The following research report contains market research, analysis, statistics and business intelligence relating to research on Women's Evening Wear In Saudi Arabia.

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ABSTRACT
The Saudi Arabian market for women's eveningwear is very dynamic, and demand for high quality apparel is on the rise. U.S. branded apparel companies have aggressively established an enviable presence in the Saudi market. However, competition remains fierce with the Asian and European companies still dominant in the overall import market. Women's eveningwear imports reached $160 million in 1998, with an expected annual growth rate of five percent. The U.S. share of this market stood at 11.3 percent, more than $20 million in 1998. American firms are expected to enhance their presence in the market and their share is expected to grow by an average seven percent annually. Imported women's apparel represents 90 percent of the demand, while local tailor shops make up the remaining ten percent. A small number of female dressmakers visit customers in their homes. Tailors are typically men from Philippines, India, Pakistan and Bangladesh, and ladies are not allowed to enter these shops. Therefore, they must bring one of their dresses as a sample to determine measurements. Because of the year-round hot climate, best opportunities exist for quality designed, light and medium weight apparel in fabrics such as cotton, polyester-cotton blends, and silk.
A. MARKET HIGHLIGHT & BEST PROSPECTS

- Market Profile

The market for women's eveningwear has grown steadily over the past few years. In 1997, the import market was valued at $152 million. The latest figures from 1998 put the import market at $160 million. The U.S. share has grown from four percent in 1992 to 13 percent in 1998, and is expected to continue to grow in the next few years. With the lower end of the market dominated by inexpensive imports from Asian countries and the top end dominated by expensive European products, the Saudi market presents an excellent opportunity for established U.S. suppliers, as well as newcomers, who can accommodate the taste and expectations of middle-to-high-income consumers. The Saudi market is extremely price sensitive and, in order to gain market share, American manufacturers must compete with the low profit margins of their competitors.

The lack of public events, such as concerts, cinemas, and mixed sporting activities, have made shopping one of the most popular activities in Saudi Arabia. Saudi women are exposed through the media and foreign travel to western fashion, and many urban Saudi women adopt western dressing styles while outside the Kingdom.

- Statistical Data
Avg. Annual Growth Rate
1998E 1999E 2000E* Next 2 Years

Import Market 160 168
176 5%

Local Production 22 24
26 10%

Exports 3.1 3.2
3.3 4%

Total Market 178.9 188.8 198.7 5%

Imports from USA 20.3 21.5 23.0 7%

Estimated Future Inflation Rate: 2% - 3%

Import Market Share for 1998:
USA: 13%, Italy 16%, France 15%, Lebanon 12%, U.K. 11%, Taiwan 10%, Turkey 6%, Spain 6%, South Korea 6%, Others 5%

Receptivity Score: 4 (Very receptive)
Sources: Ministry of Finance and National Economy, Jeddah Chamber of Commerce and Industry (JCCI), and Industry and Embassy estimates. - Best Sales Prospects

Because of the year-round hot, and in some areas, humid climate, lightweight fabrics such as cotton and polyester-cotton blends provide the best sales prospects. Silk is also popular due to its light weight feel and Saudi cultural tradition. One-piece wear, such as long dresses, is the most popular eveningwear. Luxurious pantsuits are also popular. There is a significant number of consumers that desire haute couture and designer label attire. Such apparel is generally worn during gender-segregated events, such as wedding receptions.
B. COMPETITIVE ANALYSIS

- Domestic Production

Saudi Arabia's domestic apparel industry is negligible, with tailors providing the only source of locally made apparel. Some shops employ a team of female dressmakers who visit customers in their homes. Male tailors from India, Pakistan, Bangladesh, and Philippines also make women's eveningwear tailored to the customer's request. However, male tailors can not take direct measurements of women, so the tailoring must be accomplished using a sample of an existing dress.

- Third-Country Imports

Saudi Arabia is a challenging market for apparel imports due to the fierce competition from Asian and European manufacturers. European firms generally supply middle-to-high-priced women's eveningwear targeted to wealthy Saudis and wealthy expatriates. The main suppliers are from Italy, France, United Kingdom, Spain, and Turkey. Lebanese firms are also major suppliers for medium to high quality women's eveningwear. Asian firms generally supply low-priced apparel geared mainly to lower wage expatriate workers and low-to-middle class Saudis.
- U.S. Market Position

U.S. apparel companies have entered the market aggressively in the past few years. In 1998, the U.S. share of the import market was an estimated 13 percent, an increase of four percent from 1992. This increase is due to the competitive prices enjoyed by U.S.-made apparel due to the continued stability of the U.S. dollar to the Saudi riyal, as well as U.S. firms ability to quickly respond to the latest trends in the Saudi market. In addition, the "Made in USA" label appeals to both Saudis and expatriates. Many reputable brand names such as Donna Karan, Anne Klein, Bisou-Bisou, Polo Ralph Lauren, XO-XO, and Jones of New York have lately established a number of branded boutiques in urban centers, thus enhancing the market share of the U.S. apparel industry.

