How the best dress for less

Middle East visitors to Europe have long-been known for their lavish adventures through department stores such as Harrods in the heart of central London. But away from the traditional fashion hubs of the British capital, or Paris or Milan, a new trend is emerging – luxury outlet shopping villages. And people from the Middle East form the fastest growing market for high-end value retail, and register the third-highest average spend per visit, Emirates Business has learned. Operator Value Retail, which has nine such 'villages' across Europe, said people from the Middle East had accounted for a 169 per cent jump in sales during the first quarter of this year, compared to the same period last year. "The collection Chic Outlet Shopping Villages in Europe also recorded a rise of three per cent on the average spend by the Middle East visitor compared to the same period in 2008 with an average spend of €312," said Cristina Pecori, spokesman for Value Retail. The total spend by Middle East tourists contributed three per cent of the total sales generated, she added. The rising number indicates the Gulf was aping a global shift to value-based shopping where considerable price saving is the new mantra. This emerging trend was confirmed earlier this week when designer Vera Wang, known for her $9,500 wedding gowns, cut the average retail prices for bridal wear by almost a third as shoppers become increasingly cost-conscious in the global recession. High-end handbag-and-shoes store Coach is selling more handbags for less than $300 and Saks has dispatched managers to Europe to help suppliers come up with lower-priced products for its stores. The moves are part of an industry-wide push to expand a tier of luxury that uses simpler designs and less costly materials after years of ballooning prices. Sales of brands that cater to the wealthy may drop 10 per cent this year after holding steady at €170 billion in 2008, according to estimates from luxury adviser Bain and Company in Milan. "The luxury consumer now wants to understand why the price is what it is," said Michael Fink, a former women's fashion director for Saks. "It's not going to return to the hype and the waiting lists for designer goods." Between 2005 and 2007, the average wholesale price of luxury goods increased 10 per cent to 15 per cent each year, Fink said. A shrinking global economy is reversing that trend. While some shoppers will still buy at the highest end of the luxury range, more consumers will balk at cocktail dresses that cost more than $2,000 and shoes above $1,000, he said. This is exactly where Value Retail's Chic Outlet Shopping Villages are positioned. The group's villages reported a 55 per cent rise in total tax refunded sales generated by all international visitors in Q1. The more established villages generate average sales densities in excess of €12,000 per square metre on the gross external area, excluding value-added tax (VAT). The underlying reason for its growing popularity is its value proposition of top luxury brands offered at up to 60 per cent discounts, combined with tax free shopping (for non-EU residents) of up to 15 per cent. "Add to that the lure of a great vacation. We specialise exclusively in the operation of high-end outlet shopping villages serving Europe's gateway cities. Every village is positioned less than an hour away from Europe's most fashionable cities and offer a unique holiday proposition which allows Brazilian, the Middle East, Russian or Chinese visitors to Europe. "Outlet savings allow you to stretch your travel budget further to include holiday shopping and gifts and since it offers the best outlet collection in Europe it avoids one having to 'trade down' on style or experience," said Pecori. Top luxury stores in the GCC remain more expensive due to a weak euro and pound and marginal discounting within the region. The sizeable reductions on luxury brands in Europe has caused an exodus of the local shopper, with the UK being the favourite. Visitors from the Middle East have favoured the shopping destinations of Bicester Village in Oxfordshire, one-hour north of London, La Vallee Village near Paris, and Maasmechelen Village which borders Brussels, Antwerp and Cologne, data showed. Growing interest from the Middle East and other regions led to the introduction of over 70 top brands since November 2008 at its villages. Of these 30 shops at the group's flagship Bicester Village are in its third phase of expansion. Joining the value offering were Roberto Cavalli, Smythson, Valentino, Jimmy Choo, Trussardi Jeans and Elizabeth Hurley Beach among others. Visitors to the UK from the UAE are increasing and spending more on average, reported executives with Britain's tourism authority, VisitBritain. UAE visitor spend in the UK showed 24 per cent growth in 2008 over 2007, with 232,000 UAE-based travellers to the UK spending £289 million. These 2008 figures, though still provisional, represent a significant jump on 2007's fig