Sunday, August 1, 2010

Gulf bucks trend for luxury goods

Sales of luxury goods in the Middle East are due to rise by two per cent during the first half of this year, according to a new report.

This is in stark contract to global sales, which are due to plunge by as much as 20 per cent across the same period.

The worldwide report, by Bain and Company, said the luxury goods market would shrink to $200 billion, from its 2008 level of $221 billion.

It estimates that the market in the US would decline by 15 per cent and by ten per cent in Europe and Japan. However, China is due to grow by seven per cent and the Middle East would also buck the trend and rise two per cent.

The news came as it was announced that Abu Dhabi and Dubai are the biggest selling sales offices for Rolls Royce luxury cars.

Designer Ahmed Al Reyaysa also announced this week that his one million dirham wedding dress, which is replete with half a million Swarovski crystals and was unveiled at The Bride Show Dubai, has already received four orders and said he expects demand to be high.

Luxury Swiss watch manufacturer Girard-Perregaux also recently announced that it plans to launch a diamond and white gold watch, worth approximately $1 million, onto the Middle East market.

The report predicts that global sales of apparel will be hit the hardest, declining by 15 per cent. Jewellery and watches are expected to decline by 12 per cent and leather goods, shoes and accessories will see a drop of ten per cent.

“One of the biggest changes we’ve seen is that ‘price’ and ‘luxury’ are no longer synonymous,” the report said.