High end luxury brand dealers operating in the Dubai Airport Freezone have changed their tactics by increasing sales in the GCC to counterbalance any negative impact caused by the financial crisis, Dubai Airport Freezone said on Saturday.
And it added that dealers are upbeat regarding demand in Gulf markets for their brands.
Trade experts believe that while the region will not be totally insulated from the credit crunch it will be less affected than the US and Europe.
Gerald Schutzlhoffer, Managing Director, Enjoy Bijoux, a company which caters to the luxury segment with high end jewellery and luxury watch brands such as Jacques Lemans, Faberge, Meister and Zorweg said: “Customers in the region are brand conscious and the luxury segment in the region has tremendous potential. The market is growing significantly and we have experienced consistent growth.”
Another factor helping the jewellery sector in the region is the presence of a strong bridal market where gold and diamonds are traditionally gifted.
”The tourist market has been affected and this has caused some slowdown in trade, but we can still say the market is upbeat,” said Rihen Mehta, Executive Director, Rosy Blue, the jewellery company.
Mehta added that the market catering to high-net worth individuals has remained resilient and unaffected.
Meanwhile, Amjad Saeed of The Mosbach Group said: “We deal with exclusive and premium diamonds. Whatever happens, the high end luxury sector is not affected.”
He also believes that the Middle East, particularly Dubai, will be better able to tackle the slowdown thanks to its strategic location.
”It caters to nearly three billion people within a radius of five hours flying time. About 30 to 40 per cent of the population is between 20-40 years of age and they are the primary buyers of luxury goods and jewellery.”
Samir Boghos of Time Bridge, a premier brand management company in the Middle East agrees with Mehta: “Since the Middle East is an emerging market and is yet to reach the point of saturation it will perform better than other matured markets.
Boghos cautioned however that this is ”not the right time to launch a new brand or introduce a revolutionary concept.
“This is the time to play safe.” He added that brands all over the world have frozen launches of their new lines and ranges while people in general are cautious about their spending.
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