Abu Dhabi: What are the business opportunities for fashion brands in the Middle East?

What commercial development prospects does Abu Dhabi, the cultural capital of the United Arab Emirates, currently offer fashion brands?

To shed light on these issues, FashionUnited interviewed David Dessureault, general manager of business development at Chalhoub Group, and Reda Keddaj, general manager of Tryano. Tryano is a multi-brand concept store based in Abu Dhabi and owned by the group.

The concrete business opportunities in Abu Dhabi, according to Chalhoub, were unveiled at the Audace Initiative showroom. This event was initiated by Youness Bouchida, a key intermediary between the Western and Middle Eastern markets.

Brand profile sought: strong DNA and local market adaptation

Abu Dhabi is not an opportunistic market for generic brands. The retail environment is dominated by vast malls and a dense international offering. In this context, local players stress the need for a clear identity to become a destination in its own right. This is exemplified by brands like Jacquemus; Zimmermann; Farm Rio; and Axel Arigato, which were recently introduced to the Emirates by the Chalhoub Group.

Abu Dhabi's clientele is receptive to the craftsmanship and expertise associated with French-made products. This explains the presence of many well-established French names in fashion and beauty.

While the goal is to attract customers seeking distinctive offerings, Western brands are encouraged to achieve “cultural relevance”. This means resonating with the codes, customs, and expectations of the local audience by adjusting colours, materials, or cuts.

For instance, the Dolce & Gabbana boutique within the Tryano concept store in Yas Mall offers a range of bags designed exclusively for the Chalhoub Group.

There is a significant commercial opportunity linked to Ramadan, a key period in the regional retail calendar. Some brands create specific Ramadan capsules featuring long dresses with covered sleeves, higher necklines, and more conservative silhouettes.

The same applies to a “contemporary evening” offering with more accessible price points than those of luxury brands.

Market structured by multiple business levers

To adapt to the local market, international brands must rely on partners who can understand the specific cultural and commercial expectations of Abu Dhabi.

The experts interviewed identified a strategic gap left by the upscaling of some premium brands. This opens up opportunities for labels that can offer quality, exclusivity, and more accessible prices than traditional luxury.

The optimal price positioning is considered to be around 800 to 1,200 euros for a dress. Consumers become more hesitant above the 2,000 to 3,000 euro mark.

Emerging labels are scouted during trips to Paris. The introduction of the French leather goods brand Tammy & Benjamin is a concrete example of this.

Organising pop-up stores can also serve as a test to gauge the local clientele's response. This was the case with the one initiated by Youness Bouchida of Audace Initiative, which brought together Lune de Jour, A-Conic, and Saraj Maj in Tryano's womenswear department.

“It is important for us to support initiatives like Audace, which champion and promote creativity and craftsmanship,” David Dessureault told FashionUnited. “The next generation of designers is emerging.”

Several market entry models coexist. These include the joint venture, where the brand retains a majority stake while leveraging the Chalhoub Group's local expertise; the franchise model, based on wholesale purchases with replication of retail and merchandising standards; and outright purchase through the group's multi-brand concept stores, consistent with the brand's global pricing strategy.

From a fiscal perspective, the framework remains relatively favourable. The UAE has a VAT of around 5 percent (compared to 10 percent in Saudi Arabia) and variable import duties depending on the product category.

Finally, while the second-hand fashion market is still underdeveloped, online sales are growing strongly. This growth is driven by high delivery expectations, sometimes as fast as two hours. Brick and mortar stores contribute to this through express delivery services.

About Chalhoub Group

Founded in 1955, the Chalhoub Group is one of the leading distributors of fashion, beauty, and luxury in the Middle East. With a presence in the United Arab Emirates, including Dubai (group headquarters) and Abu Dhabi, it represents numerous international brands. The group acts as an intermediary for labels wishing to enter the market and is a major partner of the French group LVMH. Additionally, Chalhoub develops its own retail concepts, including Tryano, Level Shoes, Faces, and Tanagra.

Tryano in numbers

• 85 percent local clientele (Tryano is open until midnight on weekends and 10pm on weekdays)

• 300 brands: 70 percent womenswear, 30 percent menswear

• Purchase conversion rate: 20 percent

• 50 percent of turnover is generated by eveningwear

• 15 percent of direct sales are made via Whatsapp

This article was translated to English using an AI tool.

FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com