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7/30/2019 Fashion Makes Business Sense - Cover Story for Qatar Today Sept 2013
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7/30/2019 Fashion Makes Business Sense - Cover Story for Qatar Today Sept 2013
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cover story:The Business of fashion
thebusiness
of fashion
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Pg > 43
QAtAr Is rAnKed 11tH In tHe fIrst AnnuAlretAIl InternAtIonAl progrAMMe
expAnsIon (rIpe) Index, provIngfAvourABle for gloBAl retAIlerslooKIng to expAnd InternAtIonAlly,pArtIculArly In tHe luxury segMent.In tHIs scenArIo, wHen retAIlers AreMAKIng A BeelIne for QAtArI sHores, wHydo locAl sHoppers tend to fly out ofQAtAr to fulfIll tHeIr needs? wHere dotHe retAIlers fAIl to Keep tHe sHopperssAtIAted? or does tHe fAult lIe wItH tHesHoppers wHo do not drIve tHe need?deBrInA AlIyAH reports.
7/30/2019 Fashion Makes Business Sense - Cover Story for Qatar Today Sept 2013
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cover story:The Business of fashion
ccording to Euromonitor Internationals
market research, the global apparel market
was valued at QR6.1 trillion ($1.7 trillion) in
2012 with a predicted growth o 5.8% this
year. Marketline Research says that in 2014
the global childrenswear market is expect-
ed to reach beyond QR677 billion ($186 bil-
lion), marking a 15% increase in ve years;
the global bridalwear market is expected
to start moving towards the QR207 billion
($57 billion) mark; the global menswear in-
dustry should exceed QR1.4 trillion ($402
billion) and the biggest segment in the in-
dustry, womenswear market is expected to
pass QR2.2 trillion ($621 billion).
About 80% o the world's population
would say they care about ashion. Fash-
ion, it would seem, is reserved or the well-
heeled, celebrities, and the afuent seg-
ment o the society.
Then what is it that is uelling this insa-
tiable demand or collection ater collec-
tion systematically produced to the strict-
est o deadlines and calendars or ashion
weeks?
The process is one that is so excruciat-
ing that many ashion designers have been
pushed to the brink; some give up while
others are driven to suicide and break down
(as in the case o Alexander McQueen and
John Galliano). As a seasoned ashion star
Alice Temperley tells, You must be pre-
pared to give away certain years o your lie
to make it.
What most people do not see is that it is
the trickling down eect that quietly push-
es the engine in the background. Looks and
styles presented at ashion weeks nd their
way through layers o interpretation and
production through all channels o garment
2.2Qr trIllIon
gloBAl woMensweArMArKet In 2014
7/30/2019 Fashion Makes Business Sense - Cover Story for Qatar Today Sept 2013
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Pg > 45
A
ter the purchase o
the luxury handbag
maker Le Tanneur
& Cie, QLG is now
extending anoth-
er arm into ashion
with the launch o
the much anticipat-
ed QELA this month.
A ashion label con-
ceptualised and produced in Qatar, QELA
is the states rst global ashion brand and
draws its inspiration rom the Qatari heri-
tage, which is reected in the aesthetics o
its collections. The brand will oer a col-
lection o leather goods, shoes, jewellery
and a couture line that are designed in the
QELA workshops. In an exclusive interview
with Qatar Today, CEO Gregory Couillard
talks about the vision o the company and
how ashion orms an important part o the
business. Couillard believes that ashion
is one o the key markets that needs to be
tapped. Fashion is a global business and
the industry as whole generates over $1 tril-
lion annually, employing millions o people.
At QLG we are creating jobs in Qatar and
abroad, and are investing in the training o
new recruits. We see ourselves at the heart
o the ashion and luxury eco-system that is
growing in the country, he says.
Behind the founding of QLG
Qatar Luxury Group was created to build
and oster luxury brands or an interna-
tional audience in the ashion, hospitality
and liestyle sectors, and was established in
2010.
Our ashion division is built on the belie
that there is an opportunity in the global
luxury market or a Qatari group that is true
to its heritage, open to the world, and cre-
ates timeless products using the best mate-
rials and highest level o cratsmanship.
