1. style and fashion
2. luxury goods

Focusing on the core
customers to grow
Program
June 1 & June 2, 2015
a
r
a
b
l
u
x
u
r
y
w
o
r
l
d
.
c
o
m
accessories • arts & culture • cosmetics • fashion • jewelry • fragrances • premium cars • tourism • watches
David Friedman - Wealth-X
Nadine Touma- Chalhoub Group
M i s s i o n & Va l u e s
The luxury industry has recorded a growth over 11% last year and
the coming years expectations are for the market to maintain a
growth of 8%. At the same time private wealth in the GCC has
doubled from 2010 to 2014. But with those great opportunities
are great challenges for luxury brands, distributors and retailers.
The market is saturated with luxury and premium brands fighting
for market share.
In an over abundant market how do you focus on your resident
core consumers to growth?
This year arab luxury world looks at the core of luxury and consumers. From story telling to digital engagement with consumers. From content marketing to retail model and e-commerce
the regional landscape is changing. New malls and capacity are coming and the next few
years are about a return to the essentials. The core values of the brand value, and a renewed
focus on the regional market.
arab luxury world is more than a conference on the business of luxury in the Middle East, it
is a summit built on the extraordinary growth the region has recorded in the luxury segment.
The fact that the region is transitioning from a frontier market to a developed one is of utmost
significance for most luxury brands. arab luxury world was also born out of the necessity for
the industry to come together, once a year, share, interact and exchange knowledge. To
once a year, understand consumers insights through unique research. Under one roof, arab
luxury world brings together the luxury brands, the agents, the distributors, the mall operators,
the service providers to the luxury industry to discuss the challenges and opportunities facing
our industry.
arab luxury world is more than an event, it is a yearly meeting for all people who work
in the business of luxury in the Arabian Gulf and the rest of the Middle East region. It is
an open invitation to all brands abroad that want to explore the region, to come see
and experience it during the arab luxury world.
Sessions in this plenary hall are open to all delegates, while sessions in the breakout rooms
are under the Chatham House Rule. arab luxury world is also about interacting, networking
and meeting. We designed a networking area that gives the facilities to meet and discuss.
We look forward to seeing you all on June 1 and 2, 2015.
Overview
arab luxury world 2014, the conference on
e-commerce trends and challenges, and
the business of luxury in the Mena region,
luxury automobiles.
provided a dynamic platform for meaningful
Chalhoub group has estimated that the
discussions, sharing ideas and networking
consumer yearly spend on beauty, fashion
with industry experts. The two-day conference
and gifts per capita in the GCC is close to
by Mediaquest Corp, which takes place on
$30,000. Ten times what is being spend in some
June 1 and 2 at the Westin Dubai Mina Seyahi,
European countries. So it comes as no surprise
will welcome the regional luxury sector from
that this $8.5 billion market will maintain an
Watches & Jewelry, Fashion & Accessories,
8% growth in the coming years1. And with the
Perfumes & Cosmetics, Premium Cars, Tourism,
Middle East’s private wealth having doubled2
Art & Culture. More than 100 panelists will
the last 4 years, the Middle East and North
share their views on topics, such as the future
Africa market represent a unique opportunity
of the luxury market, home-grown luxury,
for luxury players to grow.
1
2
Airbus Corporate Jets Billionaire Study 2014 Bain & Company Luxury
Strategy &
“With a large number of mall openings the luxury
growth will be faster throughout the GCC region
the coming frive years.”
Bain
“The number of UHNWI in the Middle East
is expected to grow by 35% by 2003.”
Deloitte
Mediaquest - arabluxur yworld.com
Laurent Gaborit
Cartier Watches
Akram Miknas
Middle East
Communications Network
Juergen Schmitz - Infiniti / Neil Slade - Aston Martin
Michel Ogrizek - MGroup / Sarah Aziz - Coutts / Erwin Bamps - Gulf Craft Inc
Hala Khayat - Christies / Tine Arentsen Willumsen - Above & Beyond
Yassin Tag - Vacheron Constantin
Saleh Al Banna - House of Nomad / Nathalie Trad - Nathalie Trad Designs
Maitha Al Suwaidi - Dubai Design District / Karoline Huber - IWC
Rami Kadi - Rami Kadi / Aiisha Ramadan - Aiisha Atelier
Adi Hasan Al Fardan - Al Fardan Jewellery
Stephane de Palmas - Tiffany & Co.
