Why Harrods is betting on the Middle East as the next luxury powerhouse

Harrods, one of London's most renowned department stores, offers much more than shopping opportunities. Having opened its doors in Knightsbridge back in 1849, it has established itself as a go-to destination known for providing high-end customers with all their needs, making it an international frontrunner boasting an impressive history and unparalleled expertise. For quite some time now, Harrods has featured prominently on the radar of luxury-seeking buyers from the UAE. most-wanted brands to launch within the nation.

As the globe advances, Harrods also progresses, extending its reach from retail into becoming a center of knowledge and nurturing ground for future leaders within the luxury market. This ambition materializes across the Middle East via Harrods Hive, an ongoing sequence of dialogues and debates held in cities such as Dubai and Riyadh. Positioned as investigations into pivotal aspects of the luxury field, these events seek to foster a network of forward-thinking artists, business minds, and pioneers in the area.

On May 8, Harrods Hive assumes control Al Shindagha Museum The 's visitor center in Dubai is hosting its third edition, strengthening its position as a hub for significant connections and discussions. The event’s theme this year, titled "Value," will prompt panelists to delve into how luxury isn’t solely defined by goods, but also by sustainability and the individuals driving the sector forward.

Onstage will be featured jewellery designer Noora Shawqui; Miral Youssef, who serves as the president for Kering Middle East and Africa; along with Rania Masri, holding the position of Chief Brand and Marketing Officer at The National' The parent firm IMI will be represented along with Pauline Coquet from Bain & Co. Additionally, Catherine Broome, a client partner at Dubai-based Pedersen & Partners, will join the conversation. With over 15 years of expertise in fashion, luxury goods, and consumer products spanning both Europe and the Middle East, she offers valuable insights.

Broome spoke to The National Regarding her perspective on the UAE’s significant position within the international luxury market, she states confidently, "The future of luxury lies in this part of the world, and I stand firmly behind this belief." She elaborates, "Both Dubai and the broader GCC area are defining trends across various facets of modern living. Their influence isn’t rooted heavily in tradition but rather focused on pioneering what comes next."

For Broome, the return of Harrods Hive signals more than just another industry event. “Consistency and ongoing commitment to the region, that’s the real game-changer,” she says. “It's very easy to come and do one event, but to continue to come shows this is not something that's going away. This is not a fluctuation in the market, this is the future of the market,” she says.

Having one of the world’s most notably dominant players in luxury allocating their resources and attention to this region serves as significant endorsement," states Broome regarding Harrods. "I think it also signals to all the brands that take notice.

Echoing this sentiment is Emirati entrepreneur and founder of Okta Beauty, Alia Khafajy, another panellist at the upcoming Hive. “It's very important for brands and institutions to create a presence that resonates with the region here.”

For Khafajy, the resurgence of the Hive signifies a change—a readiness from an esteemed establishment such as Harrods to genuinely connect with the Middle Eastern customer base. "This marks our moment to be truly acknowledged," she elaborates. She points out that frequently, companies perceived the area predominantly based on financial might rather than delving into local customs and principles. In her view, these businesses often treated Gulf consumers akin to budget travelers splurging lavishly.

She thinks events such as the Harrods Hive play a crucial role in transforming this perspective. "The focus should be on engaging with our customer base and grasping how the local mentality functions, which discussions we're engaged in, and what genuinely resonates with us."

Sarah Myler, the international business development and communications director at Harrods, stated, "We are delighted to welcome the Hive back to Dubai for a third time."

Ms Myler states that the UAE's enthusiasm and vigor make it highly significant. She elaborates that Harrods is thrilled to work alongside a city that "fosters innovation, honors craftsmanship, and cultivates a culture aimed at molding the future."

Myler further explains, "Regional brands and content creators are instigating transformation both within their localities and internationally." He continues, "Through highlighting unique perspectives and initiating courageous dialogues, we have the potential to nurture upcoming talents, reinforce community bonds, and contribute towards developing a luxury sector that is pioneering, equitable, eco-friendly, and notably, far more captivating."

Certainly, the main query revolves around when customers might see a Harrods location opening up in the UAE. Unfortunately, it looks like that won’t be happening anytime soon. According to Myler, they presently do not have any plans for an independent store. In the interim, Harrods is exploring alternative strategies.

“The Middle East, and the UAE in particular, is a market of extraordinary appetite for luxury, innovation, and experience," says Myler. "We see strong potential for deepening our presence in the region through meaningful partnerships to deliver experiential luxury in a way that is locally relevant and globally resonant."