Luxury Sector in UAE: A Realistic Implementation Plan for luxury business consulting firms in Dubai engineering consulting firms
Luxury Sector in UAE: A Realistic Implementation Plan for engineering consulting firms and luxury business consulting firms in Dubai
The United Arab Emirates has carved itself ino the world stage premium market; it is a sanctuary for high-end fashion, fine jewelry, luxury cars, and personalized experiences. This is fueled by the strategic geographical position, high net worth population, and tourism. The present article covers the luxury sector landscape and key statistics, providing an all-inclusive guide on how to implement a luxury brand in the UAE. Besides that, we have also pointed out some of the most rewarding advantages of setting up a business in this affluent region and analyzed the reasons for the spreading of the luxury market.
The Luxury Market Landscape in UAE for luxury consulting firms in Dubai
The UAE luxury market is one of the most rapidly emerging markets in its league globally. According to the report by Bain & Company, the Middle East, led by the UAE, will see its luxury goods market grow 3-5 percent annually by 2025. The UAE recorded around $7 billion in the value of luxury markets in the year 2020 and grew with time due to increased customer demand and tourism. Some of the key drivers of further growth include:
- High Disposable Income: It enjoys one of the highest GDPs per capita worldwide, and Dubai and Abu Dhabi particularly boast a high-spending capacity.
- Tourism: The UAE attracts millions of visitors yearly, the majority of whom comprise high-net-worth individuals who have high tastes and grandeur. For instance, during 2019, Dubai hosted over 16 million visitors. This large visitor base tremendously impacted the luxury category.
- Over 80% of UAE is an expatriate population, including a significant affluent population that collectively contributes to the luxury product and services demand.
Benefits of Business consulting firm in Dubai:
- The geographical strategic location of the UAE between Europe, Asia, and Africa provides it with being the most ideal place for international trade and commerce hub, and for the luxury brand makers it gives lucrative opportunity as well since here they can access the richer, and varied customer base.
- The economy of the UAE is resilient since it is diversified with reduced dependence on oil money. The concentration by the government on sectors such as tourism, finance, and real estate keeps the economic stability and growth.
- Business-Friendly Environment: The UAE provides an excellent environment for any business through free zone facilities that accord 100% foreign ownership, tax exemption, and full profit repatriation. The country’s regulatory framework aids the ease in establishing and running businesses.
- State-of-the-Art Infrastructure: Infrastructure that is world class, with luxury malls, modern retail space, and state-of-the-art facilities for logistics, sets the perfect platform for any luxury brand to successfully execute its plans.
Implementation of a Luxury Brand in UAE
- Market Research: The market needs to be understood in the UAE. It may consist of consumer preference, competitive landscape, and trends on the market. Special attention areas are consumer spending behavior, preferred luxury categories, and any emerging trends such as sustainable luxury.
- Strategic Plan: A comprehensive strategic plan would include items such as brand positioning, identifying the target audience, and unique selling propositions. It must account for short-term objectives as much as the long-term strategies for growth.
- Influencing the Right Choice of Legal Structure: Choosing between setting up in a Free zone or as a mainland company, free zones like Dubai Design District, d3, and Dubai Multi Commodities Centre, DMCC, represent extreme locations for luxury brands. This includes its ease of setup, in general, with a number of other incentives.
- Brand localization and marketing: Make your brand relevant to the local culture and consumer taste. This does not just involve localizing marketing campaigns to project exclusivism, heritage, and craftsmanship but would also include the use of digital marketing, social media, and influencer collaborations to give it more mileage.
- Prime Location Selection: Of the many high-end locations, The Dubai Mall, the Mall of the Emirates, and Abu Dhabi’s Galleria will be thereat retailers reach the elite shopper. These places are considered to be prestigious locations for any luxury brand.
- Customer Experience: Good customer service is the most important factor in the luxury segment. Invest in staff training reportedly for personal, memorable brand experiences that epitomize your values and ethos.
- Technology Leverage: Carol in digital innovations such as e-commerce, augmented reality, data analytics, etc., to enhance customer engagement as well as your own operational efficiencies. Virtual try-ons, personalization of an online experience, and exclusive content creation are ways to differentiate your brand.
The UAE provides an ideal powerhouse backdrop for a luxury brand through its high growth market, strategic advantages, and supportive business landscape. High disposable income is allied to what would, otherwise, be flourishing tourism and vibrant expatriate communities; this forms a solid base for demand for luxury goods and services. Three ingredients of the recipe easing the way to establishing and growing a luxury brand in the UAE would thus be market research, strategic planning, and commitment to excellent customer experience. With the luxury market all set and geared for continued growth, it is now more than any other time that there is a need to take advantage of the unequaled opportunities open in the UAE.
Read our article ” how business consulting firms in Dubai transformed the city into a global luxury hub“