Jewelry Business Plan 29.05.09

Business plan: Understanding Middle Eastern
fashion industry & trends

Contents
Who are our target customers?
In which countries & sectors should we invest?
Who are our competitors?
What can be learnt from successful new entrants?
Who are our partners?
What is the best route to market?
What about position and pricing?
What about the promotion and media plan?

Quantifying the addressable market
Branding and fashion
Brazil and consumer perception of fashion

Addressable Market: Female, 18-64, mid-high class
Beirut and Amman have the highest % of female
Dubai and Kuwait City have the highest % 18-64 years old
Beirut and Amman have the highest % of nationals
Female Age
Gender
18-64 years
Women as % of Population Mid-high class 18-64 years old as % of Population
60
50 Socio- 100
40 80
economic 60
%
30
%
20 40
10 class 20
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Key Cities % Nationals at city % of nationals included in addressable

Others
market
included
Beirut 97 65% belong to mid-high class n/a
Amman 89 55% belong to mid-high class n/a
Riyadh 69 100% belong to mid-high class 30% of Arabs expats
Muscat 60 80% belong to mid-high class n/a
Kuwait City 31 100% belong to mid-high class 60% of Arabs expats
Manama 25 100% belong to mid-high class 60% of Arabs expats
Doha 25 100% belong to mid-high class 60% of Arabs expats
Dubai 17 100% belong to mid-high class 60% of Arabs expats & 100% of US/ European expats
Size of the addressable market
Riyadh is the largest, followed by Beirut and Amman
ADDRESSABLE MARKET
Country Key City % of population at city level Number of people
Saudi Riyadh 19.0 1,106,922
Lebanon Beirut 22.1 439,137
Jordan Amman 13.3 302,294
UAE Dubai 6.0 98,892
Oman Muscat 12.2 87,672
Kuwait Kuwait City 13.2 65,840
Qatar Doha 8.9 36,987
Bahrain Manama 8.3 23,387
Size of addressable market: % of key city

• The estimated size of addressable market in all eight Manama, 2%
cities is over 2.1 million people. Dubai, 4% Doha, 1%
Kuwait City, 4%
• Riyadh: considered the biggest market due to its large
Muscat, 5%
population and relatively high concentration of nationals
that belong to mid-high market.
• Beirut and Amman: the highest concentration of Amman
14%
nationals. However, only 65% and 55% of nationals, Riyadh
respectively, belong to mid/high socio-economic class in 51%
Beirut and Amman.

• Dubai: the second largest among GCC cities, mainly
Beirut
due to its large population and high % of nationals, 20%
Arabs expats and US/ Europeans that belong to
mid/high class. Riyadh Beirut Amman Muscat Kuwait City Dubai Manama Doha
Branding and fashion
Preference for brand origin: jewelry
Preference for international brands for all four sectors.

Highest preference: international cosmetics and footwear.
Preference for brands...

Q25 International National No preference
Cosmetics 64% 9% 27%
Footwear 62% 10% 28%
Clothing 53% 17% 30%
Jewelry 52% 15% 33%
Riyadh 29% 40% 31%

Kuwait City 40% 8% 52%
Manama 52% 19% 29%
Doha
Highest brand preference for Dubai 52% 8% 40%
international jewelry. Amman 57% 17% 25%
Beirut 58% 10% 33%
Muscat 61% 8% 31%
6%
Doha 67% 27%
International National No preference

National brands are better in terms of …
The majority of respondents ‘neither agreed nor disagreed’ as to preference for national brands.
However, 60% of respondents agreed that national brands offer better “value for money” than
international ones.
The highest level of disagreement was on “brand recognition” (18%), where national brands were
deemed to have less stature than their international counterparts
Strongly agree Agree Neither agree nor dis agree Dis agree Strongly Dis agree
1% 1% 2% 0% 0% 1% 0%
3% 8% 7%
11%
15% 17% 15%
18%
37%
46% 50%
47%
43% 44%
51%
42%
27% 29% 25%

14% 28% 26% 60%
18% 15% 18% 16% 18%

11% 13%
Quality Brand Design and Environmental Value for Natural Colours

recognition style friendly issues money ingredients
Focus group participants in all three countries confirmed a preference for international brands:
”International brands always consider quality, materials, fashion and price, but local brands only consider price” (Riyadh)
I look for Western fashion items; they will be “without faults, more comfortable, of better materials and quality… more
durable, attractive, with perfect cut and colours” compared to the local clothes. (Dubai)
Top brands and retailer: jewelry
Damas: top brand and retailer for jewelry
Damas was mentioned as the top brand for jewelry

Chopard 2% by 65% of respondents.
Damas #1: all cities but Riyadh, where L’Azurde was
the top brand.
The highest share for Damas was in Muscat and
L'Azurde 9% Manama (over 80%).
65%
Damas
Kuwait
Damas:
Top Retailer Total Manama Dubai Amman City Beirut Muscat Doha Riyadh
leading retailer
in all cities but Damas 59% 76% 58% 73% 52% 70% 69% 60% 12%
Riyadh.
L'Azurde 5% 10% 6% 2% 22%
Tiba 2% 16%
Summary: branding and fashion
Key questions Findings
Clear preference for international brands across all

National vs. international brands
4 sectors.
National brands offer … Better value for money compared to international
Top brands/ retailer in clothing Zara
Top brands/ retailer in footwear Aldo
Top brands/ retailer in jewelry Damas
Top brands/ retailer in cosmetics Olay

Brazil and consumer perception of fashion
Exposure to Brazil/ Brazilian culture mainly
through sports
Exposed to Brazil/ Brazilian culture: source %
Not exposure at all 61%
Sports 22%
Media 9%
61% had no exposure ‘No Exposure to Brazil’ by City
Fashion 8% at all to Brazil/ Brazilian Most
Amman 41%
culture. exposed to
Business 6%
Sports and media were Brazil:
Riyadh 46%
the main sources of Amman,
Travel 2%
Riyadh,
exposure. Beirut 48%
Brazilian friends 1% Beirut,
8% of all respondents Dubai.
Peers/friends/ family 0% were exposed to Brazil Dubai 56%
through fashion.
Brazilian relatives 0% Total 61%
Focus groups: associations with Brazil
Muscat 65%
Kuwait City 70%
Manama 78%
Doha 82%
Low familiarity with Brazilian fashion
% - Familiarity with Brazilian fashion - Q28
Not familiar at all Somewhat familiar Very familiar

Over 67% of respondents were not
11% 9% 10% 12% familiar with any Brazilian fashion
items.
20% 23% 23% 21%
Brazilian jewelry: the highest
familiarity (12%).
Brazilian cosmetics: the highest
unfamiliarity (69%).
69% 68% 67% 67% Focus groups also confirmed the
limited familiarity with Brazilian
fashion.
Cosmetics Clothing Footwear Jewerly
% of respondents unable to …
79%
76%
75%
Name any Brazilian Name any Brazilian Name any Brazilian brand
Q30 fashion brands, brands present in your that you have purchased
designers, models or country? in your country or
Q31
product you are aware of? abroad? Q32
Low awareness of any Brazilian fashion
brands/ items…
The awareness of any Brazilian fashion items,
Q30. Name any Brazilian fashion brands, designers, models was extremely low
brands, designers, models or (79% could not name any)
product you are aware of… Brazilian coffee (12%) and clothes (5%) were the
most popular Brazilian items mentioned.
76% of respondents could not name any Brazilian fashion

items/ brands present in their countries.
Q31. Name any Brazilian brands present
Brazilian coffee (10%) and food (5%) were the top responses.
in your country…
75% of respondents could not name any Brazilian products

purchased in their countries.
Brazilian coffee, clothes, food and shoes were the main
Q32. Name any Brazilian brand that you Brazilian products bought.
have purchased in your country or Specific brands; 1 respondent made refer to Osklen, 1 to
abroad… Gloria Coelho and 1 to Cavalera.
Low interest in purchasing Brazilian fashion items …
Kuwait City, A mere 7% of consumers stated that they would consider

6% purchasing a Brazilian fashion item.
Riyadh, 0%
However, 33% of consumers that were interested in
Manama, 7%
purchasing Brazilian products lived in Amman.
Amman, 33% None of the respondents in Riyadh was interested in
Dubai, 9%
purchasing any Brazilian fashion items.
Muscat, 13%
Beirut, 18% % interested in buying a Brazilian fashion item – Q33
Doha, 13%
17% 17% of consumers in Amman mentioned that they

could be interested in purchasing Brazilian fashion
items
Most willing to buy Brazilian fashion 10%

items: Amman and Beirut (Levant)
7% 7% 7%
5%
4% 3%
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Brazilian fashion items score “high” in environment issues, natural
ingredients and colour
% - Level of agreement: in Brazil… - Q29
Strongly agree/ agree Neither agree nor disagree Strongly disagree/ disagree
The highest level of
agreement was for the
The companies are very environmentally friendly 26% 65% 9% environmental
friendliness, the use of
Brands use natural ingredients 26% 65% 9%
natural ingredients and
Fashion items are colourful 25% 68% 7% the colourful image of
the Brazilian fashion
Very old fashioned/out-of-date 23% 66% 11% items.
The highest level of
Very reputable fashion brands 22% 67% 10% disagreement was for
the sensuality of the
Fashion is too sensual for the Middle East 22% 63% 15% Brazilian fashion items
(15%).
Companies are very innovative 22% 66% 12% The majority of
respondents neither
Fashion goods are very expensive 21% 69% 10% agreed nor disagreed
with all statements.
Goods are very trendy 21% 68% 11% Possibly, this is linked to
the limited knowledge
The quality of fashion goods is very high 19% 72% 10%
about the Brazilian
fashion industry.
During focus groups, respondents agreed with most of the statement above after
having shown catalogues/ images of Brazilian fashion items.
Summary: Brazil and consumer perception of fashion
Key questions Findings
Exposure to Brazil/ Brazilian culture Limited, mainly through sports
Familiarity with Brazilian fashion Very Limited
Awareness of (or experience of purchasing of) any Very limited.

Brazilian fashion products/ designer Main products: coffee, food, clothes, shoes
Interest in purchasing any Brazilian fashion items Very low

Profiling the consumer of Brazilian fashion items
Profiling the consumer of Brazilian fashion based on socio-
demographics needs to be treated with caution …
Interest in purchasing Brazilian products, based on socio-demographics
Nationality
Gender Travel abroad Number of trips

88%
Age Trip purpose 70% Occupation
64% Income 67%
52% 49% 51%
43% 39% 39%
36%
31% 27%
24% 22% 25% 24%
18% 19%
10% 10% 13%
9% 9%
6% 4% 7% 7% 4% 7% 4%
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Generalisations based on crosstabs are not meaningful
WHY?
BECAUSE…
The sample used for the CATI was selected based on certain demographics (“biased” sampling).
High fragmentation in some Qs i.e. Q33, Q18, Q24 = few respondents.
Small sample per country (125).
Profiling the potential consumer of Brazilian fashion: an advanced
statistical approach
An advanced statistical analysis was performed so as to:
Identify the demographics of the potential customer of Brazilian fashion items.
Test the target audience provided by APEX.
1. Select a list of variables that “represent” the consumer of Brazilian fashion
Interest in purchasing Brazilian products (Q33) - %

Preference for international brands (Q25) - %
Considered as important (Q18) - %
Try new fashion products % - Strongly agreed/ Agreed (Q4)
2. Use a stepwise logistic regression (based on Wald statistics) to identify which of the
demographics were statistically significant (identify correlations)
3. Then, a chi-square test was ran for each variable that was statistically significant.
Profiling the consumer: interest in purchasing Brazilian fashion
items (Q33)
No
yes
APEX Target Audience Significant at total

level
Female X
90% 83%
100% 97% 96% 95% 93% 93% 93%
18-64 years old X
Mid-high socioeconomic class X
3% 4% 10% 17% National National

0% 5% 7% 7% 7%
Riyadh Kuwait Manama Dubai Total Muscat Doha Beirut Amman

City
Not important - X Important

Age, gender, work status, income, marital status, no Nationality, marital status, travel destination,
of people and children in household, travel abroad purpose of travel and socialisation
Other significant variables (all countries)

Marital status Divorced
Travel destination L. America, N. America, Africa, not Europe
and Asia
Purpose of travel Business or studies
Socialising mainly with people from N. America or Australia
Profiling the consumer: try new fashion items (Q4)
(strongly agree and agreed)
Disagree, 1% Strongly Disagree, 0.5%
Neither agree nor APEX Target Audience Significant at total

disagree, 19% Strongly agree, 20% level
Female X (Male)
Mid-high socioeconomic X
class
National X
Agree, 59%
18-64 years old 18-24
Not important - X Important

Nationality, work status, income, marital status, no of Age, Gender, Education, No of people in
children, travel abroad, purpose of travel household, Travel destination, Socialisation
Other significant variables (all countries)
Education University degree
No of people in household 5+
Travel destination Latin America, Asia and Australia but not Europe
Socialising with North America and Australia

Profiling the consumer: preference for international brands (Q25)
APEX Target Clothing Footwear Jewelry Cosmetics
Audience
Female X X (Male) X X (Male)
Mid-high US$15K-US$30K X US$15K- X
socioeconomic US$30K
class
National Arab exp or National Arab exp or National
National National
18-64 years old 18-24 18-24 or 45-54 18-24 or 45- 18-24
54
Important: Not important – X

Gender, Income, nationality, age, work status, education, Marital status, no of people and children in
travel destination, purpose of travel and socialisation household, travel abroad
Other variables Clothing Footwear Jewelry Cosmetics

Work status Student
Education University University University University
Not Asia or Africa,
Not Africa, Asia and Latin America and Middle East but not
Travel destination Australia North America Africa or Asia Not Asia or Africa
Purpose of travel Business
Socialising with Middle East or Europe Europe Not Africa Europe
Profiling the consumer: important purchasing
criteria (Q18)
Considered as important (Q18) - %
87%
80% 80% 80%

Important 78%
Age, Gender, Nationality, education, no 71% 70%
of people in household, no of
children, travel abroad, travel
destination, socialisation
Not important – X
Marital status, purpose of trip, number
of travel abroad
Quality of the Cotton (as a Natural ingredients Design/ style Leather (as a Environmental Knitwear (in
material material clothing) (as a material in material in shoes) friendly clothing)
cosmetics)
APEX Target Quality Design/ Envir.

Audience material style friendly Cotton Leather Knitwear Natural ingr.
18-64 years old X X 45-54 45-54 45-54 45-54 45-54
Female X X X Female X X X
European/US
National X X National National X National
Mid-high
socioeconomic
class
X X X X X X X
Summary: APEX target audience partially
validated
APEX target audience CATI interviews Suggestions
In general, a significant relationship was not found.

