Lux Retailmarketoverview DUB

7/30/2019 Lux Retailmarketoverview DUB

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LUXURYRETAILMARKETOVERVIEW

DUBAI

February2011


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UNITEDARABEMIRATESCOUNTRYOVERVIEW

2

EGYPT

JORDAN

BAHRAIN

UNITEDARABEMIRATES

LEBANON

KUWAIT

QATAR

SAUDIARABIA

YEMEN

OMAN

SYRIA

IRAQIRAN

Fourth largest Arab League economyUnitedArab Emiratesconsistof sevenemirateswithcapitalAbuDhabi

President:KhalifabinZayedAlNahyan VicePresident:MohammedbinRashid

AlMaktoum(rulerofDubai)

LandMass:83,600sq.km. Popula_on: 5.5 million with 2.5%

popula_ongrowthrate(2009)

Currency:3.67AED/USD 8.1%ofworldoilreservesand3.4%of

worldtotalgasreserves

GDP: US$199.8 billion with 2,6%nominal growth and GDP PPP US$40,200(UAE2010)

Non-oil GDP growth is driven bytransporta_on, finance, tourism,serviceandrealestatesectors


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DUBAI-SNAPSHOT

Dubai has emerged from the desert to become one of the most modern andluxuriousci_esintheworldtolive,visitandshop

DespiteofthefinancialcrisisthenumberofHNWIisexpectedtogrowfurtherat10%rateayear

Citysretailindustryhasbeenoneofthefastestgrowingandhasbecomeoneoftheworldsmostdesirableenvironmentsforinvestmentandrevenuegenera_on

Dueto increasing public andprivatesector consump_onDubais industryver_cals(tourism,trade,banking, etc) arestrong andareexpectedtoboost retail industryCAGRfurthertoimpressive13%(2010-2013)

Aspira_onal behavior and preference for interna_onal luxury brands amongexpatriates, tourists and young locals alike is high and is strongly increasing by

variousshoppingcarnivalsandeventsaswellasrapiddevelopmentofmodernretail

infrastructure

Percapitaconsump_onofcosme_csandfragrancesintheUAEisoneofthehighestintheworld

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DUBAI-GENERAL

Total Popula_on: 1,905,000 with1,485,000male (out of4,975,593 intotalUAE)

303,800 HNWI (6.2% of UAE totalpopula_on2010)

Dubais expat community 80% oftotalpopula_on Highlyarac_veforexpatsdue

to no income tax increased

savingandahigher disposableincome

56% of expats receive adisposable income of over US$3,000permonth

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Dubai offers high standard, relaxedandpleasantlifestyle

Low crime rate, developedinfrastructure, clean streets and

abundance of domes_c servicescreates a comfortable and safe

environment Several diverse religious and ethnic

groupsco-existinpeacefulhabita_on

Local and foreign media is easilyavailable

Alcoholmaybeconsumedatmul_plerestaurants,barsandclubsaswellasathome

Dubaiin1995 Dubaiin2010


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DUBAI-TOURISM

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Occupancylevelsacrosshospitalitymarket registered on average at80%(2010)

Cityisalsohomeforover100fivestar restaurants brands andmul_ple fashion clubs, fashion

hotelsandbars OvertheyearsDubaihasbecomea

top des_na_on to foreign visitors

mainly for its luxurious lifestyle.

Dubai hosts number of world

known hotel brands, spas,interna_onal fine dining, great

night life, service and number of

arac_ons such as Burj Khalifa,

ThePalmJumeirah,TheWorld,SkiDubai,DubaiAquarium,DubaiMallandvarioustex_le,goldandspice

souks

Tourismindustryhasbeenakeyfactorindeveloping Dubais economy and ishighlyconnectedtocountrysGDP

The UAE tourism industry achievedCAGRof10.69%(1998-2008)

In 2010 Dubai received around 10milliontourists

From luxury tourism perspec_ve cityaracts mostly Russians, Chinese,

Indians, na_onals and expatriates fromother GCC countries, Lebanese, Bri_sh,

FrenchandGermans

Dubai houses around 560 hotels anddespite of the worldwide hospitality

decline in past years has globally

compe__ve RevPar around US$200(2010)


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Hospitality

FineDining

Nightlife


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DUBAILUXURYRETAILENVIRONMENT

