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Hi Dubai
6 hours ago
- Business
- Hi Dubai
Why Hype Marketing Doesn't Always Work for Dubai Businesses
Dubai has long mastered the art of making headlines. With record-breaking skyscrapers, artificial islands visible from space, and retail launches that feel more like festivals than openings, the city thrives on visibility. It's a place where grand announcements and rapid rollouts are the norm—and where standing still often feels like falling behind. But beyond its architectural feats and luxury appeal, Dubai's business scene is equally driven by spectacle. Brands routinely rely on flashy product launches, high-profile influencer campaigns, and short bursts of viral attention to capture market share. This strategy—widely known today as hype culture—prioritizes visibility, buzz, and first impressions over longevity or gradual market building. Globally, the term 'hype marketing' has grown in relevance. According to HubSpot's 2024 Marketing Trends Report, nearly 65% of brands now consider viral potential a core KPI for campaigns. In the UAE, this figure is even higher: a 2023 YouGov survey revealed that 7 in 10 marketers in the country actively prioritize influencer collaborations and 'wow factor' visuals when planning product rollouts. But is this short-term visibility translating into long-term loyalty? In a market like Dubai—where competition is high and consumer attention spans are short—many businesses are discovering that being talked about doesn't always equate to being trusted. How many of these viral launches lead to repeat customers? What happens after the camera crews and press kits are gone? In this article, we explore whether hype is helping or hindering Dubai's business growth. We'll unpack the psychology behind attention-led marketing, investigate its impact on consumer trust, and highlight the subtle difference between creating buzz and building a brand that lasts. The Rise of Hype Culture in Dubai's Business Ecosystem In today's Dubai, visibility often trumps value—at least at first. A scroll through Instagram or TikTok reveals a steady stream of beautifully shot pop-up cafés, extravagant product launches, and influencer-studded soft openings. This is the heartbeat of hype culture—a marketing phenomenon that prioritizes short-term virality over long-term engagement. Much of this shift has been fueled by social media's dominance in the UAE. According to DataReportal's Digital 2024 UAE report, social media penetration in the UAE sits at 98.6%, one of the highest in the world. Platforms like TikTok and Instagram are not just tools—they're the primary channels for brand discovery, especially among millennials and Gen Z. As a result, businesses now build entire launch strategies around 'Instagrammability', influencer appearances, and content that's designed to trend. This has created a kind of unspoken pressure. If a new café, skincare brand, or tech product doesn't 'go viral' within its first few weeks, it's often deemed unsuccessful—regardless of the actual quality of its offering. And this isn't hypothetical. Dubai has already seen a string of businesses that burst into relevance, only to quietly shutter a few months later. For instance: Coffee shops like Forever Rose Café and similar flower-themed cafés gained explosive attention for their interiors, often becoming viral photo ops. But many saw diminishing footfall once the novelty wore off. and similar flower-themed cafés gained explosive attention for their interiors, often becoming viral photo ops. But many saw diminishing footfall once the novelty wore off. Tech events and product expos across the city often gather buzz for big-name sponsorships and futuristic displays, but struggle with post-event engagement or community building. across the city often gather buzz for big-name sponsorships and futuristic displays, but struggle with post-event engagement or community building. DTC brands launched via influencer giveaways enjoy a spike in orders the first week, followed by sharp drop-offs, highlighting the limits of one-time hype. A 2023 WARC report on MENA marketing behavior found that over 70% of campaign KPIs in the UAE now include viral engagement, shares, and influencer impressions, but fewer than 35% track long-term brand recall or customer retention. This imbalance in performance metrics reveals a deeper issue: are we measuring what matters—or what's momentarily loud? Dubai's competitive landscape doesn't help. In a city where everyone is aiming to stand out, many businesses feel the need to outperform—not through substance, but through spectacle. And while this might capture attention, it doesn't guarantee loyalty. The Short-Term Gains vs. Long-Term Vision Hype can be an incredible launchpad—bringing in queues, clout, and curiosity. But what happens when the buzz fades? Many businesses in Dubai find themselves facing this exact dilemma. A brand might open with fanfare, trending on TikTok and drawing hundreds in its first few weeks. But without meaningful customer experience or long-term value, repeat visits become rare, and the brand's initial surge levels off quickly. According to a 2024 KPMG UAE Consumer Pulse report, 57% of UAE customers say they value consistency and service quality more than promotions or influencer endorsements. And yet, many businesses pour disproportionately into opening-day aesthetics, social media content, and influencer seeding—often at