Nonetheless, U.S. firms face higher transportation costs and longer delivery times than their Asian and European counterparts. They can, however, secure a share in the Saudi market by offering the latest styles and focusing on apparel for the middle to upper income brackets. Because U.S. companies are perceived as offering higher quality and better value, counterfeit copies of well-known designer-name apparel remain a problem. However, since the Saudi government intends to join the World Trade Organization, it is determined to fight copyright violation and expose those businessmen who import illegal goods.
C. END-USER ANALYSIS

Wealthier Saudi women tend to wear expensive fashions from Europe and the U.S. Middle-income Saudi women who live in urban areas wear moderately priced ankle-length dresses and frequently have their dresses tailor made locally. Bedouin or rural women wear long dresses that are made by the women themselves or by tailors using inexpensive fabrics imported from Asia. Expatriates, who are mainly from other Arab countries and the Far East, as well as a smaller number of Europeans and Americans, generally buy apparel in various price ranges according to their income. The use of the Internet is also playing an increasingly important role in the way Saudi women look for trends and materials.

D. MARKET ACCESS

Import Climate

Few limits are imposed on imports, and no import licenses are required for apparel. Direct sale is the rule rather than exception. Most apparel traders visit the U.S. to buy from wholesalers. The use of agents is not common in the apparel market except for designer names and top-of-the-line products.
There are no quotas or other impediments to the importation and sale of women's apparel in Saudi Arabia. The import duty is 12 percent. Imports should have a certificate of origin, and the Saudi Embassy or Consulates in the U.S should attest all documents. Imported apparel should not contain any printed language that violates prevailing Islamic values and morals.

European and Asian apparel manufacturers and representatives have long-established business ties to Saudi retailers. These exporters often organize promotional trade visits during which several manufacturers show their lines to Saudi retailers. They also accept payment by either letter of credit or on 90 and 180-day sight draft terms.
The 2000-2001 shopping seasons are during the month of Ramadan, which occurs from late November to late January and the Hajj period (the pilgrimage season) which occurs from late February to late March. The Higra (Islamic) calendar contains 15 days less than the Gregorian calendar, so these dates change each year. Wholesalers generally travel to the U.S., Europe, and Asia to place their orders two months prior to these two seasons. Most Saudi importers place one order for both the Ramadan and Hajj seasons.

Most of the apparel trade executive managers are expatriates and occasionally have difficulty obtaining U.S. visas. This difficulty can hurt U.S. companies because Asian and European competitors frequently assist their importers in obtaining visas and provide them free travel to attend trade fairs or visit their companies for deals.

Distribution/Business Practices

Foreign companies can enter the Saudi market by establishing a joint venture with a Saudi firm, or by appointing an exclusive agent or regional distributorship in the three major cities: Riyadh, Jeddah, and Dammam. The recently approved Foreign Investment Code should create more trade opportunities in all sectors.

Agency and distribution relationships should be registered at the local Chamber of Commerce and Industry, as well as with the Saudi Ministry of Commerce.

U.S. companies should consider the following points:

U.S. minimum order requirements are usually too large for most Saudi importers, especially when they are testing a new line;

U.S. sizing should be adapted to Saudi proportions.

Government offices and most private sector firms are closed on Thursday and Friday. Arabic is the official language in Saudi Arabia while English is the language of business. There are three distinct regions in Saudi Arabia. Jeddah, on the West Coast, is the merchant capital and more liberal region of Saudi. Riyadh, in the center of the country, is the capital city and hence more conservative. Dhahran, on the East Coast, is the industrial capital and is also more liberal. E-Commerce is new to Saudi Arabia, but is gaining in popularity. The younger generation is using the Internet to look for new trends and fashions.

Financing

Imports are primarily paid by letter of credit, which may be drawn at sight or at 30, 60 or 90 days sight from the bill of lading. Saudi Arabia has virtually no exchange controls and no restrictions on receipts for current money transactions by either residents or non-residents.

