Qatar Luxury Goods Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Qatar Luxury Goods Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Qatari Luxury Goods market is expected to grow at a healthy CAGR of 2.55% in the forecast period 2019-2024 which is currently valued at USD 1.84 Billion. Qatar is regarded as the world’s fastest growing luxury market as it holds majority stake in the Italian fashion brand Valentino as well as the landmark department stores Harrods and Printemps in London and Paris. Qatar is also developing its own luxury label named Qela. Qataris are considered as the biggest buyers of goods in the Middle East but they often shop in Dubai. The Mall of Qatar’s infrastructure is being improved in the run-up to the 2022 World Cup with the luxury industry posing a huge potential to grow in the country. GCC retail report 2019 suggests that the expenditure towards luxury goods in Qatar has remained strong despite the fall in GDP per capita.

Drivers:

Rapidly growing population

Stronger purchasing power per capita.

Restraints:

1. Political uncertainties and inflationary pressures

Key Market TrendsQatar is the regional luxury fashion hub

The main factors that aid Qatar to becoming a regional luxury fashion hub are the higher incomes of Qataris and the increasing investment in the luxury fashion sector. The higher incomes tend to support consumer spending in the luxury fashion segment that encourage customers to spend considerable amounts on the luxury fashion with every fashion cycle. Consumers are inclined to spend more on the high-end electronic goods and fashion accessories over the experiential luxury such as holidays and spa treatments. There is substantial demand for modes fashion in Qatar and is expected to continue to grow in the coming future. Within the Qatari retail market, the capital city of Doha has been THE PEARL of QATAR as the man made island which is dedicated for luxury shopping and entertainment.

Mono branding is the leading luxury goods channel in Qatar

Sale of personal luxury goods in the Middle East primarily represented by the GCC countries, is also expected to witness a steady growth of 4.0% between 2019 and 2024. Qatar is increasingly becoming a regional hub for luxury brands with the Qatari-brands such as global fashion brand QELA and high-end luxury health and beauty boutique store Pharmakeia.

The wider presence of an affluent consumer base has attracted several luxury retailers to the city. With Qatar’s organized retail space currently going through a period of rapid expansion and with a strong pipeline of mall openings, several international and regional retailers continue to establish and expand their presence in the country. In 2018, Doha had a total retail gross leasable area (GLA) of nearly 1.6 million sqm, an increase of about 974,000sqm over 2013. Of the total, Doha’s organized retail market has about 1.4 million sqm of GLA spread across 21 retail malls.

In the coming future, around nine malls are expected to open by 2021 that offer customers with a wide range of shopping, dining, and entertainment experiences. Some of the key projects include the 60,000 sqm Marina Mall, scheduled to open in Lusail City at the end of 2019 and the mixed-use development project Place Vendome, also in Lusail City, which will have 230,000sqm of GLA shared by around 500 shops. Other retail developments in the pipeline include the Northgate Mall, Doha Mall, Doha Oasis, Katara Plaza, and Al Waab Mall.

Private supermarkets contribute the larger share in retail sales, and this sector is currently expanding. The main players are operating in the sector include - Carrefour with both hypermarkets and supermarkets (Carrefour market) in most of the shopping malls (City Center, Villagio, Ezden Mall, Lagoona Mall, Salam Mall), Lulu Hypermarket with big stores and a good electronic appliance mix of products, Mega Mart with a large assortment of imported products, Monoprix with a large range of food products (50% of the store) and cosmetics products and Al Meera Group in a partnership with the french Géant

Competitive Landscape

The Qatar luxury market is moderately fragmented with more than 50% of the market taken by many smaller local players tying up with luxury retailers across various sectors such as fashion, jewellery and other accessories such as eyewear and leather goods.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Chanel
LVMH
Rolex
Kering
Joyalukkas
Giorgio Armani
Hugo boss
Puig
PVH
Richemont
Others

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