the expense of infrastructure, staff training, or R&D. This mismatch between perception and delivery can lead to what marketers call 'peak-too-soon syndrome'—a phenomenon where the highest traction comes at the beginning, followed by a steep drop. In Dubai's F&B sector, for instance, it's not uncommon for a new restaurant to go viral during its first month, but close within the year due to poor service quality or inconsistent offerings. Industry insiders often point to concept-first strategies, where experience design trumps operational depth. Moreover, customer fatigue is real. With so many pop-ups, limited-edition menus, and gimmick-driven campaigns, consumers are becoming increasingly skeptical. A 2023 survey by Gulf Marketing Review found that 42% of Dubai residents feel overwhelmed by 'new' launches and prefer brands they can trust and return to. Even in retail and tech, brands that rely on one-time hype campaigns without sustained innovation risk falling behind. It's a pattern seen in several startup exits and stalled digital ventures where marketing budgets outpaced product development. In contrast, some of Dubai's most successful businesses have adopted a quieter but stronger growth model. Brands like The Lighthouse, Kibsons, and The Giving Movement have prioritized consistent quality, operational excellence, and meaningful brand storytelling—earning customer loyalty over time rather than depending solely on momentary buzz. The lesson? In Dubai's high-visibility market, it's tempting to chase short-term glory. But without a long-term vision, even the loudest launches risk becoming background noise. The Psychological Trap of Trend Chasing In a city where every week brings a new launch, it's easy for businesses to slip into reactive mode. A competitor goes viral with a flaming dessert or a futuristic selfie pod—and suddenly, everyone scrambles to mimic the idea. But chasing trends without a grounding strategy often leads to diluted identity and burnout, both for businesses and their customers. Behavioral research explains this urge through the concept of social proof and scarcity bias. According to Dr. Robert Cialdini's principles of persuasion, when people see others flocking to something, they perceive it as valuable—even if they don't fully understand why. Dubai's hyper-connected audience, always scrolling and sharing, accelerates this loop. Businesses feel the pressure to act now or miss out, leading to rushed rollouts and surface-level innovation. But novelty wears off fast. According to a 2023 PwC Middle East Retail Survey, 74% of UAE consumers try new brands for novelty, but only 28% return if core value and service are lacking. The same report notes that brand switching is high in Dubai, largely due to the abundance of alternatives and the city's transient population, making brand loyalty difficult to establish without substance. The danger? Becoming a 'one-hit wonder'—a business that makes a splash and then disappears. Dubai's trend cycle is short; something exciting today can feel stale in six weeks. Restaurants, concept stores, and beauty services that rushed to ride a wave (e.g., Dalgona coffee or AI portrait kiosks) often saw sharp drop-offs once the trend faded or when a competitor replicated it better. Falling into trend-chasing traps can also stretch operations too thin. A 2024 insight paper by Gulf Business Strategy Group noted that 30% of concept-led F&B outlets in Dubai spent more on 'Instagrammable' interiors and viral campaign launches than on staff training, food quality control, or digital infrastructure. There's nothing wrong with tapping into cultural moments—but it must be strategic. Sustainable brands build from the inside out. They ask: 'What do our customers really need after the trend dies down?' and 'How does this align with our purpose?' In Dubai's high-churn market, resisting the urge to copy fast wins is what sets enduring brands apart. Trend participation can create noise—but without value, it rarely builds trust. Real Examples: When the Hype Fizzled Out Dubai has seen more than a few flashy launches turn into cautionary tales. While many of these businesses entered the market with strong influencer backing, viral campaigns, and long queues at opening, several failed to convert that initial attention into lasting success. 1. Salt Bae Burger – DIFC When Nusret Gökçe (a.k.a. Salt Bae) opened his burger concept in DIFC in 2021, the hype was instant. With the power of his global brand, social media theatrics, and celebrity clientele, the location attracted massive crowds in the first few months. But by early 2023, it quietly closed. Reviews cited overpriced burgers, long wait times, and inconsistent service. Despite the global appeal, Dubai's customer base—especially locals and seasoned expats—quickly became critical of style-over-substance delivery. It's a classic case of brand power without local adaptability. 2. 'Mirzam-Inspired' Chocolate Cafés In the wake of Mirzam Chocolate's artisanal success, several small concept cafés launched pop-up style chocolate and dessert bars in 2022 and early 2023, banking on the "local luxury" trend. Many opened in prime locations like Jumeirah or Alserkal Avenue with beautiful interiors and Instagrammable plating. By mid-2024, a majority of these had either scaled back operations or shut down. Their downfall was linked to lack of supply consistency, poor customer retention strategies, and no unique brand proposition beyond mimicking aesthetic trends. 