ONE of the most promising sectors in the world today is the GCC retail sector. The biggest international manufacturers and international retailers are expanding their presence in the region, especially in KSA and UAE. The GCC countries have succeeded in maintaining a high level of social and political stability with excellent economic performance, high social spending and political reforms. The UAE retail sector expected to grow this year more than 33 per cent, according to a report by Ventures Middle East and many retailers are geared for 2015 with expectations of double-digit growth. GCC retail sales are expected to grow at a 7.3 per cent compound annual growth rate (CAGR) between 2013 and 2018 to reach $284.5 billion, according to Alpen Capital. In 2014, the MEA retail market was valued at $25.7 billion, overtaking Latin America as the world's fastest growing market for beauty and personal care products, according to a new research. The analysts at Euromonitor International have predicted that the beauty market in the region will record a 4.8 per cent annual growth rate between 2014 and 2019, which is almost twice the global average of 2.6 per cent, and ahead of the world's next fastest growing market, Asia Pacific (4.5 per cent growth rate). Saudi Arabian consumers spent $4.8 billion on bath and shower, cosmetics, deodorants, fragrances, hair care, men's grooming, oral care and skin care last year. Other big spenders are Iran ($3.5 billion), the UAE ($1.4 billion), and Egypt ($1 billion), together accounting for 41.6 per cent of the buoyant MEA beauty market. “The GCC beauty and retail industry is the place to be right now. It's a time for big changes and bigger growth”, said Mohammad Madi, President of Madi International. “The market is ready and so is Madi International to ensure that we bring the best professional beauty brands from around the world, to the ever-growing GCC market. Customers can walk into any of our showrooms, and they will find the most professional beauty products from around the world,” he added. Customers are open to more professional products and expect salon-level quality from their purchase. They believe that professional products offer better value for money. The retail industry in the GCC is expected to maintain a positive momentum, driven by the social and economic developments. Key factors influencing the market include robust economic growth, rising purchasing power, growing population comprising a large proportion of expatriates, changing consumption patterns and increasing penetration of international retail players. There have been also changes in the consumer needs and behavior where the focus has shifted to higher quality professional products. This change in the demand brings in valuable opportunities for the current large retails. The Gulf is gearing to host events such as World Expo 2020, so the growing influx of tourists and further strengthening of the market promise immense growth and opportunities for existing and new retailers in the region. This is an occasion for retailers to capitalize on the market, but if they do not do so, it's an opportunity lost. Madi International is at the forefront of this growth wave and continues to give its customers the latest professional products and cutting-edge innovations in beauty care. The evolving market is ready for new products, and Madi is leaving no stone unturned to offer the finest global professional beauty products at its showrooms across the GCC. — SG
