accessories • arts & culture • cosmetics • fashion • jewelry • fragrances • premium cars • tourism • watches
ProgramJune 1 & June 2 , 2015
a r a b l u x u r y w o r l d . c o m
Focusing on the core customers to grow
David Friedman - Wealth-X
Nadine Touma- Chalhoub Group
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 dig-
ital 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.
M I s s I o n & VA l u E s
M e d i a q u e s t - a r a b l u x u r y w o r l d . c o m
OvERvIEW
arab luxury world 2014, the conference on
the business of luxury in the Mena region,
provided a dynamic platform for meaningful
discussions, sharing ideas and networking
with industry experts. The two-day conference
by Mediaquest Corp, which takes place on
June 1 and 2 at the Westin Dubai Mina Seyahi,
will welcome the regional luxury sector from
Watches & Jewelry, Fashion & Accessories,
Perfumes & Cosmetics, Premium Cars, Tourism,
Art & Culture. More than 100 panelists will
share their views on topics, such as the future
of the luxury market, home-grown luxury,
e-commerce trends and challenges, and
luxury automobiles.
Chalhoub group has estimated that the
consumer yearly spend on beauty, fashion
and gifts per capita in the GCC is close to
$30,000. Ten times what is being spend in some
European countries. So it comes as no surprise
that this $8.5 billion market will maintain an
8% growth in the coming years1. And with the
Middle East’s private wealth having doubled2
the last 4 years, the Middle East and North
Africa market represent a unique opportunity
for luxury players to grow.
1 Airbus Corporate Jets Billionaire Study 2014 Bain & Company Luxury 2 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
Juergen Schmitz - Infiniti / Neil Slade - Aston Martin
Laurent Gaborit Cartier Watches
Akram Miknas Middle EastCommunications Network
Yassin Tag - Vacheron Constantin
Michel Ogrizek - MGroup / Sarah Aziz - Coutts / Erwin Bamps - Gulf Craft Inc Hala Khayat - Christies / Tine Arentsen Willumsen - Above & Beyond
M e d i a q u e s t - a r a b l u x u r y w o r l d . c o m
Saleh Al Banna - House of Nomad / Nathalie Trad - Nathalie Trad Designs
Maitha Al Suwaidi - Dubai Design District / Karoline Huber - IWCRami Kadi - Rami Kadi / Aiisha Ramadan - Aiisha Atelier
Adi Hasan Al Fardan - Al Fardan Jewellery
Stephane de Palmas - Tiffany & Co.
SESSIONS
Future of luxury market
Setting the stage for the industry; what is going
on? How has the year evolved? What are the glo-
bal and the regional trends? Are oil prices impac-
ting the market? With a lot of luxury brands based
in the Euro zone, are the prices going to drop with
the Euro? The Swiss Franc is strengthening what will
it change for luxury watch brands? Slowdown in
China and the return of the US market.
Middle East markets
What are the major trends? What are the macros
and the evolutions of the local market? How Geo-
politics and instability is affecting the region. Macro
review of the luxury market will focus on key as-
pects such consumers, regional economies and
tourism. Are oil prices affecting the trends, and
what this means for the mega retail projects, in-
vestments in tourism and hospitality?
uHnWI
How are Ultra High Net Worth individuals spending
their money? Is there a change of their spending
habits? Based on a study and its results this session
will unveil the latest trends of this exclusive segment.
Building regional brands
The local production faces a huge hurdle; with
customers giving less value to local products. The
strong resistance to local production comes from
Saudi and Lebanese market. There is a renewed
hope from a development where LvMH bought
stake in Saudi premium dates retailer Bateel.
How do you build and create brand awareness?
Is nationalism changing this approach for some
customers? How should local brands grow in the
region? What are the problems facing in scaling
up production?
saudi Consumers
With a new generation in Saudi Arabia this ses-
sion will offer a profile of the Saudi consumer with
a focus on the luxury market; what do they want?
What differentiate them from the rest of the GCC
consumers? Are recent changes in regulation im-
pacting consumer behavior? What makes Saudi
consumer tick?
saudi the Kingdom on the rise
The Saudi economy has been on a drive of diver-
sification. With changes impacting the economy,
a review of the economy, changes in labour laws,
transformation of the market, new malls, and de-
velopments. Stress on local workforce – challenges
and opportunities. Saudi Arabia is the price to gain
for brands that put in place the right strategy. Is the
change of leadership and administration going to
affect the Saudi market? Are Malls adapted to grow
the market?