3. House of Pops Flagship Stores Known for its all-natural popsicles, House of Pops initially gained popularity through delivery and kiosks. However, when it transitioned to large-format physical stores in high-rent areas, footfall didn't match projections. A few locations were later scaled down. This shows that product-market fit can be strong for one format (e.g., delivery or events) but doesn't always translate well into traditional retail. Over-expansion and underestimating the need for a broader in-store experience led to operational strain. 4. Themed Fitness Studios in 2021–2022 Several boutique fitness brands opened with niche themes—like boxing-meets-clubbing or silent disco yoga. Influencer promotions and opening events drew interest, but within a year, many of these brands shut down or rebranded. Why? A lack of consistent trainers, limited class diversity, and membership models that didn't match Dubai's transient audience. Hype filled the rooms initially, but the customer experience wasn't strong enough to keep them coming back. These examples underscore a pattern: hype creates visibility, but retention is a different game altogether. Flashy branding can only go so far in a market where customers are spoilt for choice and quick to move on if substance doesn't match the promise. What Actually Builds Sustainable Brands in Dubai In a city where new concepts launch daily, the real success stories are often the quieter ones—brands that prioritize customer value over viral moments. Sustainability in business doesn't come from a flashy opening but from consistent delivery, trust-building, and adaptability. 1. Project Chaiwala Launched in 2017 as a local tea brand inspired by street-style chai culture, Project Chaiwala grew steadily through community storytelling, great pricing, and quality ingredients. Instead of relying on big influencer campaigns, the brand expanded slowly—starting with cinema pop-ups and eventually opening standalone cafés across the UAE. Their secret? A deep focus on customer experience, culturally relevant branding, and community events, such as chai-making workshops and collaborations with local artists. Project Chaiwala became part of the cultural fabric, not just another café. 2. The Giving Movement Dubai-based sustainable fashion brand The Giving Movement launched in 2020 with a simple but powerful value proposition: for every item sold, USD 4 is donated to a charity. Rather than over-indexing on influencer hype, the brand focused on eco-conscious production, local warehousing, and clear ethical positioning. This approach paid off—by 2023, the brand had expanded to the KSA and global markets, with endorsements from regional celebrities only after building organic traction. According to Gulf News, The Giving Movement hit over AED 100 million in sales within three years, proving that mission-led branding with strong operational backing works in the long term. 3. Finyal Media This Dubai-based podcasting company quietly built one of the region's most engaged Arabic-speaking listener bases through storytelling. Rather than chasing quick hits, Finyal focused on content quality, cultural relevance, and consistent delivery. The result? Major partnerships with Spotify, MBC Group, and regional brands looking to reach Gen Z and millennial Arab audiences. They became a go-to for content localization in a region dominated by English-first media, showing that investing in niche value pays off. In all these examples, the common thread is a commitment to listening to users, scaling responsibly, and planning with purpose. Brands that regularly adapt based on customer feedback, use performance data to drive decisions, and build loyalty through shared values tend to last longer—even in a market as fast-moving as Dubai. While hype can give you a stage, it's the substance that keeps you there. A New Metric for Success: Engagement Over Excitement As Dubai's consumer landscape matures, businesses are starting to shift their focus from flashy metrics—views, likes, and footfall—to more sustainable indicators of success like customer lifetime value (CLV), retention rates, and repeat purchase behavior. This change is long overdue. According to a 2024 report by McKinsey Middle East, brands in the UAE that prioritize retention strategies see up to 60% higher profitability than those focused mainly on acquisition. Yet many startups still chase virality, measuring their success by how loud the initial launch is rather than how long customers stick around. In contrast, brands like Pinza!, the UAE's homegrown healthier pizza chain, are showing how to do it differently. They've kept their marketing relatively quiet, relying more on customer feedback loops, subscription models, and loyalty incentives than short-term promotions. The result is a steady rise in delivery app rankings and social reviews without massive marketing blowouts. Similarly, Locale, a new food-tech platform by KRUSH Brands, is reshaping the restaurant delivery model in the UAE by prioritizing tech-enabled customer retention. Rather than flooding the market with influencers, Locale offers curated menus, personalized user experiences, and backend analytics to optimize what customers are likely to reorder. They also maintain ownership of customer data—which third-party delivery apps usually keep—allowing them to fine-tune services based on user habits rather than trends. What businesses are