As far as luxury brands are concerned, department stores (37%) are winning the bargain contest in the eyes of consumers as the most popular outlet to purchase luxury items from – 22% purchase from them at least once a month and 15% at least once a week. On the other hand, independent luxury stores attract just a fifth of respondents from which purchases are made 4 – 6 times a year (18%), or 2 – 3 times a year (15%).
Interestingly, luxury brands are also winning with clothing items in the $51 – $100 price range with most (21%) of consumers spending that amount of money on their luxury clothing items, particularly Emiratis & Arab Expats. However when considering which luxury items consumers are willing to splash out on the most, bags attract the highest investment with 12% spending between $501 and $1000. More people spend money on shoes at a slightly lower price tag with 17% of respondents spending between $101 and $500 on the latest fashionable footwear. The least money is spent on luxury perfumes with a quarter of respondents spending between $1 and $50, particularly males (28%).
YouGov consumer research director Nehal Hassan Jibouri commented, “This study re-emphasizes the critical part value for money plays in the minds of UAE consumers when considering the right product to spend their money on. Finding a bargain is extremely important and it’s clear the majority are willing to splash out when the product quality makes sense, but a discounted quality product is the ideal mix. Mass market and luxury brands are demonstrating good appeal when it comes to clothing, but when considering their future strategy for other products, they need to be mindful not to squeeze their margins to the detriment of quality attributes, such as being long lasting or having a feel good factor. Providing a realistic price point or relevant promotional offers will also be key to attract a more bargain savvy consumer with the increasing means to quickly compare prices”.
