Weddings represent huge opportunities for a vast array of brands. Sarah Abdullah reports from Jeddah.
The number of married couples in the GCC region is expected to reach 3.3 billion in 2020, representing 57 per cent of the population, says Business Intelligence Middle East.
The region's bridal sector is estimated to be worth $700 million annually, and is attracting a host of brands, and not just those from the traditional jewellery, fashion and floral segments. These days, everyone from cars to cornflakes is hoping for an invite.
According to an IIR survey, the average price of a wedding in the UAE alone is $81,000, compared to $20,000 in the US. This may be in part due to a longer guest list, with 46 per cent of respondents saying they plan to invite more than 500 people, and approximately 15 per cent planning to invite 1000 or more.
One entrepreneur with an eye on the buoyant wedding market is Qatari business woman Mona Al-Sulaiti. Right now she is putting the final touches on a new bridal retail service that she has developed, and will soon open in Doha.
Called BRIDY the outlet is in the vibrant Barwat Al Sadd complex. It will sell everything from luggage to bridal accessories, including designer bridal gowns from young GCC designers that are competitively priced in order to be accessible to all women.
Speaking to GMR, Al-Sulaiti said a unique aspect of her marketing concept is creating the outlet as a platform for young designers from the region to launch their collections.
"To be honest, I have always loved the fashion design industry. As a designer and fashion expert myself, I know how difficult it can be to get a break in this industry. BRIDY will act as a vehicle for new designers based in the GCC to exhibit their designs in-store, "Al Sulaiti said. She added that the original idea was due to macro-environmental factors and a gap in the market.
"Recently I helped my daughter plan her wedding, and we found it very difficult to select the right outfit for her in Qatar. We looked at many options, including going to Europe or Dubai markets, and it was only after several months that we were able to select a gown that was suitable. I began asking myself, 'how many other women are having the same problems that we had'.
This is what truly inspired the creation of the store."
She also believes that any new venture, such as BRIDY, should have a strong brand based on grounded principles that will allow the brand to be memorable and timeless.
This concept, she said, will allow for a brand beginning, followed by a regional expansion. The brand was developed by brand strategy and communications company, Commfirm.
Other retailers, such as Saudi brand Nayomi, have long realised the importance of the bridal market. It created a special bridal collection, Fairouz back in 2008.
"As getting married is such a poignant moment in any women's life Nayomi has always paid attention to cater to their special trousseau needs when it comes to bridal lingerie and nightwear.
"We have tailored our marketing strategies to be centered around One Thousand and One Moments, which is inspired by the princess within," said brand director, Mark Pilkington.
"Every woman, when getting married, is living out her very own fairytale moment and Nayomi is fulfilling this dream with beautiful bridal collections on offer, such as our Fairouz collection.
The collection has grown by 40 per cent since launch to 2011, he reports.
"We have also dedicated a full section of our store to the bridal category in order to pamper our customers and spend time enjoying the regal service every princess deserves," he added.
Nayomi has some "exciting" designs for this category to tempt all brides and is looking at broadening its reach by participating in bridal fairs and wedding shows. Another sector, not usually directly associated with weddings is autos. But just last month the Emirates Motor Company (EMC), Mercedes-Benz distributors in Abu Dhabi and Al-Ain, as well as the Al Fahim Group, were the Platinum sponsors of the 2012 Abu Dhabi Bridal Show.
EMC's GM, Kamal Rafih, told GMR that the company has noticed a massive 573 per cent surge in sales for its news CLS model of Mercedes, among the females.
"This positions the CLS as one of the top three most popular Mercedes-Benz classes among ladies," Rafih said.
He added that Mercedes-Benz and EMC are working hard to make brides feel even more special.
According to Rania Mehwi, marketing manager for Al Fahim Group, market forecasts show engaged couples as a "unique" segment.
She added that Mercedes-Benz isn't also targeting this group with its luxury bags and watches.
"This year's bridal show brought together this niche market of all the ladies of the community under one roof. We viewed this endorsement as an opportunity to encourage women not only to purchase Mercedes products, but to be more interactive within society and appreciate the significant role they play in it."
Mehwi said the largest segment for EMC is 26 to 35 year olds, which is 36 per cent of its customer base, and which also just so happens to be the most common age band in the GCC to get married.
This, followed by 36 to 45 year olds, have a smaller percentage of newlyweds. "Combining these groups equals 64 per cent of our customer base."
Another luxury auto predicted to be the global wedding car rental of 2012, is the Rolls-Royce Ghost.