beginning to realize is that virality is not a business model. Excitement can spark a conversation, but engagement builds a company. KPIs worth tracking in Dubai's saturated market now include: Repeat visit rates (physical and digital) Average order value over time Referral rates from existing customers Email/SMS open rates for long-term communication Customer support ticket satisfaction Ultimately, the brands leading the new wave of business in Dubai are those who measure loyalty, not just launch buzz. They're redefining success not by who talks about them once, but by who keeps coming back. Dubai's growth has always been fast-paced, but speed without direction rarely leads to endurance. In an increasingly discerning market, consumers are no longer impressed by aesthetics alone—they expect reliability, value, and authenticity beneath the branding. The brands that will last are not the ones making the loudest entrances, but those quietly solving real problems, delivering on their promises, and staying responsive as expectations evolve. The goal is not just to be seen, but to be seen for the right reasons. A thoughtful business strategy, rooted in clarity and long-term vision, will likely outlive a hundred trending campaigns. As Dubai continues shaping itself as a global business hub, perhaps its most successful brands will be those that prioritize substance over spotlight. Success, after all, isn't about being seen once—it's about being remembered often, for the right reasons. Also read: Influencer Marketing in Dubai: A Guide for Businesses to Drive ROI Unlock ROI with our practical guide to Influencer Marketing in Dubai. Learn strategies, navigate UAE regulations, identify key players & avoid pitfalls for business growth. Dubai's Thriving E-commerce Market: How to Start Your Online Business Are you fascinated by Dubai and its remarkable advancements so far? Check out this comprehensive guide on achieving E-commerce success in the UAE. Insights into the Growing Influencer Marketing Scene in MENA Influencers leverage multiple platforms, channels, and media to creatively connect with their followers, while brands seek successful collaborations to tap into these audiences.
Pink Villa
10 hours ago
- Entertainment
- Pink Villa
How Gen Z's made Saiyaara a Phenomenon: An emotional uprising of digital natives
In an era where content scrolls faster than emotions can register, the runaway success of Saiyaara stands as a cultural revelation. With no marquee stars or franchise clout, the film still broke through and became a generational anthem—driven entirely by Gen Z. But to understand this phenomenon, we must look not just at the film but at the psychology of its audience. Saiyaara didn't just entertain—it healed, echoed, and reflected the lived emotional landscape of a digitally native generation raised in what psychologist Jonathan Haidt calls a "phone-based childhood.' Unlike millennials who transitioned into the internet age, Gen Z was born inside it. They are digital natives, fluent in memes, editing tools, and algorithmic cues—but emotionally stunted in the real world. As Haidt notes in The Anxious Generation, this is the first generation to be raised more by screens than by play. Their childhoods have shifted from being 'play-based' to 'phone-based,' a subtle change with profound implications. These young people have access to a wealth of information but a poverty of experience. Hovered over by overprotective parents in the real world, their risk-taking, real-life socializing, and emotional resilience have all been underdeveloped. The result is a generation paradoxically more connected and more isolated than any before it. Saiyaara lands squarely in this gap. At its core, the film is about raw, unfiltered emotion—heartbreak, vulnerability, yearning. It doesn't wink at the audience or wrap its pain in cool irony. It leans into the ache. And for a generation that has grown up emotionally distant—liking stories rather than living them—this sincere storytelling feels like oxygen. Haidt writes that kids today are "desperate for meaning, connection, and safe spaces to feel." Saiyaara offered that. It wasn't just a film; it was an emotional sanctuary. From a behavioural economics perspective, Saiyaara starring Ahaan Panday and Aneet Padda, activated several key cognitive and emotional triggers. One is contrast bias: in a media landscape cluttered with ironic, hyper-fast, or emotionally shallow content, Saiyaara stood out like a quiet cry in a crowded room. Its sincerity, its stillness, and its melancholic honesty were a jarring contrast to the dopamine-chasing Instagram scroll or the predictable arcs of algorithm-friendly content. Viewers remembered it not because it was loud, but because it hurt—and the brain remembers pain more vividly than pleasure. This emotional stickiness translated seamlessly to virality. Gen Z didn't merely consume the film—they deconstructed it, personalized it, and gave it second life on digital platforms. Here, the IKEA effect comes into play: behavioural economists have found that people value what they help build. Every reel edited, every emotional montage created with Saiyaara's soundtrack, every reaction video posted—these weren't just tributes; they were acts of emotional authorship. Gen Z made the film theirs, and in doing so, gave it cultural immortality. Equally important was identity signalling. In today's social internet, content is a proxy for personality. Sharing