With the global downturn impacting luxury products sales in Middle East markets, high-end luxury brands dealers operating at Dubai Airport Freezone are now focusing on increasing sales and venturing into other GCC markets to avoid any negative impact caused by the ongoing economic crisis.
Benefiting from their presence in Dubai Airport Freezone, luxury products dealers are upbeat on the vibrant Gulf markets hungry for high-end luxury brands.
Luxury brands representatives, said, “Our Middle East markets have been slightly hit by the worldwide downturn, however this has helped us innovate and adopt new marketing tactics and open new markets with new different variety of products.”
According to a Luxury Goods Worldwide Market Study released by Bain and Company, “Luxury goods markets, one thought to be immune to the ebbs and flows of economic fluctuations, but the impact is felt though marginally. The slowest growth rate stands in stark contrast to the plus nine per cent growth seen in 2006 and the plus 6.5 per cent growth seen in 2007.”
The study predicts as much as a seven per cent decline in global luxury sales for 2009 using constant exchange rates, in contrast to a possible two per cent decline when using current exchange rates.
The study was commissioned by Altagamma, the Italian association of luxury goods companies.
“We always promote strategic location of Dubai Airport Freezone for we believe it counts great deal when it comes to target products to the neighbouring GCC countries,” said Mohammed Ali bin Suwailem, director (sales), Dubai Airport Freezone.
“We are hardly one hour and a few minutes away from any one of the Gulf countries, therefore we play an essential role in open opportunities for any company wants to get into these markets.”
High-end luxury brands, mid-level and primary-level international brands have a strong presence in the Dubai Airport Freezone. Amjad Saeed of Mosbach Group said, “For high-net-worth individuals certain products are related to their personalities and lifestyles and they are not ready to compromise on anything. But in general, the market is hesistant and is thinking considerably before making any purchase.” The company is the distributor of certified diamonds and Italian writing instrument brand Visconti.