(MENAFN- Khaleej Times)

As the UAE cements its status as a global luxury hub, retailers are rapidly evolving to meet the demands of a tech-savvy, experience-driven consumer base. With the luxury goods market projected to grow at a compound annual growth rate (CAGR) of 5.52 per cent, reaching $7 billion by 2033, brands are increasingly turning to omnichannel strategies to unify online and offline experiences and drive operational efficiency.

Globally, omnichannel retail has become a cornerstone of luxury strategy. According to McKinsey, luxury brands are navigating a slowdown by investing in seamless customer journeys and digital transformation. In the Asia-Pacific, omnichannel integration is leading retail innovation, with store-based and non-store sales expected to grow significantly by 2028. In the UAE, where 90 per cent of luxury purchases still occur offline, the opportunity to bridge digital and physical channels is immense.

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One brand leading this transformation is Hugo Boss, which has partnered with Indian retail tech firm Fynd to implement a scalable omnichannel solution across its UAE operations.“Post-Covid, sustaining footfall has been a challenge,” said Alessandro Bovone, Head of E-commerce GCC at Hugo Boss.“Technology is now fundamental to enhancing service levels, optimizing customer relationships, and improving the in-store experience.”

The partnership enables Hugo Boss to offer a unified shopping experience, allowing customers to access the full product catalog regardless of channel.“If a customer wants a jacket and their size isn't available in-store, our system allows staff to order it from another store and deliver it to their home,” explained Ronak Modi, Chief Business Officer Global at Fynd.“If it doesn't fit, they can return it without visiting the store again.”

This integration not only enhances customer satisfaction but also streamlines operations. Bovone noted that the solution reduces the need for separate e-commerce stock, improves stock rotation, and enables direct fulfillment from any inventory location.“E-commerce boomed during COVID, but brands didn't approach it the same way as physical retail. Now, we need horizontal understanding across all channels,” he said.

The UAE's luxury market is uniquely positioned to benefit from such innovations. With Dubai and Abu Dhabi attracting millions of tourists annually, luxury shopping remains a key driver of retail growth. High-net-worth residents, expatriates, and visitors contribute to a resilient demand for premium goods, while the country's young, digitally engaged population accelerates the shift toward experiential and personalized retail.

“Cost efficiency is becoming fundamental in the luxury industry,” Bovone added.“Companies typically start by optimizing marketing and HR, but logistics and inventory rotation are the next frontier. That's why omnichannel is no longer optional-it's mandatory.”

Modi echoed this sentiment, emphasizing the scalability of the solution.“With 90 per cent of the UAE market still shopping offline, there's a significant opportunity to unify retail and e-commerce into a single channel over the next 12–24 months.”

As the UAE continues to evolve into a global logistics and luxury retail hub, partnerships like Hugo Boss and Fynd signal a broader industry shift-where technology, efficiency, and customer-centricity converge to redefine the luxury experience.

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