6 minute read
A Local Appetite for International Luxury Retail
The luxury consumption in Egypt is on the rise and private sector banks on the unlimited possibilities
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HEBA ABDALLAH
Marketing pundit and a renowned figure in the retail industry, Heba Head of Marketing – Mall Management Abdallah is the Head of Marketing of Egypt’s leading entertainment Al Futtaim Group | Cairo Festival City Mall and shopping destination, Cairo Festival City Mall. Drawing on more than 22 years of extensive experience in Real Estate, Retail and Banking, out of which 14 years of them in the field with a strong portfolio of brands, Heba has been leading Cairo Festival City Mall’s marketing activities since 2019. She has made impactful transformations in the brand since joining and led numerous successful campaigns that revamped the retail industry in Egypt.
Luxury retail in Egypt has been a thriving business, with a backlog of eager retailers looking to establish themselves in this new hub. Luxury retail has proven to be a true investment magnet on the local level while Egyptian consumers’ appetite for fashion brands has been on the rise. The implementation of the government’s strategy to revitalize the country’s economy and pursue a rejuvenated national identity has resulted in a large rise in inbound investment in Egypt’s luxury retail. The retail sector continues to be one of the most active, dynamic, lucrative, and promising industries to invest in, with annual retail sales exceeding EGP 523 bn in 2019, which is expected to grow to EGP 787 bn by 2023 as per recent reports. These figures are credited to the strong population and a growing and affluent middle and upper class. The private sector is playing an integral role in fueling the growth we are witnessing in retail and the food & beverage sectors, leveraging Egypt’s stance as a large consumer market which has been a key driver of this sector’s growth. In recent years, the label “luxury” has become much more prevalent and rigorously applied, and the Middle East now serves as a key distribution centre for high-end goods. Luxury Retail in Egypt is a new approach for the globe to achieve the dreamed-about goal of setting foot in the world’s most desirable locales. Egypt’s growth initiatives have been centred on utilizing Egypt’s strategic location, as well as its abundant natural resources and young population. While beginning modestly in Egypt through small artisanal handcrafted items, the advent of shopping malls in Egypt has
For the first time in Egypt, Festival Avenue will bring new luxury brands to Cairo Festival City Mall, truly bolstering shoppers’ experiences with a variety of products ranging from watches and jewellery to men, women & children’s fashion.
Festival Avenue will provide several opportunities for Egypt’s youth and industry experts. With this new development, over 1000 construction jobs were created and more than 3000 new retail job opportunities. Festival Avenue further supports our vision of creating distinct retail concepts and boosts the country’s stance and positioning among international fashion destinations. With the rise of luxury brands and the continuous nurture and advocacy for this sector, undoubtedly Egypt will be recognized as a key regional hub and a potentially profitable market for global luxury brands. Empowering Egyptian Fashion Designers is of paramount importance to CFC Mall. As part of our efforts to support them, we collaborated with Vogue Italia to harness these talents, introduce them to the international market and provide them with a strong platform to showcase their talent abroad through the “Cairo Fashion Experience” (CFE) scouting project. This partnership seeks to promote the next generation of fashion designers via targeted and extraordinary projects that draw on cross-country collaborations. Through CFE, three finalists will be selected from the Egyptian designers participating in the project and will have the exclusive opportunity to be mentored by Vogue Italia, exhibit their collection at Milan Fashion Week in September 2022 as well as provide them with a pop-up display at Festival Avenue. Cairo is one of the largest retail markets in the Middle East and North Africa, which drives demand in the region given the country’s population, and strategic location. While competition is fierce, in CFC Mall, we plan and execute different activities to position and differentiate the mall as the ultimate fashion destination in Egypt. We have extended the retail experience in Egypt beyond the shopping aspect through Cairo Fashion Experience; which has added value to the local fashion ecosystem by scouting emerging Egyptian designers, in a first-of-its-kind strategic partnership with Vogue Italia. As we plan to bring international luxury brands to Egypt, we also want to support emerging Egyptian designers build their luxury brands and become international labels.
witnessed luxury retail becoming a prominent industry in the economy. Today, the industry is thriving while also serving as a popular tourist attraction. Regarded as a booming centre for retail businesses leveraging its massive population of over 100 million consumers, of which approximately 65.2% is within the age group of 15 – 35 years old, Egypt has been serving as a catalyst for retail growth in the region, that is why regional and international firms are continuing to spend more on this business. Driven by Al-Futtaim Group and its vision, Cairo Festival City Mall has become a landmark when it comes to retail in Egypt. The mall continues to pump sizable investments in the sector making it a substantial contributor to the industry. The retail and entertainment complex caters to families, groups of friends, and couples, as one of Cairo’s most popular shopping complexes at the “heart of Cairo Festival City.” Understanding the rise and demand for luxury retail, we insisted on letting CFC Mall be perceived as a home to international brands from a variety of countries, making it the country’s most exclusive shopping destination. For this purpose, and to serve the country’s growing appetite, Cairo Festival City Mall will open Festival Avenue; its new luxury extension to the existing mall. With this addition, CFC Mall’s ambitions will usher in a new era of shopping in the Middle East.
With the launch of Festival Avenue, Cairo Festival City Mall will be playing an important role in laying the ground for the premium fashion industry. Festival Avenue will be a one-of-a-kind shopping experience for high-end apparel and accessories, the dream of any fashion guru, having everything in the same destination, from elegant clothes to fine dining, with a diverse range of international brands and designers. The extension of Cairo Festival City Mall is a EGP 2 billion investment project that will add 22,000 sqm of gross leasable area. This will span two retail floors, additional parking on two basements, a 5300-square-meter skylight and an outdoor amphitheatre. This additional GLA will bring CFC Mall to a 2 million sqm leasable area, which is the biggest in Egypt. I am thrilled to be working on such a project that will expand Cairo Festival City Mall’s current presence by adding 80 new stores, including significant international and first-to-market brands, as well as 20 new food & beverage outlets and an entertainment complex, providing New Cairo with a one-of-a-kind shopping and leisure experience.