However, there were few cases that the gender
was found to be a significant variable:
Not restricting the target audience
Female Preference for cotton: female
to female only?
Preference for international brands footwear/
jewelry: male
Try new fashion items; male
Not significant.
Income (mid-high The only exemption was for:
socioeconomic) Preference for international brands
clothing/jewelry: US$15K-US$30K
Younger consumers eager to try
new fashion items and interested
in international brands
Aged 18+ A significant relationship was found. Older consumers value in
particular specific product
attributes conveyed by the
Brazilian products.
Nationals in particular show
Nationality
A significant relationship was found preference for international brands
The significance of demographic variables vary by country and by product sector.

Any generalisation should be made with caution.
In which countries and sectors should we invest?
In which countries and sectors should we invest?
Market attractiveness
City overview
Market specifics
Effect of the economic crisis
Strategic cities
Strategic sectors: Jewelry

Market attractiveness
Market attractiveness assessment
Socio
demographics
Market opportunity
Strategic sectors
and cities
Opportunity: 2008 sales

Growth: 2008-2012 CAGR
Match: to Brasil
Match: city & market
City overview
Qatar shines, UAE and Lebanon of note
Qatar monitors the strongest ’03 – ’12 GDP growth and highest 2008 GDP per capita which favours consumer
expenditure on fashion. UAE and Lebanon also of note in terms of the fashion industry.
2008 per capita at country level
140000
• GDP per capita peaks in Qatar,: this is the second largest
120000
GDP in the world, and has created strong demand for
100000 premium goods.
80000
• The second richest market in the region is UAE, followed by
US$
60000 Kuwait, while Jordan and Lebanon drag behind.

40000 • Real growth in GDP has varied considerably between
20000 markets, with Qatar showing extraordinary growth rates due
to its natural gas reserves. This is the star performer of the
0
region. All other markets are slowing to varying degrees due
Jordan
Arabia
UAE
Kuwait
Saudi
Bahrain
Lebanon
Oman
Qatar
to the impact of the economic crisis.

• The impact on the fashion market is considerable:
GDP growth by country 2003-2012
disposable income levels make a great difference in terms of
35 J ordan spending on luxuries such as cosmetics, jewelry, branded
30
clothing and footwear.
K uwait
• Nevertheless this factor does not work in isolation and while
25
S audi A rabia Qatar is the richest market it is not the largest fashion market
in terms of per capita spending: that honour goes to UAE
% growth
20
L ebanon
which is considerably more developed in terms of openness
15
B ahrain
to international investment, retail infrastructure and fashion
10
consciousness.
United A rab E mirates
5
• Similarly, while Lebanon has one of the lowest GDP per
O man capita levels it also has a strong fashion culture and fewer
0 religious restrictions on dress.
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Qatar
Riyadh is the largest market
Target country & city: Saudi and Riyadh are by far the largest markets in terms of population. Most GCC markets
have a high share of ex-pats - belonging to the lower class – and should be excluded from the addressable market
in terms of fashion items.
Key city
Population by key country and city 2008 Nationals Ex-pats
Rest of population Nationals vs Ex-pats - Key cities 2008
37% 63% 6
UAE
31%
Saudi Arabia 23% 77%
5
48% 52%
Qatar 3%
4
27% 73% 69%
Oman 97%
'mn 3 11%
83%
Lebanon 48% 52%
40% 17%
89%
Kuwait 17% 83% 2 75%
75% 69% 60%
63% 25%
Jordan 37% 1 25% 31%
Bahrain 37% 63%

0
Manama Amman Kuwait Beirut Muscat Doha Riyadh Dubai
0 5 10 15 20 25 30 City
'mn
• Saudi is by far the largest market here and while Riyadh takes a fairly low share of the overall market, it is still the largest of the
focus cities.
• This is followed by Dubai, Amman and Beirut; Doha, Muscat, Kuwait City and Manama are small by comparison.
• The locals/ex-pats split is critical in influencing the development of the fashion market.
• It should be noted that in all markets, ex pats are primarily low income workers from Asia with wealthy Western ex-pats forming a
minority. Ex-pats from neighbouring Arab countries are also significant.
• The markets with the highest proportion of non-locals are Dubai, Doha, Manama and Kuwait City, although many Kuwaiti ex-pats
are from Arab countries and often wear traditional dress.
Market specifics
Dubai, Doha and Riyadh cities of interest
Dubai and Doha key target cities in terms of fashion consciousness, while Riyadh significant youth population
favouring western brands. On the other hand, the majority of GCC cities have a high share of ex pats who do not
spend on branded products
F actors R eas on E ffect K ey cities

T radition & law T he more cons ervative a country R iyadh & Mus cat
is, the higher the s hare of
=
traditional clothing. However, this
does not dictate a low cons umer
expenditure for wes tern brands as
female cons umers tend to wear
wes tern clothing beneath the
traditional abaya
E x pats E x pats are mos tly low income D ubai & Manama
cons umers and while they may not & D oha & K uwait
Y outh population
wear robes , als o do not often buy
branded clothing, but ins tead buy
low cos t imported unbranded items
Y outh population interes ted in

- C ity
R iyadh & Mus cat

wes tern brands es pecially for & O man
F as hion
cas ual clothing e.g. t-s hirts , jeans
T he more fas hion cons cious a city

+ G C C and
cons cious nes s is, the higher the cons umer es pecially D ubai &
expenditure on branded products
+ D oha
Traditional clothing does not restrict spending on
fashion
Local women in the GCC countries apart from Oman are particularly fashion conscious, despite the fact that
traditional clothing is part of their everyday life. Men on the other hand, are less fashion conscious than women
and opt to wear a plain t-shirt and underwear underneath their traditional robes.
• In most of the GCC the traditional dress for women is the abaya, a long black robe
worn in public places, often over Western dress. The head is covered with a hijab.
• In some markets (notably Saudi and Oman) women are required to wear this at all
times in public. Other markets are more liberal (such as Bahrain and Kuwait) and
although women may wear the robes out of choice or tradition, it is not a legal
requirement.
• Despite the prevalence of the abaya, women still tend to be very fashion conscious
and are keen to wear branded, fashionable clothes which convey status underneath
their robes. While a high level of spending on clothing is channelled towards the
abaya and hijab, this does not typically restrict the spending on Western clothing to
be worn underneath.
• In particular it should be noted that while Saudi women are highly restricted in their
public dress, this does not restrict their desire for modern fashion, as shopping is one
of the few leisure activities they are permitted to enjoy.
• Oman has a different traditional dress, with women wearing brightly coloured robes.
• Men wear various traditional robes including the thobe and the dishadasha,
accompanied by leather sandals. Men are less likely than women to wear Western
dress under their robes and may wear just underwear or plain t-shirts.
• Gold jewelry is also very traditional and forms part of the bridal custom.
Dubai and Doha lowest share of unbranded
GCC cities lower share of unbranded compared to the Levant region except for Oman. Dubai and Doha lowest
share of unbranded with the only exception of jewelry for Dubai where unbranded is high
Riyadh: High share of unbranded

after Muscat amongst GCC
2008 % value share of unbranded per city

Riyadh
70%
Muscat: highest share 60% Doha: particularly low
of unbranded amongst Muscat 50% Doha share of unbranded
GCC 40%
30%
20%
Kuwait city: low share 10% Manama: mid share of
of unbranded similar to Kuwait City 0% Manama unbranded compared to
Doha GCC
Amman: highest share Dubai: lowest share of

of unbranded except for Amman Dubai unbranded – apart from
cosmetics jewelry
Beirut
Footwear Jewelry Cosmetics Clothing
Beirut: Slightly lower share of

unbranded compared to Amman
Jewelry: gold jewelry sold by the weight
Unbranded jewelry – especially gold and diamonds – dominates and is sold by the weight. However, international
brands – especially at the low end – slowly penetrate the market
• Jewelry sees a high proportion of

unbranded products across most markets due
to the use of gold jewelry as capital.
• Jewelry is typically sold by weight and kept

as an investment. Design and branding are
not important in this context. Much of this
jewelry is imported from India and is in a
traditional style.
• Even the highly developed Dubai market

has a very high proportion of unbranded
jewelry – this is due to the vast scale of the
local gold souk which is the largest in the
region and dominates jewelry sales, despite
the additional presence of branded outlets.
• The strength of traditional gold jewelry does

act as a barrier to the development of
branded fashion jewelry, but this is an area
which is showing good growth as international
brands (especially at the low end) penetrate
across the Gulf.
Effect of the economic crisis
Manama and especially Dubai most affected by
the financial crisis
Developed markets:
Doha, Riyadh, Kuwait Dubai
Little impact: Very exposed:

Economies not will see deep dip in the short term,
strongly linked to due to redundancy, tightened credit
the US, not dependent on and postponed infrastructure projects,
tourism. but swift recovery due to strong retail
network and role as tourism centre
Underdeveloped markets: Manama

Muscat
Amman, Beirut
Also little impact due Financial and tourist
Closed economy, hub, quite
to lack of strong links to
but oil dependent exposed to
US, although Beirut is quite
reliant on tourism the crisis
Minor impact Strong impact

Gold jewelry badly hit by the financial crisis
Clothing Footwear
• Relatively minor impact. • Like clothing, middle market

• Dubai in particular seeing impact footwear in most markets (exception
especially at the top end of the is Dubai) is fairly stable.
market. • Some trend towards low cost shoe
• Mass market fashion remains quite imports, which are extremely widely
strong. available.
Cosmetics Jewelry
• Harsh short term hit due to
• Some impact at top end of market coinciding with high gold prices.
with premium brands slightly hit.
• Strong traditional demand for gold
• Majority of market is unscathed, as jewelry, and use of gold as form of
this is a relatively low cost product. capital will ensure swift return to pre-
crisis level.
Strategic cities
Dubai and Riyadh monitor the highest fashion sales
Dubai and Riyadh capture the highest fashion sales in the region. In terms of per capita spend, however, UAE and
Qatar occupy the top positions while Bahrain and Kuwait are also of note
• The largest markets in the region are by far Dubai and Riyadh.
• Riyadh’s size is by virtue of its population scale, but its retail network
is less developed than that of Dubai, and its population has a lower
average disposable income.
• Dubai is an extremely heavily developed retail market and acts as the
shopping centre of the Middle East, with extensive mall development
and very high spend on fashion
• All other markets are relatively small, mainly due to the size of the
local population.
• In terms of per capita spend UAE and Qatar capture the top positions
followed by Bahrain and Kuwait
Total fashion market: value sales 2008 (USD

mn)
Dubai and Doha rank first
Dubai and Doha will monitor the highest future CAGR 08 – 12 growth in the region. Mid range growth to be
monitored by Kuwait City, Manama, Riyadh. Oman and the Levant region will see lower growth.
• Dubai is the largest market and will also be one of the most dynamic,
after a short term (but deep) fall following the economic crisis.
• Doha will also be a strong potential market, with fast growth despite a
high per capita spend already in place. Doha is expected to see fast
economic growth and will also benefit from extensive retail
infrastructure development.
• It should be noted that much of the growth in KSA will take place
outside of Riyadh, in the new economic cities, and also in Jeddah and
the Holy Cities.
• Mid-range growth will be seen by Kuwait City, Manama, Riyadh and,
to a lesser extent, Muscat.
• The Levant region shows the least growth potential.
Total fashion market: CAGR growth 08 -12

(%)
Opportunity markets: Dubai & Doha
Dubai and Doha key target cities: strong future CAGR growth and high levels of GDP per capita. Kuwait city
ranked third in terms of opportunity market. Riyadh and Dubai highest fashion sales 2008 – size of bubble
Fast growth, little developed City attractiveness 2008 Fast growth, highly developed
10.0%
9.0% Key potential
8.0% markets
CAGR growth 2008 - 2012
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000
Slow growth, little developed GDP per capita 2008 Slow growth, highly developed
Beirut Amman Dubai Riyadh Kuwait City Muscat Manama Doha
*Size of bubble: total fashion value sales 2008 in USD mn

Beirut: slow, but fashion conscious & focused on smaller designers
Beirut - protected from the financial crisis - is slowly growing. Growth focused on clothing and local players.
Investment in mall development much lower compared to the GCC
• Beirut has been protected from the uncertainties of the economic

crisis due to a solid banking system, and continues to grow, albeit
slowly, due to a low GDP compared to the GCC.
• Beirut is a fashion-centric city with few religious restrictions on
clothing, and this has made clothing key to this market.
• However, while the GCC markets are led by international retail
brands, Beirut is very much led by small local players.
• There is also less investment in mall development, although the
presence of ABC and City Mall has played a part in developing the
retail infrastructure.
• Clothing has historically been the most dynamic sector but is slowing
now the new malls are opened, with cosmetics taking over as key
growth area.
Beirut: market dominated by clothing while
cosmetics of note
Clothing represents the majority of sales and monitors dynamic growth. Future CAGR growth for cosmetics is also
of note. Footwear and jewelry, on the other hand, lag behind in terms of growth
Growth matrix Beirut
Sales matrix Beirut
12%
1,600
10% 1,400
1,200
8%
1,000
% growth
USD mn
6% 800
600
4%
400
2% 200
0
0%
2007 2008 2009
%growth 07-08 %growth 08-09 CAGR growth '08-'12
Year
Clothing Footwear Jewelry Cosmetics
• Lebanon is viewed as the resort of the GCC markets and a shopping destination for jewelry but also clothing
• Clothing captures the majority of sales – 62% in 2008 - followed by jewelry – 20% in 2008. Footwear and cosmetics monitor much
lower shares.
•Clothing has monitored the highest growth during 07 – 08 and 08 – 09 while cosmetics ranks first in CAGR 08 – 12 growth
• This is due to strong advertisement in clothing and cosmetics – especially fragrances
• Jewelry, on the other hand, monitors low growth as it is a saturated market with no further potential for growth
• Footwear represents a concentrated market with a low level of penetration and limited investment
Amman: remains underdeveloped and focused on unbranded
Amman is particularly underdeveloped compared to the rest of ME. The majority of population is low income while
the presence of international players is limited. The unbranded market remains high.
• Amman is particularly underdeveloped: it has much

