Kuwait Is The Third Largest Gcc Market In Terms Of Personal Well-being

Kuwait's luxury goods market, which is the third-largest behind the UAE and Saudi Arabia in terms of personal luxury, grew at the fastest rate in the Gulf area in 2021 compared to 2019, at 35 percent.

According to a report released by the Chalhoub Group in collaboration with the Fashion Authority titled 'Personal Well-being in the Gulf Cooperation Council Countries in 2021: The Story of Early Recovery and Growth,' the luxury goods market in the Gulf in 2021 showed an early recovery similar to pre-pandemic levels, earning $9.7 billion at the end of the year, up 23% from 2019.

According to a local Arabic daily, several factors will drive growth, including increased domestic spending in Saudi Arabia, the return of international tourists to the UAE, the entry of new categories of consumers into the luxury sector, the innovation of new categories in the sector such as wellness and skincare, and the acceleration of e-commerce growth.

The survey, on the other side, stated that e-commerce for beauty, elegance and high fashion products is still robust in the Gulf, with 11 percent of beauty and elegance products traded and 15 percent of high-end fashion products traded.

According to the survey, all GCC nations except Bahrain had double-digit growth in the high-end fashion sector in 2021 as a result of Gulf consumers diverting their spending inward, with Kuwait seeing a 49 percent increase, Saudi Arabia 44 percent, and the UAE 40 percent.

According to the survey, local customers spend 60% of their spending on luxury in their home country, a significant rise from before the pandemic, and consumers in the region are also interested in buying with certain brand expectations.

Meanwhile, the personal luxury goods market in the Gulf is predicted to reach $11 billion by 2023, with a compound annual growth rate of 7% between 2021 and 2023.

The entry of new consumers into the sector, the relocation of spending on luxury (driven by several factors, including travel restrictions, brand availability, high improved inventory levels, in addition to improved customer service and focusing efforts on building a customer base), local events (as the region seeks to attract more international brands by advertising industry-specific events), and local events (as the region seeks to attract more international brands by advertising industry-specific events) are the six main catalysts for market growth in 2021, according to the report.

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