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The National

Luxury goods spending in Gulf set to recover in 2021

Luxury goods spending in Gulf set to recover in 2021

Almost 70% of high-net-worth GCC buyers, who traditionally opt for in-store luxury shopping, now say they are comfortable with online shopping.

  • 06.05.2021
  • min read

The National

Luxury goods spending in Gulf set to recover in 2021

Luxury goods retailers in the Gulf will see a recovery in consumer spending in 2021, to just below pre-pandemic levels in 2019, after the market declined 17 per cent in 2020, according to Bain & Company..

Online shopping, which benefited from a massive boost during the Covid-19 pandemic, will continue to fuel growth after virus-curbing measures are removed, the management consultancy said in a report titled Assessing the Impact of 2020 on the GCC Luxury Goods Market. 

"Moving forward, 2021 spending is expected to be slightly below 2019 levels, assuming a gradual return to travel in the second and third quarters," report authors Cyrille Fabre and Anne-Laure Malauzat. "Much will depend on each brand’s ability to keep a large share of the luxury spending that traditionally took place abroad while also convincing tourists to spend in the region."

The National