Luxury labels Karl Lagerfeld and Bally target direct-to-UAE shoppers with their own online stores

DUBAI: Karl Lagerfeld, the high priest of fashion, is opening a store — an online store, to be precise — in the UAE and Middle Eastern markets. German brand Hugo Boss is also aiming to raise awareness among its regional shopper base through an online store.

Swiss footwear and accessories brand Bally is another brand that has partnered with its partner Jashanmal Group to take the virtual route for local shoppers. All of these brands are now available online for the fashion-conscious to order their latest releases or designs.

But the difference now is that the brands are launching standalone digital stores for those markets, rather than waiting for Emirati or Gulf shoppers to place orders from virtual stores elsewhere. High-end fashion and accessories are becoming highly localized.

“To date, we serve 58 countries around the world via e-commerce – in order to build digitally relevant regional platforms, we had to take the time to find the right partners,” said Bally CEO Nicolas Girotto. “By partnering with Jashanmal Group, we intend to get closer to the Middle East market. Currently, Bally.ae serves all countries in the Gulf region as well as Lebanon, Jordan and Pakistan.

“We have a strong relationship with Jashanmal and we aim to grow our business both offline and online through our decade-long partnership. Thanks to strategic partnerships with major e-tailers such as Ounass and The Level through Jashanmal, we have been important position in the market.”

According to luxury market sources, what has happened over the past two years, especially after the COVID-19 disruption, has seen brands try to take direct control of their sales in all major markets. This way, they have more control over pricing, offers, and seasonal promotions.

“There’s nothing that annoys a luxury brand more than not being able to control pricing and discounting,” said one retailer. “We’ve seen this in other markets as well – now we’ve reached the UAE and the Gulf, and they’re still one of the biggest luxury markets.”

For Karl Lagerfeld’s electronics stores, the Chalhoub Group will operate them as a franchise. The Dubai-based group has decades of experience in selling boutique goods through brick-and-mortar stores. The launch of “KARL-ME.COM” is a natural progression as the Chalhoub Group expands its interests in the digital realm. “The microsite will further drive the brand’s digital approach and provide a tailored experience for travelers in the Middle East,” said a statement when it was launched late last month.

High-end fashion and accessories are categories that are not dominated by the region’s largest online marketplaces such as Amazon. Instead, platforms with a strong focus on the category—such as Namshi, Ounass, and Net-a-Porter—are the main drivers.

In markets like the UAE, fashion sales account for 50% of all non-grocery retail sales, whether through stores or online. In Saudi Arabia, it’s around 40%.

According to a recent update by RedSeer Consulting, “The online fashion retail market is driven by omni-channel retailers. The fashion vertical, which offers a wide range of products at competitive prices, is increasingly capturing a larger market share.

“Despite having a large user base, online marketplaces don’t see strong appeal for trendy products as they focus on evergreen products.”