lower GDP than Beirut and has seen little development in
modern shopping infrastructures to date.
• It is also more conservative than Beirut in terms of
dress, and has much less tourism.
• Around 65% of the population is low income and selects
unbranded products. The demographic open to branded
products is relatively small, but does seek out high end,
good quality items.
• International players have limited presence in this
market
• Fragmented market, strong presence of local players
Amman: clothing ranked first & jewelry dynamic
Clothing captures the first position in terms of sales and historic growth. Jewelry monitors a low share but will see
dynamic growth in the future. Growth and share of sales for cosmetics and footwear is not of interest
Growth matrix Amman Sales matrix Amman
14% 800
12% 700
10%
600
8%
500
USD mn
% growth
6%
400
4%
300
2%
200
0%
%growth 07-08 %growth 08-09 CAGR growth '08-'12 100
-2%
0
-4%
2007 2008 2009
Year
• Clothing dominates sales by far and has also dominated growth historically, though jewelry look set to take its crown.
• Jewelry takes an unusually low share here, but this sector is forecast to be the most dynamic over the forecast period.
• Growth and share of cosmetics is low as majority of cosmetics consumed in Amman include local cheap brands, which has a
negative effect on pricing
• The footwear sector will be negatively affected by an increased number of shops called “Baleh” selling second hand footwear
Manama: luxury positioning to be weakened by
economic slowdown
Manama has been affected by the financial crisis but not as much as Dubai. The market is leant towards the
luxury end and benefiting by rapid mall development
• Manama, which accounts for the vast majority spend

in Bahrain, is currently enjoying a boom in retail
development with three new malls opened in recent
years. However the impact of this on sales will be
softened by the economic crisis. This has impacted
Bahrain more than most markets, but not as severely
as Dubai.
• Manama is leant towards the luxury end of the
market, with one of the new malls focused only on
luxury brands.
• As well as catering to its own population, Manama
also has high numbers of weekend tourists, especially
from Saudi Arabia.
Manama: clothing to take over jewelry’s top
ranking
Jewelry captures the majority of sales but future growth will be sluggish as an effect of the economic crisis. In
contrast, growth for clothing will be dynamic as this sector is favoured by investment activity
Sales matrix Manama
Growth matrix Manama
12% 600
10% 500
8% 400
USD mn
% growth
6% 300
4% 200
2% 100
0% 0
%growth 07-08 %growth 08-09 CAGR growth '08-'12 2007 2008 2009
Year
• Jewelry is the key sector here as it has a long history of jewelry makers – although limited to three major jewelry companies/
manufacturers
• Clothing captures an important share in terms of sales
• Frequent visits of Saudis during weekends and holiday periods favour sales
• Future growth is driven by clothing and footwear as investment activity – three new malls – is focused on clothing which also
benefits footwear sales
• Jewelry is the main area that has been hit by the economic crisis
• Historic growth for cosmetics is high but future growth will monitor lower levels due to sector maturity
Kuwait City: growing retail infrastructure boosting fashion sales
Kuwait city: new mall space development to boost fashion sales. Kuwait still lags behind other Gulf markets while
it is more conservative compared to Bahrain. Sales focused on premium end.
• Kuwait City is the only major city in Kuwait, but shopping

mall development extends beyond the city boundaries into the
metropolitan and as far as second city Jahrah.
• In terms of retail space, Kuwait lags behind many other Gulf
cities, although the development in the past few years has
been intense. Many Kuwaitis travel to other countries for
shopping.
• While the market is skewed towards the luxury end, it is also
slightly more conservative than Bahrain which restricts sales
a little.
• Swift development of new mall space such as The Avenues
and Marina Mall are significant and will boost growth
considerably.
Kuwait City: Jewelry ranks first in sales while
clothing in growth
Growth for Kuwait City is set to continue due to massive investment and an undeveloped market. Clothing and
then footwear will mainly benefit from this. Jewelry captures the highest share of sales but growth is diminishing.
Sales matrix Kuwait City
Growth matrix Kuwait City
1,800
12%
1,600
10% 1,400
1,200
8%
USD mn
1,000
% growth
6%
800
600
4%
400
2%
200
0% 0
Year
• Growth expected to continue despite the cooling of the economy, due to massive investment in retail infrastructure, and the
relatively low level of development in modern shopping to date
•Jewelry is the largest sector here, but it is clothing and then footwear that leads growth
• In the clothing sector, the shift from low cost unbranded to branded fashion clothing is driving sales, as well as the emergence of
new consumers, notably young men
• Footwear is benefiting from retail investment in clothing
• Cosmetics is minor and growth is not significant. However, the sector is leaning towards luxury end products, which makes this an
area with good profit potential
Doha: fast growth led by infrastructure investment
Doha: wealthy city, positioned towards high end, strong retail development underway. Definitely a target city.
• Doha is Qatar’s centre of commercial activity and

accounts for 84% of the country’s fashion sales.
• Doha is a wealthy city with a fairly well developed retail
infrastructure and preference for high end brands.
• There is strong development underway in shopping malls
and tourist infrastructure that will drive growth over the
forecast period, especially given that the economic crisis
will not affect Qatar to any significant extent.
• However there is already evidence of discounting and
pricing adaptations to suit the weakened climate and keep
volume sales buoyant.
Doha: Strong growth for clothing set to continue
The financial crisis had a minor effect in Doha while investment activity continues. Clothing captures the highest
value share and will see dynamic growth benefiting from retail development. Footwear growth also of note.
Growth matrix Doha Sales matrix Doha
12% 1,400
10% 1,200
1,000
8%
% growth
800
USD mn
6%
600
4%
400
2%
200
0%
0
2007 2008 2009
Clothing Footwear Jewelry Cosmetics Year
• Fortunately, the financial crisis had a minor effect on Qatar’s economy, even though down trading in retail was apparent
• Clothing is the largest sector, and also drives growth, due to strong investment in retail infrastructure. Footwear is also a strong
growth area.
• Jewelry ranks second in terms of value sales following clothing as Qatari people spend heavily on high priced gold jewelry as well
as international branded clothing
• Footwear and cosmetics account for a much smaller share as investment activity is mainly centered in clothing - although footwear
will benefit from this
Muscat: a low level of development in a male-centric market
Muscat: Less developed city in GCC with minimal retail development. High percentage of male – working in the oil
industry – and youth population. Consumers quite traditional in their tastes.
• Muscat is among the less developed cities, with low GDP

and little retail development. It also has, due to the oil
industry located here, a large male population, and men are
not leading consumers of fashion.
• However its population is also young and growth in retail
infrastructure is swift, albeit from a small base.
• Growth in Oman was strong in 2008 but has fallen back in
line with the economic crisis. While not very exposed to
world markets, Oman is however very oil dependent.
• Following Riyadh, Omani consumers are quite conservative
in their tastes while the % of people wearing the traditional
abaya is quite high.
• Menswear is more important here than in other Gulf
markets due to the large male population.
Muscat: dynamic growth for clothing while
jewelry falls behind
Negative effect on Muscat’s economy due to oil dependency. Clothing ranks second in value sales and will see
highest growth. Jewelry leads the market but growth will fall behind in line with economic slowdown
Sales matrix Muscat
Growth matrix Muscat
12% 1,600
1,400
10%
1,200
8%
1,000
% growth
USD mn
6% 800
600
4%
400
2%
200
0% 0
• Less exposed to world markets than neighbouring Dubai, Oman is highly dependent on oil revenue which has a negative effect on
Muscat’s economy
• Jewelry ranks first in terms of value sales while clothing follows closely
• Jewelry is an important market for Muscat - the majority of jewelry is sold by the weight
• Clothing will monitor the most dynamic growth while jewelry falls back in line with the economic slowdown
• Historic growth for cosmetics of note, however, future growth is expected to be much lower
• Footwear is a relatively undeveloped sector with a high share of unbranded and this is the main reason why future growth is picking
up as the sector is still immature
Dubai: the shopping centre of the Gulf is hit hard by the crisis
Dubai: centre of shopping activity in the ME. Financial crisis has hit hard the city, however recovery is expected to
be swift thanks to an established infrastructure
• Dubai is by far the centre for fashion sales: it has

immense levels of shopping mall development and
acts as a centre for shopping and tourism in the
region.
• Growth has been dynamic, but the economic crisis
has hit Dubai hard and sales growth have fallen
sharply in 2009. Redundancies, reduced credit and
stalled construction developments have all hit hard.
• This is expected to be a temporary effect as the
excellent infrastructure which is already in place will
help the recovery to be swift.
• Dubai is a global centre for jewelry (gold) and also
has excellent development in clothing retailing.
• Strong presence of retailing groups and international
players together with local smaller players.
Dubai: footwear and clothing to lead market’s
recovery
Market badly hit by the financial crisis. Dynamic growth for footwear and clothing expected to lead recovery.
Jewelry – being an established sector and due to the financial crisis – falls behind on growth
Growth matrix Dubai Sales matrix Dubai
14% 12,000
12%
10,000
10%
8,000
% growth
8%
USD mn
6,000
6%
4,000
4%
2% 2,000
0%
0
2007 2008 2009
• Dubai was badly hit by the financial crisis

• Jewelry accounted for the majority of sales closely followed by clothing
• Dubai has an established jewelry market – mainly gold – dominated by imported Asian jewelry. The city is also considered the retail
Mecca of the Middle East, clearly benefiting clothing sales
• Recovery is expected to be led by clothing and the slightly less developed footwear sector
• Even though clothing and footwear are more developed compared to other markets, continuous retail infrastructure and increase in
retail space is expected to bring further growth
• Jewelry - being a mature market and due to the economic crisis - is not expected to report strong growth
• Cosmetics monitored high historic growth due to increased number of international branded players although future growth is set at
lower rates
Riyadh: the most conservative city is also fashion conscious
Riyadh most conservative city in the ME region. As activities for women are limited, shopping one of the most
popular pastimes. Fashion retail market very developed. Increased presence of international groups.
• While Riyadh is the largest city in the huge KSA market,

the presence of other major shopping areas such as Jeddah
and Ad Damman means it takes only 45% of overall country
value sales.
• Riyadh is an extremely conservative, religious city with
strict rules of conduct and dress, especially for women.
• However, as women have so few leisure options, shopping
takes centre stage as a past time and middle class women
spend very heavily on branded clothing.
• Riyadh is dominated by retailing groups especially in
clothing
• % Value share of unbranded is quite high – mainly in
clothing and footwear
Riyadh: jewelry ranks first - growth to come from
clothing and footwear
The fashion market is quite mature and competitive. Jewelry is an important sector but growth will slow down
while footwear and clothing will take over.
Growth matrix Riyadh Sales matrix Riyadh
14% 8,000
12% 7,000
10% 6,000
5,000
% growth
8%
USD mn
4,000
6%
3,000
4%
2,000
2%
1,000
0%
0
2007 2008 2009
• The market for fashion items in Riyadh is quite mature, and very competitive. Most of the major international brands are present in
the market, and spending levels are already high
• Jewelry is the most developed sector, followed by clothing mainly womenswear. While KSA is a very important centre for gold
jewelry, it is Jeddah rather than Riyadh which is the centre for this
• Clothing ranks second in value sales. Saudi has immense mall space, and the full range of international brands from designer to
lower mass are available, as well as local unbranded items
• Footwear is the key growth area here as it is relatively underdeveloped compared to clothing, but clothing will continue to grow fast
• Cosmetics is also a huge market, due partly to the traditional role of fragrances, which, like gold, attract tourists as well as regular
local shoppers. In addition, all the major multinational brands are here from mass market players like Unilever to luxury brands such
as Chanel
Dubai & Doha key target cities
Dubai and Doha should be considered as key target cities. Other interesting cities include Riyadh in terms of
scale, Bahrain and Lebanon in terms of openness and Bahrain in terms of economic growth leading to investment
in retail infrastructure. Amman, on the other hand, is a no opportunity in terms of investment.
S cale L evel of E comonic growth F as hion O pennes s

development growth
D ubai High High Medium High High
R iyadh High L ow - Medium Medium Medium L ow
Mus cat Medium Medium High Medium L ow
D oha Medium High V ery High High High
K uwait C ity Medium Medium Medium Medium Medium
Manama L ow Medium High Medium High
B eirut Medium L ow Medium L ow High
Amman L ow V ery L ow Medium L ow L ow

Strategic sectors - Jewelry
Dubai’s gold souk takes centre stage
Dubai and Riyadh are the largest markets for jewelry – especially gold. Dubai’s gold souk is an international
destination for the Muslim world. Although Riyadh is important in terms of jewelry, Jeddah is the centre of gold
jewelry
• The largest markets for jewelry are Dubai and Riyadh. The
largest gold souk is located in Dubai: this is an extremely
important market for traditional gold jewelry and attracts
customers across the Muslim world and beyond.
• While Riyadh is also a large market, it should be noted that
it is Jeddah that is Saudi’s centre for gold jewelry.
•Kuwait is also an important jewelry centre, although much
smaller than Dubai due to its smaller population.
• Amman is the smallest market for jewelry.
Jewelry: value sales 2008 (USD mn)

Doha shows dynamism
Doha is one of the few markets to monitor dynamic growth for the future. In most other markets, jewelry
represents a mature market and has been badly hit by the economic crisis.
• Broadly, jewelry is a fairly weak sector due to its maturity and

vulnerability to economic downturn.
• However, it remains a bright spot in Doha, where fast growth is
expected as the economy stays relatively strong.
• Surprisingly enough and despite the economic crisis, Dubai
occupies the second position in terms of growth together with
Kuwait
• The weakest markets for jewelry growth will be Beirut and
Riyadh.
Jewelry: CAGR growth 08 – 12 (%)

Market dominated by gold
Gold jewelry dominates the market. Jewelry is judged by its weight and design is less significant. Gold jewelry
badly hit by high gold prices and economic crisis. Growth for fashion jewelry will be dynamic in the future
2008 value sales
4,000
• In all Gulf markets, jewelry is strongly dominated by
gold, which is traditional and used in bridal attire: it is
3,000 also widely used as an investment. Gold jewelry is
extremely important in this region and other types of
USD mn
2,000 jewelry are relatively minor. Most of this is imported

from India and is judged more by its weight (value of
1,000 gold) than design.
• Beirut is unusual in this respect in that design is
0
more important here than weight.
Beirut Amman Dubai Riyadh Kuwait Muscat Manama Doha
• Prices of gold rose strongly over the past year and
City this has had a negative impact on sales, with
Gold jewelry (total) Silver jewelry (total) Gold plated Fashion jewelry consumers postponing purchase, or, when gold
jewelry is needed (as for a wedding) renting or even
CAGR 08 - 12 growth purchasing fake jewelry instead.
10.0%
• The dominant gold jewelry category is mature and
8.0% offers few opportunities for growth, but niche areas
such as fashion jewelry have potential if managed
6.0% effectively.
%
• Fashion jewelry is a minor area due to the