a tearjerker moment from Saiyaara, posting a romantic dialogue, or setting its score as a story background was a subtle way of saying, 'I feel deeply. I crave meaning. I believe in love.' These expressions help Gen Z craft online identities that feel more intimate than their guarded offline ones. In a world where performative detachment is the norm, embracing a film like Saiyaara became an act of emotional rebellion. What started as cinema became a mood, a language, and a shared emotional ritual. The music too deserves its due. A deeply melodic and emotionally stirring soundtrack created what can be described as a sensory echo chamber. The score was not just accompaniment—it became a looping emotional trigger. Gen Z stitched these sounds into their digital lives, creating short-form content that repeated and reactivated the film's emotion day after day, week after week. What started as cinema became a mood, a language, and a shared emotional ritual. Crucially, Saiyaara also emerged at a time when Bollywood had abandoned the genre of intense, old-school romance. The industry pivoted to slick thrillers, sanitized rom-coms, or multiverse spectacles—leaving a vacuum of raw love stories. Behavioural economics teaches us that scarcity increases perceived value, and Saiyaara entered this emotional void with full force. It became the only film speaking directly to a silent yearning that other content had ignored. In the end, the success of Saiyaara is not just about box office numbers. It is about resonance. It is about how a film, by daring to be emotionally naked, gave a screen-bound generation permission to feel again. For young people raised to be emotionally cautious, socially anxious, and forever online, Saiyaara was a window into a world of messy, irrational, aching love. A world they had only seen in reels but never lived in real life. And in that window, they saw themselves—not as they are, but as they long to be. In an industry obsessed with IP and scale, Saiyaara is a reminder that emotional truth, when paired with digital fluidity, is the most powerful engine of modern virality.
Campaign ME
2 days ago
- Business
- Campaign ME
MENA's Gen Z unfiltered: AI reveals all
'The future is not about artificial intelligence versus humans. It's about artificial intelligence with humans,' Garry Kasparov. One of the most elusive and misunderstood groups of consumers today is Gen Z. To truly understand them, we must move beyond preconceived notions. With AI-powered research, we can uncover insights that challenge these perceptions. Often labelled as 'entitled and lazy,' MENA's GenZ are more accurately hard-working, just in a different way. Other generations can criticise them for being 'overly woke'; however, more correctly, they're vocal about social justice. They're also characterised as having 'frayed identities'. The reality is they are a globally connected, locally rooted generation. These stereotypes, and misunderstanding of GenZ, could lead to marketing mishaps. Many brands fail to connect with this important audience, but by leveraging AI we can get closer to understanding them, we can simulate more members of the GenZ cohort, challenge existing beliefs and uncover their silent needs. Using our proprietary AI solution, WPP Open's Creative Studio, I engaged with three distinct MENA-representative Gen Z AI agents trained on diverse global and regional data sources, to uncover their real emotions and unearth their top three deepest thoughts. 1. Gen Z live in a pressure cooker of expectations; and are truly the 'hustle-to-fire' generation Gen Z face immense pressure to succeed, balancing a hyper-competitive environment with opportunities fueled by ambitious regional visions such as Saudi 2030, Dubai 2030 among many others. Having witnessed previous generations succumb to corporate burnout, they prioritise innovation, entrepreneurship, and early retirement over traditional long-term employment, actively seeking alternative routes to success. Brands offering tools or programs for real skill development, creative transformation, and career growth will stand out, giving them hope amidst the pressure. Finding brands that effectively empower Gen Z was surprisingly difficult, but two examples stood out. L'Oréal and PlayStation have been actively empowering Gen Z in the MENA region by transforming them from passive consumers into active co-creators. L'Oréal's Skin Summit in Saudi Arabia provided expert-led masterclasses, cutting-edge scientific knowledge, and access to industry leaders and platforms to over 400 content creators, helping them produce credible, science-backed beauty content. They answered Gen Z's demand for authentic information and strengthened brand perception through genuine, educational content. Similarly, Sony PlayStation MENA's Hero Project provides emerging game developers with mentorship, funding, and access to Sony Entertainment's resources, enabling them to bring their creative visions to life, receive global recognition and a clear pathway to success in the gaming industry. Both initiatives are exemplary examples of how brands can invest in Gen Z's ideas, skills, and future, and provide real opportunities for impact. Small to medium brands should also consider how they can support this generation. Even the simplest ideas, such as weekly tips on social media, or competitions with useful giveaways, will demonstrate to your Gen Z audience that you're invested in their future and their success. Partnering with online training platforms or offering prizes like courses, internships, or branded workshops will resonate. Even better? Provide the means and tools for them to launch their own businesses and pursue early retirement. 