Global retail giants eye Dubai market
Dubai, April 17, 2011
Dubai is a more attractive market for luxury retailers than the established fashion capitals of London, Paris, and New York, said a survey conducted by leading global real estate adviser CB Richard Ellis (CBRE).
Now in its fourth year, the CBRE survey mapped the global footprint of 323 of the world’s top retailers across 73 countries to identify trends in global retail expansion at national and local level.
The annual survey titled 'How Global is the Business of Retail?' found that Dubai now attracts 82 per cent of luxury brands, just behind Hong Kong in first position (84 per cent), said a CBRE statement.
This figure is considerably higher than the percentage of global retailers across all sectors in Dubai (56 per cent) and reflects the emirate's growing status as a high-end fashion destination, it added.
Michael Leighton, senior retail consultant, CB Richard Ellis Middle East, said the report reflects the continuing love affair with luxury fashion for local residents and visitors to Dubai.
'Not only are consumers in this part of the world becoming wealthier, they also like the status that luxury brands bring and are more attuned to the latest fashion trends which enter the market,' he stated.
Many luxury retailers have opened in multiple locations such as “Fashion Avenue” at Dubai Mall and the relatively new “Fashion Dome” in the Mall of Emirates, with retailers such as Christian Dior, Dolce & Gabbana and Gianfranco Ferre developing flagship stores in prime locations to market their brand.
'These stores are then used as a springboard for expansion into other markets in the GCC and the wider region, with retailers looking to replicate their success in countries with a similar wealthy, well-educated, and well-travelled consumer base such as Kuwait or Saudi Arabia,' said the expert.
Abu Dhabi is also a top target for global retailers and is predicted to overtake Dubai in 2011 as a destination for new store openings, largely due to two major shopping centre openings, the Dalma Mall and Yas Marina Mall, the CBRE survey stated.
Leighton pointed out that Abu Dhabi currently has one of the highest income per capita in the world and 'with a significant amount of prime retail space set to be delivered in the next year there are significant opportunities for global brands to expand further in the GCC region and further a field.'
'Currently, many consumers from Abu Dhabi travel to Dubai for shopping trips, which has a greater choice of malls and brands; however, with high-end retail space set to come online at Dalma Mall and Yas Marina Mall, we expect Abu Dhabi to take over from Dubai this year in terms of attracting new global brands to the region,” he added.
Dubai, said Leighton, is also the most popular destination for Mid Range Fashion (60 ) retailers, with most coming from Europe and the US. Mid-Range retailers have also been targeting Riyadh and Kuwait, the third and fourth most popular destinations for this type of retailer.-TradeArabia News Service