"The signs are all pointing to the growing popularity of the Rolls-Royce Ghost, as in January alone, the luxury car manufacturer announced the company's largest yearly sales in its 107-year history, with 3,500 cars sold throughout 2011, signaling a 31 per cent jump in sales for the year."
And then, of course, there is the skincare category.
According to Bloomberg News, sales of skin lighteners increased by 17 per cent during the first nine months of 2010 to $443 million, with sales estimated to hit the $2 billion mark during 2012.
One beneficiary of this is Unilever Arabia, maker of Fair & Lovely. The brand has had the huge success by targeting brides.
Sales in Saudi Arabia alone increased by 15 per cent in 2005 to 19 per cent in 2010, according to Euromonitor. The researcher forecasts that sales will increase by four per cent CAGR through 2014.
Little wonder, then, that Unilever is working hard to attract brides.
"Currently in Saudi Arabia and the GCC the product is positioned to target 20- to 35-year-old women, with brides a key segment, Sarah Al Shohaib, marketing manager for skin care at Unilever Arabia, told GMR.
She said the company is working on capturing more market share against its strongest competitor, Nivea, which has 23 per cent of the skin care segment in Saudi Arabia, versus Unilever's 20 per cent. "Our main strategies include more utilisation of social media sites such as Facebook and Twitter, as well as devising new means of advertising to a young demographic," Al Shohaib said.
But despite all of the efforts made to get some of that big wedding budget, not every couple has bottomless funds.
Some banks have realised this, and one such is HSBC, which has set up a programme called the Lifestyle Wedding Loan.
"You have wanted a fairytale wedding for as long as you can remember, but with the guest list getting longer, and costs creeping higher, a part of you asks, 'Why'? Well, now a Lifestyle Wedding Loan from HSBC is all you need to say,' 'Why Not'? Our Lifestyle Wedding Loan will help you plan the fairytale wedding that would have otherwise remained just that... A dream."
Thus reads the bank's website.
The programme offers loans up to $200,000 (SAR750,000) and requires no guarantor, providing the applicant can prove a monthly salary of at least $21,333 (SAR8,000).
Dubai's Mashreq Bank also offers wedding loans and has partnered with Le Meridien Dubai, Intercontinental Al Ain Resort, Park Rotana and Park Arjaan Abu Dhabi to offer loan applicants a 10 per cent discount on wedding packages for parties of 500 guests or less.
For those that are planning to tie the knot, but still have some time to save for the big day, Bank Audi in Lebanon has created the Bank Audi Wedding Account. The account is a joint account in Lebanese pounds and US. It allows family and friends to also deposit cash gifts at any of the bank's branches in Lebanon.
So, with planning and financing a wedding becoming more readily available, e-commerce and websites targeting brides and wedding planning are also increasing. Euromonitor forecasts that e-commerce will grow across the UAE, Saudi Arabia and Egypt, with internet retail sites touching $1 billion in sales in 2011.
For this reason, websites such as dual -language, Emirati site Yebab.com, which focuses on eveything from planning, gowns, photography, catering and venue booking, are blossoming.
Yebab.com, which launched in the UAE in 2008, plans to expand into Saudi Arabia and Egypt this year. The site reports a increase in traffic in 2011 and has grown the number of retail outlets from 30 in 2008 to 1,400 in 2011.
"Saudi Arabia and Egypt have a huge population base and we have a considerable amount of traffic coming from these countries. Therefore, it makes good sense expanding into these markets," CEO Murshed Mohamed said, adding that the site is also planning new business ventures in animation and components aimed at driving commerce on the website.
The site will also introduce an Emirati cartoon called, YaMae'arees that focuses on a young Emirati bride in a modern environment.
"Overall, the website focuses on giving the bride a new experience by reducing the time spent online and bringing to life innovative design concepts. The cartoon is a long-term business investment as it could be used as a huge product placement and draw sponsorships that expose brands to Emirati brides and the local community," he said.
Another online suitor is whiteme.net, an online wedding platform and information site published by White Middle East FZ LLE.
It provides ideas and inspiration through daily editorials, wedding galleries, real weddings and more, and covers bridal beauty, fashion, eveningwear, wedding experts advice and videos.
It also offers access to the top wedding vendors across the region through an online wedding directory covering everything and anything to do with wedding planning, such as wedding planners, flower designers, bridal boutiques, photographers, wedding venues, entertainment and more.
No matter what the product or service, however, it is apparent that nearly all brands have the potential to engage with the region's brides.
© Gulf Marketing Review 2012
