EMERGING FASHION MARKET
UNITED ARAB EMIRATES
(OVERVIEW OF UAE FASHION INDUSTRY & SWOT ANALYSIS)
OVERVIEW OF UAE FASHION INDUSTRY
United Arab Emirates comprises of 7 states/emirates namely Abu Dhabi, Dubai, Sharjah, Ajman, Umm-al-Quwain, Ras Al-Khaimah and Fujairah. The capital and second largest city of the United Arab Emirates is Abu Dhabi. It is also the country's center of political, industrial, and cultural activities. •
The United Arab Emirates has the world's seventh largest oil reserves and possesses one of the most developed economies in West Asia. •
The UAE's population was estimated at 8.19 million, of which just under 20% were UAE nationals or Emiratis, while the majority of the population are expatriates. The country's net migration rate stands at 22.98, the world's highest. •
The United Arab Emirates is classified as a high-income developing economy by the IMF. •
Dubai is world’ s fastest growing city, with construction of 4 largest manmade islands, the worlds largest shopping mall - Dubai mall, the tallest tower – Burj Khalifa. •
Number of major fashion events held in the Emirates more than doubled from four in 2004 to nine in 2008. In Dubai, the fashion scene is radically different from London or Paris as it caters to buyers from a cross section of cultures with vastly different tastes and preferences.(Grail Research) •
The region is becoming more fashion conscious by every year. After India, Russia and China, the UAE is the fourth most-valuable retail market in the world. The apparel market in 2009 was worth $12 billion and is expected to grow by 15% over the course of 2010, according to a study conducted by the French Fashion University Esmod – Dubai, a leading fashion institution in the region. Rising purchasing power and strong consumer confidence are driving the retail industry. There is also a growing trend of mall culture. Growing urbanisation is also a factor in the buoyancy of the retail sector •
The textile sector is characterized by small size establishments and is considered an exporting sector. The contribution to total exports was 6.5% in 2004.The main exporting destinations are EU, US and Canada. The textile industry is one of largest employment provider in the industrial sector of UAE in general & especially Dubai. The textile industry comprises the following activities: the readymade garments production, which forms the largest share(50-60%), textile and textile articles manufacturing and others. (Dubai Chamber of Commerce and Industry report 2005). •
The buying power of the country’s expatriate residents has been the major source of success, a study by Indian research firm RNCOS said.
The UAE’s strategic geographical location between Asia, Europe and Africa is a major advantage to investors, particularly the country’s proximity to some of the world’s fastest growing economies in Asia. o
Traditionally , the economy has been largely dependant on trading & crude oil, but since both these industries are very volatile & depend on market forces, therefore UAE are developing an assertive branding strategy focused on alternatives like tourism, fashion industry, aviation, real estate, high class events &exhibitions, in order to put their capitals on world tourism map.
Demographical & cultural:
Almost all the nations in the middle east are Islamic nations & UAE is the most liberal nation in the entire middle east .This is one of the major reason why UAE is experiencing fastest growth in fashion & retail industry, in the entire middle east region. o
In 2005, 85.5% of the UAE’s population was classified by the UN as urban and this is forecast to increase to 86.3% by 2010.Since the fashion industry targets urban population largely, so this is a major advantage. o
In this region, 60% of the people are below the age of 25 - they are fashion & brand conscious & have money to spend. Some 50% of the population is women who are considered as serious...
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