Through our hospitality division, we are
also active in the world o high end restau-
rants, and together with che Guy Savoy,
Quisine by Guy Savoy was opened on The
Pearl in November 2012. In addition, La
Varenne, a French Brasserie and The An-
vil Rooms, a traditional steakhouse, were
opened in Tornado Tower.
The common strand between all our ini-
tiatives is that they are centered on excel-
lence, quality and creativity.
Tell us more about your fashion and
luxury division.
Our ashion division is composed o our
own, made-in-Qatar ashion brand and Le
Tanneur, which is one o the oldest leather
goods brands in France that QLG acquired
in 2011.
Our own ashion brand, QELA, will be
anotherQatari brandis created
QAtAr luxury group ( Qlg), owned By QAtAr foun dAtIon, wAscreAted to BuIld And foster luxury BrAnds In tHe fAsHIon,HospItAlIty And lIfestyle sectors for An InternAtIonAlAudIence.
fahi i a babi a hi a ha $1ii aa,mi mii . A Qlg a ai jb iQaa a aba,a a ii ih aii i."
GREGORy COUILLARD, CEO
Continued on Pg43
7/30/2019 Fashion Makes Business Sense - Cover Story for Qatar Today Sept 2013
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cover story:The Business of fashion
making. And this is where the real money is.
This ingrained necessity has churned
out an industry so protable that the three
richest men in France (the beating heart o
all things ashion) minted their billions in
the ashion and beauty industry. The 2012
Forbes Rich List puts chairman o LVMH,
Bernard Arnault as the wealthiest person
in France with a net worth o QR149 bil-
lion ($41 billion), ollowed by Liliane Bet-
tencourt o LOreal at QR87 billion ($24
billion) and Francois Pinault and amily o
Kering (ormerly PPR) at QR47 billion ($13
billion). In Italy, another stalwart capital o
ashion, Giorgio Armani, is the th rich-
est man in the country with a net worth o
QR18 billion($5 billion).
These gures are astounding, consid-
ering the industry is one that is oten as-
sumed to be recession sensitive. But while
consumers may purchase less during a
downturn, they would be looking to pur-
chase items o better quality to last a lon-
ger period and this oten translates into
items o higher prices. The Brand Finances
2012 Global 500 study o the worlds top
brands suggests that in times o econom-
ic slowdown, consumers embrace luxury
and indulgent brands instead o tradition-
al household avourites. The report shows
that the global downturn has created the
Alphabrands, brands that consumers turn
to or quality regardless o economic condi-
tions. Some o the worlds top ashion hous-
es, categorised as Alphabrands, including
Louis Vuitton, Hermes and Ralph Lauren
continue to report soaring prots.
Middle East and Qatar market
While the global economy is uctuating,
newly minted millionaires rom new econ-
omies are splurging enough to make up or
the losses in other countries.
In the Middle East, regional retail spend-
ing accounted or 30% o global sales last
year according to a report released by con-
sulting rm Bain & Company. A 2012 report
by Deloitte conrmed that consumers in
this region spent some QR29 billion ($8
1.4Qr trIllIon
gloBAl MensweArMArKet In 2014
7/30/2019 Fashion Makes Business Sense - Cover Story for Qatar Today Sept 2013
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Pg > 47
billion) on luxury goods and top ashionretailers experienced a 42% growth in-
crease in the MENA region. I we are not
talking about volume, then we are denite-
ly talking about value as one third o global
haute couture client comes rom this re-
gion.
Qatar ranked 11th in the rst annual Re-
tail International Programme Expansion
(RIPE) Index, proving avourable or global
retailers looking to expand internationally,
particularly in the luxury segment. Qatar-
is are the biggest buyers o luxury goods in
the Middle East region, closely ollowed
by consumers in Bahrain, according to
the American Express Middle East Luxu-
ry Spending Tracker. Consumers in Qatar
spend up to QR18,200 ($5,000) a month
on various luxury items but ashion topped
the list o preerred purchases in 2012,
with 37% o respondents saying they enjoy
shopping or ashion-related items.
Qatars stake in retail
With strong consumer condence and
spending, does it really come as a surprise
that Qatar would want a piece o the cake?
