Dubai Luxury Fashion Retail Sector During COVID-19 | Impact of Covid 19 on Fashion Industry

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Arab world. The Middle East, especially Dubai has also the highest per capital spending on the luxury retail sector. The shopping festival held each year accounts for strategic marketing done by the Government, which has positively impacted GDP as well as growth to the tourism sector of the nation.

E-commerce nowadays is the booming business all over the globe. Shopping through digital platforms saves enough time and energy so that the consumers can concentrate on other activities in their life. It must be pointed out that especially with the current situation of Covid-19, where lock down and social distancing has become mandatory, e-commerce has seen massive surge. The most recent event is the launch of e-commerce portal Ounass, which is a luxury shopping portal featuring the popular international brands for the consumers of UAE and the GCC region. The portal is also providing 2-hour delivery period for Dubai and same day delivery options for some regions.

Under lock down situations, the consumers are shifting their buying pattern from onsite to online buying. This change in the shopping behavior of the consumers overnight has led to the popularity of social media influencers in the fashion industry. Social media influencers are able to engage a large population of audiences online. They state that the influencer market is now USD 12 billion annually catering only to the luxury brands; the brands choose their influencers according to the message they give to their followers and their follower base and numbers.

According to a report in Business Today, the luxury fashion retail industry is bound to go down by 30-40 billion Euros globally. However, in order to ensure survival every industry must adapt to the changing market situation. The involvement of e-commerce as seen earlier is the most strategic step so far, as buying pattern has shifted online to a great extent. Experts say that this change in the shopping behavior may be the new ‘normal’ in times to come. Therefore, huge digitization efforts have been taken up by the industry. Most private labels like Louis Vuitton, Christian Dior and Givenchy have turned their perfume facility into making hydrochloric gels for the public. Armani has turned its unit to making face masks, PPE and other supplies required for the hospital staffs. Most companies have also partnered with logistics providers to maintain the supply of goods to the public as long as possible; these include air freight, sea freight and also roadways. Therefore, it can be said that the cope up, is not so much with respect to the consumers, but the survival of the luxury fashion companies in itself, so that they can keep their workforce employed even during this crisis situations.

Saleh Chehada

Store Manager
MBA CMU

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