Saudi Arabia’s growing high-income market attracts luxury brands

Hermès recently expanded in the country.

Luxury cosmetics and perfumer retailers are looking to expand in Saudi Arabia as it targets to reach shoppers within the upper-income bracket. 

According to Fitch Solutions, consumers within the $50,000-75,000 bracket and $75,000+ bracket are both expected to grow by 2.3 points to 12.8% and 3.1 points to 13.4%, respectively. 

“This consumer demographic is the key consumer market for luxury retailers and growth of which points to why luxury companies, like Hermès, are expanding in the country,” the report read in part. 

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Hermès opened its first perfume and cosmetics store in Saudi Arabia last July 2022. Aside from Hermès, luxury brands such as Dior and Le Labo have also entered the market. 

“The relative wealth of the Kingdom’s consumers will open up opportunities for premium and luxury personal care brands with Hermès launching its first perfume and cosmetics store in Saudi Arabia in 2022.”