This content was paid for by an advertiser and produced by Create, the branded content studio of CNN International Commercial. The news and editorial staff of CNN had no role in its creation.

Hero Image

Sky-high standards, an expanding market, and a supportive government have catalyzed a wave of experimentation in the emirate – and a boom in retail

If you want to glimpse the future of retail, the Dubai Retail Summit is where you’ll find it. The event gathers leading global brands Harrods and Harvey Nichols, alongside regional giants such as the Chalhoub Group and Magrabi Retail Group, for networking, panel discussions, and TED-style talks on the current state of the industry – and where it’s headed next.

The headline topic at this year’s event – held in March 2023 – was ecommerce. Digital shopping may have fallen from its pandemic-era peak, but it remains the dominant trend in retail.

image

But discussion was equally focused on a seemingly contradictory trend: Experiential retail. The emerging picture was of future retailers deftly balancing opposing forces – convenience and experience, online and physical, digital and human. It’s a future that’s already playing out in Dubai.

The rise of ecommerce

Retail is booming in Dubai. In the four quarters preceding October 2022, the sector grew an average 11.25% against the same period in pre-pandemic 2019.

Speaking at the Retail Summit, Mohammed Ali Rashed Lootah, President and CEO of Dubai Chambers – which co-hosted the event – said, “The major driver for the increase in retail activity is ecommerce.”

Online shopping in the UAE grew 20% in 2022, driven by its unparalleled convenience – especially for consumers far from bricks-and-mortar retailers. It’s also a major opportunity for retailers, who can sell to customers regardless of physical proximity.

But ecommerce also unlocks new models to address changing consumer concerns, such as sustainability.

“We’re creating a circular economy”

— Kunal Kapoor, CEO and founder of The Luxury Closet

Dubai-based The Luxury Closet facilitates second-hand sales of luxury fashion items. “To buy a Chanel bag is like buying a car, that’s how much it costs” says CEO and founder Kunal Kapoor. “Most of the car industry is pre-owned. So, most of Chanel should be as well.”

Just as with cars, much of fashion’s emissions are made in production. So, embracing pre-owned means significantly reducing the industry’s environmental impact. “We’re creating a circular economy,” says Kapoor.

image
Kunal Kapoor, CEO and founder of The Luxury Closet

It’s a model enabled by technology. The company uses machine learning to effectively price and position each item, according to what it is, how old it is, and what condition it’s in. But while The Luxury Closet is using technology to facilitate new models online, technology is also enhancing the bricks-and-mortar experience.

Omnichannel experience

“81% of consumers are willing to pay more for a better experience,” says Maria Gedeon Mohr, CEO of Dubai-based consultancy Gedeon Mohr & Partners.

Magrabi Retail Group is one of the Middle East's leading eyewear retailers, with its headquarters in Dubai. It has always differentiated itself on experience. “What makes the Magrabi Retail Group customer journey unique is our service quality,” says CEO Yasser Taher. “We invest a lot in our team. We invest a lot in our technology.”

image
Yasser Taher, CEO of Magrabi Retail Group

That technology investment used to mean optometry machines and lens manufacturing. But now it also means experiential tech: analytics, augmented reality (AR), and AI.

“Our recommendation systems use facial recognition to help you choose the best frames using your face shape versus your style advice,” says Taher. And customers can use Instagram filter-style virtual try-ons to see how glasses will look without leaving their home.

“What makes the Magrabi Retail Group customer journey unique is our service quality.”

— Yasser Taher, CEO of Magrabi Retail Group

They can also visit the store for an IRL fitting, or book an appointment with a stylist – online or in-person – to go through their options.

And it works both ways. “You might come into the store for the experience, and then decide to buy it online. It doesn’t matter where the transaction happens,” says Taher.

Magrabi Retail Group is also investing in analytics to enhance the customer journey across digital and physical, something Mohr says is a wider trend in the industry – using demographics, past purchases, and in-store heatmapping to personalize experiences and better predict inventory requirements.

This cutting-edge, omnichannel approach is typical of Dubai, a city that Mohr characterizes as “a testbed for innovation.”

image

Shaping the future of shopping

Dubai’s consumers have “the highest expectations in the world,” says Taher, driving an intense competition that “automatically drives innovation.” In other words: retailers willing to try new ideas are richly rewarded.

And Mohr says the government is also “committed to promoting innovation and entrepreneurship, creating a dynamic environment that encourages retailers to experiment.”

For instance, Dubai Chambers – which co-hosted the Retail Summit – has created business groups to consult on policy and regulation. Part of the optical business group, Taher says the Chambers are “not only trying to align with retailers, but actually use retailers in every sub-specialty to think outside the box.”

Further support comes from the Dubai Economic Agenda ‘D33’, which aims to expand cross-border trade opportunities by forging new trade agreements and logistics corridors. It also seeks to bring more tourists to the emirate, swelling the number of potential customers.

Such moves could bring further international brands to the emirate – already home to a who’s who of global brands like Chanel and Dior – as well as supporting outward expansion from Dubai.

