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DUBAI / Emirates Business
Dubai’s market for apparel and footwear is estimated to be worth US$12.8 billion, registering 5.5 percent annual growth in sales since 2010, according to a report by the Dubai Chamber of Commerce and Industry based on data from Euromonitor International.
The category is mainly composed of apparel, footwear and sportswear, with apparel leading total sales in both areas of value and growth rate. Apparel sector in Dubai is valued at US$10.4 billion, recording compound annual growth rate of 5.8 percent.
The report however stated that sales of the maturing segments of footwear and sportswear have flattened in recent years, and are roughly estimated at US$2.4 billion and US$1 billion, respectively. Supply has kept pace with rising demand, as retail space expansion continued in 2015 with the launch of new malls and new brands, it said.
“Growing economic prosperity, steady population growth, and rising incomes are driving sales in major retail segments of Dubai. Dubai Chamber’s sectorial report highlights the vibrancy of Dubai’s retailing industry and its contribution to the overall economy. The report represents Dubai Chamber’s commitment to supporting the development of businesses, and our efforts to promote Dubai as an international business hub,†His Excellency Hamad Buamim, President and CEO of Dubai Chamber.
Findings of the report were released during the World Retail Congress being held in Dubai from April 12-14, under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
The Dubai Chamber report points out that while Dubai is known as a leading luxury shopping destination in the region and a major hub for premium brands, mid-priced brands are also starting to gain popularity. This could be attributed to the rise in the numbers of budget-minded tourists who seek to stretch their dollars, it said.
Consumer electronics
The report said sales of consumer electronics in Dubai are estimated to be worth US$ 2.4 billion after expanding at a CAGR of 8.9 percent during the past five years.
Portable consumer electronics was worth US$ 930 million, computers and peripherals worth US$ 902 million, in-home consumer electronics US$ 621 million and in-car entertainment worth US$22 million, it said.
Consumer appliances
Dubai’s market for consumer appliances is estimated to have grown at a CAGR of 8.2 per cent from US$ 390 million back in 2010 to reach an estimated US$ 585 million in 2015. The Dubai Chamber report said that the strong growth seen in sales volume of consumer appliances is driven by two major trends, namely, a gradual move from renting to home ownership as well as a shift from unfurnished to semi-furnished property sales. The rising population in the country is also contributing to growth; and demand for certain product types receives strong support from tourism as well, it said.
Beauty and personal care
The report valued Dubai’s beauty and personal care market at US$ 1.2 billion, with 51 per cent of this figure coming from the mass beauty and personal care sub-category, which generated US$ 616.8 million in sales in 2015. Premium beauty and personal care is another large contributor to this market, with sales reaching US$ 449 million in 2015, effectively making up 37 per cent of the category’s total.
Home and garden market
The report said that Dubai home and garden market has seen a relatively steady annual growth of 4.6% over the past five years, and is currently estimated to be worth US$ 1.5 billion. The home furnishing sub-segment contributes around 80 per cent of revenues for the entire category. Estimated at US$ 1.2 billion in 2015, it has realized a steady 4.7 per cent growth annually since 2010.