Iranian opportunity
Hurt by the drop of oil prices the country is hoping
sanctions will ease; is Iran a market full of opportu-
nities for luxury brands? In this uncharted territory
how can a brand set up shop? What are the regu-
lations? Is the legislation encouraging brands to set
up? Long history of civilization and appreciation of
heritage brands already exists.
Saleh Al Banna - House of Nomad / Nathalie Trad - Nathalie Trad Designs
Stephane de Palmas - Tiffany & Co.
M e d i a q u e s t - a r a b l u x u r y w o r l d . c o m
luxury Retail
With oversupply and saturation in markets like
Dubai, the challenge for brands is to expand to
other parts of the region. Mono brand store are
on the rise giving more control for the brand and
allowing a better experience for the customer.
How do you bring customers to your store?
Where to expand and how to control this expan-
sion? From CRM, activation, to merchandising,
retail is being transformed. How mega malls will
change the retail scene in the region?
Malls Developments
With the region growing, and luxury brands stri-
ving, malls operators are expanding. What are
the malls in the pipeline in the next 4 years?
More and more malls and shopping centers are
opening in the region; what are the challenges
regional retailers are facing? Is the market satu-
rated? Are projects like Mall of the World viable
for retailers? How do brands plan on facing the
rising cost of retail? Are rising cost of retail in the
region going to impact sales?
Hospitality
The tourism industry in the region has invested
heavily in giving products that are top notch.
How does the industry take the next step in ma-
king something different that will focus on EX-
PERIENCE and uniqueness for its clients? Where
will the next wave of tourists come from to the
region? Will the next growth come from regional
tourism? Where is that focus on the experience
coming from? How do hospitality brands face
the fierce competition? How geopolitics is affec-
ting tourism in the UAE and in the Middle East?
Arab Tourists’ Behaviours
With Arab airlines offering flights to almost eve-
rywhere in the world, Arab travellers are travelling
more and more. It is an opportunity for brands
worldwide to acquire a new clientele.
How to attract Arab tourists when they are travel-
ling abroad? What are the buying patterns and
behaviours? What are they looking for?
Redefining Distributors 2.0
With growing supply of brands and retails, distri-
butors are moving to the next level. Using CRM
and special operations to attract the customers;
how do brands build customer loyalty? Do digi-
tal advertising, CRM and activations are still the
best options? How to create a seamless chain of
manufacturers, distributors/suppliers and retai-
lers? Are old models broken? Should the relation
between the brand and the distributor evolve?
PR & Communication
A year in review. How has the PR industry fared?
With brands focus on telling their story, PR pro-
fessionals need to stay true to the DNA of the
brands while pushing for coverage. How can PR
transform to respond to instant requests? Are PR
professional stuck in the last world or are brands
not ready to move to native advertisements and
content marketing? Should the discussion be
kept in house or outsourced? Are PR firms com-
municating the message effectively?
SESSIONS
Technology’s Impact of on luxury
With smart watches, 3D printing and the internet
of things coming to the market; the luxury indus-
try will need to prepare for those new categories.
What is the current situation in the region? How
will this impact a market that used to be driven
by novelty? What is the new digital equation in
the luxury industry?
Content marketing
Native advertising, content marketing, videos
and images are constantly used by luxury
brands to promote their products. Brands are
embracing the digital technology to reach their
customers.
What is the status of the content marketing in
the region? Are social media overhyped? What
should be the mix of digital media and traditio-
nal media to reach Arab consumers? How to tell
a story in the marketing strategies?
Digital IQ
The Middle East is the leading region worldwide
when it comes to mobile and internet penetra-
tion. Those digital platform offer brands a new
way to reach their customers but are they ma-
king the most of it? How are luxury brands ranked
in the region in term of digital performance?How
close are they to Arab audiences? Where do
brands stand in terms of embracing the digital
aspect of their businesses?
social Media
With bloggers and Instagram users becoming
tools for brands to promote their products; can
social media market luxury brands as well as tra-
ditional medium? Is the tool over exposed and
losing the genuine aspect? The use and abuse
of social media.
Digital strategy
As the digital infrastructure of the region keeps
growing the bandwidth of the connection allows
new the deployment of new strategies. Brands
try to reproduce in store experience through pur-
posed designed site.
This session will offer an update on the status
of e-commerce, advertising, branding and
content. What have been the changes over the
last 12 months and what are the trends for the
region?
