Silvia Coleman, Vice President of Thought Leadership at CXGTransitioning from volume to value-centered retail
As Chinese consumers become more wary about their spending due to economic uncertainties and a desire for security, Coleman stresses the necessity for UAE retailers to shift from a volume-centric approach.
“UAE brands should prioritize moving towards value-driven strategies,” she remarks. “This could involve introducing flexible payment schemes, such as layaway options or membership tiers, that cater to consumers’ financial prudence while still maintaining appeal. Additionally, it is essential to convey value through storytelling rather than pushing for frequent purchases.”In China, wellness and lifestyle considerations are becoming increasingly important in purchase decisions. This trend offers the UAE—already emerging as a global hub for wellness tourism—a chance to enhance retail experiences beyond mere transactions.“UAE retailers should aim to create comprehensive lifestyle ecosystems instead of merely adding wellness products,” Coleman advises. Fashion retailers could collaborate with fitness professionals, while beauty brands may offer holistic wellness consultations, integrating wellness seamlessly into the retail environment.Building consumer trust through pricing strategies
With half of Chinese luxury consumers hesitant to make frequent purchases due to rising prices, UAE retailers must reconsider how they communicate value. Coleman recommends developing “sophisticated pricing narratives that emphasize cost-per-use and overall value” while clearly distinguishing product tiers through transparency and storytelling that resonates with cultural context.This approach is particularly relevant in the UAE, where consumers are both price-sensitive and brand-aware, seeking exclusivity while also wanting strong justification for high-priced items.The Chinese market has noted that nearly half of luxury buyers have turned to affordable alternatives. Coleman warns that this trend serves as a signal for UAE brands. “The 48% increase in using alternatives highlights the urgent need for emotional connections with brands that go beyond just product attributes,” she emphasizes.For brands in the UAE, this means strengthening brand authenticity through verification programs, unique experiences, and curated communities that offer values that cannot be imitated.Gen Z and the experience-driven economy
Gen Z in China spends more on experiences than on physical goods, a trend that Coleman indicates is also reflected in the UAE. She argues that given the country’s robust technological infrastructure, retailers should pivot towards immersive experiences.“This could include workshops, masterclasses, or exclusive events,” she notes. “The UAE’s technological capabilities could facilitate augmented and virtual reality experiences and virtual consultations, making each interaction feel exclusive rather than simply transactional.”Luxury travel has surged as one of the fastest-growing consumer segments in China, and Coleman identifies similar opportunities for the UAE. “The position of the UAE as a global transit hub makes luxury travel a prime opportunity,” she states.
Retailers can collaborate with hospitality partners, provide lifestyle products enhancing travel experiences, and even offer “travel concierge” services capitalizing on the UAE’s cultural plurality.In both China and the UAE, watches and jewelry are popular as investment pieces. To address this demand, Coleman advises UAE brands to focus on craftsmanship education, personalization, and advisory services that reinforce the enduring value of these items.
Perhaps the most crucial lesson from the Chinese market is the need for rapid adaptation. Coleman notes that Chinese retailers excel in swiftly evolving, testing concepts through pop-up events and smaller initiatives before scaling. She suggests that UAE brands should embrace a similar approach, opting for shorter feedback loops and more experimentation.
China has demonstrated that different customer segments require tailored strategies, and Coleman believes UAE can benefit from these insights within its diverse landscape. “Brands in the UAE should be attuned to how various communities interact with luxury, developing customized strategies while ensuring brand integrity,” she comments.
The importance of long-term relationships
For Coleman, the central point is that UAE retail leaders should prioritize cultivating relationships over mere transactions. “The key takeaway is that most luxury consumers are likely planning to resume purchasing luxury items when market conditions improve, but in a selective manner,” she emphasizes.
By strengthening customer relationships during tough times, UAE retailers will be in a prime position to capitalize on significant growth opportunities during periods of economic recovery.
“The overarching narrative from China’s market is leaning towards strategically focused, relationship-based luxury consumption,” she concludes. “UAE brands need to recognize that consumers increasingly perceive luxury acquisitions as investments in their future… Success hinges on evolving beyond traditional retail models to becoming trusted allies in customers’ lifestyle and personal developmental journeys.