Mediaquest - arabluxur yworld.com
Sessions
Future of luxury market
Is nationalism changing this approach for some
Setting the stage for the industry; what is going
customers? How should local brands grow in the
on? How has the year evolved? What are the glo-
region? What are the problems facing in scaling
bal and the regional trends? Are oil prices impac-
up production?
ting the market? With a lot of luxury brands based
in the Euro zone, are the prices going to drop with
Saudi Consumers
the Euro? The Swiss Franc is strengthening what will
With a new generation in Saudi Arabia this ses-
it change for luxury watch brands? Slowdown in
sion will offer a profile of the Saudi consumer with
China and the return of the US market.
a focus on the luxury market; what do they want?
What differentiate them from the rest of the GCC
Middle East markets
consumers? Are recent changes in regulation im-
What are the major trends? What are the macros
pacting consumer behavior? What makes Saudi
and the evolutions of the local market? How Geo-
consumer tick?
politics and instability is affecting the region. Macro
review of the luxury market will focus on key as-
Saudi the Kingdom on the rise
pects such consumers, regional economies and
The Saudi economy has been on a drive of diver-
tourism. Are oil prices affecting the trends, and
sification. With changes impacting the economy,
what this means for the mega retail projects, in-
a review of the economy, changes in labour laws,
vestments in tourism and hospitality?
transformation of the market, new malls, and developments. Stress on local workforce – challenges
UHNWI
and opportunities. Saudi Arabia is the price to gain
How are Ultra High Net Worth individuals spending
for brands that put in place the right strategy. Is the
their money? Is there a change of their spending
change of leadership and administration going to
habits? Based on a study and its results this session
affect the Saudi market? Are Malls adapted to grow
will unveil the latest trends of this exclusive segment.
the market?
Building regional brands
Iranian Opportunity
The local production faces a huge hurdle; with
Hurt by the drop of oil prices the country is hoping
customers giving less value to local products. The
sanctions will ease; is Iran a market full of opportu-
strong resistance to local production comes from
nities for luxury brands? In this uncharted territory
Saudi and Lebanese market. There is a renewed
how can a brand set up shop? What are the regu-
hope from a development where LVMH bought
lations? Is the legislation encouraging brands to set
stake in Saudi premium dates retailer Bateel.
up? Long history of civilization and appreciation of
How do you build and create brand awareness?
heritage brands already exists.
Sessions
Luxury Retail
the fierce competition? How geopolitics is affec-
With oversupply and saturation in markets like
ting tourism in the UAE and in the Middle East?
Dubai, the challenge for brands is to expand to
other parts of the region. Mono brand store are
Arab Tourists’ Behaviours
on the rise giving more control for the brand and
With Arab airlines offering flights to almost eve-
allowing a better experience for the customer.
rywhere in the world, Arab travellers are travelling
How do you bring customers to your store?
more and more. It is an opportunity for brands
Where to expand and how to control this expan-
worldwide to acquire a new clientele.
sion? From CRM, activation, to merchandising,
How to attract Arab tourists when they are travel-
retail is being transformed. How mega malls will
ling abroad? What are the buying patterns and
change the retail scene in the region?
behaviours? What are they looking for?
Malls Developments
Redefining Distributors 2.0
With the region growing, and luxury brands stri-
With growing supply of brands and retails, distri-
ving, malls operators are expanding. What are
butors are moving to the next level. Using CRM
the malls in the pipeline in the next 4 years?
and special operations to attract the customers;
More and more malls and shopping centers are
how do brands build customer loyalty? Do digi-
opening in the region; what are the challenges
tal advertising, CRM and activations are still the
regional retailers are facing? Is the market satu-
best options? How to create a seamless chain of
rated? Are projects like Mall of the World viable
manufacturers, distributors/suppliers and retai-
for retailers? How do brands plan on facing the
lers? Are old models broken? Should the relation
rising cost of retail? Are rising cost of retail in the
between the brand and the distributor evolve?
region going to impact sales?