4.0%
importance of gold, but is growing. This is led
2.0% (temporarily) by the high gold prices and (longer term)
by the entrance of fashion jewelry franchises offering
0.0% alternatives, Western style “disposable” jewelry.
Franchises such as Accessorize, Claire’s and Aldo
a
ai
a
h
an
it y
t
t
ru
ca
am
oh
ad
ub
tC
m
Accessories are popularising the concept of non-

ei
us
D
iy
D
an
m
B
ai
R
M
A
M
uw
precious jewelry worn as a short term fashion trend

K
Gold jewelry (total) Silver jewelry (total) Gold plated Fashion jewelry rather than an investment.
Jewelry: fashion jewelry in pole position
CAGR 08 – 12 growth: Growth for jewelry is clearly lower compared to footwear and clothing. Fashion jewelry -
benefiting from the increased presence of international players in the GCC and the economic crisis - will monitor
dynamic growth. Gold jewelry with gemstones & with diamonds also of note
2008 value sales (box size): The market in

the GCC countries is dominated by gold
jewelry and especially plain gold and gold
with diamonds. The Levant region and
especially Amman, however, monitor a
higher share of silver and gold plated
jewelry
*Box size:
value sales
2008
Gold jewelry steps down, fashion jewelry to
follow lead
Fast growth
Fashion
jewelry • Fashion jewelry has the strongest growth
potential and is set to be the most dynamic
category in all markets
• Gold jewelry will face a short term decline
• Traditional jewelry will also continue to perform
well
Gold &
• There is little long – term potential for silver or
gems
gold plated
Gold &
Gold diamonds
jewelry
Niche
High sales Silver Silver

& gems jewelry
Gold
Fashion plated
Gold
Silver
Gold plated
Slow growth
Definitely gold & gemstones while worth
considering fashion jewelry
The jewelry sector has much lower potential compared to the clothing and footwear sectors
Sectors: Gold jewelry with gemstones is a definite opportunity followed by fashion jewelry
S ector S ales 2008 C AG R growth B razilian match

08 -12
F as hion jewelry
X √ √
Key cities:
G old jewelry
√ X X Doha – strong growth
G old & diamonds
√ √ X Dubai & Riyadh– strong sales
G old & gems tones

√ √ √
G old plated
X X X
S ilver jewelry
X X X
S ilver &
gems tones
X X √
Definitely invest Worth considering Why not?

Competitors by city
Competitive structure
Key competitors’ profiles

Competitors by city
Damas in pole position
While jewelry is fragmented, design-led jewelry is a niche and as such has clear leaders, such as Damas.
City Top competitors Reason
Dubai Joy Alukkas Leading jeweler with own range and branded range. High end
Lazurde Strong brand, high price point
Pure Gold Leading jeweler with own range and branded range. High end
Riyadh Accessorize Affordable, wide distribution, quick turnover

Al Zain Strong design, good quality, limited distribution
Van Laack High quality, good distribution (through Rubaiyat)
Manama Al Zain High quality, strong in design

Damiani High quality, high price
Cartier Strong brand, high quality, but generic in design
Doha Faberge High quality, strong brands, unusual design

Nina Ricci High quality, strong brand – specialise in silver
Muscat Damas Very large player with strong distribution

Joy Alukkas High end – sells third party brands as well as own
Lulu Fashion jewelry, broad network, affordable
Kuwait City Al Sayegh High quality, design focus, high price

Sonali Low price, not well known
New Fashion Low price, not well known
Beirut Nsouli Well known, high quality, offers bridal jewelry

Tufenkjian High price, high quality – no international brands, more wholesale
Zoughaib Expensive and branded
Amman Farfasha Damas brand, high quality

Fairouze Damas brand, high quality
Kayali High quality, simple designs
Competitive structure
Highly fragmented
Jewelry is mainly sold through

directly owned stores which sell a
combination of its own products,
and third party brands. Franchise
Manufacturing mono brands
Manufacturer arm of retail group Distributed via Accessorize, Claire’s
logistics centres
and local Franchise
franchise
operators to retail multi brands
outlets BHS, Harvey Nichols, Debenhams
Contract
manufacturer Directly owned
Manufacturer producing retail Sell direct to third
brands party retailers multi brands
Damas, Joyalukkas, Al Zain
Sell via distributor

Brand to third party
Manufacturer manufacturer retailers
producing jewelry Directly owned
under own brands
Supply own
network of retail mono brands
stores
Informal sector, led by small players
Jewelry, despite being premium positioned, is not developed and mainly sold through markets and independents.
City Positioning Source Concentration Comment

High/low Local/international High/low
Dubai High International Low Large gold souk dominates,

with traditional jewelry
imported from India
Riyadh High International Low Traditional gold; some growth

in international franchising
Kuwait City High International Low Traditional gold.
Manama High International Low Traditional gold
Muscat High International Low Traditional gold.
Doha High International Low Traditional gold
Beirut High International-local Low Notable presence of local

designers.
Amman High International Low Traditional gold

Key competitors’ profiles
Leading players: polarised between fashion and high end
There is a clear split between the high value jewellers, led by Damas and Joy Alukkas, and fashion jewelry, which
is led by the master franchisers with international brands.
The majority of gold jewelry is sold

through souks and through small
• Damas independent outlets: this is not a
Gold/Silver concentrated market and it is not
• Al Zain
strongly branded. However, there are
• Mouawad some players which have a design
focus and branding, and these
• Joy Alukkas
include Damas (large scale) and Al
• Lazurde Zain (a much smaller player).
• Tiffany
Fashion/gold • Accessorize
Fashion jewelry is not well developed,
plated • Aldo Accessories but there is good penetration of low
• Claire's priced international franchise brands,
such as Accessorize (mid-low
• Moa market) and Claire’s (low, focused on
children and teens). Smaller brands
such as Moa are also emerging.
Focus on mass fashion jewelry
Fashion jewelry is small but dynamic, led by international franchise brands
International franchise brands Accessorize Mass market fashion jewelry (mainly targeted at teens and
Moa young adults) is sold in part through international retail
franchises, such as Accessorize and Claire’s, which have a
Claire’s very broad presence across the Gulf
Aldo Accessories
Brands sold through multibrand Kimberly
stores New Fashion
Other mass fashion jewelry is typically sold through less
Sonali prestigious department stores such as Lulu. Brands sold
through multi-brand stores at the mass fashion end of the
market tend not to be very well known – branding is not
strong in this area
Fashion jewelry : Accessorize
Accessorize is a mass market retail brand positioned firmly in the fashion jewelry sector, with affordable jewelry
and a quick turnover of design. It is positioned with sister store Monsoon, and typically has a higher turnover than
its sister clothing store
Geographic spread Bahrain, Jordan, Kuwait, Lebanon, Oman,

Qatar, Saudi Arabia, UAE
Sector presence Fashion jewelry only
Product Affordable jewelry in a range of colours and

characteristics/USP designs to fit with seasonal trends in fashion
Branded/private label All products are sold under the Accessorize

brand
International/local Accessorize is a UK brand, which is present

globally
Fashion jewelry : Moa
Moa is the fashion jewelry retail brand of Azadea, which acts as the master franchiser across the Middle East
Geographic spread Jordan, Kuwait, Qatar, Saudi Arabia, Bahrain and UAE
Sector presence Fashion jewelry only, youth-focused. It also sells some

footwear and other accessories, such as scarves,
sunglasses and bags
Product characteristics/USP This is fashion-led, “disposable” jewelry, that fits with
current fashion trends. In line with this, stock is changed
about every 2 weeks, giving Moa a USP of constantly
updated designs at affordable prices. Moa is aimed at
women between 15 and 25
Branded/private label Products are sold under the Moa label
International/local Moa is a French company that has outlets internationally

Focus on design led jewelry
Design-led jewelry is still a niche in most of the Middle East, with jewelry essentially seen as an investment and its
value judged on the weight of the gold, rather than the skill or creativity of the design. However, there are a few
jewellers that are interested in jewelry design
Large scale Damas Damas is the largest jewelry retailer/manufacturer in the

Mouawad region, and focuses more on design than most of its
competitors through its many different retail concepts and
brands. Mouawad, also large, is a very upmarket jeweler
Smaller players Al Sayegh with a focus on interesting design and non-traditional jewelry
Fiorella
Faberge
Effingo There are also several much smaller players with a design
Juicy Couture focus. Al Sayegh is a small jeweler in Kuwait City which
carries pieces with high design value, many from Asia (low
Van Laack cost) but by Italian designers
Fiorella is an international brand sold by Lebanese jeweler
Dikran, focused on gold with coloured gemstones
Effingo is an Italian jewelry range sold through Kuwait’s
Mercato8, which operates through an online store (which
only sells to Kuwait). Mercato8 also has other design-led
jewelry brands, including Juicy Couture and Accessories &
Beyond
Van Laack is a German brand sold through upmarket Saudi
department store Rubaiyat
Design led jewelry : Damas
Damas is the largest jewelry chain in the Middle East in a market which is very fragmented and informal (souk-
based). It has a diversified product portfolio that takes in different styles and price positions, and sells both its own
products and those of third party brands.
Geographic spread Present across the region in UAE, Oman, Bahrain, Jordan, Lebanon,
Egypt, Kuwait, Qatar and Saudi Arabia. 438 stores in total in 18 countries.
Damas Jewelry Group has three main distinctive store formats across 18
countries
Les Exclusives – 54 stores operating in 7 countries (high end)
Semi-Exclusives -199 stores in 10 countries (middle to high)
Damas 22K – 97 stores in 6 countries (middle to low)
The group also operates watch stores, mono brand stores, children’s
stores, sales points in Saks Fifth Avenue duty-free shops and stores of
other regional jewelers
The company is expanding quite rapidly, organically and through
acquisition
Sector presence Core focus is on gold jewelry, with and without gemstones. Les Exclusives
sell 5% gold, 70% diamonds, and 25% watches; Semi-Exclusives sell 50%
gold, 44% diamonds and 6% watches; and Damas 22K sells 60% gold,
40% diamond
Product characteristics/USP Stronger focus than most on design; Damas jewelry is a sign of taste and
class rather than purchased as an investment and is popular among
wealthy local women and Western expats
Branded/private label Damas sells its own manufactured jewelry and also those of third party
brands. It also operates some mono brand stores at the luxury end such
as Tiffany. Own brands include Graff, Ananya, Farasha and Farfasha.
Third party brands include Love Diamonds, Gemtique and Marco Bicego
International/local Jewelry is purchased from multiple countries, including Italy, India,

Singapore, Saudi Arabia and Bahrain
Design led jewelry : Joy Alukkas
Joy Alukkas is a jeweler with a presence across the Middle East (especially UAE) and has aggressive expansion
plans for the short term
Geographic spread UAE, Oman, Bahrain, Kuwait, Qatar and Saudi Arabia.
Also present in the UK and India
Sector presence Strong focus on gold jewelry with diamonds and other
gemstones. Diamonds is increasingly an area of focus for
the company
Product characteristics/USP Innovative designs and strong quality. The company also
prides itself on a good shopping ambience and service
Branded/private label Most of the jewelry is sold under private label but the
company also offers third party brands, with a notable
addition being Italian brand Miluna under an exclusive
agreement. This brand is heavily focused on diamond
jewelry
International/local Joy Alukkas is a UAE-based company with a presence in
the Middle East, UK and India. It sources raw materials
from multiple markets but mainly from India. It sources
ready made jewelry from multiple suppliers in Bahrain,
India, Turkey and Italy
Design led jewelry : Mouawad
Mouawad is a global jewelry company with its roots in Lebanon and a strong presence across the Middle East,
especially Jordan and Saudi Arabia. It is also very well known in the US. It is a very prestigious brand, and is
strong in design
Geographic spread Focus on Jordan and Saudi Arabia
Sector presence Mainly focused on gold jewelry with diamonds,

and gold jewelry with other gemstones
Diamonds, and blue, red, and yellow stones are
the most popular. Bracelets, pendants and
earrings are the top sellers
Product characteristics/USP Very high quality and strong international image
Branded/private label Jewelry is sold under the Mouawad brand, while

the company also sells watches under the
brands Trebore and Roberge. The Mouwad
umbrella brand has numerous sub-brands
International/local Headquartered in Saudi Arabia (although rooted
in Lebanon) with a global presence and
particular focus on the US. Mouwad has
factories in 8 locations, including Bangkok,
Switzerland and the Middle East, and an art and
design centre in Paris
Zoughaib
Fact File
Method of market entry
What did Zoughaib do well during market entry?
What could Zoughaib do better?
Recommendations
Zoughaib
Fact File
What is Zoughaib is a Lebanese jewelry manufacturer. It is very well known in Beirut,

and well advertised – to the point where there are numerous imitation products
Zoughaib? on the market. Its strength in Lebanon has leant the brand familiarity across
the Middle East, and Beirut attracts a large number of tourists from the region.
Positioning Exclusivity is a core USP for Zoughaib, which only sells through its own stores
and keeps tight control over its brand. It bases its image on its unique designs
and ranks its priorities as design, novelty, variety and the regular launch of
new collections.
The company also prides itself on strong customer service
Product Mid – high end jewelry with a strong focus on design. There is a range of
collections at varied price points within this bracket. The core new collections
range are focused on yellow gold and gems, but the company also has classic
diamond collections, especially for bridal sets.
Overseas The company is based in Lebanon and expanded initially into Kuwait, and
plans to expand additionally into Saudi Arabia and UAE.
expansion
Expansion into Kuwait was through partnership with a local player.
Zoughaib seeks exclusivity, so was not willing to expand into new markets
through a third party retailer, only through opening stores under its own name.
Middle East Lebanon – 11 stores

presence Kuwait – 1 store
Method of market entry
Zoughaib entered the Kuwait market with a local partner and plans to use the same method to enter
Saudi and UAE, when a suitable partner is found
Why a partner? Zoughaib believes that it needs a local partner to complete registration, and
facilitate entry papers, export procedures and investment
What are the key criteria in a 1. Partner relationship – trust and co-operation
partner? 2. Level of investment and facilities the partner can offer
Role of Zoughaib/role of partner Zoughaib manages every detail of the store (which are directly owned) and its
operation. The role of the partner is to act as a legal/convenient means of entering
another country and managing registration and shipping procedures
Distribution to Kuwait Zoughaib exports directly to Kuwait from its factory in Beirut. The local partner
assists in dealing with legal paperwork, and the company uses a shipping agent to
clear customs and deliver goods from point of entry to store
Marketing and promotions Zoughaib’s promotional work centres on a policy of 2 new collections per year.
This is supported by an annual advertising plan of outdoor campaigns (billboards
in prime locations), magazines, the sponsorship of television programmes (key to
this is Miss Lebanon Beauty Pageant in Lebanon) and exhibitions.
The advertising and promotional budget is around 10% of total costs
Low risk, simplified approach
Promotion:
middling Zoughaib’s expansion process has
been very safe and very slow
Choice of
Concept: The brand is already well known in
Market:
Strong
Safe Kuwait and thus incurs little risk
and does not require much extra
promotional activity
Market entry
The use of a local partner has
been purely for bureaucratic
Entry method: Brand: reasons and has not significantly
Local partner Highly familiar aided expansion; it has simply
facilitated the process
Location:
Priority
What did Zoughaib do well during market entry?
Existing reputation Zoughaib was already a well known brand when it entered Kuwait due to its
prominence in Lebanon, and has a strong understanding of local jewelry design
preferences. Beirut attracts tourists from all over the region and because of this,
its brand was already familiar to consumers in other Middle Eastern markets
Location The choice of location for the store was a strong one and has helped the Kuwait
store perform well
Distribution strategy The proximity of Beirut to Kuwait and other Middle Eastern markets means that
export costs have been relatively low
Partnership Zoughaib chose a local partner in Kuwait to facilitate the export process and
bureaucracy involved in overseas expansion
Good match with local market Customers in this region seek out exclusive designs and prestigious brands at
value prices, a quick turnover of new pieces, and good customer service, so
Zoughaib was very well positioned to tap into this
What could Zoughaib do better?
Geographic reach Zoughaib’s expansion into the Middle East has been very cautious and slow, and
to date, the company only has one store outside its home market
High risk strategy While the partnership option has many advantages, it also requires a high level of
investment and thus a relatively high level of risk
Design The company’s designs are generally very strong, but there is some resistance to
its policy of imprinting its brand name on the gold
The Kuwait store incurs higher costs in terms of both operations and distribution,
Profit margins but retail price is the same in all countries. The company considers it unethical to
charge different prices in different markets
Recommendations
• PRIORITISE CREATING THE BRAND

