UAE consumers big fans of luxury brands

Calvin Klein, Christian Dior and Gucci are the UAE's top luxury brands, but if money were no object Chanel and Louis Vuitton are the most coveted, according to UAE results from the Nielsen Global Luxury Brands Survey being released at the Leaders of Luxury Summit which starts in Dubai today.

According to the 51-country Global Luxury Brands survey conducted by Nielsen, one in three (31 per cent) UAE consumers said they currently buy designer brands, and UAE designer shopaholics are the world's biggest fans of Christian Dior, Givenchy and Fendi.

"Survey results revealed that three out of five UAE consumers have shopped at Calvin Klein and Christian Dior, and one in three have shopped at Gucci," said Piyush Mathur, Regional Managing Director for the UAE, North Africa and Pakistan for the Nielsen Company. "Gucci, Christian Dior and Calvin Klein clearly understand that strong brands make for profitable businesses. They are not merely selling fashion, they are selling an image, something consumers are willing to pay a premium for."

UAE shoppers ranked second internationally as the biggest fans and purchasers of Gucci (31 per cent) and Chanel (21 per cent), and third globally for Giorgio Armani (19 per cent).

"Unlike most countries in the survey that chose two or three luxury brands as their clear favourites, UAE consumers stood out for their purchasing habits of several high-end fashion brands," said Mathur. "When consumers globally were asked what designer brands they currently buy, UAE consumers featured in the top-five nations for buying a plethora of brands including Christian Dior, Gucci, Chanel, YSL [Yves Saint Laurent], Valentino, Giorgio Armani, Versace, Givenchy, Fendi and Bottega Veneta."

UAE also topped global rankings in believing that designer brands are of significantly higher quality than standard products (43 per cent). Three in five (59 per cent) of UAE consumers said people wear designer brands to project social status. "Consumers here are willing to pay high prices for quality products that they believe will provide instant social status. As the future survival of leading fashion houses depends on brand longevity, it is no surprise that the world's leading names in luxury have flocked to open stores, restaurants and hotels in the UAE," said Mathur.

"The rapid economic growth and new wealth of this country is best demonstrated by consumers' insatiable appetite for luxury designer brands. The luxury brand has become an integral part of UAE lifestyle, and our national obsession with luxury brands has propelled Dubai into a leading international shopping and luxury tourism destination."

While only seven per cent of UAE consumers currently claim to buy Louis Vuitton, if money were no option the brand would be top of the list for 21 per cent. Similarly, while one in four (21 per cent) of UAE consumers buy Chanel, if price were not a concern 30 per cent said they would buy the brand.

The survey also unveiled untapped potential for luxury fashion brands in the UAE to expand their apparel business into other products such as mobile phones, laptops, flat screen televisions, MP3 players and even kitchen appliances. "Our survey tells us UAE consumers certainly don't believe that luxury brands should be restricted to apparel only and there are many retail opportunities savvy marketers can take advantage of," said Mathur.

Follow Emirates 24|7 on Google News.