PR & Communication
Hospitality
A year in review. How has the PR industry fared?
The tourism industry in the region has invested
With brands focus on telling their story, PR pro-
heavily in giving products that are top notch.
fessionals need to stay true to the DNA of the
How does the industry take the next step in ma-
brands while pushing for coverage. How can PR
king something different that will focus on EX-
transform to respond to instant requests? Are PR
PERIENCE and uniqueness for its clients? Where
professional stuck in the last world or are brands
will the next wave of tourists come from to the
not ready to move to native advertisements and
region? Will the next growth come from regional
content marketing? Should the discussion be
tourism? Where is that focus on the experience
kept in house or outsourced? Are PR firms com-
coming from? How do hospitality brands face
municating the message effectively?
Mediaquest - arabluxur yworld.com
Technology’s Impact of on Luxury
tools for brands to promote their products; can
With smart watches, 3D printing and the internet
social media market luxury brands as well as tra-
of things coming to the market; the luxury indus-
ditional medium? Is the tool over exposed and
try will need to prepare for those new categories.
losing the genuine aspect? The use and abuse
What is the current situation in the region? How
of social media.
will this impact a market that used to be driven
by novelty? What is the new digital equation in
Digital Strategy
the luxury industry?
As the digital infrastructure of the region keeps
growing the bandwidth of the connection allows
Content marketing
new the deployment of new strategies. Brands
Native advertising, content marketing, videos
try to reproduce in store experience through pur-
and images are constantly used by luxury
posed designed site.
brands to promote their products. Brands are
This session will offer an update on the status
embracing the digital technology to reach their
of e-commerce, advertising, branding and
customers.
content. What have been the changes over the
What is the status of the content marketing in
last 12 months and what are the trends for the
the region? Are social media overhyped? What
region?
should be the mix of digital media and traditional media to reach Arab consumers? How to tell
The death of the ad banner
a story in the marketing strategies?
Ad banner have proven to have limited impact.
With recent scandals, that involve click fraud
Digital IQ
and traffic fraud, brands are looking beyond
The Middle East is the leading region worldwide
the traditional ad banner to migrate toward the
when it comes to mobile and internet penetra-
engagement. What are the alternatives? Can
tion. Those digital platform offer brands a new
online advertising build the brand? Or is it just
way to reach their customers but are they ma-
tactical? Are ad banners dead?
king the most of it? How are luxury brands ranked
in the region in term of digital performance?How
E-commerce
close are they to Arab audiences? Where do
How to solve the credit card payment limitation
brands stand in terms of embracing the digital
in the region? How about customs duties and
aspect of their businesses?
clearance issues that the industry faces? Can
the luxury experience be reproduced online?
Social Media
What about other payment modes, can those
With bloggers and Instagram users becoming
be applied to the luxury brands?
Sessions
The Ubiquitous Effect
haviours are evolving. This session will look at how
GCC customers are buying more than $600 mil-
brands are and should be marketing their products
lions of goods every year from US e-commerce
to women. Are brands creating exclusive expe-
sites. With customers surfing regional and inter-
riences for their female customers? How brands are
national brand site, customers are starting to
keeping up with this behaviour change?
arbitrage between the retail price in the region
and the price abroad. What strategies are dis-
The Business of Wedding
tributors and brands putting forward to solve the
With bridal trade shows taking place in the region
ubiquitous effect? Does one marketing-plan-
and the rise of bridal magazines; the market for
suits-all strategy works?
wedding has been growing. Some brands are
using weddings as an entry point to ensure cus-
Focusing on Core on Resident Customers
tomer loyalty. Are brands creating bespoke pro-
The drop of tourists from Russia and China has
ducts for weddings in the region? How is this happy
forced brands to re-focus on the core of the bu-
event used by brands to sell more? How big is the
siness. Gaining new clients is taken place on
customization of luxury wedding gifts?
the back of a network expansion in the region.
A complete new strategy is being implemented
Servicing and handling HNWI
that reinforce the local aspect of the business.