2. Gen Z are yearning for recognition beyond The world has opened up to Gen Z, and they recognise their potential as more than local or regional innovators and creators. They'll likely notice brands that give them a platform to showcase their talents or skill sets to the world. Don't just go with the popular platforms such as Arabs Got Talent or Coke Studio. Creatively tap into their unique potential as YouTubers, AI prompters, NFT creators, virtual world designers, voice actors, and digital nomads. These are the spaces where Gen Z's future is being built and they're eager to show their talents. Even a very small, emerging business could run an AI prompting contest, encouraging Gen Z to create content related to their brand or product. Not only do these contests empower Gen Z's individual journeys with tangible, recognisable portfolio pieces, they also help smaller brands extend their own reach in the process. 3. They're trading doom scrolling for nostalgia Gen Z's connection to the past isn't just about retro trends; it's a coping mechanism. Faced with heightened anxiety and a growing awareness of mental health challenges, they seek refuge in nostalgia. This yearning for simpler times provides a sense of grounding and well-being in a world that often feels overwhelming. As a generation, they are also navigating a complex mental health landscape. While mental health issues are increasingly being destigmatised and recognised, there is still a lot to be done to educate other generations on how to support them. In the MENA region, Gen Z reporting mental health conditions is 1.8x the global average, rising 12 per cent in the last three years (GWI, 2025). These figures underscore the need for more support in the region, something brands should consider in their strategies if they want to understand and connect with their Gen Z audiences. By genuinely promoting mental health awareness and well-being and tapping into the emotionally comforting power of nostalgia, brands can create rapport, relevance and foster loyalty value among Gen Z. AI can help uncover hidden truths about Gen Z; validating or challenging assumptions to provide actionable guidance for marketers to work from. However, it is important to exercise caution. AI relies on the existing data it has been trained on, and real-world research. It is crucial to verify data and understand context. To truly connect with the multifaceted MENA Gen Z, brands must move beyond outdated stereotypes and listen to the truths AI can uncover. This synthesis of artificial intelligence and human creativity is what builds brands that don't just market to this generation but truly matter to them. By Kim Mascarenhas, Head of Intelligence MENA, WPP Media.
Campaign ME
2 days ago
- Business
- Campaign ME
Research on the future of luxury: How Gen Z is redefining prestige in the UAE
Luxury used to be defined by rarity, craftsmanship and price. However, the story is being rewritten – and Gen Z is now holding the pen. In digitally fluent, high-income markets such as the UAE, this generation isn't just consuming luxury; they're reshaping it, pixel by pixel, reel by reel. Yet in the UAE, the story is more than just small volatility, it's about a generational pivot. Gen Z – digital natives with TikTok reflexes and climate anxiety in their blood – are not perceiving luxury as their parents knew it, they're not buying logos; they're buying meaning. In doing so they are pushing luxury brands to evolve, or face irrelevance. According to McKinsey, the luxury sector rebounded strongly from 2019 to 2023, powered by ultra-high-net-worth individuals. However, by 2024, signs of a slowdown emerged: 50 million consumers globally exited the market. Amid this turbulence, one trend stands out – Gen Z now accounts for 20 per cent of luxury consumption, with their influence continuing to increase and define the sector, as highlighted by Bain & Company. From owning to experiencing: The sensory shift among Gen Z Traditionally, luxury belonged to the 'esteem' level of Maslow's hierarchy of needs — signalling power, exclusivity and status. Gen Z, is more interested in shareable moments than static assets; luxury is being redefined as what you feel, not just what you flaunt. Take the rise of 'experiential luxury'. In the UAE, luxury isn't just something you wear – it's something you feel. Think fine dining, wellness retreats and meticulously curated aesthetic escapes. The experience itself has become the ultimate status symbol and the numbers back this up. Data from Kantar, in collaboration with Altient, shows that in 2024, 71 per cent of affluent consumers in the UAE indulged in fine dining, while a staggering 67 per cent checked into five or six-star hotels. Here, luxury doesn't sit behind glass – it's lived, savoured, and shared. Here's the kicker, these numbers spike among Gen Z. Looking to 2025, one in two say they plan to spend more on such experiences. How come? Because experiences can be shared, they can be turned into reels, vlogs, bite-sized dopamine hits. This, too, is luxury; the ability to live a life that's aesthetically enviable and emotionally rich. Gen Z aren't just online, they are online. Born into the scroll, raised on stories