According to Patrick Chalhoub, president of Chalhoub Group, the industry is facing challenges that require collaboration among retailers, brands, developers, and the private and public sectors.

In 2021, luxury grew by 10-15 percent compared to 2019, and in 2022, the market grew by 20 percent.

However, growth slowed down to 7-10 percent during the fourth quarter of 2023 for an overall growth of 11 percent.

Going forward, the trend is expected to be around 6-8 percent in fashion and 10-12 percent in beauty, driven by an increased interest in skin care.

The Middle East market, which makes up 3-4% of the global market, is experiencing high growth of 4-5%, according to Chalhoub.

There is a strong demand for luxury goods, particularly in the jewelry and watch segment, which is not driven by "revenge buying." Consumers are now more price-conscious and informed, leading to a decrease in the share of wallet spent on luxury goods.

Spending has shifted towards travel, entertainment, and hospitality, especially in Saudi Arabia.

The conflict in Gaza caused a slowdown in luxury spending due to increased focus on humanitarian affairs and fewer events.

During Ramadan 2023, there's a growing trend towards appreciating luxury for its own value, rather than as a status symbol.

Consumers are focusing on sustainable consumption and well-being, and are more interested in the purpose and sustainability of brands.

This makes business more challenging but sustainable in the long run.

While e-commerce continues to grow, brick-and-mortar shops are making a comeback due to their personal connection and unique experiences.

The Chalhoub Group launched "The Visitor," a new travel retail concept in Jeddah, Saudi Arabia, in November 2023, with a focus on delivering quality service and unique experiences.

Chalhoub, the CEO of Chalhoub Group, expressed excitement about the significant potential in Saudi Arabia, specifically at the Jeddah airport.

The collaboration between Chalhoub Group and the Jeddah Airport Authority aims to provide a top-notch customer experience, utilizing Chalhoub's market knowledge, consumer insights, and expertise in duty-free shopping, travel retail, and technology integration.

The project is progressing well, with initial results showing promise, and the completed project is expected to be unveiled by early 2025.

Chalhoub also noted the Middle East's young customer base, which is digitally connected, has the ability to spend on luxury goods, and is eager to learn and assert itself.

The text discusses the importance of an attractive customer experience, both in physical shopping malls and digitally, for the Chalhoub Group in the Kingdom.

To achieve this, stronger collaborations are necessary.

Price competitiveness, combating counterfeits, and managing supply chain disruptions are also crucial.

New malls, such as Marasi in Bahrain and Solitaire in Riyadh and Abu Dhabi, are opening, offering improved customer journeys and stakeholder collaborations.

The Chalhoub Group is also promoting innovation and entrepreneurship through incubators and accelerators for startups.

The Chalhoub Group, celebrating its 70th anniversary, adapts to changing times while staying true to its values of teamwork, inclusivity, and innovation.

The group is shaping the luxury landscape by introducing international brands to the region and exporting local expertise.

A current exhibition, "Parfum d'Orient," in partnership with the Institut du Monde Arabe, showcases the Arabic origins of fragrances, highlighting scents like oud, saffron, and roses from Damascus.

Chalhoub views this transformative exhibition as a source of pride in identifying with the origins of these products.

The six-month long exhibition held in Paris has concluded on March 17, 2024.

The exhibition will be relocated to Riyadh, Saudi Arabia, for a second phase of collaboration with the Saudi Ministry of Culture, starting in October 2024.