The company recommends new entrants to focus on building brand image and
positioning with advertising and PR during the first few years. This must be
supported by good practices which will gain the respect of the consumer – good
customer service and a fixed pricing strategy to retain trust in the brand.
• WORK WITH A PARTNER

Zoughaib strongly recommends using a local partner, if only to ease the weight of
bureaucracy involved in setting up an international business and exporting goods
• MAINTAIN CONTROL OVER YOUR BRAND

The company also recommends keeping tight control and ownership of overseas
activities, and primarily entrusting the partner with basic legal tasks and paperwork.
Controlling overseas stores keeps the brand tight across markets and keeps costs
under control
Intermediaries vs. retailers
Segmentation of key partners
Key partners’ profiles

Intermediaries vs. retailers
Intermediates or retailers – informal dominates
Most jewelry in the ME is sold through souks and informal retail
The majority of jewelry sales go through souks, with

products either directly purchased or sold through
wholesalers/distributors
Informal retail/souks
The remainder of the market is distributed through retail

outlets, most of which operate on a small scale. Rather
than working with distributors as might be expected in
such a fragmented market, most sell only their own
brands (usually made through contract manufacturing or
owned manufacturing).
Multi-brand stores are less common, and even here
Retail outlets many sell primarily own brand/unbranded, with a small
fraction of stock being 3rd party brands
Types of partnership – multibrand is core option
Specialist jewellers selling third party brands are the primary option here, alongside department stores
Type of partner Examples Advantages Disadvantages
Large scale master Al Hokair One partner across many Usually require established
franchisers Al Shaya markets international retail brand
Azadea Access to prime locations Not a strong format for jewelry,
Strong promotional support except at low end
Al Sawani
Chalhoub Good local knowledge, facilitate
bureaucracy
Jewelry specialists Damas Specialist Often have only small amount of
Dikran Established clientele/brand room for 3rd party brands
Mouawad
Variety stores 51 East Do not need to have retail brand Most are geographically limited
Blue Salon Access to established retail Department stores are a shrinking
Emke outlet format
ABC Typically mid-up market Distribution tends to be limited
positioning (Landmark is an exception)
Distributors No significant
distributors
Major franchise groups – limited potential
Franchise is not a strong option for jewelry, but there is some interest from Chalhoub
Partner Positioning International? Experience Interest in Brazil?

with Brazil?
Al Hokair Leading franchiser in Riyadh with some Yes, but mainly No Open to possibility, but
fashion jewelry (Accessorize, Aldo focused on Riyadh prefers established
Accessories). Also owns malls. brands
Al Shaya Leading regional franchiser. Interest in Yes, good cross- Use a Positive view: willing to
low end fashion jewelry with Claire's. region coverage manufacturer partner with Brazilian
in footwear company
Azadea Strong regional franchiser with Moa Yes, but Moa absent No Open to possibility
fashion jewelry brand. Mass branded from Beirut and
market. Muscat
Al Sawani Focus on upper mass international Yes, but focus on Some Open to new brands
brands (such as Fossil, Iceberg), also Riyadh generally
has dept stores (a little downmarket)
Chalhoub Luxury-end focus (Swarvoski, Fred, Yes, but absent from No Yes, if it is high end and
Chaumet, S.T. Dupont and Mikimoto ) Manama, Muscat and has international
Levant exposure
Al Tayer Luxury-end focus (Bulgari, Boucheron, Strong focus on In jewelry (for Yes, but not as
Asprey) Dubai Azal) franchise, as product in
multi-brand store
Variety stores: viable option
Al Tayer has an interest in expanding its range at Azal, while Salam and 51 East are generally looking at new
partner options across all product categories
Partner (outlet) Positioning International? Experience with Interest in Brazil?

Brazil?
Al Tayer (Harvey Upmarket/luxury, strong Yes Sells H Stern at Yes, as product in
Nichols) brands, but limited distribution Azal Dubai multi-brand store.
Positive experience
to date
Emke (Lulu) Mid-lower end, through dept Yes Yes, in footwear Possibly
stores and hypermarkets.
Wide range of brands.
Salam (Salam) Upmarket, international Dubai, Muscat, Doha No Currently looking at
brands options
ABC Mid-upper, international Levant only No Yes, but not until
brands 2010
Blue Salon (Highland Prestigious, luxury-end. Buys Doha only, but Yes, footwear Yes, for fashionable
Dept Store) brands from Europe. expanding to Kuwait products
City and possibly
further
51 East Luxury-end – fashionable, Doha only Some minor Yes, in talks, for full
wide range of styles experience range of products
Jewelry specialists – high end option
Damas is a strong option, due to its pan-regional presence, design focus and experience with Brazil
Partner Positioning International? Experience with Interest in Brazil?

Brazil?
Damas High-end, wide range, Yes Yes, Vancox Yes, willing to
design focus investigate further
Asia Jewelers High-end, international Manama only Yes, Brumani Yes, but not until
brands recession is over
Dikran High-end. Imports Beirut only No Open to learn more,
some jewelry from Italy if they can produce
unique designs that
cannot be made
locally
Jahel Joaillier High-end. Used to Beirut only No Interested in H Stern
import international or similar quality
brands and planning brands
on starting this again
Mouawad High-end, strong on Amman and Riyadh No Neutral
design only
Al Tayer (Azal) High quality Only Dubai and Sells H Stern at Azal Yes, as product in
international brands Manama Dubai multi-brand store
Chalhoub (Tanagra) High quality Yes, but weak in No Yes, if it is high end
international brands Muscat and Levant and has international
exposure
Key partners’ profiles
Identifying potential partners – multi brands lead
High end players with multi-country presence offer the best opportunities as partners
Distribution High/low Interest in Distribution High/low Interest in

reach end Brazil reach end Brazil
Al Hokair HIGH MID-LOW MID Emke HIGH MID-LOW MID
Al Shaya HIGH MID-LOW MID Salam MID HIGH HIGH
Azadea HIGH MID-LOW MID ABC LOW MID-HIGH MID-LOW
Al Sawani HIGH MID-HIGH MID Blue Salon MID HIGH MID-HIGH
Chaloub HIGH HIGH MID-HIGH 51 East LOW HIGH HIGH

Al Tayer HIGH HIGH MID-HIGH Damas HIGH HIGH HIGH
Anwal LOW MID MID-HIGH Asia Jewellers LOW HIGH MID
Dikran LOW HIGH MID-HIGH
Jahel Joaillier LOW HIGH HIGH

Mouawad LOW HIGH MID-LOW
Damas
Damas is the largest jeweler in the ME, with a broad presence across the region and a strong brand. It also has a relatively broad
range of products. However, Damas has had a negative experience dealing with Brazilian jewellers which may prove problematic
Geographic spread Broad presence across the Middle East; operates in all eight markets.
Focus is on Dubai. Strong expansion plans. • Leading regional
jewelry specialist with
Company type Leading jewelry and watch maker in the Middle East. Also manufacturing,
high end, design focus
purchasing and wholesale. products
Three main store formats, plus some mono brand stores and concessions.
Middle range stores, Semi Exclusive and Damas 22K might be a good • Present across ME
match for Brazilian manufacturers. • Already sells one
Supply chain Operates at all points of supply chain from manufacture to retail. Brazilian brand, but
Purchases both raw materials and finished jewelry. Sells to its own stores has had problems with
but also to third parties, typically for sale to souks and small jewellers. this
Product portfolio Stocks global and regional brands, and also private labels. Over 100
brands altogether, spanning a range of price points and target customers.
While the portfolio focuses on gold, it is much more design focused than
traditional gold jewelry.
Purchasing 1. Quality
decision criteria 2. Design
3. Brand
4. Price
5. Origin
Company Damas often require franchise or exclusive distribution agreements, which
requirements may include packaging/marketing materials. Deliveries should be within
21-40 days.
Salam
Salam is a broad-based group with department stores selling a wide range of products centred on clothing, but
also includes footwear and cosmetics. The company has extensive expansion plans, both geographically
(especially Saudi) and in terms of product range, with a foray into jewelry expected. This will give excellent scale
opportunities. Salam is looking for new (lower cost) suppliers and is interested in dealing with Brazil
Geographic spread Dubai, Muscat, Doha
• In expansion phase
Company type Salam owns stores and operates as a retailer in Doha, Muscat and
Dubai; and also operates wide distribution and wholesale networks in • High-end dept stores
Muscat, Doha, Dubai, Amman and Kuwait City. It plans to open further • Good fit with Brazil
stores in Riyadh, Kuwait City, Syria, Beirut, Egypt and Iraq, and to
expand further in the UAE. • Interested in all sectors
Supply chain Each country operation has a logistics office which deals with import and • Actively looking for new
distribution, and a buying team is attached to each logistics operation partners outside Europe
Product portfolio Salam is just starting to move into jewelry • On hold temporarily due to
financial crisis
Purchasing 1. Quality
decision criteria 2. Price
3. Brand
4. Origin
Interest in Brazil Has been looking for new partners in Brazil (and other non European
markets), but this is on hold due to the financial crisis
Company Quality must be high and delivery should take 7-10 days, though longer
requirements terms will be considered for Brazil. Payment is usually by open account
and paid 120 or 90 days after receipt
51 East
51 East is a very important upscale department store in Qatar which is strong in clothing, footwear, jewelry and cosmetics and is
looking to buy Brazilian products across all four sectors
Geographic spread Qatar only. Two stores with a third opening in 2010. • Leading upscale department
store – important player in Qatar
Company type Upmarket department store that plays a leading role in • Geographically limited, but broad
the Qatari retail sector sector presence
• Possibly in process of closing
Supply chain Buys either direct from the manufacturer, or through its deals with Brazilian manufacturers
buying office, usually with an exclusive agreement
Product portfolio Luxury international brands, including clothing, footwear,

jewelry and cosmetics. Most brands are exclusive to the
store in Qatar. The best selling jewelry product is Rolex
watches. Nina Ricci jewelry is also very popular.
Purchasing decision criteria 1. Brand
2. Price
3. Quality
4. Origin
Interest in Brazil 51 East claims to be close to closing a deal with Apex
which will cover all sectors of the market
Company requirements Requires branded product. Payment and packaging are

negotiable
Blue Salon
Blue Salon is a Qatari company that runs the chain of Highland luxury end department stores in Doha as well as
some specialist stores. It has expansion plans for Kuwait and possibly other GCC markets
Geographic spread Qatar only – 3 department stores, and a small number of • Major upmarket retailer in Qatar,
specialist and monobrand franchise stores. Expanding into looking at expansion
Kuwait and possibly further.
• Stocks Brazilian shoes, keen to
Company type Retailer, with department stores (luxury), cosmetics extend into other products
specialist (mass market) called Karisma, Momento designer
• Luxury end player
watch specialist and Al Shayaa (jv with Al Shaya)
perfumery. It also has the franchise for brands such as
Guess and Morgan.
Supply chain Sourced direct from (French and Italian) manufacturers
Product portfolio The Italian brands Damiani and Cerruti are represented in
rings, necklaces, bracelets and other gold jewelry pieces
with diamonds, stones or gemstones.
Purchasing decision criteria 1. Quality
2. Brand
3. Price
Interest in Brazil Already buying footwear and interested in learning about
clothing, cosmetics and jewelry.
Company requirements Require fashionable, stylish products of high quality. Need

to know if exclusive. Pays by LC 60-90 days after delivery.
Al Tayer
Al Tayer is a major player in all four sectors through franchise, own multibrand stores, and distribution companies. It also operates
across multiple markets
Geographic spread UAE and Bahrain are core markets, followed by Oman,
Kuwait, Qatar. Also has one Bulgari outlet in Lebanon. Azal
in UAE and Bahrain only. • Luxury end retail group involved
in all sectors
Company type Franchises luxury clothing and shoes. Has own multi-brand
store concept in jewelry - Azal; and also sells jewelry in • Already buying from Brazil: will
franchise Harvey Nichols. consider more, especially for
Harvey Nichols and Azal
Supply chain As a retailer, Al Tayer buys directly from the manufacturer
and sells through its retail outlets. As a distributor, it buys • Not looking at franchise with
via subsidiaries and sells to its own stores and 3rd party Brazilian company
stores.
Product portfolio Main products in jewelry are gold necklaces with
gemstones, and gold rings and bracelets with gemstones.
Top brand is Theo Fennel.
Purchasing decision criteria 1. Brand
2. Design
3. Quality
4. Origin
5. Price
Interest in Brazil Buys swimwear and lingerie which is sells in Harvey
Nichols, and jewelry sold in Azal. Will look at products for
multibrand stores but not franchise.
Company requirements Emerging luxury brands. Payment terms are 60-90 days
after delivery.
Chalhoub
Chalhoub is a multi-market, multi-store, multi-sector, multi-format retailer with both franchise stores and owned
multibrand stores, positioned at the luxury end of the market. It also acts as distributor for clothing, footwear and
cosmetics
Geographic spread Operates in all eight countries. • Major multi-market retailer with
luxury end positioning
Company type Master franchiser in luxury end clothing, footwear,
• Presence in all 4 sectors, as
cosmetics and jewelry. Also has own multibrand stores in
retailer, distributor and master
jewelry (Tanagra), cosmetics (Faces) and Tagz (bags) and
franchiser
The Visitor (jewelry and gifts). Also is a distributor in
clothing, footwear and cosmetics. • No experience of working with
Brazil
Supply chain As jewelry retailer, Chalhoub buys direct from
manufacturers (such as Swarovski and sells direct to own
outlets Tanagra and The Visitor.
Product portfolio Key brands include Swarovski from Austria, Chaumet, S.T.
Dupont and Fred from France and Mikimoto from Japan .
Purchasing decision criteria 1. Design

