What will drive fashion and retail in the UAE? – information

When Emirati shoppers believe that their financial future, today and tomorrow, will be brighter and more secure, these shoppers will tend to buy more retail items.

DUBAI – You shop all the time, but are you aware that GDP activity plays a key role in how much you shop?

There is a direct correlation between a country’s gross domestic product and the relationship between that country’s business success. When a country’s GDP increases, the country’s welfare increases. GDP is one of the most important indicators used to analyze the health of an economy.
The IMF expects the UAE’s GDP to grow by a modest 1.3% in 2017; the last year of such modest growth was 2010. However, the IMF forecasts growth of 3.4% in 2018.
The International Monetary Fund predicts that economic activity in the UAE will double in 2018. The increase was attributed to the more stable price of West Texas Intermediate in the $60 per barrel range. Additionally, growth in the non-oil sector in the UAE and the region will help accelerate investment in Expo 2020 Dubai, infrastructure projects, increased global trade, increased tourism, and peace and equality projects in the region.
The UAE’s retail sector will be one of the key sectors to benefit from the IMF’s forecast GDP growth. The UAE’s retail infrastructure includes some of the most advanced shopping environments in the world. Residents and visitors to the UAE enjoy the world’s best selection, product quality and the highest level of execution in many retail environments. When Emirati shoppers believe that their financial future, today and tomorrow, will be brighter and more secure, these shoppers will tend to buy more retail items. Given the growth forecast by the International Monetary Fund, the retail sector will boom again in 2018.
In its latest global fashion industry report released in late November 2017, McKinsey & Company said that factors other than expected GDP growth were at play, making people more optimistic about retail sales in 2018. fashion industry.
A major shift in retail in 2018 will herald the end of an era when North America and Europe dominated apparel retailing. Given the strength of the Asian retail market, with more than half of the world’s online retail sales and more than 65% of global e-commerce leaders such as Alibaba, Asia leads the retail industry. The dominance of North America and Western Europe in the global retail industry will weaken in 2018. Asian retail players will continue to establish their leadership positions globally through investment and expansion.
The top 20% of retailers in the world provide nearly 150% of the economic profit of the global retail industry. Inditex, Walmart, Amazon, Alibaba, Carrefour, Metro Group, Tesco and Costco are the world’s leading retailers providing most of the economic profits. The largest retailers are expected to control a greater share of global economic profits in 2018 through their size and dominance.
In 2018, retailers will be more personal, both online and in-store. Consumer value will be understood by AI; AI will then be used to tailor recommendations, engage buyers, influence and personalize purchasing decisions. In the year ahead, more data about each of us will be used to create buying experiences tailored to our expectations, likely without our knowledge.
Online platforms will become an obsession for consumers before stepping out of their homes to make any purchases. The decisions we make as consumers will be made and will happen on our mobile technology. In 2018, mobile technology will become even more important to consumers in both online and brick-and-mortar retail businesses. In 2018, the ever-changing retail industry will continue to be unpredictable and become the new normal. The good news is that we see an improving economic cycle in the region and look forward to steady and continued retail growth in 2018.
The author is CEO of the Middle East Council of Shopping Centers. The views expressed are his own and do not reflect the policy of the newspaper.