Dubai Mall accounts for about half of all luxury goods purchases in the emirate, according to a study by Bain & Company.
Dubai Mall takes the lion's share of luxury goods sales
The Dubai Mall accounts for about half of all luxury goods purchases in the emirate, according to a study by Bain & Company.
In total, Dubai represents about 30 per cent of the regional market and 60 per cent of the UAE's luxury goods sector, the report said.
Worldwide revenues from luxury goods sales are expected to grow up to 50 per cent faster than global GDP, with an increase of 4 to 5 per cent this year and 5 to 6 per cent annual average through 2015.
The Middle East is growing at a steady pace, with Dubai remaining the "centre of gravity" of the region and the only city that attracts foreign luxury consumers from countries such as Russia and India.
"The Middle East is now the 10th largest luxury goods market with sales exceeding €6 billion [Dh28.34bn]," said Cyrille Fabre, a partner with Bain & Company, who leads the retail and consumer products practice for the Middle East.
"Local consumption, intra-region tourism and the strong historic relevance of hard luxury and perfumes [and] cosmetics are key market drivers. Dubai is the heart of the regional market."
Globally the luxury goods sector is being fuelled by a change in tourist consumption habits as they seek out new destinations such as Dubai and become more savvy about what they buy, said the report.
Every year, more "high earnings but not rich yet consumers", who are also known as Henrys, become potential customers.
And a rise in the middle class in emerging countries has created a new generation for luxury brands to target.
Globally, absolute luxury items - high-end products with no logo - lead the way, while watch consumption has declined as retailers destock and Chinese consumers buy fewer timepieces. Leather goods and other accessories continue to be strong and spending on apparel has enjoyed some recovery.
Around the world, Japan will return to growth at 5 per cent and Europe remains a challenge for luxury retailers, with flat to 2 per cent growth.
The Americas will experience overall growth of 5 to 7 per cent, while China is expected to stabilise at 7 per cent.
South East Asiais expected to outpace them all to record 20 per cent growth.