 | | Dubai, may 22 & 23, 2017 | | | | VIEW ALL SESSIONS |  | | DIGITAL DISRUPTION AND EMOTIONAL ENGAGEMENT | The luxury industry in the Middle East is undergoing a massive transformation caused by the Fourth Industrial Revolution and the end of the era of overabundance. As innovation, adaptability and sustainability become the new norms, the industry's stakeholders are faced with the reality of adapting to single-digit growth in brick-and-mortar sales.
Meanwhile, the effects of the digital disruption are being felt everywhere and online platforms are vying to get the lion's share of the market, enjoying double-digit growth. The changing economic dynamics have put new opportunities on the table, but the burning question is: how can brands create an emotional engagement with their Arab customers? In this ever-changing scenario, creating an emotional connection with consumers using digital tools while adapting retail infrastructure to meet new consumer needs is paramount to maintain growth.
HARD FACTS: With real GDP growth forecast at 0.4 percent for KSA and 1.5 percent For UAE in 2017, GCC economies, until now, saw limited impact on the macro level. However, the steep decline in the growth of luxury retail came at a time of oversupply in the market. With retail sales across the GCC set to grow at a CAGR of seven percent until 2018 to reach $285 billion, stakeholders need to come up with innovative strategies and market approaches. Close to 2.5 million sqm of organized gross leasable area for retail will be available in the GCC market by the end of 2017, so brands have to make tough decisions on where they should be. But with great challenges come great opportunities – brands need to be ready and agile to act on them.
CHALLENGES, OPPORTUNITIES AND QUESTIONS: In this complex environment, it is important for brands, retailers and distributors to rethink existing strategies. It is of crucial that they change their approach toward their consumers to ensure increased profits.
With price transparency transforming the purchasing cycle of consumers, digital models have gradually become part of their daily habits. Passion and emotion are essential in this new strategy, while adoption of technology is an absolute requirement.
Can the luxury business adapt to this environment of digital disruption? What does the future of retail look like in this new scenario? How will the growth of the digital economy and the advent of global players such as Amazon impact businesses in the region? | | | | VIEW ALL SESSIONS | | info@arabluxuryworld.com | TEL: +971 4 369 7573 | | www.arabluxuryworld.com | | Get social with #arabluxuryworld17 | | | | |  |  | | |
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