Getting a feel for the lap of luxury
Dubai: Today, everything sold in Dubai's malls seems to be described as "luxury."
As the summer shopping festival continues, in a city which defines itself through luxury, the real meaning of the word can seem murky. When it comes to extravagant clothing brands around the world, in the midst of economic turmoil, the boundaries between high street, luxury high street and the high end are shifting, with more and more shoppers and retailers pushing the boundaries further apart.
Within the elite of luxury brands, whilst the super wealthy continue to snap up the most expensive items available, the lower-spending end of their customer base is shrinking.
"We've seen a clear change in buying patterns," Michael Burke, CEO of Fendi, said. Whereas tourist shopping is down within the Gulf Cooperation Council, he explained, sales to high net worth residents continue to show solid growth.
"We've seen a shift away from what we like to call instant gratification to more long-term purchasing. So we've actually seen a rise in our average prices. We're selling our high end.
"It's really the entry price point that has suffered," he added. The entry price point tends towards the lower-priced items, which a customer with less disposable income may purchase in better economic times.
Lower-end high street luxury stores are experiencing a fall in sales both globally and in the UAE, retailers have said. However, earlier this month, in the World Trade Centre Big Brands Dubai (BBD) held a luxury brand event; the picture was very different.
With the higher end of luxury seeing increased demand in the Gulf, the lower end of the luxury market is working hard to recruit shoppers into brands they may have not previously considered.
BBD has been holding a huge sale in the centre seasonally for over five years and this year it has tied up with Dubai Summer Surprises.
The economic slowdown has boosted the popularity of the event this summer as shoppers look for value for money, say its organisers.
Sales for the first day were up 50 per cent on the same day at last year's event, Vijay Samyani, managing director of Inter Brands Corporation who organise BBD, said.
Seventy thousand people visited the three-day event this year, which usually attracts around 10,000 to 15,000 per day.
The sale offered items such as Lacost clothing and Crocs shoes at a 40 to 80 per cent discount. The brands are not on par with the high end of Fendi and its counterparts, but are branded as luxury. Samyani says the intention is to persuade consumers who don't normally spend money on high-end brands to try them. Indeed, those who begin to gain an affinity with a certain brand are less likely to downgrade in the future, Samyani says.
"The Big Brand concept is to basically bridge the gap between the consumer and the top brand," he explained.
If the person is not brand oriented we want the person to become brand oriented. That's the reason we are offering a discount. Once you have lived with a brand you want to maintain you're identity. People know you - that you are a Lacost guy, a person who is wearing Armani all the time."
The clothes on offer at BBD are from past seasons, however, this type of consumer is less likely to care about the season as opposed to the label.
"If you are a Louis Vuitton lover you will always go for the 2009 collection," he added. "But this new person just knows Louis Vuitton. For him, it doesn't make any difference if it's six months old. He only wants to relate to the brand."
This is the key to grasping such a demographic for the long term, explained Samyani. "They can afford it and then they get used to it and they buy it."
Inter Brands Corporation has coined these consumers as "mastiages."
While DBB is thriving, the regular retail outlets of the brand they sell are suffering a fall in sales. "This concept is not affected, but yes our retail outlets where we don't offer a discount - in the boutiques - they've been affected.
As the summer shopping festival continues, in a city which defines itself through luxury, the real meaning of the word can seem murky. When it comes to extravagant clothing brands around the world, in the midst of economic turmoil, the boundaries between high street, luxury high street and the high end are shifting, with more and more shoppers and retailers pushing the boundaries further apart.
Within the elite of luxury brands, whilst the super wealthy continue to snap up the most expensive items available, the lower-spending end of their customer base is shrinking.
"We've seen a clear change in buying patterns," Michael Burke, CEO of Fendi, said. Whereas tourist shopping is down within the Gulf Cooperation Council, he explained, sales to high net worth residents continue to show solid growth.
"We've seen a shift away from what we like to call instant gratification to more long-term purchasing. So we've actually seen a rise in our average prices. We're selling our high end.
"It's really the entry price point that has suffered," he added. The entry price point tends towards the lower-priced items, which a customer with less disposable income may purchase in better economic times.
Lower-end high street luxury stores are experiencing a fall in sales both globally and in the UAE, retailers have said. However, earlier this month, in the World Trade Centre Big Brands Dubai (BBD) held a luxury brand event; the picture was very different.
With the higher end of luxury seeing increased demand in the Gulf, the lower end of the luxury market is working hard to recruit shoppers into brands they may have not previously considered.
BBD has been holding a huge sale in the centre seasonally for over five years and this year it has tied up with Dubai Summer Surprises.
The economic slowdown has boosted the popularity of the event this summer as shoppers look for value for money, say its organisers.
Sales for the first day were up 50 per cent on the same day at last year's event, Vijay Samyani, managing director of Inter Brands Corporation who organise BBD, said.
Seventy thousand people visited the three-day event this year, which usually attracts around 10,000 to 15,000 per day.
The sale offered items such as Lacost clothing and Crocs shoes at a 40 to 80 per cent discount. The brands are not on par with the high end of Fendi and its counterparts, but are branded as luxury. Samyani says the intention is to persuade consumers who don't normally spend money on high-end brands to try them. Indeed, those who begin to gain an affinity with a certain brand are less likely to downgrade in the future, Samyani says.
"The Big Brand concept is to basically bridge the gap between the consumer and the top brand," he explained.
If the person is not brand oriented we want the person to become brand oriented. That's the reason we are offering a discount. Once you have lived with a brand you want to maintain you're identity. People know you - that you are a Lacost guy, a person who is wearing Armani all the time."
The clothes on offer at BBD are from past seasons, however, this type of consumer is less likely to care about the season as opposed to the label.
"If you are a Louis Vuitton lover you will always go for the 2009 collection," he added. "But this new person just knows Louis Vuitton. For him, it doesn't make any difference if it's six months old. He only wants to relate to the brand."
This is the key to grasping such a demographic for the long term, explained Samyani. "They can afford it and then they get used to it and they buy it."
Inter Brands Corporation has coined these consumers as "mastiages."
While DBB is thriving, the regular retail outlets of the brand they sell are suffering a fall in sales. "This concept is not affected, but yes our retail outlets where we don't offer a discount - in the boutiques - they've been affected.
Comments
Post a Comment