What are the requirements to handle HNWI cus-
What are the localization efforts that need to
tomers from the region? What are they looking
be achieved? What do local core customers
for? How to build the relation? What are the latest
want?
asset management solutions? Is there an evolution year on year of the number of services avai-
Tourists
lable? New banking regulations, HSBC leaks etc,
The drop in Chinese and Russian tourists has im-
how scary is the scenario?
pacted brands that relied on Dubai sales. What
is the status of tourism in the UAE? From which
Recruitment Challenges
countries will the next wave of tourists come to
Retaining sales staff, and staff, retention and com-
Dubai? Is relying on tourism the best strategies?
pensation benefits are making the life difficult for
What are the brands targeting the local cus-
companies. With government restrictions in markets
tomer base saying? How hospitality brands can
like Saudi, recruitment is a nightmare. What are the
provide a 360 luxury experience approach?
solutions to solve those problems? Some groups
have set up schools and academies to train their
What Women Want?
staff, what are the other industries doing? How to
From fashion to jewellery and watches, women be-
get locals to work for luxury sector?
Mediaquest - arabluxur yworld.com
Sessions
Investing in Art and Collectible
brands capitalise on their heritage and story? What
The immergence of new investment options in the
are rich Arabs looking for? Is it the brand name, the
region might end up transforming the art. What are
recognition, the experience or the heritage?
the HNWI strategies? Are they investing for the pecuniary aspect or is there a real appreciation of art?
How to stand out
Is art the most sustainable investment?
A red super car does not turn heads in part of
the Middle East, unless it is green. In a market
Local production the Made in effect
that is over abundant, how do brands differen-
Government are starting to invest in building the
tiate themselves from the competitors? How to
image and their country/city brand to promote
grow and capture extra market shares? Is bes-
production. What are the restrictions? What has
poke the only solution?
been done on other countries to promote the
“made in” label? Can it take over some European
Story telling
countries? Can nationalism develop this seg-
With customers in need of finding sense, brands need
ment? How luxury sector can benefit from Smart
to go back to basics and tell the story. How to master
and connected cities?
the art of story telling in the region? What should be
the priorities? Are manufacture visits enough?
Print vs. Online. Can digital
media replace print?
Marketing luxury brands
The investment toward digital media has risen in
Growth of luxury in the Middle East has attracted
2014. With brands spending 4 to 10 per cent of
many international players. The consequence is
their budget on digital advertising; how are me-
a shift in the approach with brands having to go
dia adapting to those new challenges and to
get their customer. How does this translate in term
this migration. Can digital media kill the double
of marketing, sales, and online? How to expand
spread? How does the Arab world fares against
and maintain profitability? Are distribution chan-
the trends in the US and Europe?
nels appropriate for this expansion? Does the
message should be sent out using Arabic?
The selling experience
Can digital and E-commerce replace the in-store
Mentoring new talent
selling experience? What are clients looking for
In a region that brands itself as a new talent hub;
when they engage with sales staff at the point of
how is the industry mentoring new talents? How
sale? Do Arab customers have special requirements
are last year’s new talents doing? Is there a spi-
when it comes to buying luxury products? How do
rit of collaboration or competition between new
Mediaquest - arabluxur yworld.com
talents? Is Dubai Design District the only option
nity for entrepreneurs in the fine dining segment?
for new talents? Where the new talents get their
Standalone fine dining or association with a
money from, what are the challenges?
luxury hotel, what is the right recipe of success
for the region?
Celebrity Endorsement
Bloggers and celebrities are an important mar-
Smell of Oudh and the rise of skincare: Per-
keting tool for brands, why? What is the brand
fumes and Cosmetics
approach while hiring celebrities? How do they
Strong international trend toward Arabization of
convey their messages and are they conveyed
perfumes. Most international premium brands
the right way? Are bloggers celebrities? Do inter-
have launched Oudh-based perfumes, what is
national celebrities connect with Arabs much
the future regional brands? Will there be acqui-
better than regional celebrities?
