The height of luxury

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The highest-end brands are still flourishing in the region, say industry experts.

The global economic downturn has failed to hold up the sector's rapid expansion in this region, as Retail News Middle East discovers.

Although sales slumps and job cuts across the globe have issued a warning signal for the luxury goods industry, the demand among companies to profit in the Middle East's high margin, high growth sector remains strong.

Armani/Casa, the Armani Group's Home Furnishings division, unveiled its first store at The Dubai Mall last month, claiming to deliver a superior service that few competitors can match.

The collaboration between the Armani Group and Emaar Retail LLC, the wholly owned subsidiary of Emaar Malls Group, will accelerate more store openings across the UAE.

International expansion has been high on the agenda of the brand, currently operating 80 stores across 45 countries and braced to open further stores in Jakarta and Manama within the next few months.

One of the leading fashion and luxury goods groups in the world today with 4900 direct employees and 13 factories, The Armani Group designs, manufactures, distributes and retails fashion and lifestyle products including apparel, accessories, eyewear, watches, jewellery, home furnishings, fragrances and cosmetics.

Its brand names include Giorgio Armani Privé, Giorgio Armani, Armani Collezioni, Emporio Armani, AJ | Armani Jeans, A/X Armani Exchange, Armani Junior and Armani Baby.

Giorgio Armani, chief executive of Giorgio Armani S.p.A. boasts that since the 2000 launch of the Armani/Casa collection at its Via Manzoni store in Milan the company has "pursued an aggressive expansion programme".

The opening of the first dedicated Armani/Casa store brings a new dynamic to the retail sector of Dubai, according to Suresh Bhatia, CEO, Emaar Retail.

"The Dubai Mall is the world's largest mall, one of the greatest and most happening malls today. Armani is one of the best known fashion brands and this is one of the best launches we could think of," Bhatia comments.

Aside from developing a portfolio of brands in key growth markets and building new alliances, joint ventures, franchises and licenses for all mall developments under the Emaar Malls Group umbrella, Emaar Retail also manages the business operations for The Dubai Mall's leisure and entertainment brands including KidZania and SEGA Republic.

The 330m² store features a curved window that allows total visibility of the interior offering products ranging from furniture and furnishings to accessories, décor and fabrics, including some of the latest models of the 2008-2009 Collection such as the Limited Editions Antoinette and Adelchi.

Traditionally thought to remain resilient in a tough economic climate, the luxury retail industry has been hit to some extent, he admitted, yet "we're looking at long-term gain and we have received a good response".

The company intends to open more Armani/Casa stores in the Middle East. "We also plan to bring in more brands; they will be luxury, mid-market and mass," he reveals.

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