Saudi Arabia’s Fashion Commission and luxury goods retailer the Chalhoub Group have signed a Memorandum of Understanding to further develop the fashion retail sector in the kingdom.
The memorandum promises the creation of leadership roles in sector and its nationalisation.
The entities aim to obtain commercial outlets for Saudi Arabian fashion designers to display their work and training courses for those seeking careers in the fashion retail sector.
“This partnership further reiterates our commitment to play a role in the Kingdom of Saudi Arabia and drive forward the luxury retail sector by supporting local employment, homegrown talent and generate insights on the market and consumer,” said Patrick Chalhoub, president of the Chalhoub Group.
“We believe that through concerted collective efforts we can play a larger role in the local communities and make a difference.”
The memorandum aligns with the Fashion Commission’s mission to improve its activity with the fashion sector, introduce and strengthen global entities’ and individuals’ investments into the kingdom’s fashion retail sector, develop local talent and promote Saudi Arabian fashion culture locally and globally.
“The Chalhoub Group has been the leading partner for the finest international brands in the Middle East since 1955 and is one of the companies specialised in studies and reports on the consumer and local market,” said Burak Cakmak, CEO of the Fashion Commission.
“Through this agreement, we will co-operate with the Chalhoub Group to provide information on the Saudi market to put it among the hands of interested and stakeholders to build projects based on reliable numbers to enhance and develop their business, stressing that the commission works hand in hand with private sector organizations to benefit the fashion sector at various levels and directions,” Mr Cakmak said.
The Fashion Commission and the Chalhoub Group also pledge to exchange market studies, following their recent collaboration on the GCC Personal Luxury in 2021: A Story of Early Recovery and Growth report.
The report revealed the high-end fashion industry’s market share in the region rose 39 per cent from 2019 to 2021, with absolute luxury items at its helm.
In addition, high-end fashion accounted for 15 per cent of the region’s e-commerce market.
The luxury goods market is estimated to reach $11 billion by the end of next year, according to the report, at a yearly compound annual growth rate of seven per cent.
“We forecast a seven per cent increase in the fashion and retail industry in the next two years, driven by the rise in e-commerce,” said Lynn Khatib, group head of communication at the Chalhoub Group.
The memorandum was signed in the presence of Mohammed Fayez, vice minister of culture and deputy chairman on the Fashion Commission’s board of directors, Bachar Sabbagh, managing director of the Chalhoub Group’s Saudi Arabia division, and Mr Cakmak.
