Under “The New Consumer, Consumption and Change,” arab luxury world kicked off in Dubai and attracted a number of chief officers at leading luxury companies including of Zenith Watches and Infiniti.
Co-CEO of Mediaquest, Julien Hawari, inaugurated the forum and highlighted the fact that the luxury companies should work harder to detect the new consumers’ needs and expectations.
What does the new consumer want?
One of the opening panels of the event, The New Consumer, brought together industry experts such as Fahd Al-Rasheed, KAEC; Julien Tornare, Zenith; Hussein Freijeh, Snapchat; Mark Bohn, Converse; and Vadim Grigoryan, Creavi, who talked about the new consumers’ changing needs and how luxury companies can closely work with them to understand the changes that their habits have undergone as well as their expectations. The panel also discussed how these companies were affected by the technical and technological development in addition to the level of participation of social media in making radical changes in the luxury industry.
The speakers agreed on the companies’ need to preserve the luxury brand’s history while following the technological trends that the world is witnessing in various sectors. They also emphasized that the consumers opting for e-commerce, which needs three key elements: a good knowledge of the product and brand that they’re choosing, the price of the desired product and enough experience to avoid being vulnerable to theft. They also think that a balance must be established between traditional and electronic purchases, as companies need to add value to the customer’s purchasing experience and build strong, long-term relations with them.
The changing world of beauty and new talent
In a pertinent context, Chalhoub Group, the company that specializes in luxury brands, presented its annual study on the region’s luxury industry, in which it shed light on the emerging generation of regional talents in the beauty industry and on those who have the ability to meet the modern consumers’ needs in the GCC as well as understand their special habits and the development of the market.
Anthony Chalhoub, co-CEO of Chalhoub Group, said: “Digital and electronic commerce has made a huge difference in the GCC. Consumers are aware of the prevailing trends, technologies and product benefits. While cosmetic brands need to keep their customers up-to-date and meet their needs, new players in the industry are succeeding in meeting the customers’ basic needs in the GCC, which constitutes a challenge to traditional companies. Their impact, however, is positive thanks to the changes that they’re making in the industry and their customer-oriented strategies and approaches.
Patrick Chalhoub, co-CEO of Chalhoub Group, added: “GCC consumers are now up-to-date, more curious and easily influenced by their friends and bloggers on social media. When it comes to beauty, they focus on the make-up and look for fun and colors. This modern thinking granted new and independent cosmetic brands an opportunity around the world, especially in the GCC. An increasing number of regional entrepreneurs are working on bridging the gap through innovative initiatives related to their regional communities. They changed the beauty sector’s scene in the GCC and are now coming up with an effective and new strategy. They also challenge leading companies that didn’t quickly react and had to rethink their strategies.”