and fluent in every platform from TikTok to whatever's trending, they bring a whole new set of expectations to the table and from brands they want real talk, real people and zero filters. And nowhere is this digital fluency more intense than in the UAE. With some of the highest social media engagement rates in the world, young consumers here aren't just following trends — they're setting them, shaping brand narratives with every like, comment, and share. Rise of the Instagrammable experience economy In the UAE, social media isn't just where trends happen, it's where luxury lives. For Gen Z, picking a venue often comes down to question, will it look good on my feed? That's why places like Atlantis, The Palm and Nusr-Et (aka SaltBae) aren't just destinations – they're content factories. Atlantis is the most 'Instagrammable' hotel in the Middle East, racking up more than 670,000 posts under #AtlantisThePalm. From its underwater suites to its jaw-dropping aquariums, every corner is engineered for envy. Demand for hyper-personalised content But it's not just about aesthetics, it's also about alignment. Gen Z in the UAE is leaning hard into content that feels tailor-made, culturally relevant and organic. That's where Huda Beauty comes in. Built by Dubai-based influencer Huda Kattan, the brand doesn't just sell products, it tells stories Gen Z relate to. From unfiltered tutorials to brutally honest reviews, Huda's content strips away the gloss without losing the glam. It works, Huda Beauty saw a 264 per cent jump in TikTok EMV, showing how personalised and value-driven content can drive real engagement. French label Jacquemus is hitting that note. The brand's collaborations with regional influencers such as @karenwazen make its pieces, bags, accessories and more – feel less like high fashion and more like personal expression. It's a strategy that clearly hits home. Jacquemus grew its sales from €200 million to €280 million in 2023, powered by minimalist yet magnetic content that now pulls in over 5 million Instagram followers. View this post on Instagram A post shared by Karen Wazen Bakhazi كارن وازن (@karenwazen) While the brand's global footprint is impressive, the UAE plays no small part in that momentum, with its hyper-connected, style-savvy audience, the region fits squarely into Jacquemus's strategy, not just as a market, but as a flagship market. The transparency equation: Do good or get cancelled Opaque supply chains can damage a brand's reputation, especially with how 'What Fuels Fashion' shed light on when they are used as a way to ''mask a lack of decarbonisation progress with vague, insufficient targets and progress''. The fast fashion sector has offered plenty of cautionary examples in recent years. Yet, few are talking about how supply chain transparency isn't just a compliance box to tick, it's a real business opportunity, especially for luxury brands aiming to win the trust and prove their meaning to the next generation of buyers in Gen Z. According to Kantar and Altiant's dataset, in the UAE data 83 per cent of Gen Z HNWI are willing to spend time and money on brands that do good. 81 per cent of this audience actively research a brand's social and environmental impact before making a purchase. Luxury's traditional opacity — the secrecy around sourcing, labour, and emissions — simply doesn't cut it anymore. Gen Z demands to know all, not just the marketing spiel, but the hard facts. So what's a marketer supposed to do with all insight? After all, decisions about opening up value chains usually happen at the board level. Though, that doesn't mean marketers have no role. In fact, there are plenty of ways transparency can come to life on the ground. In the UAE market. Chalhoub Group's 'Unity for Change' initiative, isn't just a slogan, it's a blueprint for how transparency can be embedded into local market strategies. If you're remit is global, then learnings can be taken from Stella McCartney transformation of transparency as a cost into a brand asset. The Stella McCartney brand may be best known for its campaign with Eva Mendes, however this article is interested in the brands innovation of an Environmental Profit & Loss (EP&L) report, which offers a perspective into what could be possible for brands on the road to true transparency. Because today, storytelling isn't just about what brands say it's about what they're willing to show. For Gen Z, transparency isn't a 'nice to have' its a commercial imperative. In fact, 37 per cent of luxury-purchasing Gen Z's in the UAE strongly agree that they would only engage with brands demonstrating visible sustainability initiatives. Therefore, the young buyers in the sector don't ask, but require luxury brands to be transparent in not just communicating Scope 1 impact, but 2 and 3. So what should brands do to better for Gen Z? Here's the key executive summary points for luxury brands with ambitions in the UAE market: Drop the status symbols. Replace them with stories, experiences and emotions. Localise your relevance. Ramadan campaigns, regional influencers, and cultural fluency aren't 'extras', they're essentials. Make your impact traceable. Supply chains can no longer be locked vaults; they need to be open books. Design for the feed. Instagrammable aesthetics still matter, but only when paired with meaningful substance. Luxury is no longer confined to glass cases; it thrives in social feeds and online validation. Gen Z doesn't want to be sold a dream — they want to co-create it. In a region where influence spreads faster than budgets, relevance is earned through meaning, not profit. The old formula of status and scarcity no longer works. Gen Z expects brands to be transparent, personalized, and brands to come into their worlds. This shift is already underway in the UAE and the luxury brands with foresight, continually scanning the horizon for what Gen Z wants and needs will find the oasis, while those refusing to change and embrace this generation of purposeful disruptors will be left deserted in the sands of the Rub' al Khali. Contributors: Hakan Nurakin, Client Manager, Kantar Richard Williams, Sales Consultant, Programme Design, Kantar Wensi Li, Associate Research Manager, Kantar
