MENA Fashion – Trendsetter in Retail
Offline fashion is poised to recover this year while online fashion is growing strong Y-o-Y
1. Fashion contributes to a significant portion of retail in the Middle East
Fashion retail is an essential segment of the Middle East retail ecosystem. The sector’s contribution to non-grocery retail is highest when compared to other countries such as USA, UK, France, & Indonesia. This is attributed to the high per capita spend on fashion retail in the region as disposable incomes are high and a wide assortment of products are available.
2. Offline fashion is poised to recover this year while online fashion is growing strong Y-o-Y
The past year saw the size of the offline fashion sector shrink by about 20% as fashion retailers felt the pressure. However, we believe that the sector is well poised for an almost complete recovery in 2021.
Online fashion has witnessed a strong growth in the past and is expected to see similar growth supporting the total fashion retail.
3. Online fashion in UAE is primarily dominated by Omnichannel retailers
The online fashion retail market is driven by omnichannel retailers who make up majority of the market. Fashion verticals are increasingly capturing a larger portion of the market with a wide variety of products at a competitive pricing. Online marketplaces, despite their large user base, do not see strong traction for fashion products as they focus on evergreen products – which seldom go out of style.