DubaiisseenasShoppingCapitaloftheMiddleEast Various shopping fes_vals suchas Dubai ShoppingFes_valand Dubai Summer

Surprisesaremajorcontributorstototalretailsales

Dubaihouses385luxurybrandsandstoresandhenceDubaisluxuryretailindustryhasbecometheprimarytradinghubinGCCwithluxuryretailsalesgrowingaverageof12%peryearcomparedto7%oftherestoftheworld(2009)

Des_na_onmallsremaintohavethewidestmarketappeal Dubaihouses25mallswith5moreunderconstruc_on Top five luxury malls being Dubai Mall (worlds largest shopping mall),

BurJumanCentre,Emirates Tower Boulevard,Mall of theEmirates andWafi

Center

Department stores include Bloomingdales, Galeries Lafayee, Saks FihAvenue,HarveyNicholsandSalaamDepartmentStore

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DUBAILUXURYRETAILENVIRONMENT(CONT)

Marketindicators: DubaisretailsectorstotalspendingpassedUS$7.6bnattheendof2009 DubaisGLAhasgrownofapprox.263%(2006to2010)andamountedto3.2

millionsquarem(2010)

Average rent of US$750 and premium rent of US$1,000 per annum persquarem(2010)

93%occupancyrateoverallwiththemajormallsenjoying100%occupancy(2010) InforthcomingyearsretailforthcomingdevelopmentsincludeMallofArabia,

DubaiPearlMallandAlMadinaMallincreasingGLAevenfurther

10

0

200

400

600800

1000

1200

1400

1600

Dubai AbuDhabi USA-

Average

Europe-

Average

TotalRetailSpaceAvailability2010

m2per1000people


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DUBAILUXURYRETAILPLAYERS

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Overview

Foundedin1979intheUAE,theAlTayerGroupis privately owned retail company with

opera_onsinAutomobile,Fashion,Cosme_cs&

Perfume,Jewellery,Publishing,Contrac_ngand

Engineering

Thecompany'sconsumerretaildivision,AlTayerInsignia, is the largest luxury retailer in the

Middle East with 36 luxury brands & 2

department stores in its porolio and over

1,600employees

GeographicalReach

AlTayerGroup

SelectedBrands-Fashion&Jewellery

AlexanderMcQueenArmani

Balenciaga

BoegaVeneta

Dolce&GabbanaPucci

MoschinoOunass

SergioRossi

StellaMcCarthey

ThomasPinkYvesSaintLauren

GiuseppeZanoGucci

JeanPaulGaul_erJimmyChoo

LoroPiana

MahewWilliamson

AspreyAzal

Boucheron

Bvlgari

DamianiPommelato

Groups opera_ons extendbeyond the UAE into twelve

countries in total with Al Tayer

Insignia being present in

mul_ple Middle East countries

includingBahrain,Kuwait,Oman

andQatar

Fashion & Jewellery lines havearound90outletsintotal


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Overview

Founded in 1974 in the UAE, Bin HendiEnterprisesLLCBinHendiisaprivatelyowned

retailcompanywith opera_onsin theFashion,

Watches & Jewellery, Cosme_cs & Perfume,

HospitalityandFineDining

The Group has porolio of over 75 world-renownedbrands

Addi_onallytoretailsectorBinhHendisBaitu_DesignsLLCofferinteriorsdesignconsultancyin

thedisciplinesofretail&hospitalityprojects

GeographicalReach

BinHendi

SelectedBrands-Fashion&Jewellery

Ar_oliBillionaire

BrioniGFFerre

HugoBoss

Joseph

DelaCourFrancVila

GrafVonFaber-CastellGoldvish

Graff

Jacob&Co

MissSixtyPaul&Shark

ShanghaiTangZilli

Mar_nBraunNavitec

Nubeo

PorscheDesign

UlysseNardin

Welder

Groups core opera_ons in theUAE extend beyond to other

GCCcountriesandIndia

Fashion & Jewellery andFurniture lines have around 40

outletsintotal


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Overview

Founded in 1955 in Damascus, Syria, theChalhoub Group today remains to be family

owned conglomerate with a porolio of over

280luxurybrands

Chalhoub Group specializes in the retail,distribu_onandmarke_ngofrenownedbrandswithinthesectorsofFashion,BeautyandGis

