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Newsletter: February 2007
Saudis Today Buy More Branded Apparels The market value of
apparel sales in Saudi Arabia was estimated at SR8.55 billion (US$2.28
billion) in 2005. Almost 27% or SR2.29 billion (US$ 0.61 billion) of these
sales were contributed by branded apparels.
As the Saudi people enjoy higher disposable
incomes and become more fashion-conscious there is a shift towards buying
more branded apparels. The trend is further boosted by the expansion of the
number of shopping outlets and international retail chains. Malaysian
companies producing ready-made garments and apparels should explore further
the potentials in the Saudi apparel market. Malaysian companies can
penetrate the market through establishing their own retail outlets, selling
branded garments or franchising the retail concept to locals.
One potential segment in Saudi Arabia is in
women and children’s clothing. Women’s clothing is the largest retail
sector, accounting for 54% of the apparel sales and is considered the most
mature segment of fashion retail in Saudi Arabia. Children’s clothing is the
third largest segment after footwear. There is also an emerging opportunity
in menswear, especially in young men’s clothing and accessories, including
sportswear and eyewear.
In order to succeed in the market, Malaysian
companies should be able to produce apparels, which are fashionable,
competitively priced and carry authentic brands. Branding the apparel
effectively is important, to prevent it being perceived as a low-end product
or just copies of other international brands. For more information on this
market, contact MATRADE’s office in Jeddah. |