File photo used for representation only
Qatar’s luxury goods market, which has been valued at $1.84bn and expected to grow at a healthy CAGR of 2.55 percent in the forecast period 2019-2024, is regarded as the world’s fastest growing luxury market, according to a report by Mordor Intelligence.
Qataris are also considered as the biggest buyers of goods in the Middle East, said the report, which reiterated Qatar’s majority stake in the Italian fashion brand Valentino as well as the landmark department stores Harrods and Printemps in London and Paris, in addition to developing its own luxury label Qela.
With a number of shopping malls being improved and launched in the run-up to the FIFA World Cup 2022, such as the opening of the Palace Vendome recently, the country’s luxury industry poses a huge potential to further grow.
Aside from investments made by the Qatari sovereign wealth fund Qatar Investment Authority (QIA) in global luxury brands, individual Qataris and other Qatar-based entrepreneurs are also investing in luxury markets both locally and internationally.
In an interview with The Peninsula, Board Member at the Qatari Businesswomen Association (QBWA) Mishael Al Ansari noted that several members of the group were highly involved in the luxury goods sector.
“Today we have a lot of members who have their businesses in London, New York, and Paris, and many of these businesses are in the luxury fashion industry,” said Al Ansari.
According to Mordor Intelligence, the main factors that aid Qatar to becoming a regional luxury fashion hub are the higher incomes of Qataris and the increasing investment in the luxury fashion sector. There is also substantial demand for modes of fashion in the country, which is expected to continue to grow in the coming future.
The wider presence of an affluent consumer base has attracted several luxury retailers to Doha, and with Qatar’s organised retail space currently going through a period of rapid expansion and with a strong pipeline of mall openings, several international and regional retailers continue to establish and expand their presence in the country, the report added.
Still, jewellery continues to hold a prominent share in Qatar’s luxury goods market, which is reflected in the upbeat mood surrounding the much anticipated Doha Jewellery & Watches Exhibition (DJWE), which was inaugurated by the Qatar Tourism yesterday.
The rising rate of urbanisation and changing preferences of the customers compel the jewellery brands to effectively market their products and expand their product lines through innovations in designs, the report said. It added that presently, manufacturers in the Qatari market are focusing on developing new and innovative designs, to fulfill the changing needs and demands of the consumers, by using advanced technologies, such as computer-aided design (CAD) and rapid prototyping (RP), which play a vital role in incorporating 3D printing in jewellery. Most of the vendors are also adopting online retail strategies to reduce costs and increase their profit margins, which will benefit the market, the report added.
