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The Gulf is renowned for its opulent shopping malls and retail stores, but has lagged behind other regions when it comes to awareness of and progress on sustainability in fashion. A new partnership between local industry leaders and LVMH, launched during the 28th edition of the United Nations Conference of the Parties (COP28) in Dubai this weekend, hopes to change that.
The “Unity for Change” initiative aims to bring together luxury brands and property owners to reduce the environmental impact of retail stores in the United Arab Emirates (UAE). It is being led by Antoine Arnault, head of image and environment at LVMH; Patrick Chalhoub, president of luxury distributor and retail company Chalhoub Group; Ahmed El Shamy, CEO of retail property conglomerate Majid Al Futtaim Properties; Mohamed Al Matrooshi, head of Dubai Mall at Emaar Malls; and Faisal Falaknaz, group chief financial and sustainability officer at real estate developer Aldar Properties.
“This partnership enhances and accelerates our existing efforts to reach our ambitious target to produce more [energy] than we consume, reaching net positive by 2040,” says El Shamy. “We are proud to be a part of this shared commitment, aiming to set a new global standard in sustainable practices and achievements as it relates to retail landlord and tenant collaboration.”
Areas of focus will include: energy efficiency; clean energy procurement strategies; producing eco-design checklists; optimisation of water and air conditioning; waste and light management; and recycling measures within retail spaces. These are all important areas to drive progress in, but the impact hinges on how the efforts are planned and rolled out, with details yet to be shared. The goal, the partners say, is to negotiate and execute a formal and legally binding agreement by the end of 2024, which will define sustainability KPIs and set a roadmap towards a shared vision for a net-zero future.
This is the second time LVMH has entered into a regional agreement with local landlords to tackle issues around sustainability in retail. In October 2022, the owner of Louis Vuitton and Dior announced a three-year collaboration with Hang Lung, which holds a portfolio of properties across seven cities in Mainland China. “LVMH is proud to sign this second agreement with local partners in the UAE,” said Arnault in a statement. “We need to collaborate with our landlords.”
Chalhoub Group, a Dubai-based conglomerate that represents over 300 fashion brands in the Middle East, hopes the Unity for Change launch — timed to the key global climate change moment that is COP — will help to accelerate progress across this part of the world. “COP28 offers a unique opportunity for the international community to come together, engage in constructive discussions, forge agreements, and, most importantly, translate those agreements into concrete actions for the betterment of our shared future,” Florence Bulté, chief sustainability officer at Chalhoub Group, tells Vogue Business.
Changing attitudes
Chalhoub has also released a report, titled ‘Circular Fashion Potential in the GCC’, which highlights consumer attitudes to sustainability in the Gulf Cooperation Council (GCC).
Wealthy consumers in the Gulf region are known for spending big on luxury but less so for their interest in sustainability. There are signs that resale is catching on, according to Chalhoub’s report, which was based on a survey of over 1,500 consumers across the UAE, Qatar, Kuwait and Saudi Arabia. One-third of respondents have bought pre-loved items — mainly bags and watches — and the same proportion intend to buy secondhand, citing availability or financial reasons. Three out of four respondents (74 per cent) said they have resold a luxury item up to three times in the last year. Many said they now consider a product’s resale value before purchasing.
Consumers are only part of the equation, which is why the effort to engage retailers is important — and what happens at the policy level, including at COP, even more so. Also needed are technologies, infrastructure and business incentives to keep materials in circulation and out of waste streams when products are no longer resellable.
Chalhoub’s findings chime with the recent rise in the popularity of fashion swaps among the region’s social media fluent, youth-driven market. In its report, Chalhoub notes the growing significance of circularity models such as sharing, rental, recycling, repair and reuse in luxury. Some of its brands have responded: for example, footwear retailer Level Shoes and fashion e-tailer Ounass have introduced pre-loved fashion and accessories.
Still, the report highlights that the GCC’s share of the global re-commerce market stands at less than 3 per cent. Cultural stigma, especially among millennials who drive luxury in the GCC, and the region’s affinity for new products, are factors for the local consumers being apprehensive about secondhand buys.
“Our region embarked on its journey later than some others. However, with the ongoing development of infrastructure and the increasing awareness among consumers, progress is poised to accelerate rapidly,” says Andrea Fetzer, strategy director of Chalhoub Group. On the hesitation among some consumers to buy secondhand, she adds: “Rigorous authentication processes and transparent communication about item conditions build trust among consumers, encouraging repeat purchases within the pre-loved market.”
Chalhoub hopes the report — alongside the Unity for Change initiative — will serve as a compass to help stakeholders in the Gulf retail industry navigate end-of-life and more responsible business practices. This opportune moment during COP28 may catalyse the journey towards sustainability in this high-spending region, as it catches up on related issues.
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