sitions from international brands? Does regional
perfume brands have what it takes to go interna-
Premium vs. Luxury
tional? Premium skincare segment in the cosme-
With image of status the upper premium brands
tics is gradually making inroads. Is there a life
are fighting to get a share of the luxury mar-
beyond traditional hina? Is the future or cosme-
ket. Are premium brands gaining an image of
tics, herbal? Debates over ingre
luxury in the Middle East? What differentiates the
brands and the approach? Are price points the
Leather and accessories
differentiation? What is the proportion of the ac-
Leather trade in the GCC stands at US$3.9 billion
cessible and absolute segments and what posi-
and the market is growing, what kind of premium
tioning and market share? What are the digital
leather products Arab consumers or buyers in
strategies of premium brands in the region?
the region are looking for? Ladies bags vs men’s
bags, what’s the scope? Is selling leather jackets
The Fine Dining Adventure
makes sense in a region that witnesses long and
How the fine dining industry is growing despite
very hot summer? What are the opportunities?
most of the food being imported to the region.
How concerns of environment and animal lovers
Are the celebrity or Michelin star chefs leading
be addressed? What is the perception of the
the pack? What should be the fine dining cuisine
local consumers toward leather? How success-
to appeal to a market that has people from 180
ful are premium leather shoe brands? Are retail
nationalities? Celebrity chefs launch restaurants
outlets such as Level Shoe District in Dubai Mall
and leave, how quality and DNA is ensured? Are
successful?
there any local alternatives? Is there an opportu-
F ast F acts
Dubai Luxury
Market Contributers
Tourism
Other
60%
40%
Middle East luxury goods market by country
$700
$500
on average
on oriental
fragrances
and oils
0.5%
Kuwait
$2,400
0.5%
0.4%
Qatar
GCC average of
monthly spend on
beauty, fashion
and gifts
Bahrain
UAE
Saudi Arabia
2.7%
1.7%
$200
on average
on shoes
$200
on average
on Western
fragrances,
make-up and
skin care
$500
on
ready-wear
$300
on gifts
on bags
Source: Bain & Company, Worldwide Luxury
Markets Monitor, Spring 2013 Update
Mediaquest - arabluxur yworld.com
Source: Chalhoub Group consumer research
Middle East and Africa Top 10 destination
cities by international overnight visitors
1 Dubai
11.95 m
6
Cairo
1.35 m
2 Riyadh
5.59 m
7
Lagos
1.33 m
3 Johannesburg 4.25 m
8
Amman
1.13 m
4 Abu Dhabi
9
Tel Aviv
1.13 m
5 Cape Town
2.11 m
10 Casablanca 0.99 m
1.60 m
Casablanca
Tel Aviv Amman
Cairo
Dubai
Riyadh
Abu Dhabi
Lagos
Cape Town
Johannesburg
Qatar
Kuwait
UAE
Saudi Arabia
0
200
Combined Wealth (Billion $)
400 600 800 1,0001,2001,400
Ultra-High-Net-Worth-Individuals (UHNWIs)
F ast F acts
Luxury Retail Sales, Middle East
USD bn, 2011 - 2016
7%
+
7%
11.8
+
8.0
2011
8.6
2012
11.0
10.3
9.2
2013E
2014F
Global Luxury Retail Sales Split
%, 2013
Accessories1
Apparel
Beauty
Other
1. Including Jewelry & Watches
Source: A.T. Kearney, The Future of Luxury Retail in the GCC
Mediaquest - arabluxur yworld.com
50%
2015F
2016F
5%
20%
25%
Share of global retailers present1,2 (%, 2012)
56.7%
Luxury fashion retailing
#1
UK
#2
UAE
#3
US
#4
Spain
47.5%
80 percent global luxury
#5
China
47.2%
retailers
#6
France
46.9%
ence in the Middle East
#7
Germany
46.9%
#8
Russia
#9
italy
53.1%
50.3%
44.5%
42.9%
penetration in the Middle
East is even higher, with
having
pres-
Ranking of cities in terms
of global retailer pres-
#10
saudi arabia
41.1%
ence:
#11
hong kong
40.8%
- Dubai ranks #2 with 53.8
#12
kuwait
40.2%
percent of global retail-
#13
singapore
39.9%
ers present
#14
turkey
39.0%
- Kuwait City ranks #8 with
#15
belgium
37.4%
39.5 percent of global retailers present
With the growing retail presence, retailers need to start thinking about revamping their model
while ensuring great customer experience.
