Value creation: The luxury evolution
The GCC’s luxury sector is not slowing down but is evolving for sure as the economic landscape changes.
“The market for luxury products is not dissolving, but evolving,” says Erwin Bamps, CEO of Gulf Craft, one of the world’s leading superyacht shipyards. “So it is not a question of where the money is going, but rather how customers are choosing to spend it.”
“Today’s customers are more value-conscious, better educated, and more informed than ever. They do their research before coming to us. This means that their expectations are higher, but it also means we have an opportunity to achieve greater customer satisfaction because we have a clearer understanding of their requirements,” says Bamps.
Record-low oil prices have had a ripple effect on global economies, however with growing private wealth in the GCC – reaching a cumulative USD 2.2 trillion, according to the most recent statistics by Strategy& (formerly Booz & Company) – the propensity to spend remains buoyant in the region as buyers shift their focus from product to value.
The third edition of the two-day arab luxury world conference will discuss pressing issues such as The Spending and Needs of HNWIs, The New Normal, Product to Emotion. These sessions are among 35 panel discussions during the annual event.
The conference on the business of luxury will be held on June 01 and 02 at The Westin Dubai Mina Seyahi Beach Resort & Marina in Dubai, UAE, and will review several issues associated with the business of luxury in the Middle East.
“Yes, the world is facing economic challenges, but with every challenge comes an opportunity,” said Cesar Latrilla, CEO of Engel & Völkers Dubai, a service company specialized in the brokerage of high-end real estate and yachts.
“Ultra high net worth individuals understand that this could be the best time to make an investment because of the prospects presented by current market conditions – lower prices, greater value, and a higher return on investment in the long-term.”
Clients make the best ambassadors, say the industry leaders, adding that the most effective approach to generating sales leads is positive word-of-mouth.
“No one can better share their journey with you than a customer who has experienced it first-hand, and this is especially true for high-investment purchases,” says Bamps from Gulf Craft.
“However, this all boils down to a company’s commitment to delivering exceptional service and quality products. If you have one happy client who then shares his or her experience with another potential client, there is a strong chance this could turn into a sale. But the opposite also holds true, and that is why a company’s capacity to meet and exceed customer aspirations will ultimately determine its destiny, regardless the economic situation.”