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Eyeing Luxury Market Growth
Patrick Chalhoub, co-CEO of The Chalhoub Group, talks about the region’s luxury goods market and vision for the future.
May 23, 2012 3:22 by kippreport
So the fact is that due to traditional dress in the region, the accessories that people buy here immediately stand out. Also, people often take Western dresses when they travel outside of the region. And because they don’t buy too many Western dresses, you can be sure they will go for the best in the market whenever they buy. And whenever women are in private gatherings or for private functions and ceremonies, they often wear these kinds of dresses. So the luxury market here is more developed than first impressions suggest.
What is the break up between ready-to-wear and accessories?
On a global level, it is 50:50. In the Western world, it is 70:30 for ready-to-wear and accessories. In Asian markets, it is more accessories and here in the Middle East, too, we have 70:30 for accessories. It used to be even higher for accessories, going to 85 to 90 percent, but now it is closer to 70, so we have seen a big evolution in the market.
You mentioned about educating your customers. Some of the brands we have interacted with say customers here still need more education as they don’t really understand what goes into the making of a brand?
If it were 20 years ago, I would have agreed with you that luxury is mainly a bling-bling, show-off product, a status symbol. At that time, there wasn’t really any understanding of what a brand represents. Today, I totally disagree.