UAE New Luxury Shopping Destination Driving Luggage Industry: Ken Research


The United Arab Emirates is a federation of seven emirates and is an Arabian Peninsula nation. UAE has the second largest economy in the Gulf Countries after Saudi Arabia. The rise in disposable income is an added advantage of the consumers to spend more on luggage due to frequent travel plans. The country is experiencing a surge in the inbound, outbound and domestic tourism flow, as it is a luxury-shopping destination. All these factors affect the sales growth in bags and luggage sector.

According to the market research report “Bags and Luggage in the United Arab Emirates“, the Bags and luggage market in UAE has increased rapidly due to the fashion-conscious consumers and continuous purchases of the products. Michael Kors and Kate Spade are the popular brands in UAE with competitive prices that attract young and ambitious population within the country. The local and foreign consumers are attracted towards the luxury brands fuelling sales growth of branded bags and luggage. Therefore, the personal accessories market is skyrocketing with strong current value growth.

Almost all the huge luxury shopping malls are packed with tourists on events such as the Dubai shopping festival and other events. The renowned shopping malls are ‘The Dubai Mall’ with 1,200 outlets and ‘Mall of the Emirates’ with 520 outlets. Majority of the tourists are attracted to the personal accessories, such as bags, luggage, and the general purchase is a luxury handbag. Chalhoub is the leading company in bags and luggage in UAE and this company represents LVMH’s brand Louis Vuitton in the United Arab Emirates. Louis Vuitton is a globally well-established and an iconic image with many branded bags and luggage as attractive status symbols. Al Tayer Group is ranked second in bags and luggage and represents PPR’s iconic Gucci brand in the country. Dubai and Abu Dhabi hosted a number of major events with leading designers and brands in the bags and luggage market. The competitors are very keen to increase their sales in such events among the local consumers and tourists. Samsonite has re-launched Hartmann, a luxury luggage brand in Dubai. Another incident where, Prada used its outlet in ‘The Galleria Mall’ to launch a lightweight bag with a flap pocket offering additional storage space. Cartier also launched two new handbag collections at ‘The Dubai Mall’.

The United Arab Emirates is greatly inclined towards luxury, particularly for bags, luggage bags, handbags and wallets. There was no effect of recession on the bags and luggage industry. The younger generation in the United Arab Emirates are extremely brand-conscious. The priority purchase of everyone is a handbag of premium brand or ultra-luxury brand. Russian and Chinese tourists are spending less because the UAE dirham has become stronger against the US dollar making United Arab Emirates more expensive compared to the western countries.

In the UAE, the growth rate is stable in the bags and luggage market but it is expected to decrease in sales during the years 2017 and 2018 due to a projected economic slowdown with the introduction of VAT. In addition, the population growth in the coming years is expected to slow down due to falling birth rates, infertility, and deceased rate leading to ageing population. These factors may affect the growth of the bags and luggage market in the coming years.

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