According to a study conducted by AT Kearney, UAE tops with highest sales in clothing per capita in the world.
Kearney?s Retail Apparel Index showed that the UAE had the highest clothing sales per capita at $785 in year 2010. UAE was earlier ranked as second in the apparel retail market, next to South Africa. AT Kearney report said that consumer spending has grown a healthy nine per cent last year. It is a good indicator of consumers? stabilising confidence.
However, they also said that consumers have expressed more caution compared pre-crisis years. Most of the prices have gone up than the wages and many customers are feeling the pinch. UAE was dropped to ninth position at AT Kearney?s Global Retail Development Index as the market was becoming saturated with international retailers. The influencing factors were tourism, sizable household consumption, and ample retail space.
For many retailers, the UAE market is the preferred entry point into Mena for new products and brands. In 2010, Bloomingdale?s opened its first store in Dubai outside the US and Victoria?s Secret with a partnership with MH Alshaya opened its first store in the region. The current strategy is to work in tandem with customer profile and establish outlets at preferred location. Seven countries in the Mena region have made it to the top 20 in the 2011 index of top ranked emerging markets for global retail expansion.
Globally, the list is dominated by Latin American, Asian and Mena countries. Brazil, Uruguay and Chile are at the top for global retail expansion, while other top 10 include India, Kuwait, China, Saudi Arabia, Peru, UAE and Turkey.