One o the most prolic ashion house take-
overs o 2012 was Valentino's acquisition
by Mayhoola or Investments, a private Qa-
tari-backed investment vehicle. Through
the deal, Mayhoola also acquired the M
Missoni license business, another prot-
able ashion label that is known or its sig-
nature knit print.
Steano Sassi, President and CEO o
Valentino, commented: We are delight-
ed with this development. During the past
ew years, despite swings in the luxury
markets, the company has operated with
launched this month. It has been inspired
by Qatar, its home country, and created
or an international, rened audience. Thelaunch o the brand will be made at our bou-
tique on the Pearl, which will be ollowed
by the opening o boutiques in the leading
ashion capitals o the world.
We have been working very hard creating
this brand. You will nd that it is marked
by excellence and openness, and will draw
rom time honoured traditions. Our prod-
ucts are created by passionate and talented
cratsmen, committed to passing down and
perpetuating their unique know-how. We
are very proud o our multicultural teams,
and ostered an open exchange between the
local Qatari cultures and those rom abroad.
This openness, reected in the brand that
we are launching, is very exciting.
How do you feel the business of the fash-
ion industry is doing in Qatar?
All o the elements required or the business
o ashion to thrive are here, and this is an
exciting time or the industry. There is lots
o creativity, the emergence o designers,
growing number o industry players, good
retail space and a savvy and high-end mar-
ket.
It is oten pointed out that Qatar is a sig-
nifcant consumer o ashion and luxury
goods and services. Qataris have a sophisti-
cated sense o ashion, and are knowledge-
able about industry trends. I think, however,
the most interesting aspect o the industry
here is the creativity and passion o young
designers. Qatar is at the crossroads o the
East and West and hence is a melting pot
o cultures and nationalities. This provides
QLG with a very unique opportunity that
can be leveraged in several ways; by recruit-
ing the best talents in the world to our studio
and workshops and exploiting our knowl-
edge o the region and emerging markets in
Asia.
What do you think must be done to sup-
port the growth of the retail fashion in-
dustry in Qatar?
I believe that there are ample retail spaces
in Qatar, ranging rom the high street to the
high-end. Retail is always driven by the mar-
ket, and in that sense I dont see there being
a case or specifc support or intervention.
Can you tell us a little bit more about Le
Tanneur?
We acquired a majority stake in Le Tanneur
in 2011, one o the oldest leather goods com-
pany in France. The acquisition allowed us
to share creativity and know-how and gives
our new brand access to one o and most re-
spected leather goods workshop and most
talented artisans in the world. This ensures
that leather pieces rom our ashion brand
will be o the very highest standards in the
world.
Tell us about QLG's Unique Selling Point
We expect our ashion to have a big impact,
as it is rooted in art, culture and heritage.
In this sense, or QLG, the industry goes
urther than just business. We are passion-
ate about our role in preserving traditional
ashion cratsmanship - Metiers-dArt as
we say in French - which takes so many years
to build and is an increasingly rare commod-
ity in the ashion industry today. This crats-
manship consists o skills and know-how
that are passed rom generation to genera-
tion and take decades to master. This is why
at QLG we have a long term approach to our
business philosophy and place art and cul-
ture at the centre o everything we do
consuMers In QAtArspend up to Qr18,200($5,000) A MontH onvArIous luxury IteMsBut fAsHIon toppedtHe lIst of preferredpurcHAses In 2012, wItH
37% of respondentssAyIng tHey enJoysHoppIng for fAsHIon-relAted IteMs.
Continued from Pg41
7/30/2019 Fashion Makes Business Sense - Cover Story for Qatar Today Sept 2013
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cover story:The Business of fashion
great intensity and remained ocused on
maximising the potential o the Valentino
brand. This eort should drive a 60% in-
crease in revenues rom 2009 to 2012. Our
new shareholder will help us reach our ull
potential.
More than just a glamourous acquisition
or trophy asset, as many critics may term it
as, it actually makes perect sense as Valen-
tino is one o the very ew private couture
houses let, and a signicant proportion o
its clientele are now rom the Middle East.