The death of the ad banner
Ad banner have proven to have limited impact.
With recent scandals, that involve click fraud
and traffic fraud, brands are looking beyond
the traditional ad banner to migrate toward the
engagement. What are the alternatives? Can
online advertising build the brand? Or is it just
tactical? Are ad banners dead?
E-commerce
How to solve the credit card payment limitation
in the region? How about customs duties and
clearance issues that the industry faces? Can
the luxury experience be reproduced online?
What about other payment modes, can those
be applied to the luxury brands?
M e d i a q u e s t - a r a b l u x u r y w o r l d . c o m
SESSIONS
The ubiquitous Effect
GCC customers are buying more than $600 mil-
lions of goods every year from US e-commerce
sites. With customers surfing regional and inter-
national brand site, customers are starting to
arbitrage between the retail price in the region
and the price abroad. What strategies are dis-
tributors and brands putting forward to solve the
ubiquitous effect? Does one marketing-plan-
suits-all strategy works?
Focusing on Core on Resident Customers
The drop of tourists from Russia and China has
forced brands to re-focus on the core of the bu-
siness. Gaining new clients is taken place on
the back of a network expansion in the region.
A complete new strategy is being implemented
that reinforce the local aspect of the business.
What are the localization efforts that need to
be achieved? What do local core customers
want?
Tourists
The drop in Chinese and Russian tourists has im-
pacted brands that relied on Dubai sales. What
is the status of tourism in the UAE? From which
countries will the next wave of tourists come to
Dubai? Is relying on tourism the best strategies?
What are the brands targeting the local cus-
tomer base saying? How hospitality brands can
provide a 360 luxury experience approach?
What Women Want?
From fashion to jewellery and watches, women be-
haviours are evolving. This session will look at how
brands are and should be marketing their products
to women. Are brands creating exclusive expe-
riences for their female customers? How brands are
keeping up with this behaviour change?
The Business of Wedding
With bridal trade shows taking place in the region
and the rise of bridal magazines; the market for
wedding has been growing. Some brands are
using weddings as an entry point to ensure cus-
tomer loyalty. Are brands creating bespoke pro-
ducts for weddings in the region? How is this happy
event used by brands to sell more? How big is the
customization of luxury wedding gifts?
servicing and handling HnWI
What are the requirements to handle HNWI cus-
tomers from the region? What are they looking
for? How to build the relation? What are the latest
asset management solutions? Is there an evolu-
tion year on year of the number of services avai-
lable? New banking regulations, HSBC leaks etc,
how scary is the scenario?
Recruitment Challenges
Retaining sales staff, and staff, retention and com-
pensation benefits are making the life difficult for
companies. With government restrictions in markets
like Saudi, recruitment is a nightmare. What are the
solutions to solve those problems? Some groups
have set up schools and academies to train their
staff, what are the other industries doing? How to
get locals to work for luxury sector?
M e d i a q u e s t - a r a b l u x u r y w o r l d . c o m
Investing in Art and Collectible
The immergence of new investment options in the
region might end up transforming the art. What are
the HNWI strategies? Are they investing for the pe-
cuniary aspect or is there a real appreciation of art?
Is art the most sustainable investment?
local production the Made in effect
Government are starting to invest in building the
image and their country/city brand to promote
production. What are the restrictions? What has
been done on other countries to promote the
“made in” label? Can it take over some European
countries? Can nationalism develop this seg-
ment? How luxury sector can benefit from Smart
and connected cities?
Print vs. online. Can digital
media replace print?
The investment toward digital media has risen in
2014. With brands spending 4 to 10 per cent of
their budget on digital advertising; how are me-
dia adapting to those new challenges and to
this migration. Can digital media kill the double
spread? How does the Arab world fares against
the trends in the US and Europe?
The selling experience
Can digital and E-commerce replace the in-store
selling experience? What are clients looking for
when they engage with sales staff at the point of
sale? Do Arab customers have special requirements
when it comes to buying luxury products? How do
brands capitalise on their heritage and story? What
are rich Arabs looking for? Is it the brand name, the
recognition, the experience or the heritage?
How to stand out
A red super car does not turn heads in part of
the Middle East, unless it is green. In a market
that is over abundant, how do brands differen-
tiate themselves from the competitors? How to
grow and capture extra market shares? Is bes-
poke the only solution?
story telling
With customers in need of finding sense, brands need
to go back to basics and tell the story. How to master
the art of story telling in the region? What should be
the priorities? Are manufacture visits enough?
