GCC luxury good market dropped to $7.4 billion USD in 2020, says Bain & Company

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GCC luxury good market dropped to $7.4 billion USD in 2020, says Bain & Company

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Changes in tourism flows had a major effect on the market in 2020 and the early months of 2021. In the UAE especially, where tourists account for as much as 60 percent of the luxury market, an undeniably large block of spending power was wiped out rapidly by ongoing Covid-19 travel restrictions.

Bain & Company research reveals clear differences in 2020 market dynamics by category.

Jewellery: The category saw a second-half rebound spurred by local GCC customers, especially in Saudi Arabia, due to weddings, investment buying, and the launch of new collections. Jewellery was the only luxury category to achieve value growth in 2020, albeit just a 1 percent increase. Spending abroad was fully repatriated, with top brands outperforming and growing their presence in Saudi Arabia.