Financing is critical and American exporters should consider consulting with their bankers or the Export-Import Bank of the United States (EX-IM Bank) concerning lines of credit, loans, insurance and guarantees, discounting and banker's acceptance.
Key Contacts

Al-Sawani Company
P.O. Box 6474, Jeddah 21442, Saudi Arabia
Tel: 966-2-691-2612
Fax: 96-2-691-1320
Contact: Abdul Gader Hafiz, General Manager

Mahmoud Saeed Collectice Company
P.O. Box 17013, Jeddah 21484, Saudi Arabia
Tel: 966-2-650-1499/1599
Fax: 966-2-650-1399
Contact: Shawki M. Saeed, Vice President

Bugshan Trading Establishment
P.O. Box 40486, Jeddah 21499, Saudi Arabia
Tel: 966-2-669-2485
Fax: 966-2-631-0900
Contact: Mazen A. Bugshan, General Manager
Al-Rubaiyat Company
P.O. Box 5967, Jeddah 21432, Saudi Arabia
Tel: 966-2-647-8373
Fax: 966-2-648-5882
Contact: Faisal S. Binzagr, Chairman

Bazaid Establishment for Fashion
P.O. Box 19222, Jeddah 21435, Saudi Arabia
Tel: 966-2-643-5607
Fax: 966-2-642-0723
Contact: Ahmed Al-Attar, Marketing Manager

Ahmed Ghalib Al-Esayi Trading Establishment
P.O. Box 5651, Jeddah 21432, Saudi Arabia
Tel: 966-2-669-0071/665-5551/660-0065
Fax: 966-2-665-6422
Contact: Fahd A. Al-Esayi, GeneralManager

Al-Yousef Trading Establishment
P.O. Box 702, Jeddah 21421, Saudi Arabia
Tel: 966-2-642-0033
Fax: 966-2-644-2515
Contact: Said and Nasser Yousef Al-Ghamdi, Owners

Al-Nafjan Fashion
P.O. Box 1567, Jeddah 21441, Saudi Arabia
Tel: 966-2-671-3111
Fax: 966-2-672-8427
Contact: Tarek S. Al-Nafjan, General Manager

Al-Khalaki for Fashion
P.O. Box 17938, Jeddah 21494, Saudi Arabia
Tel: 966-2-642-8872
Fax: 966-2-644-8381
Contact: Hussain Abubakr Bahumaid, General Manager

Al-Waleed Trading and Importing Establishment
P.O. Box 4702, Jeddah 21412, Saudi Arabia
Tel: 966-2-642-4252
Fax: 966-2-642-7090
Contact: Abu Bakr Al-Aidaroos, General Manager

42nd Street Establishment
P.O. Box 15084, Jeddah 21444, Saudi Aabia
Tel: 966-5-566-2793
Fax: 966-2-683-5729
Contact: Enas Al-Hashani, Director

Silhouette Fashions
P.O. Box 64114, Riyadh 11536, Saudi Arabia
Tel: 966-1-462-2302
Fax: 966-1-465-7419
Contact: Maher M. Jammal, Executive Director

Abdullah Said Al-Sayid Commercial Establishment
P.O. Box 2583, Riyadh 11466, Saudi Arabia
Tel: 966-1-402-9008
Fax: 966-1-403-6191
Contact: Abdullah Said Al-Sayid, Owner

Serb Establishment P.O. Box 16869, Riyadh 11474, Saudi Arabia
Tel: 966-1-464-9800
Fax: 966-1-465-1775
Contact: Rabi Haout, Marketing Manager

Khabbaz Limited Liability Company
P.O. Box 706, Riyadh 11421, Saudi Arabia
Tel: 966-1-478-5341
Fax: 966-1-478-7986
Contact: Mohammed M. Al-Lahib, Commercial Manager

First Arabian Department Stores
P.O. Box 60681, Riyadh 11555, Saudi Arabia
Tel: 966-1-464-4996
Fax: 9661-462-2295
Contact: Jamal Al-Johar, General Manager

Ruby Moda Establishment
P.O. Box 54114, Riyadh 11514, Saudi Arabia
Tel: 966-1-462-5414
Fax: 966-1-462-2829
Contact: Hamad M. Al-Mosa, General Manager

Wessam World of Fashion
P.O. Box 61560, Riyadh 11575, Saudi Arabia
Tel: 966-1-488-1592
Fax: 966-1-465-1396
Contact: Adnan Hassan Taha, General Manager

Al-Moltaqa Establishment
Tel: 966-1-478-8409
Fax: 966-1-478-9608
Contact: Lama O. Aggad/Nada Kairouz, Owners