As or Qatar Holding (QH), the investment
vehicle or the states Qatar Investment
Authority, their 2010 purchase o Harrods
has proved to be a strategic and smart in-
vestment with the luxury department store
chalking record prots despite economic
woes. QH picked up a dividend o QR547
million ($150 million) ater the very rst
year o the acquisition.
Continuing the ashion retail conquest,
QH has also amassed a small stake o slight-
ly more than 1% in LVMH and 11% in lux-
ury jeweller Tiany. The jeweller will be
opening its new agship store in Paris at 52,
Champs Elysee in 2014, a building acquired
by QH earlier last year. Through Qatar Lux-
ury Group, the state has also bought a con-
trolling stake in French handbag maker Le
Tanneur & Cie.
Other than just buying into luxury ash-
ion brands, QH is set to launch several
projects that will position ashion retail as
its main oering. Qatars Deluxe Village is
a retail project in the pipeline planned in
the Italian summer resort town o Porto
Cervo on Costa Smeralda. QH had acquired
several properties including hotels in the
Italian island in 2012. Commenting on the
transaction, Ahmad Mohamed Al-Sayed,
Managing Director and Chie Executive O-
cer o Qatar Holding, said: We are happy
to have agreed terms or the acquisition o
this established portolio o luxury assets
in Sardinia. We intend to continue support-
ing the on-going development programme
which will see Costa Smeralda strengthen
its position as a top luxury resort destina-
tion. The Deluxe Village will include a pop-
up Harrods store and boutiques o major
international luxury brands. The state has
also agreed to invest in a joint venture, IQ
Made In Italy Venture, with Italian compa-
nies that will ocus on the sector including
ashion and luxury goods.
And while these are the deals that have
been disclosed, Qatars key investment
players, whether state-unded or privately
operated, still maintain a relatively low pro-
le and are believed to have stakes in other
major ashion houses including British ac-
cessories label Anya Hindmarch.
677Qr BIllIon gloBAl
cHIldrensweAr MArKet In2014
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Pg > 49
The impressive spend-
ing gures o Qatar
may seem quite mis-
leading, as the num-
bers represent the
total spending by
consumers based in
Qatar, and need not
necessarily translate
into expenditure ac-
tually made in the country. A quick surveyamong Qataris and expats reveal that they
are more likely to purchase ashion and lux-
ury items when they are travelling, while
shopping locally is usually driven more
by necessity than by need. Dubai, the bus-
tling tourist destination, is one such Middle
Eastern city that is driving up the spending
gures luring shoppers rom all over the re-
gion including Qatar.
The one grudge that most local shoppers
put orth is about the inventory carried by
retailers in Qatar. With the growth o online
retailers like Net-A-Porter and Matches
Fashion, it is easy or shoppers to keep up
with latest releases and compare prices on
an international level. And this is where
Qatar lags behind; shoppers nd that local
stores are much more expensive than the
price online as well as lack the latest oer-
ings. There is always a delay in stocking
new collections. It arrives in Doha a ew
months too late, and they are oten over-
priced, usually about 30% more which I
am assuming is an indirect tax since this is
a tax-ree country, says shopper Aisha Al-
Thani.
For ashion designer Abdulla Al-Abdulla,
shopping in Doha has its pros and cons. Be-
cause there are less people shopping locally,
chances o you landing the hottest ashion
item o the season are higher. However, re-
tailers really have to up their game by not
stocking old collections rom past seasons
which is something that is really rampant
here. They also have to pay attention to vi-
sual merchandising to attract more shop-
pers. The window display at the stores here
are really unattractive, he says.
Consumers also eel that ashion buyers
have to be bold and experiment with di-
erent inventory rotations as the current
stocking trend in Qatar seems dated and
zeroes in too much on market stereotyping.
We have a lot more brands in Qatar today
than we had ve years ago, but I still rath-
er shop abroad because the ashion buyers
just dont seem to understand the changing
market. They tend to stick to a stereotype
which they are amiliar with but we are
just like the rest o the world, craving or
something new and trendy. It is not about
catering to one style but about creating new
trends! says shopper Fahad Al-Turky.