Marketing luxury brands
Growth of luxury in the Middle East has attracted
many international players. The consequence is
a shift in the approach with brands having to go
get their customer. How does this translate in term
of marketing, sales, and online? How to expand
and maintain profitability? Are distribution chan-
nels appropriate for this expansion? Does the
message should be sent out using Arabic?
Mentoring new talent
In a region that brands itself as a new talent hub;
how is the industry mentoring new talents? How
are last year’s new talents doing? Is there a spi-
rit of collaboration or competition between new
SESSIONS
talents? Is Dubai Design District the only option
for new talents? Where the new talents get their
money from, what are the challenges?
Celebrity Endorsement
Bloggers and celebrities are an important mar-
keting tool for brands, why? What is the brand
approach while hiring celebrities? How do they
convey their messages and are they conveyed
the right way? Are bloggers celebrities? Do inter-
national celebrities connect with Arabs much
better than regional celebrities?
Premium vs. luxury
With image of status the upper premium brands
are fighting to get a share of the luxury mar-
ket. Are premium brands gaining an image of
luxury in the Middle East? What differentiates the
brands and the approach? Are price points the
differentiation? What is the proportion of the ac-
cessible and absolute segments and what posi-
tioning and market share? What are the digital
strategies of premium brands in the region?
The Fine Dining Adventure
How the fine dining industry is growing despite
most of the food being imported to the region.
Are the celebrity or Michelin star chefs leading
the pack? What should be the fine dining cuisine
to appeal to a market that has people from 180
nationalities? Celebrity chefs launch restaurants
and leave, how quality and DNA is ensured? Are
there any local alternatives? Is there an opportu-
nity for entrepreneurs in the fine dining segment?
Standalone fine dining or association with a
luxury hotel, what is the right recipe of success
for the region?
smell of oudh and the rise of skincare: Per-
fumes and Cosmetics
Strong international trend toward Arabization of
perfumes. Most international premium brands
have launched Oudh-based perfumes, what is
the future regional brands? Will there be acqui-
sitions from international brands? Does regional
perfume brands have what it takes to go interna-
tional? Premium skincare segment in the cosme-
tics is gradually making inroads. Is there a life
beyond traditional hina? Is the future or cosme-
tics, herbal? Debates over ingre
leather and accessories
Leather trade in the GCC stands at US$3.9 billion
and the market is growing, what kind of premium
leather products Arab consumers or buyers in
the region are looking for? Ladies bags vs men’s
bags, what’s the scope? Is selling leather jackets
makes sense in a region that witnesses long and
very hot summer? What are the opportunities?
How concerns of environment and animal lovers
be addressed? What is the perception of the
local consumers toward leather? How success-
ful are premium leather shoe brands? Are retail
outlets such as Level Shoe District in Dubai Mall
successful?
M e d i a q u e s t - a r a b l u x u r y w o r l d . c o m
FA S T FA C T S
DuBAI luxuRy
MARKET ConTRIBuTERs
Tourism
Other
60%40%
Source: Bain & Company, Worldwide Luxury Markets Monitor, Spring 2013 Update Source: Chalhoub Group consumer research
$700 $500
$500
$300$200
$2,400
$200
Middle east luxury goods Market by country
on average on oriental fragrances
and oils
on average on Western fragrances,
make-up and skin care
on ready-wear
on giftson average on shoes
on bags
Kuwait0.5%
Bahrain0.4%
Qatar0.5%
UAE2.7%
Saudi Arabia1.7%
GCC average of monthly spend on
beauty, fashion and gifts
Combined Wealth (Billion $) Ultra-High-Net-Worth-Individuals (UHNWIs)
QATAR
KuWAIT
uAE
sAuDI ARABIA
0 200 400 600 800 1,000 1,200 1,400
MIDDlE EAsT AnD AFRICA ToP 10 DEsTInATIon
CITIEs By InTERnATIonAl oVERnIGHT VIsIToRs
1
2
3
4
5
Dubai
Riyadh
Johannesburg
Abu Dhabi
Cape Town
Cairo
Lagos
Amman
Tel Aviv
Casablanca
11.95 m
5.59 m
4.25 m
2.11 m
1.60 m
1.35 m
1.33 m
1.13 m
1.13 m
0.99 m
6
7
8
9
10 Cape Town
Casablanca
Lagos
Johannesburg
CairoTel Aviv Amman
RiyadhAbu Dhabi
Dubai
M e d i a q u e s t - a r a b l u x u r y w o r l d . c o m
FA S T FA C T S
luxury retail sales, Middle east
global luxury retail sales split
usd bn, 2011 - 2016
%, 2013
1. Including Jewelry & WatchesSource: A.T. Kearney, The Future of Luxury Retail in the GCC
2011
8.08.6
9.2
10.311.0
11.8
2012 2013e 2014F 2015F 2016F
+7%+7%
Accessories1
Apparel
Beauty
Other
50%20%
5%
25%
share oF global retailers present1,2 (%, 2012)
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
56.7%
53.1%
50.3%
47.5%
47.2%
46.9%
46.9%
44.5%
42.9%
41.1%
40.8%
40.2%
39.9%
39.0%
37.4%
#1
#2
#3
#4
#5
#6
#7
#8
#9
#10
#11
#12
#13
#14
#15
uk
uae
us
spain
china
France
gerMany
russia
italy
saudi arabia
hong kong
kuwait
singapore
turkey
belgiuM
With the growing retail presence, retailers need to start thinking about revamping their model
while ensuring great customer experience.
