Another emerging hotspot in this region is Saudi Arabia, the second-largest fashion market in the GCC, according to Bain. More than half the population is aged 30 and under, and the number of HNWIs in Saudi Arabia is currently 1.5 times larger than the UAE — expected to double in the next five years. Analysts and experts say the market is accelerating quickly thanks to the government’s attempt to reduce its heavy reliance on oil production and instead shift its attention to other industries, including fashion. The government has incentivised international investment by improving tax credits, making the visa application process easier and providing assistance to businesses that seek to relocate non-Saudi staff to the country.
Similarly to neighbouring UAE, international heavyweights such as Chanel, Dior and Tiffany have an already established presence in the market. But with this new government strategy in place, Saudi Arabia is hoping to lure even more luxury brands.
“[Saudi’s] macroeconomic environment is favourable for long-term growth, with lower level of inflation versus other geographies and a steadier GDP growth, supported by government incentives on large-scale investments,” Federica Levato, senior partner and EMEA leader of fashion and luxury at Bain told Vogue Business earlier this year.
Growth in Southeast Asia
A slowdown in markets like South Korea and mainland China have given Southeast Asia a boost. As highlighted in a recent Vogue Business report, the region has experienced consistent growth since 1991, with the strongest markets — Thailand, Vietnam, Singapore, Malaysia, Indonesia and the Philippines — expected to grow 4.8 per cent in 2024, according to Bain. The management consultancy noted that Thailand is leading the growth in Southeast Asia thanks to a swelling local consumer base, tourism from neighbouring Asian countries and a rise in foreign investment.
The luxury goods market in Thailand is expected to hit approximately $13 billion in 2024, up from $10 billion this year, according to Euromonitor; drawing in luxury brands, who have formed new partnerships with Thai influencers and celebrities, in a bid to build cultural relevance in Thailand and Asia more broadly.
Thai actors, influencers and celebrities were spotted front row during major shows at Paris Fashion Week including actor Metawin Opas-iamkajorn, also known as Win, who sat front row at Prada’s menswear show in June, as well as Thai actress and singer Davika Hoorne, who made her front row appearance at Gucci’s cruise show in Seoul in May. Others are being named as brand ambassadors: Nattawin Wattanagitiphat (Apo), who skyrocketed to fame in the drama KinnPorsche: The Series La Forte, was named as a Dior ambassador in June, as was fellow Thai actor Phakphum Romsaithong, also known as Mile. Elsewhere, BamBam, the Thai singer and member of K-pop band Got7, was seen attending the Louis Vuitton SS24 menswear show in Paris this summer.
