From the evolving role of women in society to the booming e-commerce sector, the fashion landscape has been anything but static. In this article, we’ll explore how these dynamic changes are reshaping the Kingdom’s fashion industry, with a special focus on the sector’s impressive growth and future prospects.
What to expect in this article:
- Women driving fashion forward in Saudi Arabia
- The surge of online sales in the fashion sector
- Saudi fashion industry’s growth outpacing overall retail.
- Projections for the SAR 200 Bn market by 2030.
Read on for a detailed overview of key fashion trends and how Saudi Arabia is setting new standards in the regional and global fashion market.
1. Fashion has been a faster-growing segment in the overall retail market propelled by women revolutionizing the local fashion industry
The Saudi Arabian fashion industry has emerged as a powerhouse within the Kingdom’s retail sector, outpacing overall market growth with a CAGR of 5% between 2019 and 2023. This surge in fashion’s popularity contrasts sharply with the more modest 4% CAGR seen in other retail segments, highlighting the sector’s dynamism and potential.
At the heart of this fashion revolution are Saudi women, who are reshaping the industry through their evolving roles in society. The increasing presence of women in the workplace has ignited demand for professional outerwear suitable for various job types, while the landmark decision allowing women to drive has created a new market for comfortable, practical apparel and footwear. As Saudi women embrace more active lifestyles, the sportswear segment has seen a significant boost. Perhaps most strikingly, the traditional Abaya is undergoing a transformation, evolving from a simple black modest dress into a modern, chic garment that reflects the changing tastes of Saudi women.
2. Historically, online has driven fashion growth by growing ~5x faster than offline, contributing ~90% to the overall growth.
The digital realm has played a crucial role in propelling the Saudi fashion industry to new heights. Online fashion sales have grown at an increasing rate, outpacing offline sales by a factor of five over the past four years. This e-commerce boom has been responsible for approximately 90% of the overall growth in the fashion sector, underscoring the increasing preference of Saudi consumers for online shopping experiences. The convenience, variety, and personalization offered by digital platforms have resonated strongly with the Kingdom’s tech-savvy population, driving this substantial shift toward online retail.
3. Going ahead, we anticipate the fashion industry to evolve into a SAR ~200 Bn market, with online emerging as a significant pillar for future growth
Looking ahead, the future of Saudi Arabia’s fashion industry appears bright and full of potential. We expect the market to reach SAR 200 billion by 2030, with online fashion continuing to lead the charge. The digital segment is expected to maintain its growth trajectory, with a projected CAGR of 11% compared to 6% for offline retail. This digital-first growth is fueled by several key factors: a young, technologically adept population eager to engage with online platforms; rising workforce participation, particularly among women, which is driving demand for diverse fashion options; and the growing influence of social media and fashion influencers, who are shaping trends and consumer preferences in the digital space.
As Saudi Arabia continues on its path of economic diversification and social modernization, the fashion industry stands out as a shining example of the Kingdom’s potential for innovation and growth. With women at the forefront of this transformation and digital platforms providing a robust foundation for expansion, the Saudi fashion sector is poised to not only meet the evolving needs of its domestic market but also to make its mark on the global stage.
The journey of Saudi fashion from traditional constraints to a dynamic, diverse, and digitally-driven industry reflects the broader changes sweeping through the Kingdom, promising an exciting and stylish future for Saudi consumers and businesses alike.
Will this also drive growth in local fashion brands? Stay tuned as we cover this in the upcoming editions!
