The luxury industry turns its attention to Dubai
The future is here
As part of a detailed analytical report today, WWD has profiled Dubai as an ambitious city ready to embrace a huge growth in the next few years, especially when it comes to the luxury fashion market – also calling its tourism plans, "as steep as the Burj Khalifa: almost doubling annual visitors to 20 million by the year 2020."
The review comes following Chanel's recent annoucement that it will host its Cruise 2014/15 show in the Emirate tomorrow evening at a huge fashion extravaganza on a private island off the coast of the glittering "futuristic megalopolis of the 21st century."
It cites the reason for high fashion brands paying more attention to the metropolis in the desert as its important potential, with several large industry players recently exiting franchise arrangements to exert more control over a market that offers "strong top-line growth and profitability..."
Last year, Yves Saint Laurent established a joint venture with Al Tayer Insignia, and Gucci set a joint venture with Taleela Co. WLL to directly enter the Bahrain market. In a similar vein, Swatch Group took control of its retail partner, Dubai-based Rivoli Investments LLC, and Shiseido established a Dubai-based joint venture with its existing Middle East distributor.
"Retail is a national sport in Dubai," said Jean-François Palus, Group Managing Director at French group Kering, whose brands include Gucci, Bottega Veneta, Sergio Rossi and PUMA. "We are enjoying a good momentum in the area, particularly with the local clientele."