point of view in the debate of materialism and sustainable luxury. Hence luxury at times, may have a higher chance of being an emotional investment for them than being an impulsive purchase, which elevates the value and respect that’s seen in the garment,” he explains.

The quiet revolutionist, Anita Dongre, has a strong head for business. This has led to her brand’s exponential growth. Expanding to the Middle East has been a long-cherished dream of Anita’s, and she is thrilled to bring her brand to another luxury fashion capital of the world. “The store is an extension of the identity and philosophy of the brand with interiors designed to reflect my Rajasthani roots. It is a homage I would like to pay to the exquisite crafts and culture of India,” says Dongre.

Towering arches and ethereal chandeliers evoke the grandeur of royal palaces, while the furnishings and upholstery are designed with signature house-crafted fabrics. “Beautiful hand-painted panels by my Pichhwai artist in Rajasthan adorn the walls of our Dubai store. There is also our signature fragrance that all stores carry, which customers just recognise immediately,” she adds.

— The writer is a senior lifestyle and fashion journalist based in Delhi.