Al-Mutlak Fashion Center
Tel: 966-1-402-8409
Fax: 966-1-403-2126
Contact: Nezar Al-Mutlak, General Manager

Saudi House
Tel: 966-1-465-3515
Fax: 966-1-465-3519
Contact: Muqbil Al-Khalaf, General Manager

Houssam Trading Stores
Tel: 966-1-477-9681
Fax: 966-1-477-9705
Contact: Jim Tilcock, General Manager

Arabian Marketing Company Limited
Tel: 966-1-482-5453
Fax: 966-1-482-5529
Contact: Abdullah Al-Ajroush, General Manager

Swabih International Group
Tel: 966-1-464-0666
Fax: 966-1-464-4754
Contact: Marketing Manager

Ayadi International Group
Tel: 966-1-463-3611
Fax: 966-1-462-4672
Contact: David Miller, Advisor, Finance Department

Al-Muraisel Commercial Establishment
P.O. Box 2052, Dammam 31441, Saudi Arabia
Tel: 966-3-832-5893
Fax: 966-3-833-1140
Contact: Saeed Othman Al-Muraisel, Owner and General Manager

Al-Sadhan Trading Establishment
P.O. Box 5589, Dammam 31432, Saudi Arabia
Tel: 966-3-833-6794
Fax: 966-3-833-6794
Contact: Abdullah Al-Sadhan, General Manager

Tawfeeq Commercial Center
P.O. Box 694, Dammam 31952, Saudi Arabia
Tel: 966-3-864-2963
Fax: 966-3-864-3079
Contact: Abdulaziz M. Al-Tubayyeb, Owner

Abu Fadhel Stores ( Al-Anaka)
P.O. Box 1878, Dammam 31441, Saudi Arabia
Tel: 966-3-832-1340
Fax: 966-3-832-1328
Contact: Ismael Abdulghanim, General Manager

Hamed Al-Qahtani Universal Markets
P.O. Box 89, Dammam 31411, Saudi Arabia Tel: 966-3-832-2914
Fax: 966-3-833-0867
Contact: Hamed M. Al-Qahtani, General Manager

Al-Raybal Trading Establishment
P.O. Box 403, Dammam 31952, Saudi Arabia
Tel: 966-3-899-3492
Fax: 966-3-899-3782
Contact: Ghassan A. Al-Suwayed, Manager
Trade Promotion Opportunities

Participation in trade shows is an excellent way to establish contacts with potential Saudi importers and dealers of women's apparel. This promotional method is highly cost-effective in introducing new products to the Saudi market. The office of Textile and Apparel (OTEXA) in the U.S. Department of Commerce can be of assistance at Tel: 202-482-4058, fax: 202-482-4133.

Fashion shows are rare in the Kingdom and advertising for women's apparel is uncommon, except for promotional offers or end of season sales by a few designer name boutiques.

The following trade shows are appropriate for promoting women's apparel:

Jeddah
Lifestyle'00, November 2000
Al-Harithy Company for Exhibition Limited
P.O. Box 40740, Jeddah 21511, Saudi Arabia
Tel: 966-2-654-6384
Fax: 966-2-654-6853
Contact: David Monk, Exhibition Manager

Riyadh
Saudi Fashion, Leather, and Style 2000, September 17-20, 2000
2. Saudi Fashion, Leather, and Style 2001, April 23-26, 2001
Riyadh Exhibition Company Limited
P.O. Box 56010, Riyadh 11554, Saudi Arabia
Tel: 966-1-454-1448
Fax: 966-1-454-4846
E-mail: info@recexpo.com
Contact: Habib Kashouh, Project Manager

Dhahran
Textile Arabia'00 October 2000
Dhahran Inter Exhibition Center
P.O. Box 7519, Dhahran 31472, Saudi Arabia
Tel: 966-3-857-9111
Fax: 966-3-857-2285
Contact: Khalid Mousa, Manager, Marketing and Operation

In addition to the above opportunities, Saudi business people often visit shows throughout the Gulf region, especially in Dubai and Bahrain, as well as international trade fairs in Europe, Asia, and the United States. Another promotional possibility for new-to-market U.S. companies is to organize a trade mission to Saudi Arabia, supported by their associations, state or local chamber of commerce, or export council.

DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice.

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For the 2008 Edition

Published: 2006 August
Market: Womens
Region: Saudi Arabia
Industry: Apparel
Pages: 45
Delivery: 7-12 Business Days
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