1. Includes all retailers (grocery, apparel, luxury, beauty, etc.)
2. Survey of 326 major international retailers across 73 countries exploring their presence in Europe,
Middle East and Africa, the Americas and Asia Pacific
Source: A.T. Kearney, The Future of Luxury Retail in the GCC
F ast F acts
Global 20 top destination cities by international overnight visitors (2014)
London
Paris
New York
Barcelona
Amsterdam
Vienna
Milan
Istanbul
Rome
Riyadh
Seoul
Dubai
Kuala
Lumpur
Tokyo
Shaghai
Taipei
Hong Kong
Bangkok
Singapore
Lima
1 London
18.69 m
6 New York
11.81 m
11 Barcelona 7.37 m
16 Shanghai 6.09 m
2 Bangkok
16.42 m
7 Istanbul
11.60 m
12 Amsterdam 7.23 m
17 Vienna
6.05 m
3 Paris
15.57 m
8 Kuala Lumpur 10.81 m
13 Milan
6.82 m
18 Riyadh
5.59 m
4 Singapore 12.47 m
9 Hong Kong
8.84 m
14 Rome
6.79 m
19 Tokyo
5.38 m
5 Dubai
10 Seoul
8.63 m
15 Taipei
6.29 m
20 Lima
5.11 m
11.95 m
Mediaquest - arabluxur yworld.com
Manal Khater - Leo Burnett / Hussein Freijeh - Yahoo! / Haytham Nasr - Montegrappa ME
Ali Nehme - Starcom MediaVest Group MENA / David Vercruysse - Sephora ME
David Vercruysse
Sephora ME
Assif Vayani
Saudi Jawahr
Fatimah S. Baeshen - Baeshen Consultancy
Alain Bejjani - MAF Properties / Cyrille Fabre - Bain & Co
Alain Lorenzo - LVMH / Remy Oudghiri - IPSOS
Stefano Rocca - Vhernier / Catherine Thomas - Dubai Design District
Ritu Upadhyay - Women’s Wear Daily / Rami Tabiaat - Al Oustoura International Company
Rami Kadi - Rami Kadi / François Schweitzer - Chalhoub Group
F ast F acts
GLOBAL INVESTORS
Global investors choose a diverse range of
countries and regions of interest as destinations for investment.
Seventeen percent of respondents say
they would invest in the Gulf region
without specifying a country, while ten
percent say they would invest in Asia,
also without specifying a county.
Canada
7%
When asked which regions they prefer, global investors mentioned: the
UAE (28 percent), China (21 percent),
US
17%
Europe (21 percent), the U.S. (17 percent) and India (17 percent).
The main motivation for their choice
“There is no major competition in
tends to be based on a safe and
the Middle East, which increases my
secure investment environment or
investment opportunities, unlike in
perceived economic prosperity and
Europe and the USA.”
growth potential in the market.
Source: Emirates Investment Bank, GCC Wealth Insight
Report
Mediaquest - arabluxur yworld.com
Europe/EU
21%
UAE
Turkey
Saudi Arabia
Egypt
Oman
Kuwait
Iran
28%
17%
14%
10%
7%
7%
7%
Other
35%
China
21%
India
17%
Australia
7%
S av e t h e dat e
J U N E 1 & J une 2 2 0 1 5 I D U B A I
UAE I t: +971 4 391 07 60 I f: +971 4 390 87 37 KSA I t: +966 1 419 40 61 I f: +966 1 419 41 32 LEBANON I t: +961 1 49 28 01/2/3 I f: +961 1 49 28 01 KUWAIT I : t: +965 257 41441 /2
UAE I KSA I Lebanon
P.O.BOX 546 I Souk Al Dakhly 15256
P.O.BOX 14303 I Riyadh 11424
Dekwaneh I Fouad Chehab boulevard I Afrah Plaza
France I Tunisia I Algeria Dubai Media City I Zee Tower I Office 206
Center (Pain d’or bldg) I bldg 273 I 7th floor
P.O.BOX 72184
Kuwait I Egypt
www.mediaquestcorp.com