GCC Pre Owned Luxury Goods Market: Global Size, Share, Trends, Growth and Forecast, 2022-2032
Rising Disposable Income
According to the GCC statistical center, Saudi Arabia captured around 57.7% of the disposable income in the GCC and is followed by the United Arab Emirates with a percentage of 28.5. Further, with this rising disposable income in the region, the population is shifting towards the pre-owned luxury goods. Also, the consumers across the regions are adopting second-hand luxury goods in order to improvise and maintain their lifestyle. Moreover, consumers are adopting secondhand goods in order to cut their expenses on the purchase of luxury items and expensive goods. This factor is expected to positively impact the growth of pre-owned luxury goods market in the upcoming years.
Affordable High-End Fashion
Pre-owned luxury goods are ideal choice for the high-end fashion as they offer luxury goods at a lesser price. Further, the high costs of rents and education are adding uncertainty to the job market, these are the major reasons, which makes consumers to save money and reduce their frequency of purchases. In addition to this, also the United Arab Emirates is one of the most attractive countries in the Middle East region for the luxury brands, which makes it a strategic center for companies to enter into the regional market.
Growing Numbers of Start-ups
An increasing number of start-ups in the field of pre-owned luxury goods is opening a gateway opportunity for the market to grow in the upcoming years. In addition to this, the United Arab Emirates, Dubai, and other countries are the most attractive countries in the field of pre-owned luxury goods which is indulging many start-up companies to enter into the market. Further, this factor is likely to impact the growth of pre-owned luxury goods market over the forecasted period.
When an item is made there are a lot of ways the environment gets abused. For manufacturing a luxury good, multiple processes are involved which impact the environment in many ways. Further, growing environmental concerns among the population is anticipated to impact the market in a positive way. Moreover, the method of reuse and recycling can provide a growth opportunity for the pre-owned luxury goods market in the upcoming years.
The top countries in the Gulf Cooperation Council such as UAE, Qatar, Saudi Arabia, and Kuwait are exceptionally dynamic markets which are offering high growth potential in the pre-owned luxury goods market. The visitors to Dubai and Abu Dhabi are attracted by luxury boutiques, iconic shopping malls & high-end hotels. In addition to this, the iconic luxury brands are retaining their leading position in the UAE to attract residents and tourists. Further, these factors are expected to likely impact the growth of the pre-owned luxury goods market.
Barriers in Market
The major threats to the progression of the fashion and luxury industry are the prevalence of counterfeit luxury goods. The absence of transparency and authenticity within the second-hand luxury goods market makes it challenging for the industry to propel forward. The consumers are not willing to trust sellers, through their formal or informal channels due to the fear of being duped. Further, these factors have the potential to negatively impact the demand for pre-owned luxury goods market over the upcoming years. Authenticity is especially crucial in the context of second-hand luxury goods market as the risk a consumer perceives in terms of authenticity is increasing. Further, the fear of inauthenticity is increasing in the customer to customer markets, which is believed to hamper the growth of the market.
Increase in numbers of high net worth individuals, rising demand of secondhand luxury goods and growing internet connectivity are the major factors which are anticipated to positively impact the growth of pre-owned luxury goods market in the upcoming years.
With respect to product type, the market is segmented into clothing, footwear, bags, jewelry & watches and accessories, out of which, bags segment shared approximately 64.2% of the GCC pre-owned luxury goods market in 2019, in terms of value. The United Arab Emirates is one of the most attractive countries in the Middle East region for luxury brands, which makes it a strategic centre for companies to enter into the regional market.
With respect to the distribution channel, the market is segmented into online stores and offline stores, out of which, offline stores segment captured lion share of the GCC market in 2019. Additionally, GCC pre-owned luxury goods through online channels market are likely to thrive on the back of factors such as rising number of online resellers of pre-owned luxury goods and growing figure of online shoppers across the globe are projected to bolster the growth of pre-owned luxury goods market in GCC regions over the forecasted period. Also, the value of this segment in this region is likely to grow at a year on year growth of 15.3% in 2025 as compared to previous years.
The key players profiled in the report include The Luxury Closet, Garderobe, and other major key players. These market players have adopted different business strategies, such as acquisition, product range expansion, merger, and partnership to stay competitive in the GCC market.
By Product Type
- Jewelry & Watches
By Distribution Channel
- Online Stores
- Offline Stores
- North America (U.S. & Canada)
- Europe (Germany, United Kingdom, France, Italy, Spain, Russia and Rest of Europe)
- Asia Pacific (China, India, Japan, South Korea, Indonesia, Taiwan, Australia, New Zealand and Rest of Asia Pacific)
- Latin America (Brazil, Mexico, Argentina and Rest of Latin America)
- Middle East & Africa (GCC, North Africa, South Africa and Rest of the Middle East & Africa