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Arabian Business
7 days ago
- Automotive
- Arabian Business
UAE emerges as hub for limited-edition luxury cars amid wealth influx
The influx of ultra-high-net-worth individuals (UHNWIs) into the UAE from around the world has set off a personalisation-based trend in the ultra-luxury auto sector in the region, with wealthy buyers demanding vehicles that reflect their status, cultural identity, and individuality through bespoke creations and limited editions, industry experts said. The market is also seeing a major shift in buyer profiles, with younger purchasers – often successful entrepreneurs or upwardly mobile executives in the 18-29 age bracket – emerging as the new demand setters with frequent vehicle changes and upgrades, displaying their success through highly customised, ultra-rare vehicles. Adding to the new excitement for market players is the trend of women increasingly becoming influential in this segment, with direct purchase decision-making as they occupy more senior professional positions. 'Personalisation has of late become the defining element of the ultra-luxury automotive experience [in the UAE],' Christophe Caïs, Founder and CEO of CXG, a leading data-driven consulting and solutions provider for premium and luxury brands, told Arabian Business. 'The new set of UAE buyers specifically expect premium features, customised interiors, and climate-specific adaptations,' he said. Industry insiders said the region's favourable road infrastructure, lower vehicle costs, and accommodating tax policies add to create an ideal environment for ultra-luxury vehicles to thrive. SUVs dominate due to their versatility in both urban environments and challenging terrain, they said. The segment's newfound market drivers are evidenced by substantial investments in increasingly immersive retail experiences, with Dubai seeing the opening of the world's largest independent McLaren showroom and the inauguration of a Rolls-Royce showroom. View this post on Instagram A post shared by Rolls-Royce Motor Cars Dubai (@rollsroyce_agmc) Luxury car market trends Market players said the luxury automotive sector in the UAE – as well as in the wider Middle East – is also seeing distinctive preferences compared to other global markets. While European and Asian buyers increasingly prioritise fuel efficiency and environmental considerations due to regulations and social norms, Middle Eastern customers embrace bold displays of wealth and performance without social stigma, they said. Caïs said their clients demand vehicles that reflect their status, cultural identity, and individuality through bespoke creations and limited editions. 'This trend has reached extraordinary levels – from Rolls-Royce's diamond-infused paint finishes to Ferrari's Gulf-inspired special editions featuring regional design elements like beige leather interiors with golden embroidery,' he said. Caïs said nearly every ultra-luxury manufacturer now operates dedicated personalisation divisions, with programmes like 'Q by Aston Martin' and 'Rolls-Royce Bespoke' seeing 100 per cent customisation rates for certain models in the region. Industry observers said the fundamental driver of the current shifts taking place in the region's ultra-luxe auto sector is emotional resonance. Middle Eastern buyers want vehicles that represent their unique identity, expressed through bold colour choices, precious materials, and intricate details that ensure absolute uniqueness, they said. The shifting preferences, driven by unique regional preferences, economic strength, are projected to help the ultra-luxury automobile market in the UAE and wider region to grow at a steady close to 5 per cent rate through 2032, from the estimated over $20 billion in 2024. Luxury EVs gain momentum in UAE, KSA, wider Middle East Sector experts said electric vehicles are fast gaining traction in the ultra-luxury segment in the region, though adoption remains in early stages in some of the markets. Established brands are introducing electric flagship models, such as the Rolls-Royce Spectre and the upcoming Ferrari Elettrica, while Chinese EV leader BYD, though yet to make a mark as a luxury auto player, is making inroads into the segment with its Yangwang and Denza brands. Developments such as Saudi Arabia's Public Investment Fund (PIF) investing in Lucid Motors to establish local manufacturing in Jeddah and the UAE's aggressive push on expanding charging infrastructure, offering tax incentives, are also aiding uptick in EV adoption in the region. Caïs said the next 2-4 years promise continued growth with electric vehicles playing an increasingly central role in the region. 'Asian luxury brands like BYD will intensify competition, while autonomous driving will gradually penetrate the segment – primarily in limousine-style vehicles rather than sports cars, where the driving experience remains paramount,' he said. The CXG chief executive, however, said to maintain a competitive edge, brands must differentiate through elevated customer experiences that make clients feel part of an exclusive community. 'The real battleground, however, will be after-sales service. Over-the-air (OTA) software updates and AI-enabled deeper customisation through technologies like 3D printing will become critical differentiators, with brands implementing robust service strategies best positioned to capitalise on regional momentum,' he said.
