Even as many major fashion markets world-over continue to face serious headwinds owing to various reasons, Middle East is a rare exception, so it seems!
According to Euromonitor International, the Middle East region is projected to record a CAGR of approximately 7 per cent between 2023 and 2027 amidst a fast-evolving customer base and their equally fast-changing shopping habits.
As per experts, the modes of dressing in the region are undergoing massive transformation lately as consumers start embracing a contemporary Arab style that blends local and western fashion even as more and more women continue to enter the workforce.
What’s more, as per some estimates, consumers in the United Arab Emirates (UAE) and Kingdom of Saudi Arabia (KSA) respectively spend around 27% and 43% of their fashion budgets on local traditional clothing with the majority being spent on global or international styles, thereby opening up new windows of opportunity for the diverse range of players in the fashion retail space, to make the most of it.
What has given a further boost to the growth of the fashion retail sector in the region is the new Government-endorsed free-zones in the UAE, KSA and other Gulf states, which have made it easier for international businesses to set up local headquarters and have fullyowned operations.
The changing business landscape in many parts of the Middle East has now given the global brands a greater opportunity to explore different business models in the region even as the go-to-market strategies are also undergoing massive changes, reflecting a shifting regulatory environment.
As brands and retailers continue to spread their wings in the region, Bangladesh, which is the preferred sourcing hub of most global players, seems to have started benefiting from the trend after the country registered a significant growth in apparel exports to KSA and UAE in the last year.
In Saudi Arabia, apparel export has increased by 40 per cent in the last financial year to US $ 125 million whereas, in the UAE, apparel export grew by percent…. to US $ 183 million.
Meanwhile, India’s signing of the Comprehensive Economic Partnership Agreement (CEPA) with the UAE last year is expected to further strengthen India's dominant position in the UAE market even as according to the industry players, Indian apparel exports to the UAE also cater to the needs of Saudi Arabia, Kuwait, Bahrain and Oman as well.
To get a complete lowdown on the exciting and fast-evolving fashion retail sector of the Middle East region and how you can make the most of the market opportunities on offer, make sure to be part of the third edition of Apparel Sourcing Week scheduled to be held on 20th-21st July at Grand Sheraton Hotel and Convention Center, Bengaluru.
Apparel Sourcing Week 2023, a three-day Sourcing Show not only provides the Asian manufacturers a platform to showcase their products & manufacturing capabilities to the Brands & Retailers from all over the world including India, but also extends them a chance to attend the multiple seminars (headed by industry experts), workshops, open-house discussions and networking opportunities organised during these three days, which would help the manufacturers get a better understanding of Indian and International Retail and evolving dynamics of sourcing in various markets and retail formats.
Apparel Resources is well known for its benchmark publications – Apparel Online, FashTech Journal and Resource Guide published from India, Bangladesh and Vietnam. These publications have been around in the industry for over 35 years, supporting, guiding and standing by garment exporters and the retail industry globally, providing them a platform to source better