2. Brand
3. Quality
4. Price
Interest in Brazil No experience but open to working with new partners.
Would require a sample, and 3-6 months to study potential.
Company requirements Chalhoub would work as an agent, not purchasing product

but taking orders and earning commission on them.
Import / export sales
Trade with Brazil & relative costs
Distribution structure & special economic zones
Geographic scope & way forward
Recommended market entry

Import / export sales
Import/export sales
The UAE is the primary importer of jewelry. It is also the main exporter
Jewelry: Imports by sector and by country (latest year)

4000
3500 • UAE is the central hub for imports of all categories,
and especially for jewelry. This is partly due to the
3000
high level of consumption of end products in this
US$ million
2500
market, but also due to the country’s role as a trade
2000 hub for the region. Re-exports are very high in this
1500 market, and account for around 90% of all exports.
1000
• However they account for a tiny proportion of the
500 total imports: UAE boosts one of the largest gold
0 markets in the world, and most jewelry imported to
UAE Saudi Qatar Bahrain Oman Kuwait Jordan Lebanon UAE does stay here.
Arabia
• All other markets are very small in comparison.
Jewelry: Exports by country (latest year) Riyadh is number 2, followed by Kuwait at number
3, but these are much less significant than UAE.
4000
Exports • The only markets with any significant level of
3500
Re-exports exports are UAE, where this is mostly re-exports to
3000
US$ million
2500
the rest of the region, Saudi Arabia, which also has
2000
quite a high level of re-exports, and the Levant
1500 markets which are important centres for jewelry
1000 production in their own right.
500
0
UAE Saudi Qatar Bahrain Oman Kuwait Jordan Lebanon
Arabia
Sources of supply
Import markets
1 2 3
UAE India Singapore Hong Kong • India is a key source for traditional gold jewelry
Saudi Arabia Italy Lebanon China but this is primarily destined for UAE, where it
Qatar Italy Switzerland Lebanon is sold at the gold souk or re-exported to the
Bahrain UAE Italy Thailand rest of the region.
Oman UAE India Saudi Arabia • Note that UAE is the prime source of jewelry
Kuwait Italy India UAE for both Manama and Muscat (and ranks third
Jordan Italy Saudi Arabia Israel for Kuwait) – much of this is re-exported
Lebanon Italy Thailand China product from India.
• For jewelry with more of a design focus, Italy is
Export markets key, with Switzerland also of note.
1 2 3
UAE Kuwait Saudi Arabia Bahrain • Beirut, which is a strong producer of jewelry,
also ranks as an important source of supply for
Saudi Arabia and Oman.
Saudi Arabia Switzerland UAE Bahrain
Qatar Kuwait Switzerland Hong Kong
Bahrain Oman UAE Kuwait
Oman UAE Bahrain China
Kuwait UAE India Hong Kong
Jordan US UAE Israel
Lebanon UAE Saudi Arabia Bahrain
Trade with Brazil & relative costs
Trade with Brazil
Brazil’s primary trade partners for jewelry are Bahrain and Qatar, which import by far the highest values.
Exports from Brazil Imports to Brazil

1 Bahrain UAE
2 Qatar Jordan
3 KSA
• Jewelry exports from Brazil are largely
4 UAE destined for Bahrain and Qatar, despite
5 Lebanon these being much smaller markets overall
6 Jordan than 3rd and 4th ranking Saudi Arabia and
7 Kuwait the UAE.
8 • Latest year data showed no exports from
Trade flows with Brazil (latest year) Brazil to Oman at all.
• Exports of jewelry to Brazil are moderate,
Qatar
with UAE the only market of any
Oman significance. Jordan also exports a very
Bahrain small amount of jewelry to Brazil.
Kuwait
Jordan
UAE
Saudi Exports
Lebanon Imports
0 200 400 600 800 1000

US$ '000
Customs costs and barriers
In terms of customs procedures, the UAE is the easiest and lowest cost market to access. Saudi Arabia, Oman
and the Levant are among the more difficult and/or costly
Customs clearance Port & terminal handling

Cost Cost
Duties (US$ per Duration (US$ per
levied (% 20ft ship (no of 20ft ship Duration
CIF) container) days) container) (no of days) Certification needed Standards Ease of access
Few barriers: relatively
UAE 5 100 1 137 1 Kimberley Process Certificate GCC simple market to access.
Difficult market: bribery
Registration of Branding Stamps for Precious frequent, problematic to
Saudi Arabia 5 195 7 149 4 Metals and Stones SASO visit
Qatar 5 55 3 185 4 None GCC Average
Bahrain 5 115 4 235 3 None GCC Average
Certificate of Conformity for Precious Metals, Heavy bureaucracy, lack of
Permit to Import Ozone Depleting Substances transparency, delays to be
Oman 5 200 5 240 2 and Products Containing Them GCC expected
Intensive paperwork.
Considered prone to error
Kuwait 5 160 5 200 4 Special certification: Precious Metals and Stones GCC and fraud.
Jordan 30 60 4 110 2 None JISM Heavy bureaucracy
EU norms
Lebanon 5 155 11 122 6 None accepted Very slow
Logistics costs
Dubai, Doha, Manama, Beirut and Kuwait City are very easily accessible as major local ports. For Riyadh, Muscat
and Amman access is a little more complex due to the distance from port to city
Domestic logistics Logistics to UAE

Distance Cost (US$ per Duration
from port- 20 ft Duration Distance port Cost (US$ (days by
city (km) container) (days) - Dubai per FTL) road) INCOterms
UAE 30 175 1 na na na CIF, FOB
Saudi Arabia 1,061 250 2 866 1300 2-3 CIF
Qatar 7 137 2 374 640 1-2 CIF, CFR
Bahrain 4 100 1 482 1050 2-3 CIF, C&F
Oman 1050 240 2 383 1225 1-2 CIF
Kuwait 16 200 1 853 1275 3-4 CIF
CIF, SOP, X-
Jordan 365 450 2 2031 2041 4-5 Work
Lebanon 5 263 2 2139 2300 7 CIF, C&F
Domestic logistics are at their most simple

in small markets such as Kuwait City and It should be noted that Dubai is actually
Manama, and Dubai where Jebel Ali FZ is closer to Riyadh than the key port of
located very close to the city. Jeddah.
For Riyadh and Muscat, there is Dubai is also closer to Muscat than the key
considerable distance between the (main) Oman port of Salalah.
port and the city under review.
Distribution structure & special economic zones
Distribution structure
Dubai’s location and efficient customs process means that it is well placed as a hub for much of the region. Most
cities are also easily served by a local port. The exceptions are Amman, Riyadh and Muscat
• Most imports to the GCC

are via ship to the port
Key port: Dubai is well positioned to
Beirut serve all the main GCC cities. areas noted.
Manama is also beginning to
• Transport from hubs (mainly
position itself as a hub for the
Northern Gulf. Dubai) to other cities is
Key port: typically by land.
Kuwait
City • Several markets have a
Key port: legal requirement that an
Key port: Manama
Key port: importer must work with a
Aqaba local agent. Even where this
Dubai
is not legally required, it is
strongly recommended.
Key port: • Bureaucracy and
Key port:
Doha
Jeddah certification is greatly
facilitated by a local partner.
Jeddah’s location is not the

most convenient for any of the
key cities, but it is a growing Key port:
hub due to the development Salalah
of King Abdullah City which
has customs free re-exports
within the GCC.
Special Economic Zones
Free Zones are located across the region and offer duty-free trade, foreign ownership, capital repatriation and tax
free capital income. They generally also offer support services that ease logistics and bureaucracy
Key Free Zones Location

Jebel Ali is the largest
Jebel Ali is close to The proximity of port and airport will be a key selling point for free zone with excellent
Jebel Ali, Dubai Airport, Jebel Ali port, the Jebel Ali, which promises 20 minutes from sea to air. Dubai support services, but is
Dubai Textiles City Free planned new airport, Logisitics City currently being developed within Jebel Ali. Jebel overcrowded
UAE Zone and the city of Dubai Ali under fire for overcrowding leading to delays.
King Abdullah Economic City is under development and is a duty-
Saudi Arabia KAEC Jeddah free zone.
Qatar Science and
Technology Park Free
Zone Doha Airport Free Qatar is lacking in strong free zones. There is a third planned for
Qatar Zone Doha manufacturing industries. Heavy investment in
In final stages of construction. Designed to boost Bahrain’s role
Manama’s new free
as a hub for trade in the Northern Gulf, particularly Saudi Arabia,
zone
By (new) KBS port, NE Bahrain, Qatar, Kuwait, Iran and eventually Iraq, and the Indian
Bahrain Bahrain Logistics Zone Bahrain, by airport subcontinent.
There is also a free zone being set up by Sohar Port. The
Oman Salalah Free Port Salalah government is keen to invest in free zones.
Developed in 1999, this is the only free zone in Kuwait at
Kuwait Kuwait Free Trade Zone Al Shuwaikh Port present.
Enormous expansion plans are underway for Aqaba, plus Massive expansion at
additional plans to turn the whole region into a free zone. There Aqaba, and further
Jordan Aqaba and Zarqa Aqaba and Zarqa is also a new, smaller free zone at Sahab, development in Beirut
Two new free zones are planned for North Lebanon: Selaata Free
Zone and Qlaiaat Free Zone. The reconstruction of a 120,000
square meter free zone at the port of Beirut is complete and a
Lebanon Ports of Beirut and Tripoli Beirut and Tripoli 6,000-square meter bonded warehouse facility is now available
Import process through Dubai
Riyadh
Closer to Dubai than Jeddah
BUT different standards/
certifications
Muscat Manama
Closer to Dubai than Salalah Close to Dubai
Very common route BUT has own strong
to Muscat free zone
Dubai
Excellent services
Lower costs
Doha Quicker processing
Central location Beirut
Close, and Doha lacks
Good transport links
strong free trade zones Long distance, high costs
BUT has low customs Good local free zones
costs
Kuwait City Amman

Close to Dubai
Long distance, high costs
BUT transport costs
BUT own port also distant
quite high
Geographic scope & way forward
Geographic scope
While the majority of entrants go for a selected presence in pilot markets before expanding across the region,
case studies show that decisions on geographical strategy are primarily linked to choice of partner and opportunity
Advantages Disadvantages
• Test markets at low risk • Fail to gain scale economies
Selected presence • Wait for best (retail) locations • Unknown brands need strong
support, which may be better
• Build brand gradually with less
served with aggressive approach
marketing outlay (more word of
mouth/below the line promotion) • Fast moving markets: may miss
opportunities
• Gain familiarity with culture by
tackling “easiest” markets first
Advantages Disadvantages
• Gain scale economies • High risk strategy
Aggressive entry • Build brand strongly in brand • May not play to strengths of
conscious market partner
• Take advantage of quick moving • Good retail opportunities are few
fashion trends by tapping into – may necessitate choosing sub-
Brazil trend at first wave prime locations
Forms of partnership
The most suitable form of partnership depends upon the scale/capabilities of the brand owner, and also the
structure of the sector in which they operate. Jewelry is best sold direct to a large retailer
• Gives access to broadest range of outlets, including small

stores
Wholesaler/
• Rarely used in design-end, high quality jewelry
distributor
• Good for jewelry, where sales are mainly through multi

branded outlets such as department stores and large scale
specialists
Direct to a retailer • Good for smaller company which cannot create a retail
concept for franchising
• Usually upper-mid positioning
• Less obvious option for jewelry, but there is growth in

franchising for fashion jewelry
Franchise
agreement • Master franchisers are typically present across the region and
have access to prime retail space. Can negotiate strongly,
have good contacts and strong promotions
Franchising: a strong option for the Middle East
Due to restrictions on foreign ownership, the international retail brand market acts on a franchise basis, with local
companies acquiring the right to operate a brand either in a specific territory or across a prescribed set of markets.
In some cases, global brand owners will preclude a franchisee from acquiring certain other brands that are
considered competitive. The market is therefore dominated by a small group of master franchisers that operate a
full raft of international brands, and in some cases, also operate the malls in which the brands are located.
Franchise agreements typically work on a push or pull system.
Pull system Push system
• This is the less common system • Here, inventory is held by the

franchisee on a consignment basis
• Here, the global brand owner sells a
volume of stock to the local franchisee • The franchisor retains all the risks,
on a wholesale basis including inventory risk, and payment
occurs after the actual sale of the
• The brand owner does not share products to the end customer
directly in the profits and has minimal
involvement in the ME business, other • The brand owner participates more
than to ensure that the stores adhere to directly in the ME operation and takes a
the global brand image share of the profits
• This is a less risky proposition for the • The franchisee just performs the
global brand owner logistical work, obtaining the right store
locations and marketing/merchandising
the product
For all manufacturers, the multi-brand store is recommended as a partner, with key targets being Dubai and Doha.
Manufacturers focused on the lower end of fashion jewelry may be able to partner with a master franchiser.
Recommended
entry Cities Why
Multi-brand
stores
Fast growth cities. Although Dubai has hit short term slow down,
it is key to the region. Doha has great potential and local dept
Primary markets Dubai, Doha stores still have power.
Seconday Manama, Mid-range growth. Riyadh huge sales but essentially a franchise
markets Riyadh, Kuwait market. Manama and Kuwait still have strong local dept stores.
Slower growth potential, Muscat heavily underdeveloped and