Inventory problems topped o with the
lack o knowledgeable sales representa-
tives have driven many shoppers to turn to
online shopping, shopping abroad during
summer holidays where discounted items
are in abundance, as well as shopping in
the neighbouring Dubai. They never have
enough sizes in stock. I like to get the opin-
ion o sales people when I am shopping and
I am always shocked when I know more
about their brands than them. I usually do
my research online beore purchasing and
go directly to that item instead o looking
at what is available because I cant be both-
ered to be harassed by annoying sales peo-
ple who know nothing about their brand or
ashion in general. It would be really good
i these shopping malls oer personal shop-
per services by people who are really good
stylists, Al-Turky added.
On the other hand, there are a growing
number o consumers who eel that shop-
ping more locally can help solve these prob-
lems. Interior designer Caroline Chiang,
who has lived in Doha or our years, is ex-
cited to see new multi-brand boutiques like
DNA and The Vanity Room nding oot in
the country. The important aspect is in
creating demand. When these big brands
see local demand increase, they will be
more willing to give into the ashion buyers
requests or bigger inventory rotation and
collections, she says. You need more than
one person to buy a Mary Katrantzou dress
rom The Closet; you need 10 people, and
then the brand will respond to give local
buyers a better deal.
whatQatar's
consumerswant
7/30/2019 Fashion Makes Business Sense - Cover Story for Qatar Today Sept 2013
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cover story:the business oF Fashion
T
he afuent spending
patterns o the market
in Qatar and the Mid-
dle East has put this re-
gion on the map o thebiggest luxury buyers
in the world. Through
the tracking o luxury
spends by Mastercard,
several key ndings rom the tracker con-
rms the powerul spending habits o the
market here in Qatar. The latest Master-
Card Index o Consumer Condence has
indicated that Consumer Condence in
Qatar is the highest among the Middle East-
ern markets surveyed in the Index, with a
score o 96.5. When compared to the pre-
vious edition o the index, consumers are
more optimistic about regular income (99.3
vs. 98.4), employment (98.1 vs. 97.8) and the
stock market (92.0 vs. 91.1). The very posi-
tive results in Consumer Condence scores
are a reection o the booming Qatari mar-
ket and the Qatari governments ambitious
development plans or the uture. Con-
sumers who are optimistic in their outlook
or regular income and their employment
prospects in particular are more likely to
purchase non-essential items, thereore
stimulating the economy, explained Pan-
kaj Kathuria, Mastercards Area Head or
Southern Gul. The statistics also show
that Qatar currently ranks ourth in the ex-
pected spend on luxury goods in 2013, with
an average spend o QR7856 ($2,158). The
UAE leads with QR9723 ($2,671), ollowed
by Oman QR9326 ($2,562) and Saudi Ara-
bia QR8704 ($2,391) ranking third. Qatari
consumers are known or shopping in the
ashion and luxury capitals o the world
like London, Paris and New York. However,
they will also naturally make their luxury
purchases in the country that they reside
in, he said
thenumbersthat
MatterMAstercArd gIves us tHescorecArd on tHe sHoppIngspends In tHe regIon
OWN CURRENTLy INTEND TO OWN IN ThENExT 12 MONThS
36%
30%
I2%
27%
I3%
25%
I4%
4%
desIgner clotHes & leAtHer goods
Jewellery
desIgner AccessorIes & footweAr
luxury wAtcH
ownersHIp
Qr7,858Among Qatari
respondents, teaerage amount te
intend to spend onluur goods in 2013
I3%of respondents in Qatarintend to spend more on
luur goods in 2013 tante did in te 12 monts
prior to te sure.
sHoppIng pAtterns
Bus onimpulse/on
te spot
2I%
Considers it andten tends to buwitin one mont
2I%
Etensiel researcesand bus witin two-
si monts
25%
Decides on tespot, but waits for
sale/discount
32%
vIsIts dIscount weBsItesfor luxury goods?
89%yes
11%no
sources of InforMAtIon for luxury goods
Adertising(Tv/Print/Radio/
Outdoor)
Friendsand famil
Onlinesopping sites
Celebrities/Public figures
Outlets/brandsmailing lists/catalogues
Online blogs/forums/reiews
43% 39% I3% I0% 8% 3%