Luxury Goods in Dubai

Growth Eyed for Mideast Luxury Goods Market

While luxury goods sales remain sluggish in traditionally strong markets like Russia and China, demand for brands like Louis Vuitton and Bulgari look set to grow in the Middle East despite regional unrest, according to a recent Deloitte report.

The report, which examines the sales of the 100 largest luxury goods companies globally in the financial year that ends on June 30, 2015, said the Middle East remained a major opportunity for luxury brands. “Well-established big-name brands perform well in the region, and tourism is a major driver of sales in Dubai,” the report said. “Although the region is likely to feel the impact of political unrest as well as global economic uncertainty, but further growth is expected overall.”

For 2016, the report predicted that the global luxury goods sector will grow at a slower level particularly in large markets like China and Russia. However, some markets continue to perform well, including India and Mexico, as well as the Middle East that offers further growth potential.

Some of the major names of luxury brands included in the report’s top 100 are LVMH Moët Hennessy-Louis Vuitton SA, which owns brands likes Fendi and TAG Heuer; and Swatch Group, which owns Longines, Omega, and Rado. These brands generated sales of $222 billion during the financial year 2014, 3.6 percent higher year-on-year, with an average annual sales per company of $2.2 billion