Muscat, Beirut, conservative - best entered under a master franchiser. Levant
Tertiary markets Amman has strong dept stores but weak growth potential.
Franchise route Recommended

entry Cities Why
While Riyadh is difficult to enter without franchise, with

Dubai, Doha, franchise it becomes a primary market due to the dominance
Primary markets Riyadh (and strong potential) of this system here.
While local dept stores are strong, these cities continue to see
Seconday Manama, Kuwait extensive development of prime mall space which is critical for
markets City, Muscat the development of franchise retailing.
Neither city has much development yet in shopping malls and
Tertiary markets Beirut, Amman lacks prime retail space for franchising. Slow growth.
What about price and positioning?
What about price and positioning?
SWOT analysis
Customers – addressable market
Competition matrix
Partners’ matrix
Market structure
Branding & price strategy

SWOT analysis
SWOT Analysis
Jewelry is a major market in the Middle East and consumer spend large sums of money on it. However design is
not well understood, and additionally the current economic climate is slowing the market down.
Strengths Weaknesses
Innovative design Small scale production
Unique gemstones Selling gemstones to China, eroding USP
Strong Brazilian identity Lack of flexibility with design
High quality, hand made Unknown brands/reputation
Flexibility in logistics Gemstones/design not well understood
Strong in fashion jewelry
Strong in jewelry with gemstones
Contemporary design
Opportunities Threats
Good growth especially in Dubai and Doha Economic downturn
High spending markets Traditional jewelry very dominant
Fashion jewelery growing well Strong competition from European brands at top end
Jewelry with gemstones growing well Strong competition from Chinese product at bottom end
Heavy bureaucracy/paperwork
View of jewelry as simple investment, especially by men
Customers – addressable market
Total addressable market
The addressable market is defined as women, aged 18-64, on a mid-high income.
Women are the primary consumers 65 years

of jewelry, while men are not well old
developed as a consumer group. female
While pieces are chosen for and by

the woman, they are typically
funded by the man and may have Addressable
to meet his approval. market
high low
income income
Children are a minor demographic Wealth is a key factor. Lower

in most markets with the key income consumers (mainly ex-pats)
exception of Saudi Arabia, where do not consume high quality jewelry
the child population is very high. other than traditional pieces: this is
the preserve of the middle classes.
Even here, children are not an
important demographic for jewelry.
0 years male
old
The city with the largest addressable market overall is Riyadh, followed by Muscat. The female population has its
highest penetration in Beirut, followed by Amman, while the best age match is found in Dubai and Kuwait City
The addressable market by city
100
Right age, Right age, right
wrong gender gender
99
80
66
% population age 18-64
439 Beirut
37 23
60 Riyadh
88 302 Kuwait City
Doha
1,107
Amman
Muscat
40 Manama
Dubai
Bubble size
20
illustrates size
Wrong age, of total
Wrong age, right gender addressable
wrong gender market (‘000)
0
0 10 20 30 40 50 60 70 80 90 100
% female population
Competition matrix
Competition
Jewelry is generally a fragmented market, with a lot of small players. Dubai and Manama are the most
concentrated, especially at the design end, while Doha and Kuwait remain very open.
City Concentration Leading players Characteristics
Large gold souk means market is led by traditional jewelry but also
Dubai Low Joy Alukkas, Damas, Lazorde, Pure Gold good presence of design led players. Large scale jewellers quite strong.
Very fragmented market with no large scale players. Design-led
Doha Low Faberge, Nina Ricci jewelry mainly sold through department stores.
Design-led end relatively concentrated with jewellers Al Zain and Devji
Manama Low Al Zain, Cartier, Damiani, Al Devji, Damas selling a range of international brands
Riyadh has a number of strong local players such as Al-Romayzan and
Riyadh Low Accessorise, Al Zain, Van Laack quick growth in fashion jewelry franchise brands
Kuwait is quite fragmented at the design end with a large number of
Kuwait City Low Al Sayegh, Sonali, New Fashion smaller players like Al Sayegh
Muscat is underdeveloped and fragmented, with even leader Damas
Muscat Low Damas, Joy Alukkas, Lulu taking only 5% of the market
Beirut Low Nsouli, Tufenkjian, Zoughaib Led by very strong local players with good design focus
Amman Low Damas, Kayali Less design focused than Beirut, led by large players like Damas.
Competition
The major player in jewelry is Damas with region wide presence and also aggressive growth. Joyalukkas is also
expanding rapidly, but is less design-focused than Damas.
High regional
At the fashion jewelry end of the presence
market, Accessorize and Moa are
both growing fast through
franchise. Both focus on low end,
disposable jewelry.
slow dynamic
Damas and Joyalukkas are both

present regionally and have
aggressive expansion plans.
Damas has a fairly strong design
focus while Joyalukkas is more
Mouawad is very high end with
conservative
strong design capabilities, but is
primarily focused on Jordan (and
niche
the US). • Blue: Precious jewelry
• Green: Fashion jewelry
Partners’ matrix
Partners – retail structure
Retail distribution of jewelry is very fragmented. A large proportion is sold through small players and souqs, with
big groups generally not strong, with the exception of regional specialists, such as Damas.
Market structure 2008
100%
• Jewelry is a relatively
fragmented category and is
80%
led by small scale players,
such as independent
jewellers.
60% • Unbranded jewelry is also

very important – this is
traditional gold sold through
souqs and small jewellers.
40% • Big retail groups have their
strongest presence in Dubai
and Manama where Damas
takes a high share.
20% • The most fragmented
(highest opportunity) markets
are Doha and Kuwait City,
although all cities have room
0% for new players.
Amman Beirut Doha Dubai Kuwait City Manama Muscat Riyadh
% value
Unbranded/traditional BRG Smaller players

Partners
Access to jewelry is primarily via jewelry specialist and department stores. Doha is the most accessible of the
target markets, while Riyadh has few potential partners.
Partners Brand Positioning

Al Tayer Azal, Harvey Nichols Upmarket, experience with Brazil
Emke Lulu Midmarket/downmarket
Al Salam Salam Upmarket dept stores
GCC 51 East 51 East Upmarket dept stores, interested in Brazilian product
Blue Salon Highland Dept stores Upmarket dept stores, interested in Brazilian product
Damas Damas Large jeweller, willing to look at more Brazilian brands
Chaloub Tanagra Upscale jeweller, willing to look at Brazilian brands
Dubai Doha Riyadh

• Al Tayer • 51 East • Chalhoub
• Damas • Blue Salon • Damas
• Salam • Salam
• Emke
Partners Brand Positioning

ABC ABC Upmarket dept store
Levant Dikrain Dikrain High end jeweller
Jahel Joaillier Jahel Joaillier High end jeweller, interested in Brazilian product
Mouawad Mouawad High end jeweller, open to ideas
Market structure
Market structure
The jewelry market is tough to enter as it is fragmented and saturated: however Brazilian design has a strong USP
and can create its own niche bypassing the sluggishness that characterises traditional jewelry.
Comment ME Levant Dubai Doha Riyadh

Brazilian design is quite distinctive and
the ME has limited supply of design-
led jewelry, with the exception of
Substitutabilty Lebanon. ?
Very fragmented market. Room for
new players, especially in branded
Concentration design-led jewelry.
Overall market is saturated and
struggling due to recession and gold
prices. Design-led jewelry and fashion
jewelry is relatively immature and also
Market growth relatively robust. ? X ? x
Most jewelers only sell their own
brands (and unbranded).
Opportunities for 3rd party branded
jewelry is limited but available,
especially in markets with upmarket
Partner potential dept stores and large scale jewellers. x
Brazilian product targets a niche of a
mature market and as such has
Opportunity to growth potential but also lacks clear
Barriersenter
to entry and well-trodden paths to market. ? ?
Branding & price strategy
Competitive advantage
Brazilian fashion focuses on specific products – jeans, shoes, evening dresses, natural cosmetics, indigenous
gems – and creates a USP through innovative style and a very distinctive Brazilian identity of fun, sensuality and
fashionable innovation.
Cost leadership Differentiation

low cost & pricing become product’s main competitive differentiation based on the product itself, the delivery
advantage for the whole market systems, the marketing approach etc become product’s main
competitive advantage for the whole market
• Brazilian product priced slightly lower than European
product, but higher than Asian: not positioned as cost leader • Brazilian product distinctive and clearly positioned on a
platform of differentiation
• Brazilian product focused on niche categories, not market
saturation. • Brazilian product focused on niche categories, not market
saturation.
Cost focus Differentiation focus

low cost & pricing become product’s main competitive differentiation based on the product itself, the delivery
advantage for a specific product segment systems, the marketing approach etc become product’s main
competitive advantage for a specific product segment
• Brazilian product priced slightly lower than European
product, but higher than Asian: not positioned as cost leader. • Brazilian product distinctive and clearly positioned on a
platform of differentiation
• Brazilian product focused on niche categories, clearly
targeting specific product segment • Brazilian product focused on niche categories, clearly
targeting specific product segment
Value proposition
Brazilian jewelry is innovative and strong in design, while the Middle East has yet to see jewelry as art rather than
as simply the value of its gold and gemstones. There is niche growth in design-led jewelry, but this will require a
strong (trusted) partner and good marketing support.
Attributes Competitors Consumers Opportunity

Consumers are generally used to paying high
amounts for jewelry, which is seen as an investment.
Damas Semi-Exclusives and Damas 22K They pay for the weight of the gold rather than the
are high quality jewelry at a relatively design. There is some shift in attitide but generally
affordable price. Most quality jewelry is jewelry is considered to be worth the value of the
Strong price/quality balance very high priced, however. raw materials rather than assessed on artistic merit. ?
Mouawad has a strong focus on coloured
gemstones,as does Joy Alukkas. Brazilian
gemstones such as paraiba are little, if at Coloured gemstones are very popular and
Distinctive gemstones all, known in the ME. fashionable at the moment, especially in Bahrain.
Mouawad is strong in contemporary Contemporary design is a niche area of the jewelry
design but is only really focused on market in this region but does have potential, with
Jordan. Damas is also quite design- sufficient marketing support to convince consumers
Contemporary design focused of the worth of creativity. ?
Branding and price strategy
There is some difficulty in the Middle East in pricing jewelry based on design and artistry; this will require the right
partner and careful marketing to overcome this prevalent attitude.
Attributes How to market this? How to price this?
It is essential that the consumer (and, where applicable,
the supplier of the money for the purchase) understand
that the piece has a strong quality/value ratio given that
consumers tend to value jewelry by the value of the gold
and do not pay much heed to artistic merit. It is essential
that products are sold through partners who already Mid-upper pricing. It may be difficult to price a
target a more forward minded customer and whose piece high if the raw materials are not in
Strong price/quality balance positioning and brand support the design-centric ethos. themselves highly valuable.
Gemstones are relatively easy to market, due to existing

fashion trends. Marketing should focus on the uniqueness Upper pricing. The unusual quality of gems should
Distinctive gemstones of the gem. support a high price as the differentiation is clear.
As above, design is tough to market in the Middle East,

except to a niche group. The easiest way is to partner
with a jeweller which already carries a repuation for
design and a customer base which appreciates this, such Mid -upper. Design is difficult to put a high ticket
Contemporary design as Damas or Mouawad. on unless made from valuable raw materials.
Fashion industry related marketing
Importance of word of mouth
Following the norm
Low/ mid/ high budget promotion & media plan
Recommended promotion & media plan

Fashion industry related marketing
Fashion industry related marketing: press
Choice of magazine needs to carefully match the target demographic
Country Name of publication Country Name of publication

Bahrain Woman This Month Saudi Arabia Sayidati
Bahrain Ohlala! Saudi Arabia Kul Al Usrah
Jordan Skin Magazine Saudi Arabia Al Jamila Magazine
Jordan Nox Magazine Saudi Arabia Rjeem Magazine
Kuwait Thouq UAE Aquarius
Kuwait Lana UAE OK! Middle East
Kuwait Jawharat Al Khaleej UAE Ahlan!
Kuwait Osrati UAE Emirates Woman
Lebanon Mondanite UAE Emirates Bride
Lebanon Style UAE Harpers Bazaar Middle East
Lebanon Achabaka UAE Viva
Lebanon Al Oum UAE TimeOut Dubai “In Beirut, to reach the high class women
Lebanon Snob UAE Grazia
L'Officiel Homme Middle
aged 20-60 years old you should
Lebanon Al Hasnaa UAE East advertise in Mondanite and Femme
Lebanon Noun UAE L'Officiel Middle East magazines. To reach more mass market
Lebanon Femme Magazine UAE Time Out Abu Dhabi and middle class women you should
Lebanon Al Mara'a UAE Viva Girl choose Arabic magazines such as Snob
Lebanon Laha Magazine UAE Wedding and Al Hasnaa in Beirut, Zahrat Al Khaleej
Lebanon Prestige UAE Al Sada in Dubai and Kul Al Usra in Riyadh.
Lebanon The Guide UAE Al Maraa Al Youm
Lebanon Fashion Magazine UAE Shahrazad To reach a younger generation, the best
option is Time Out.”
Lebanon Zeina Magazine UAE Zahrat Al Khaleej
Lebanon Rania Magazine UAE Arabian Women
Lebanon Kamar Magazine
Oman Al Mara'a
Oman Usrat Al Youm
Qatar Jamila Magazine
Fashion industry related marketing: trade shows
Key trade events held in the Middle East are listed below.
Country Name of event Country Name of event
Bahrain Autumn Fair Bahrain UAE The Bride Show-Abu Dhabi

Bahrain Jewellery Arabia UAE The Bride Show- Dubai
Jordan The Wedding Show UAE The Perfect Wedding
Kuwait Only You Women Expo UAE Dubai American Fashion Week
Kuwait Gold & Jewellery Exhibition UAE Weddex - Al Ain Weddex Fashion Show
Lebanon Joaillerie Liban Winter 2008 UAE China Sourcing Fair: Fashion Accessories - Dubai
Lebanon Joaillerie Liban 2009 UAE Dubai American Fashion Week
Lebanon Christmas Exhibition UAE PRESTIGE Fashion Trade Fair
Lebanon The New Arab Women Forum UAE Abu Dhabi International Jewellery & Watch Show (ADIJEX)
Oman ATF - Autumn Trade Fair UAE Dubai International Autumn Fair
Oman International Jewellery Exhibition Muscat - 2009 UAE Dubai Inernational Jewellery Week
Qatar International Wedding Exhibition-Doha (IWED) UAE Fashion Jewellery & Accessories & Watch & Clock Fair (IFJA & IWCF)
Saudi Arabia Contemporary Woman Exhibition UAE International Spring Trade Festival
Saudi Arabia JE-WATCH- Saudi Int'l Jewellery & Watches Expo
Saudi Arabia The Eastern Women Show
Saudi Arabia Women Mega Expo - WOOMEX
Saudi Arabia Saudi Womens World
Saudi Arabia Saudi Arabia Joaillerie
In addition to the events held in the region, there is Baselworld outside the Middle East
showcasing jewelry.
Fashion industry related marketing: TV spots
The prime TV slots are those shown on MBC, which target the mass female market.
Target young
Star Academy people
US dramas
Talk shows (Desperate Target
Turkish shows Housewives, female mass
(Oprah)
Ugly Betty) market
Ugly Betty is sponsored by

