Luxury consumption in UAE evolving
dubai — Consumers in the UAE today have evolved, especially in the way that they are shopping for luxury items, Patrick Chalhoub, joint chief executive officer of Chalhoub Group, revealed.
Speaking at the Retail Leaders Circle, or RLC, event in Dubai, Chalhoub said that consumers in the UAE today are well travelled and better connected, with a wealth of information available at their fingertips thanks to the Internet. This means that they are increasingly knowledgeable and better informed when it comes to making purchasing decisions, he noted.
“We are seeing customers that are spending a lot of time being more open to the world through digital devices such as smartphones and tablets. They are sharing a lot of information with their friends and family about what they are doing, where they are socialising, and what they are interested in. This is a trend that will continue in the coming years,” Chalhoub said.
“Customers today are also much more mature, and sure about themselves and what they want. So, what do customers today want? Customers today aren’t only interested in a brand or its product anymore; they are interested more and more in stories. Stories which portray a brand and its values through merchandising, through store decorations, and through employee engagement,” he explained. Chalhoub
We are seeing customers that are spending a lot of time being more open to the world through digital devices such as smartphones and tablets
Patrick Chalhoub, Joint Chief Executive Officer, Chalhoub Group
also talked about how a greater number of customers today are focused on self- expression through the items that they purchase. Retailers in the region, especially those in the luxury segment, are under increasing pressures to provide the evolving customers with what they require as the focus shifts to self-expression, he noted. Consumers today are also more focused on experiencing luxury rather than simply owning it, he revealed.
“Consumers today still want to purchase and own luxury prod- ucts, but they are increasingly doing so for themselves, rather than to make a statement for the others around them. They are focusing more on their inner satisfaction,” Chalhoub said. “Another evolving trend that we noticed in customers in the region is that they want to experience more unique luxury. It’s not just about a product or its price; today more than ever it’s about the experience. About how pleasant the shopping experience was; about how much of a connection I have formed with a certain brand; and the satisfaction that I get from having a good time at the store every time I visit.”
Chalhoub also said that customers today are asking for different kinds of shopping experiences, and that this has lead to the emergence of a new norm. Shoppers, he said, are more interested in speciality stores, and the demand for both concept stores and popup stores, especially in malls, is on the rise.