With such colossal – and growing – opportunity, it’s no surprise the future of shopping is being forged in Dubai.

Why Dubai?

International retailers are flocking to Dubai. 62% of international retailers are already there with recent arrivals including: LensKart (India), Chai Trading (Kenya), Wow! Momo (India). Here’s why.

Dubai also offers an entrepreneurial, pro-business environment that is home to leading regional retailers. Prime examples of this include Chalhoub, luxury retailer and the largest retail operator in the Middle East with 14,000 employees in 14 countries; 6thstreet, the GCC's leading fashion e-tailer selling 1,200 brands to five countries experimenting with 'phygital' stores and the metaverse; and Magrabi Retail Group, the Middle East's leading fashion eyewear and medical eye care specialist with 150 stores in five countries.

RECENTLY POSTED
image
From Off-Road to Rescue: The Jeep Enthusiasts Using Four Wheels for Good
From raising awareness for charitable causes to coastal clean-ups, meet the off-roaders driving change in Dubai’s community
image
Why tech investors are turning to Dubai
Insiders say the emirate’s tech ecosystem has reached a new level of maturity, catching the attention of global investors
image
How Dubai’s Apparel Group conquered the world
From nine pairs of shoes to 2,200 stores in 14 countries, Apparel Group’s expansion testifies to Dubai’s global springboard status.
image
The making of an international FinTech magnet
FinTech is booming in Dubai and global investors are taking notice. Two co-founders of successful startups share their stories.
image
The unicorn incubator that is a “dream come true” for investors
The Dubai initiative that’s growing unicorns – and exhilarating venture capitalists
image
How Dubai Fueled the Rise of a Crypto Powerhouse
“Whether you're someone who wants to work in a company or set up your own, there are a lot of exciting developments and momentum in Dubai at a time when other jurisdictions are cracking down,” Ola Doudin, Co-Founder and CEO of BitOasis
image
Dubai is the ideal launchpad for manufacturing’s digitized future
A raft of far-reaching initiatives is fueling a high-tech, sustainable industry
image
Manufacturing is getting smarter and more sustainable in Dubai
Already home to hundreds of advanced factories, Dubai is doubling down on next-gen manufacturing
image
The making of a futurist laboratory
The CEO of the Dubai Future Foundation explains how it is predicting, preparing for, and creating the future
image
Where Innovation Meets Investment
Why Dubai is the destination for investors and entrepreneurs seeking a uniquely innovation-friendly business environment
image
How digitalization is supercharging Dubai’s economy – in every sector
In its drive for diversified, sustainable growth, Dubai has become a thriving hub for digital innovation across a swathe of economic sectors
image
How Dubai is developing the next generation of coders
The emirate has become a tech talent nexus – for established developers and budding coders alike
image
How Dubai became the North Star of international tech
The annual Expand North Star convention gathers luminaries from across the world – affirming Dubai’s ascension as a global tech powerhouse
image
The agricultural revolution securing future food supplies
Food security is one of the biggest challenges facing humanity. The solutions are emerging in Dubai
image
The Innovations At The Heart of Dubai’s Retail Growth
Sky-high standards, an expanding market, and a supportive government have catalyzed a wave of experimentation in the emirate – and a boom in retail
image
The Future Of Farming Is Technological
New innovations are promising to feed the world in an increasingly challenging environment
image
Creating The Ideal Environment for Digital Success
Digital businesses need flexible legislation and cutting-edge infrastructure to grow sustainably. They’ll find it in Dubai
image
Public meets private to shape the future of logistics
Business and government must collaborate to respond to the challenges confronting the sector
image
How should cutting-edge tech be regulated?
Regulation has the power to stimulate or limit new technology. Dubai’s sandboxes are striking the right balance between risk and innovation to drive transformation
image
The history-making fintech unicorn that puts people first
Hiring a team of top international talent requires a large and diverse talent pool. For one Israeli tech startup, Dubai was the answer
image
Liberalized trade is the crux of resilient supply chains
Global disruption is localizing supply chains. But frictionless borders remain crucial to the flow of goods and services
image
What's attracting global tech talent to Dubai
Dubai has emerged as a new heartland for the digital workforce. But what makes this destination so compelling for the next generation of tech talent?
image
How to build a tech business from scratch
Rupert Tait arrived in Dubai with “nothing but a suitcase.” He had a million-dollar business within three years
image
How Dubai is becoming a new capital of global finance
New frontiers are shaking up the old financial order, making way for a fresh generation of investment havens
image
What the ‘Careem effect’ means for global tech
The Dubai unicorn’s success signaled the arrival of a major new tech capital
image
Where tech talent goes to thrive
In the global race for digital skills, how does a city become a tech talent magnet?
image
How to stabilize global supply chains
Years of disruption have put global supply chains under strain. What can logistics carriers do to stabilize networks and get trade flowing again?
image
Why the crypto community is embracing Dubai
The leading lights of virtual assets are clustering in this global finance hub. What does that mean for the digital economy?
Dubai DET Logo

Learn more about how Dubai is driving innovation.

Find out more