German brand Bebe
(franchised by KOJ)
Word of mouth is at its most important in closed communities, which applies to most Middle East cities except the
more cosmopolitan Dubai.
Trigger Directs word of mouth by creating buzz about brand

via a trusted source
(Celebrity figure, event, PR)
Villa Moda Sfera Damas

In Bahrain, which has a closed community, Sfera also uses word of mouth in Damas used a celebrity figure to trigger
Villa Moda triggers word of mouth with Riyadh and considers it one of the word of mouth for their Farfasha brand. The
events such as pre-order fashion shows, most efficient methods of promotion use of popular Lebanese singer Nancy
with invitations sent to key figures in the for them. They focus on customer Ajram triggered people to talk about
community. They invest in their staff and service, promotions and loyalty Farfasha, to recognise the name and
position them as styling consultants as well programmes as well as media eventually to buy it.
as displaying products. Only 30% of the coverage.
Farfasha is now one of their most
space is used for product display, the rest is
recognised brands.
for socialising and trying products. This is
intended to make the experience special so
the guests talk about it and spread the news.
Following the norm
Marketing and promotional mix
Most campaigns are split between above the line and below the line promotions, with a slight bias towards above
the line due to the higher cost of these activities. A full range of below the line activities is the norm, with loyalty
programmes particularly popular in the Arab world.
Above the line

Very flexible, can be dictated by budget. Based on cost per click or per impression
Digital communication: Facebook Young people at minimum of US$1 per day
Developing a simple website in the ME may cost US$5,000-US$20,000,
Digital communication: Website Young people depending on complexity and design
Varied: ranges of selective
Magazines magazines US$3,000-US$8,000 for a full page advert, depending on circulation.
Depends on city and location of billboard. In Beirut, a campaign of 100 billboards
Outdoor campaigns All demographics - broad reach would cost US$7,000 - US$10,000.
TV ads Closely definable demographics Expensive: to get a 30 second slot on prime TV may cost US$4,000 - 10,000
Radio ads Closely definable demographics Not available
Below the line
US$900 for a one on one interview. PR companies usually take a fixed cost
PR Closely definable demographics annually or on a project basis.
Very variable, as ranges from discounts to free gifts to loyalty cards to
Promotions Broad based/variable competitions
Sponsorship Directed by event Very variable
Exhibitions/trade fairs Very variable
Very broad, specified by product category
Direct mail, email, SMS Mainly young people Very variable
Objective, advantage, disadvantage
There is no single best method of promotion: it entirely depends on objective, audience and budget.
Media Objective Advantage Disadvantage
Above the line
May miss older consumers. Email advertising can be
Cheap, efficient, interactive: targets Targets younger generation, promotes website, considered spam. Ad banners usually have to be
Digital communication audience directly raises brand awareness clicked to give even basic information.
Very selective target audience, can give Good for reminding selective audience of a Not as effective as outdoor: should use more than 1
Magazines out detailed information product or brand magazine.
Effective: diversified audience defined by Good for informing city about new brand, new Expensive. Seen for only a few seconds so suited to
location, can target this mass in 3 days of sstore, new collective, or an event: direct basic basic message only. First 3 days are most effective,
Outdoor campaigns aggressive campaign message. weakens after this.
Mass audience, especially during top Good to raise awareness of brand, product, Expensive, easily forgotten is not repeated or if
TV ads programmes. event. material is not distinctive.
Highly effective in reaching selected
audience during rush hour, more Good for informing selected target audience Not as effective as tv: should use more than 1 radio
Radio ads affordable than TV about product, brand, event etc programme.
Below the line
Dependent on editors to decide whether to publish.
More effective/trusted than advertising, Requires interest such as an event or launch to be
directs word of mouth and helps build Helps build brand image, increase trust in brand published, and there need to be strong connections
PR brand image and inform people of latest product news with the media to ensure coverage.
Requires advertising to inform people about
promotion. Discounts can damage brand. Short term
Promotions Direct impact on sales for low cost. Can increase sales and/or brand loyalty impact.
Raises brand awareness and links with Expensive, usually short term if sponsorship is not
Sponsorship specific event. Raises awareness recurrent, only promotes general brand image.
Direct reach to target audience. Helps to meet new buyers and keep in touch
Opportunity to test product with real with existing clients, and launch new product Short term: if deal is not sealed at trade fair it is soon
Exhibitions/trade fairs people, and meet real customers. lines. forgotten.
Direct, effective and low cost way to Keep existing clients informed about latest
Direct mail, email, SMS reach existing client database. news. Can be considered spam and an invasion of privacy.
Criteria for evaluating effectiveness
While it is simple to measure number of participants, or PR effectiveness in dollar value, it is difficult to measure
impact when multiple promotions take place together (as is common). In this case surveys can be taken.
Viewership of
TV advert
Brand awareness Magazine circulation
Measuring
effectiveness
Value of ad price vs Number of

news value (PR) clicks
Can only be measured Impact on sales

for direct methods such
as promotions, direct
mail or trade fairs.
Effectiveness – impact on sales
While direct promotions are easily measurable, the impact of other promotions is a little less tangible.
Salsa Jeans:
Indirect impact
Aishiti reports sales
increase of 20% Salsa jeans sponsored Gavin Ford
Direct impact in the Morning on Radio One
following
seasonal discounts Lebanon, including interviews and
giving brand information.
The brand is now familiar with the
young audience who heard it every
day for 2-4 weeks during launch.
Also, they saw outdoor campaigns
Harder to measure: for the brand which linked to the
radio spots.
Raise awareness,
indirect impact brand image, trigger Salsa Jeans did no TV advertising
word of mouth and due to cost, but still optimised
press coverage media coverage during launch to
build awareness and brand image.
Effectiveness – impact on sales
Participation is easier to measure, by circulation, audience numbers or number of clicks
Measured by circulation or
readership: top magazines
are distributed across the
Magazine advertising region and circulation ranges
from 20,000-80,000.
Concerts, events, pageants

or marathons give an
audience of over 5,000 at
Sponsorship the event, plus more during
pre-event advertising and
promotions.
These are measured

according to the expected
TV/radio number of viewers/listeners
within that hour.
Budget expenditure
A typical expenditure on promotions is outlined below.
Budget Expenditure by Above and Below the Line Activities, 2008

Budget Expenditure by Type, 2008
% US$
Above the line 60 30 sec TV spot on top
TV advertising 25 programme,local Beirut
Outdoor campaign 15 TV advertising TV 4,000-10,000
Radio advertising 10 100 billboards across
Magazine advertising 8 Outdoor campaign Beirut 3,000-7,000
Digital communication 2 30 sec radio spot on top
Radio advertising radio programme, Beirut 3,000-5,000
Below the line 40 Full page advert in
Sponsorship of events 15 Magazine advertising women's magazine 3,000-8,000
Public relations 10 PR fees one on one interviews 900
Promotions 8 press coverage - full page
Participation in trade fairs 5 in a magazine = 2.5 the
Direct mail 2 PR fees ad dollar value 7,500-20,000
Advertising agency fees 10% total campaign budget
Total 100
Low/ mid/ high budget promotion & media plan
Low budget promotion and media plan
This very low budget promotion plan relies primarily on triggering word of mouth and is targeted at a young
generation. This is best suited to an edgy, slightly underground youth brand.
Word of mouth
Effectiveness depends on the Costs
triggers interaction between the
In-store events with components of the promotion Word of mouth/in-store events:
product demonstrations plan, which is based around a Minimal, can be varied
and testing. viral impact rather than an according to budget.
above the line promotion,
triggering word of mouth among Digital communications:
Website/digital the trendsetters within the Website from US$5,000
communications relevant community, both
consumers (via in store events) Facebook from US$1 per day
Via Facebook and via and press (via PR).
dedicated website. PR:
Further information is available One on one interviews $900
via website and further targeted
PR promotion is achieved via social Promotions:
One on one interviews networking. Minimal, can be tailored to
Loyalty programmes and other budget.
existing client promotions such
as SMS alerts are a low cost
way to retain customers – target
group
Promotions/
This low cost approach is suited
Loyalty programmes specifically to a youth brand.
Loyalty programmes
important in ME
Mid budget promotion and media plan
This mid low budget promotion plan is based on two mid-rate above the line outlays for strong impact, backed by
lower cost below the line marketing
Magazine
30 sec spot on top This campaign centres on two Costs
programme high profile promotions: one, a
full page advert in a woman’s Full page magazine advert
magazine (or multiple US$3,000-US$8,000
magazines) and two, a pan-city
billboard campaign. These 100 billboards:
Billboard
together will reach a) a targeted US$3,000 – US$7,000
100 billboards in key city demographic and b) a large
number of people, for full Digital communication
impact. Website from US$5,000
These two formats need to carry Facebook from US$1 per day
Digital communication through the same theme and
tagline. PR:
Website and
Facebook/other online These should be supported by One on one interviews US$900
advertising lower cost but effective Promotions
promotional methods including a
PR and word of mouth Minimal, can be tailored to
website and online promotions,
triggers budget.
PR work to trigger word of
One on one interviews, mouth, and basic promotional
plus in store events work such as loyalty
programmes and direct mail
once a client database is built
Promotions
up.
Loyalty programmes
important in ME
High budget promotion and media plan
This high budget promotion plan is focused on broad brush above the line promotions across the region, to hit
hard. Brand loyalty is high in the Middle East, so a strong marketing campaign can be a good way to launch a new
brand into this competitive market.
TV spot This is a powerful promotional Costs

campaign which is both broad
30 sec spot on top TV spot:
and deep, getting a brand into
programme x 8 cities
the mass consciousness while US$4,000 – US$10,000 x8
Billboard also targeting specific
Billboards:
demographics. It is also pan-
100 billboards x 8 cities
regional, across 8 markets. US$3,000 – US$7,000 x8
TV spots on top programmes Full page magazine advert
Magazine are backed up by short-term
US$3,000 – US$8,000 x16
Full page in 2 women’s billboards (in a linked campaign)
magazines x 8 cities and magazine adverts which Digital communications:
capture the full demographic by
PR Fees Website from US$5,000
utilising two titles per city.
One on one interview x 8 Facebook from US$1 per day
Word of mouth is augmented
cities with PR work, plus sponsorship PR:
Sponsorship of a relevant high profile event.
One on one interviews US$900
Sponsor of relevant trade This is backed up by digital
Sponsorship:
fair or event communication and basic
support promotions such as in- Varies, but around US$5,000
Digital communication store events, loyalty
Promotions
Website/other online programmes and direct mailing
advertising campaigns. Minimal, can be tailored to
budget.
Promotions
Recommended promotion & media plan
Recommended promotion and media plan
Given the importance of branding in the market combined with the restricted budget of most Brazilian companies,
a moderate plan is advised, using one or two key high cost promotions supported by a raft of hard hitting but
budget options. Each promotion should tie in and increase the impact of the other promotional activities.
TV spot
The core (high cost) Costs
Full page advert in components of this plan are a tv TV spot:
woman’s magazine spot and a series of billboards. US$4,000 – 10,000
These are powerful and
effective, but not cheap: the tv Billboards:
spot could be swapped for a US$3,000 – 7,000
magazine advert or a radio spot
Billboard for a lower budget. Digital communication
100 billboards in key city These core components will hit Website from US$5,000
a large number of consumers in
the appropriate demographic. Facebook from US$1 per day
These are supported by cost PR:
Digital communication effective activities such as in- One on one interviews $900
Website and store events to trigger word of
Facebook/other online mouth and digital Promotions
advertising communications, especially for Minimal, can be tailored to
PR and word of mouth a youth-targeted brand. budget.
triggers Promotions such as loyalty
One on one interviews, programmes are also essential
plus in store events and are generally expected by
consumers in this region.
Promotions
Loyalty programmes
important in ME
Thank you

Jewelry Business Plan 29.05.09

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Business plan: Understanding Middle Eastern

fashion industry & trends

Who are our target customers?

In which countries & sectors should we invest?

Who are our competitors?

What can be learnt from successful new entrants?

Who are our partners?

What is the best route to market?

What about position and pricing?

What about the promotion and media plan?

Quantifying the addressable market

Branding and fashion

Brazil and consumer perception of fashion

Key Cities % Nationals at city % of nationals included in addressable

Riyadh is the largest, followed by Beirut and Amman

Size of addressable market: % of key city

Beirut and Amman.

Preference for international brands for all four sectors.

Preference for brands...

Riyadh 29% 40% 31%

International National No preference

27% 29% 25%

18% 15% 18% 16% 18%

Quality Brand Design and Environmental Value for Natural Colours

Damas: top brand and retailer for jewelry

Damas was mentioned as the top brand for jewelry

Key questions Findings

Clear preference for international brands across all

National brands offer … Better value for money compared to international

Top brands/ retailer in clothing Zara

Top brands/ retailer in footwear Aldo

Top brands/ retailer in jewelry Damas

Top brands/ retailer in cosmetics Olay

Kuwait City 70%

% - Familiarity with Brazilian fashion - Q28

Not familiar at all Somewhat familiar Very familiar

Cosmetics Clothing Footwear Jewerly

76% of respondents could not name any Brazilian fashion

75% of respondents could not name any Brazilian products

Kuwait City, A mere 7% of consumers stated that they would consider

17% 17% of consumers in Amman mentioned that they

Most willing to buy Brazilian fashion 10%

Key questions Findings

Exposure to Brazil/ Brazilian culture Limited, mainly through sports

Familiarity with Brazilian fashion Very Limited

Awareness of (or experience of purchasing of) any Very limited.

Interest in purchasing any Brazilian fashion items Very low

Gender Travel abroad Number of trips

1. Select a list of variables that “represent” the consumer of Brazilian fashion

Interest in purchasing Brazilian products (Q33) - %

APEX Target Audience Significant at total

3% 4% 10% 17% National National

Riyadh Kuwait Manama Dubai Total Muscat Doha Beirut Amman

Not important - X Important

Other significant variables (all countries)

Neither agree nor APEX Target Audience Significant at total

Not important - X Important

Other significant variables (all countries)

Education University degree

Socialising with North America and Australia

Important: Not important – X

Other variables Clothing Footwear Jewelry Cosmetics