Gulf Business
25-02-2025
- Business
- Gulf Business
Insights: How global brands can tap GCC's luxury market
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.
Zawya
18-02-2025
- Business
- Zawya
CXG welcomes Gabrielle Chou as new Advisory Board member
Dubai, UAE: CXG, an international leader in data-driven consulting and solutions for premium brands, is delighted to announce the appointment of Gabrielle Chou, a renowned entrepreneur and AI expert, to its advisory board. Gabrielle is a serial entrepreneur and associate professor at New York University, specializing in AI, e-commerce, and luxury retail. An innovator in the field, she has founded and led multiple transformative ventures, demonstrated by her ability to merge cutting-edge technology with commerce, reshaping industries along the way. Launching her first high-impact initiative in 2000, Gabrielle provided Fortune 500 companies in Asia with advanced customer data solutions through ChinaLOOP, a forerunner in intelligent database management. In 2009, she developed MOOD BY ME, a groundbreaking digital-native fashion brand offering bespoke apparel through an on-demand model, leading to its acquisition by Citiheart H.K. in 2014. In 2017, Gabrielle founded Allure Systems, a trailblazer in generative AI for fashion e-commerce imagery. The company's innovative use of AI to create virtual models and hyper-realistic product imagery was adopted by luxury industry leaders, culminating in its acquisition by FARFETCH in 2021. Today, Gabrielle advises tech startups and teaches at NYU Stern School of Business, focusing on AI-driven business models and their potential to transform industries. She joins CXG's advisory board, which includes esteemed leaders such as Francois Delage, Frederic de Narp, Francois Leaute, Lina Ly, Helen Zeitoun, and Alexis Lecanuet, bringing her unique expertise to guide CXG's strategic vision. 'We are thrilled to welcome Gabrielle Chou to our advisory board,' says Christophe Caïs, Founder and CEO of CXG, 'A true trailblazer with a proven track record, her expertise will be instrumental in helping to seize new opportunities in the rapidly evolving field of AI technology.' Gabrielle Chou will begin her role on the advisory board immediately, making an invaluable contribution to steering CXG through the challenges of a continually evolving business landscape, generating long-term success through insightful analysis and strategic decision making. About CXG: CXG stands as the leading data-driven consulting and solutions firm specializing in innovative strategies to enhance customer experiences and boost retail performance of premium and luxury brands. Leveraging years of expertise gained from over 220 iconic brand partnerships, CXG guides clients through their entire CX journey, delivering insights and driving meaningful change. CXG's four core practices—Customer Insights, Measurement, Consulting & Transformation, and the Academy— provide a comprehensive framework for comprehensive CX transformations. Founded in 2006 in China, CXG has grown into a global powerhouse, with 12 offices catering to 85 countries, and a team of more than 260 professionals. With their growing network of customer experience experts, including evaluators, learning consultants, and strategic consultants, they help brands elevate their experiences. CXG recognizes that customer needs are ever-evolving. Their tailored solutions across research, measurement, training, coaching, and consulting are designed to meet these dynamic demands, positioning us as the definitive one-stop-shop for all CX transformation needs. Discover more about how CXG can transform your customer experience at Middle East media enquiries, please contact AllDetails: Diane D'Costa, Senior PR Account Manager Email:
Arabian Business
10-02-2025
- Business
- Arabian Business
India is a $60bn opportunity for GCC retailers, experts say
Leading UAE and GCC retailers and e-commerce platforms are eyeing to corner a sizeable pie of the estimated $60 billion luxury e-commerce market in India, with some of the players already making an entry and several more are in the process of finalising entry plans, sector experts said. While some of them are preparing to go alone, many are weighing options for strategic partnerships with local companies in India for their entry plans, they said. Dubai-based Apparel Group is among the companies which have already expanded their footprints in India, with the former opening its R&B Fashion stores in various Indian cities, mainly in some of the South Indian cities and also in Ahmedabad in Gujarat – homes to a sizeable expat population from India. Jewellery, beauty, wellness and casual wear are among the key sectors on the radar of UAE and GCC brands for tapping the luxury market in the South Asian country in the initial phase. 'Indian luxury market presents significant revenue opportunities for GCC-based companies, particularly those from the UAE, driven by India's rapid economic expansion, increasing disposable incomes, and a growing demand for luxury among India's affluent consumers,' Christophe Caïs, Founder and CEO of CXG, a leading data-driven global consultancy specializing in premium and luxury brands, told Arabian Business. 