German luxury e-commerce platform Mytheresa will be expanding its operations in the Middle East, said the company’s CEO, Michael Kliger.
“Today the region is four per cent of our business. But when I speak about it, people say, ‘But it should be double,’ and I agree. For our brand partners, like Cartier and Van Cleef, this region has always been a big focus.”
The UAE and Saudi Arabia have become the biggest regional markets by spend, according to Mr Kliger: “We have a loyal high-end customer base from the Middle East, but we have been serving them more in their Paris or London residences. But there is a clear momentum back into the region. The pandemic showed us they spent at home that potential because so much.”
Mytheresa’s diversified offering across categories has also appealed to Middle Eastern customers.
“As a luxury retailer, we offer women’s fashion, but we also have menswear and kidswear. This region already over-indexes in kidswear, for example. We do double the business here compared to other markets with high-end luxury brands like Loro Piana kids and Brunello [Cucinelli] kids. The amount of money and appreciation in this region is high. Now we also have home and lifestyle, so it opens a lot of opportunity.”
A host of rapid societal changes, specifically in Saudi Arabia, will keep on fuelling the demand, said Mr Kliger: “Saudi is in a very dynamic period. Things as simple as more fine dining restaurants opening up, means more people are out, driving wardrobe needs.”
The investment in developing relationships always pays off in spades, said Mr Kliger: “When I was in Riyadh early this year, clients were telling me they always go to Courchevel at the end of January. That tells us we should push our ski edit at that time in the region, which might not have been what we are doing globally.”
Mytheresa team has the inventory he said “but the time customers might want it is different in France, different in the US and different in Saudi”.
Aside from the Middle East, Mr Kliger said the company is also expanding in the US: “We were not that present there five years ago, but are now increasing the efforts. The US is still an amazing opportunity because it’s also so diverse. We have recently had events in markets from Arkansas to Aspen. We head soon to L.A. in May. The US is so big, and we think they are underserved, especially markets not on the East and West coast.” Post Vie