andemploysateamof5,800people

The Group is ac_vely involved with mul_pleprojectsinsocialresponsibilityandpreserva_on

oftheenvironmentfields

GeographicalReach

ChalhoubGroup

SelectedBrandsFashion&Beauty

Berlu_Bonpoint

CarolinaHerreraCeline

Chris_anDior

Chris_anLoubou_n

LouisVuionMarcJacobs

MulberryPaul&Joe

PaulSmith

RalphLauren

D&GDolce&Gabbana

Dsquared2

ErmenegildoZegna

Fendi

Lacoste

BiothremFaces

Kors

LOccitane

MoltonBrown

Sephora

TheCompanyhaspresencein14countriesacrosstheMiddleEast

incl. theUAE, Kingdomof Saudi

Arabia, Qatar, Oman, Kuwait,

Jordan, Iraq, Iran, Lebanon and

Yemen

Chalhoub Group manages over350retailoutletsintotal


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Overview

Paris Gallery Group is the flagship retail anddistribu_ondivisionofAlFahimHoldings,privately

owneddiversifiedbusinessholding

The Group manages retail opera_ons ofhomegrownbrandssuchasParisGalleryStoresandWatchGalleryaswellasoperatesthefranchisesof

interna_onalbrands

38ParisGalleryStoresofferover450interna_onalbrands of Cosme_cs& Fragrances, Accessories &

Watches,EyewearandFashionApparel

GeographicalReach

ParisGalleryGroup

The Group operates over 80stores across the UAE, Saudi

Arabia,QatarandBahrain

In 2009 announced expansionplans of 16 new stores will

increaseGroups retailpresence

to30,524m2intotal

SelectedBrands-Cosme_cs&Fashion&Accessories&Watches

BurberryCar_er

ETRO

Ferrari

RobertoCavalliSalvatoreFerragamo

Baume&MercierChopard

Chris_anDior

Fendi

Hublot

HarryWinston

AlexanderMcQueenGina

Missoni

PedroGarcia

DKNYGivency

BobbiBrownChanel

Clarins

Clinique

CrmedelaMer

Kanebo


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Overview

Salam Group established in 1952, belongs toSalam Interna_onal Investment Limited, Qatari

basedpubliclylistedcompany

SalamGroupoperatesfivedepartmentstoreretailoutlets carrying the latest Luxury and DesignerApparel, Jewellery & Accessories, Beauty &

Cosme_cs, Home Furnishing and Photography

Products

The Grouphas over50% ofQatar'sPerfumes &Cosme_cswholesalemarket

GeographicalReach

SalamGroup

TheGrouphasregionalpresencein the UAE, Dubai and Abu

Dhabi, in Qatar, Doha and in

Oman,Muscat

IntotalSalamGroupu_lizesover20,000squaremofretailspace

SelectedBrandsFashion&Jewellery

7ForAllMankindAlice+Olivia

CatherineMalandrinoClassRobertoCavalli

Diesel

ElieTahari

KenzoPaul&JoeSister

Paul&SharkPhilippPlein

PoloRalphLauren

RedValen_no

FallianoGFFerre

HugoBoss

HuteHippie

JosephJustCavalli

RoccobaroccoSeebyChloe

Theory

Versace

YoanaBaraschi

ZSpoke


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DUBAIFUTURETRENDS

ConceptofLuxuryiswidelyacceptedintheUAEandisprominentlyfeaturedinmedia,environmentand lifestyleandhencethemajorkeydriversforthe furthergrowthandsustainabilityofluxuryretailindustryintheUAEandDubaiare:

Increasingpopula_on Furthergrowingeconomy Welldevelopedinfrastructureandlargeavailabilityofretailspace Risingnumberofregionalplayersintroducing&represen_ngnichebrandson

asmallerscale

IncreasingnumberoftouristsespeciallyfromChinaandIndia

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Forfurtherinforma.onregardingUAEretailenvironment&insightsandoverviews

pleasecontactLuxuryMovement,ManagementConsultancy,specializinginluxury

industrieswithintheMiddleEastandEmergingAsiaWithinluxuryretailsectorweoffermul.pleservicessuchasLuxuryBranding,LuxuryBusinessDevelopmentand

IntegratedMarke.ng Communica.on & PR that can be further customized and

tailoredtoclientsindividualneeds


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