Customers are now more purpose-driven, especially when buying luxury brands, according to Patrick Chalhoub, group president of Chalhoub Group, who spoke during Investopia 2023 on Thursday.
He explained that luxury products were often viewed by their price tags, however, this no longer applies as consumers are much more sustainability-driven.
Speaking to Arab News on the sidelines of this year’s Investopia, Chalhoub said people are now looking for products that have a purpose or greater meaning.
“They are more engaged in things that make sense to their community. It doesn’t necessarily mean a local brand, but it could be a cooperation, the tone of voice, a more engaging experience or service,” he explained.
Chalhoub said people now place more importance on a personal experience, rather than blindly purchasing products inspired by influencers on social media.
In an era in which pandemics, wars and natural disasters have arisen in quick succession, high-end brands have managed to survive and witness remarkable growth.
“I think we have to understand today that there are circumstances that we cannot change, so we need to adapt to them with a lot of agility,” said Chalhoub.
He added that in order to survive such adverse circumstances, brands must “expect the unexpected” to keep moving forward.
Before the pandemic, 40 percent of luxury businesses went to China for production and manufacturing. They were able to nonetheless overcome challenges when the East Asian country closed due to COVID
-19, said Chalhoub.
“It’s up to us to make sure that we have enough creativity, innovation and agility to be meaningful to people,” he added.
Chalhoub said he continues to maintain his optimism in order to see the “opportunities in the challenges” that arise.
“If the disposable income goes higher, this will also benefit the luxury industry,” he added.
Chalhoub’s remarks came during his participation in Investopia 2023, a conference aimed at driving growth and incubating future economies globally.
The two-day event, which is taking place March 2-3 in the UAE capital Abu Dhabi, serves as a platform for investors, business leaders and governments to connect and identify new investment opportunities.