Insights: How global brands can tap GCC's luxury market

Gulf Business

25-02-2025

The GCC luxury market stands at a transformative crossroads. With one of the world's youngest and wealthiest populations, it's a region where global trends meet deeply ingrained cultural values.
According to CXG's recent report,
'Luxury Trends in the GCC: Embracing Opportunities and Navigating Challenges',
this market offers significant growth potential for brands that prioritise personalisation, adapt to local cultural nuances, and commit to sustainability.
However, to succeed, brands must approach the market with an authentic and well-informed strategy.
Localisation: The key to emotional resonance
Luxury in the GCC is no longer just about status; it's about storytelling that connects to a culture that is deeply proud of its heritage. The CXG report highlights how global luxury brands have recognised the importance of aligning their offerings with local traditions and sensibilities.
Take, for instance, Dior's Ramadan capsule collection,
Dior Or,
or Chanel's Dubai Funfair, which celebrated a classic watch model. These events exemplify how global brands are weaving their identity into the cultural fabric of the region. Dolce & Gabbana's fashion show at AlUla further demonstrates how aligning with iconic GCC locations can elevate a brand's relevance.
Such strategies are necessary because GCC consumers, particularly affluent millennials and Gen Zs, are discerning and demand authenticity.
Localisation, as a trend, is also reflected in the rise of homegrown brands like L'Afshar and The Giving Movement, which merge cultural pride with innovative and stylish design. Global brands must adapt their collections, marketing, and even store designs to reflect regional values and create a stronger emotional connection.
Personalisation: Building bespoke experiences, meaningful relationships
The luxury customer experience in the GCC is defined by relationship-driven interactions. The report noted that 39 per cent of customers in the region strongly value personalised connections with advisors, but there's significant room for improvement in delivering this consistently. One of the most crucial metrics for luxury brands in the GCC—
'
building a connection
'
—is 16 percentage points lower than global benchmarks.
Clients in the GCC prefer a bespoke experience, so building the relationship is a vital part of the sales process.
Clienteling, supported by CRM technology, is becoming a critical tool for brands to deepen these relationships.
Advisors who can anticipate their clients' preferences, remember key details about their lives, build personal relationships, and even celebrate milestones create the kind of loyalty that turns customers into brand advocates.
In the GCC, the role of the advisor goes beyond selling. It's about trust, aspiration, and curating an exclusive journey. These relationships are so deep-rooted, that it's not uncommon for clients to follow their advisors when they change brands — highlighting how paramount it is for brands to build strong teams within the region.
Sustainability: An untapped opportunity
While the GCC may not yet lead with sustainability, Research shows that the region is ripe for change. Initiatives like Saudi Arabia's Vision 2030 and Dubai's hosting of COP28 reflect increasing governmental and societal attention on environmental responsibility. Yet, the report reveals that only 5-11 per cent of luxury interactions in the region currently incorporate sustainability messaging, depending on the category.
Brands that integrate sustainability into their storytelling and operations can tap into the aspirations of younger consumers, who increasingly value ethical consumption.
A standout example is
Forward
concept store in Dubai's
For local brands, sustainability also aligns with heritage. Artisanal production methods and traditional craftsmanship, rooted in respect for nature and cultural history, offer authentic narratives that resonate with GCC consumers.
Why the GCC matters: Strategic opportunities for global luxury brands
The GCC is poised to become a global leader in luxury growth. The CXG report projects the region's luxury market to grow at an impressive 8.5 per cent CAGR, driven by rising disposable incomes, significant investment in retail infrastructure, and the return of repatriated spending post-Covid.
Global brands looking to succeed in this thriving market must address key opportunities:
Crafting tailored experiences:
Capsule collections and localised marketing campaigns that celebrate GCC traditions — such as Ramadan and National Days — demonstrate respect for cultural values while enhancing brand relevance.
Technology-driven personalisation:
Digital tools like augmented reality, AI-driven recommendations, and omnichannel integration ensure that brands can meet the expectations of tech-savvy GCC customers.
Sustainability messaging:
Aligning with governmental initiatives and embedding eco-conscious values into brand narratives can set brands apart in a market that increasingly values ethical luxury.
Exclusive experiential luxury:
Events such as Van Cleef & Arpels' exhibition in Riyadh exemplify how brands can create immersive experiences that captivate luxury clients and foster long-term loyalty.
Empowering local talent:
Collaborations with local designers, influencers, and brands are not only strategic but also reflect a deep understanding of the region's pride in its cultural identity.
Looking ahead: A market with infinite possibility
The GCC has already shown its prowess as an economic powerhouse, and it is now demonstrating itself as a region that is redefining what luxury means. It's a market that values tradition as much as innovation and expects brands to deliver both with precision.
Success in the GCC here demands more than business as usual — it requires a commitment to understanding and honouring the region's ethos.
Global brands that embrace this unique opportunity — by delivering culturally resonant, personalised, and sustainability-driven experiences — are poised to thrive in one of the world's most dynamic luxury markets.
The writer is the CEO of CXG, a leading data-driven consulting and solutions firm.