Luxury fashion retailing
penetration in the Middle
East is even higher, with
80 percent global luxury
retailers having pres-
ence in the Middle east
Ranking of cities in terms
of global retailer pres-
ence:
- Dubai ranks #2 with 53.8
percent of global retail-
ers present
- Kuwait City ranks #8 with
39.5 percent of global re-
tailers present
M e d i a q u e s t - a r a b l u x u r y w o r l d . c o m
New York
Istanbul
Kuala Lumpur
Hong Kong
Seoul
11.81 m
11.60 m
10.81 m
8.84 m
8.63 m
6
7
8
9
10
GloBAl 20 ToP DEsTInATIon CITIEs By InTERnATIonAl oVERnIGHT VIsIToRs (2014)
1
2
3
4
5
London
Bangkok
Paris
Singapore
Dubai
18.69 m
16.42 m
15.57 m
12.47 m
11.95 m
11
12
13
14
15
Barcelona
Amsterdam
Milan
Rome
Taipei
7.37 m
7.23 m
6.82 m
6.79 m
6.29 m
Shanghai
vienna
Riyadh
Tokyo
Lima
6.09 m
6.05 m
5.59 m
5.38 m
5.11 m
16
17
18
19
20
Lima
New York
London
Paris
Amsterdamvienna
MilanIstanbul
Riyadh
Dubai
Seoul
TokyoShaghai
TaipeiHong Kong
BangkokKuala
LumpurSingapore
RomeBarcelona
FA S T FA C T S
Manal Khater - Leo Burnett / Hussein Freijeh - Yahoo! / Haytham Nasr - Montegrappa MEAli Nehme - Starcom MediaVest Group MENA / David Vercruysse - Sephora ME
David VercruysseSephora ME Assif VayaniSaudi Jawahr
Alain Lorenzo - LVMH / Remy Oudghiri - IPSOSStefano Rocca - Vhernier / Catherine Thomas - Dubai Design District
Fatimah S. Baeshen - Baeshen Consultancy Alain Bejjani - MAF Properties / Cyrille Fabre - Bain & Co
Ritu Upadhyay - Women’s Wear Daily / Rami Tabiaat - Al Oustoura International CompanyRami Kadi - Rami Kadi / François Schweitzer - Chalhoub Group
M e d i a q u e s t - a r a b l u x u r y w o r l d . c o m
GloBAl InVEsToRs
Global investors choose a diverse range of
countries and regions of interest as desti-
nations 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.
When asked which regions they pre-
fer, global investors mentioned: the
UAE (28 percent), China (21 percent),
Europe (21 percent), the U.S. (17 per-
cent) and India (17 percent).
The main motivation for their choice
tends to be based on a safe and
secure investment environment or
perceived economic prosperity and
growth potential in the market.
“There is no major competition in
the Middle East, which increases my
investment opportunities, unlike in
Europe and the USA.”
FA S T FA C T S
Canada
7%US
17%
Source: Emirates Investment Bank, GCC Wealth Insight Report
Europe/EU
21%
China
21%
India
17%
Australia
7%
Other
35%
UAE 28%Turkey 17%Saudi Arabia 14%Egypt 10%Oman 7%Kuwait 7%Iran 7%
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