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UAE INFANT RETAIL SECTOR SECTOR ANALYSIS


DISPOSABLE INCOME / NO. OF BABIES IN UAE


520 525


500 505 510 515


1,200,000 1,000,000


800,000 600,000 400,000


200,000 2011 No. Babies (0-4yrs) 2012 2013 Annual disposable income 2014 2015


THE LUXURY BABY BOOM


In 2011, designer clothing and footwear including infant designer clothing remained the largest category covered by Euromonitor International’s luxury goods research, with women’s designer dresses and skirts leading the way. Valued at Dhs3.5 billion in 2010, designer clothing and footwear accounted for an impressive 42 per cent of overall luxury goods sales. Nonetheless, the UAE designer clothing and footwear category was the second worst hit out of the 26 countries covered by Euromonitor International’s luxury goods research, after Japan, which saw a real terms decline of 30 per cent. Despite the crisis, Dubai Fashion Week took place in 2009, 2010 and 2011, after the success of the 2008 edition. On the other hand, children’s clothing and


Like many of the GCC markets, the UAE is very much a “label me” environment, where brands are regarded as a symbol of social status and success. More than a third of residents in the UAE are likely to purchase a luxury product at least once a year, a proportion that is much higher than in many other markets across the world. This is mainly due to high disposable income levels in a country made up of a majority of young working expatriates. The UAE population’s demand for luxury has brought all major luxury brands to this market, many of which entered the GCC region for the first time through Dubai.


For instance, designer clothing and footwear is very much driven by the country’s business environment, where, amongst the higher rankings, all employees are expected to be impeccably dressed during meetings and working hours, and where designer clothing and footwear is the standard work attire. The UAE, and especially Dubai, is also very much characterised by its “bling” aspect, making personal appearance very important.


SALES GROWTH IN SAUDI ARABIA AND UAE GEOGRAPHIES


LUXURY CLOTHING CATEGORIES


Saudi Arabia Saudi Arabia


United Arab Emirates United Arab Emirates


Designer clothing and footwear Infants’ designer clothing


Designer clothing and footwear Infants’ designer clothing


SOURCE: Luxury Goods: Euromonitor from trade sources/national statistics


2010-15 CAGR 4.1% 6.3% 4.3% 3.7%


footwear in the UAE remained recession- proof, recording very high growth between 2005 and 2010 including 15 per cent value growth in 2009 when the financial crisis was at its peak. With high disposable income in the country, coupled with a large availability of designer brands for children, Emirati families continued to spend on designer brands for their children, in particular babies, whilst trading down on other products. This trend is expected to continue well into the future, with Euromonitor International expecting an 18 per cent compound annual growth rate over the next five years, with sales estimated to reach Dhs17 million by 2015 for infant designer clothing. This trend extended to the food industry where organic premium baby food is


gradually becoming mainstream especially in Dubai and Abu Dhabi. Hipp by Hipp GMBH & Co. in particular is leading the segment with significant shelf space.


SANA TOUKAN Research manager, Euromonitor


GULF BUSINESS / 97


No. Babies (Thousands)


Dhs


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