'Several GCC-based companies are [currently] actively engaging with the Indian luxury market for either direct participation and strategic partnerships,' he said. Caïs said with India's middle class on the rise and digital access improving, there are abundant opportunities for GCC businesses to form partnerships and offer products in several sectors, especially such as jewellery, beauty, and wellness. GCC brands target India Sector experts said by strategically positioning themselves, GCC brands can tap into the high-growth luxury segments in India and build meaningful connections with Indian consumers. India's digital revolution, with 220 plus million online shoppers, provides a fertile ground for GCC-based e-commerce platforms to expand their reach, they said. GCC platforms that offer well-known brands and seamless omnichannel experiences, besides prioritising cultural relevance will be well-placed to capitalise on the high-growth Indian market amidst the rising trend of Indian consumers embracing digital-first luxury retail, a Delhi-based retail market consultant said. Caïs said with a growing number of high-net-worth individuals (HNWIs) and a consumer base that values both heritage and innovation, key sectors such as jewellery, beauty, and wellness are witnessing a surge in demand in India. He, however, suggested the UAE and GCC players should follow omnichannel strategies – combining physical retail with robust online platforms – to cater to diverse consumer preferences in the Indian market. 'Social media, AI-driven personalisation, and immersive technologies like AR/VR can enhance the shopping experience, particularly for consumers in non-metro areas for brand awareness is still growing,' he said. The CXG Founder said GCC-based retailers must invest in storytelling and influencer marketing to build brand equity in the Indian market. 'Collaborating with Indian celebrities, influencers, and regional micro-influencers can help bridge the gap between global luxury brands and local consumers. 'For example, Louis Vuitton's partnership with Deepika Padukone and Bulgari's association with Priyanka Chopra have significantly boosted brand visibility and appeal in India,' he said. View this post on Instagram A post shared by Priyanka (@priyankachopra) According to investment bank Jefferies, India's $130 billion wedding industry remains a prime market, with $35-$40 billion spent on jewellery in 2023. Besides, branded jewellery is gaining traction as a status symbol, shifting away from traditional investment-driven purchases. 'GCC brands can capture this demand by offering culturally relevant designs and leveraging digital marketing and influencer collections,' Caïs said. He said with India's beauty market estimated to hit $20 billion by this year and the premium segment – figuring Ayurveda-inspired and sustainable products – growing at 15 per cent, GCC brands can stand out by merging Middle Eastern beauty rituals with India's botanical heritage and focusing on e-commerce and social media engagement. Industry players said the wellness sector, driven by health-conscious millennials and Gen Z, is another major GCC brand that can tap into in India this by introducing organic skincare, functional nutrition, and holistic therapies. Luxury trade ties strengthen Sector experts and industry players said over the next five years, the trade relationship between the GCC and India's luxury sectors is expected to strengthen, driven by economic ties, evolving consumer preferences, and digital innovation. A unique advantage in this relationship stems from the GCC's, particularly the UAE's, large Indian diaspora working across retail, fashion, and luxury sectors. 'This cultural bridge provides GCC retailers with invaluable insights into Indian consumer behaviour, preferences, and market dynamics, enabling more targeted and culturally relevant strategies. 'Furthermore, the UAE hosts a significant community of Indian HNIs who regularly travel between India and the GCC. These individuals serve as natural and authentic brand influencers, offering GCC retailers a powerful channel to expand their influence in the Indian market through genuine advocacy and word-of-mouth marketing,' Caïs said. He, however, said while digital commerce will play a crucial role in this growth, the UAE and GCC players should integrate localised payment methods such as UPI and optimise cross-border logistics for making higher penetration into the Indian market. 'By strategically entering this market, GCC companies can capture a substantial share of this growth, particularly through strategic market entry, brand localisation, and cross-border retail partnerships. 'Given India's increasing affinity for premium experiences and international brands, businesses that position themselves effectively now stand to gain a strong foothold in one of the world's most dynamic and fast-expanding luxury markets,' Caïs said.
