{"id":21879,"date":"2023-03-06T12:25:01","date_gmt":"2023-03-06T12:25:01","guid":{"rendered":"https:\/\/www.meretailnews.com\/?p=21879"},"modified":"2023-03-06T13:01:21","modified_gmt":"2023-03-06T13:01:21","slug":"e-commerce-and-luxury-sector-to-lead-gccs-retail-industry-rlc-chairman","status":"publish","type":"post","link":"https:\/\/www.meretailnews.com\/2023\/03\/06\/e-commerce-and-luxury-sector-to-lead-gccs-retail-industry-rlc-chairman\/","title":{"rendered":"‘E-commerce and luxury sector to lead GCC retail industry’: RLC chairman"},"content":{"rendered":"
\nE-commerce and luxury goods sector will lead the GCC’s retail industry, Retail Leaders Circle Chairman Panos Linardos said.<\/p>\n
\u201cLuxury continues to perform well and favours the in-store model, as consumers investing significantly in a product want to examine it physically before committing to purchase,\u201d Mr Linardos told Arab News<\/em>.<\/p>\n In Saudi Arabia, the overall retail industry is expected to hit $158.6 billion by 2024.<\/p>\n The global luxury segment<\/a> reached $1.4 trillion in sales last year, witnessing a 21 per cent jump in revenue.\u00a0<\/span><\/p>\n In the UAE, the luxury goods market is valued at $3.8 billion and is projected to register a CAGR of 5.2 per cent in the next five years.<\/p>\n Dubai and Riyadh are also expected to lead luxury retail growth this year, a report by Barclays had said in January<\/a>.<\/p>\n The report said that the Middle East is predicted to account for eight per cent of luxury goods sales in the next seven years, which is up from the current five per cent.<\/p>\n Apart from this,\u00a0e-commerce in the Mena region is expected to grow at 15 per cent CAGR in 2023.\u00a0<\/span><\/p>\n \u201cE-commerce is growing fast as customers continue their buying habits from the pandemic. Spending power among younger digital buyers, who generally enjoy the convenience of online shopping, will also contribute significantly to the growth of retail in the GCC,\u201d Mr Linardos said.<\/p>\n The UAE\u2019s e-commerce market grew by 46 per cent in 2021, and is expected to reach more than $140 billion by 2031.<\/p>\n In Saudi Arabia, social commerce industry is set to grow by 35 per cent this year, to reach $1338 million.<\/p>\n A report<\/a> added that the social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 21.7 per cent between 2022 and 2028.<\/p>\n Social commerce in the Mena region also grew by 70 per cent in 2022, as compared to the previous year, according to another report<\/a>.<\/p>\n Mr Linardos added that one of the key trends in the industry will be the integration of physical and digital retail, apart from conscientious consumerism.<\/p>\n \u201cTransparent reporting and independent auditing of sustainability claims are going to become increasingly significant to retailers hoping to protect and grow their market share,\u201d Mr Linardos added.<\/p>\n Speaking at the Investopia 2023 Conference in Abu Dhabi, Chalhoub Group CEO Patrick Chalhoub said that the luxury industry is committed to<\/span>\u00a0sustainability. He said that significant steps are being taken to comply with the net-zero agenda by 2030, focusing on recycled products and a circular economy.<\/span><\/p>\n Mr Linardos also noted that businesses should design the entire customer journey around digital integration.<\/p>\n