Dubai- Dubai’s efforts to consolidate its leadership in the luxury retail market has got another shot in the arm with De Grisogono of Switzerland choosing the city to open its first-ever subsidiary with the support of the Dubai Investment Development Agency (Dubai FDI), an agency of the Department of Economic Development (DED), and Dubai-based M/Advocates of Law, an associate firm of Ali Ibrahim Advocates.
Geneva-based De Grisogono, known for its jewellery and luxury watches, aims to leverage Dubai’s regional hub advantage and affinity for luxury to build a network of subsidiaries and representative offices in new markets. The brand is already well-represented in the Middle East retail market.
Fahad Al Gergawi, Chief Executive Officer of Dubai FDI, remarked that Dubai’s world-class infrastructure, tourism boom, thriving retail sector and high disposable incomes provide further opportunities for luxury brands to develop and expand to promising markets.
“Dubai accounts for a major share of the local and regional luxury market today. The leadership in Dubai see the brand-consciousness and appetite for luxury among residents and visitors as strong grounds to promote economic diversification and further infrastructure development, as reflected in initiatives such as the Dubai Design District,” added Al Gergawi.
Recent reports put Dubai’s share of the regional luxury retail market at 30 per cent and lists the city among the new destinations preferred by savvy luxury shoppers. Revenue growth in the worldwide luxury goods market is often higher than global GDP growth and average luxury retail revenue growth estimated through 2015 is 5-6 per cent.[i]
Yann Mrazek, Managing Partner of M/Advocates of Law commented: “There is a clear trend among jewellers and watchmakers to bridge gaps by establishing a presence in high growth markets to provide support to existing distributors, better react to market trends and cater for clients’ needs. De Grisogono’s proactive strategy is consistent with this trend.”
Omar Chaoui, Managing Director – Middle East & India Region for De Grisogono said it made absolute sense to open their first-ever subsidiary in Dubai given the constant growth in the region, adding that New York, Hong Kong and Tokyo would be next in line for the company.
“Dubai is in the heart of a very active and growing region – we are almost four hours away from Istanbul, Cairo or New Delhi. Moreover, the Dubai infrastructure in terms of free zones, airports and administrative services makes it a reliable location for us. The Dubai office will be looking after a wide variety of markets to the advantage of our partners and clientele,” added Chaoui.
Established in 1993, De Grisogono remains a niche brand, yet has boutiques and retailers worldwide. The company has many distinctions to its credit, like being the first-ever premium jeweller to use Black Diamonds or winning the 2005 Grand Prix de l’Horlogerie de Geneve for the first-ever mechanical watch with a digitalised display of time.