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3 days ago
- Business
- News18
Why Millennials And Gen Z Prefer Cafés Over Traditional Restaurants
Last Updated: Millennials and Gen Z don't just want to eat out, they want to belong somewhere. And cafés, with their warm lights, good brews, and open vibes, offer just that. The café culture in India is brewing hotter than ever, and it's not just about coffee anymore. For Millennials and Gen Z, cafés have become the new cultural hubs, spaces where lifestyle, work, creativity, and connection seamlessly blend. From aesthetically pleasing interiors to flexible workspaces and innovative menus, cafés are replacing the formality of traditional restaurants with an experience-first approach that resonates deeply with today's youth. 'Millennials and Gen Z have redefined dining culture, increasingly favoring cafés over traditional restaurants," says Rajat Jaiswal, Pilot and Co-founder, WAB Cafe and Keydroid. 'This shift is driven by lifestyle choices, social habits, and evolving work patterns that align more with the casual and versatile nature of cafés." He highlights that the informal, flexible vibe of cafés makes them ideal for everything from solo productivity to social catch-ups. With simpler, more affordable menus and photogenic spaces that suit their social media habits, cafés are exactly what younger consumers are looking for. 'It's more than just food, it's an experience," he adds. The Rise of Café-First Hospitality Rajan Sethi, Managing Director, Bright Hospitality Pvt. Ltd., echoes this sentiment, having witnessed the evolution firsthand. 'Over the past decade, we have seen a clear shift in how Millennials and Gen Z approach dining, and cafés have naturally become the spaces they gravitate toward," he says. Sethi's brands, like Espressos Anyday and OMO – Soul Food Community, are built around this café-first mindset. 'With Espressos Anyday, we've created an everyday café that feels like your own corner in the city," he explains. 'Whether you're working solo or brainstorming with friends, the vibe is intentionally casual yet inspiring." Meanwhile, OMO takes it a step further by merging food and philosophy. 'OMO is for people who want their dining spaces to align with their values—offering grounding meals, seasonal ingredients, and a calm, conscious atmosphere," Sethi says. The rise of the 'laptop and latte" work culture, particularly in metros like Delhi and Gurgaon, has made cafés a modern-day second home and office. Social, Sensory, Shareable What's also redefining this space is the experiential element. According to Rajat Agarwal, CEO of Barista Coffee, 'At Barista, coffee is more than just a beverage, it's a lifestyle and cultural experience, especially for Millennials and Gen Z." He points out that these generations crave connection, ambiance, and self-expression. Barista caters to this demand with curated offerings like Coffee Bubble Tea, Iced Tiramisu Latte, and live brewing sessions, trendy, flavorful, and highly Instagrammable. 'Through experiential marketing, playful menus, and community-driven spaces, we've made Barista a go-to destination where coffee culture meets contemporary lifestyle," Agarwal says. It's not about fancy dining, but about engaging environments that balance affordability with innovation. A Safe, Creative, Comfortable Space Shreya Ghai, owner, Bean & Coffee Kitchen, beautifully sums up the emotional value cafés offer: 'For Millennials and Gen Z, a café isn't just a place to eat or drink, it's an extension of their lifestyle. It's where work happens, friendships grow, passions are explored, and everyday moments become memorable." She emphasizes that what people seek today is comfort without formality, creativity without judgment, and connection without pressure. 'It's about being surrounded by warm lights, familiar faces, and the quiet hum of inspiration," Ghai shares. 'At Bean & Coffee Kitchen, the stories shared at every table are as important as the food on it." The Bottom Line What we're witnessing is not just a shift in dining preferences but a broader cultural evolution. Cafés have emerged as the modern-day living rooms, creative studios, and informal workspaces for younger generations. They combine aesthetics, affordability, flexibility, and community, qualities that traditional restaurants often lack. In short, Millennials and Gen Z don't just want to eat out, they want to belong somewhere. And cafés, with their warm lights, good brews, and open vibes, offer just that. view comments First Published: July 20, 2025, 16:28 IST News lifestyle » food Why Millennials And Gen Z Prefer Cafés Over Traditional Restaurants Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
