Accessories, lighting systems and furnishings, especially luxury ones, dominate the scene. Luana Zillio, brand ambassador of Milano Home in the Middle East, explains the reasons for the success of Italian manufacturing.
It’s a vast area, encompassing the entire Middle East, the Persian Gulf states and as far as Egypt. It’s a multitude of countries – including the United Arab Emirates, Qatar, Saudi Arabia, Oman, Bahrain, Kuwait and Jordan – which, although bordering each other, aren’t merely reflections of one another. Each of them has its own identity, precise callings, and marketing strategies and policies that promote domestic production and tend to pick up on the beauty and craftmanship contained in the international offering.
It’s a territory as extensive as it is relevant in economic terms, and Luana Zillio, brand ambassador of Milano Home, is one of its most authentic and experienced interpreters.
She has been working in the home sector for 25 years as an export manager and moved to Dubai in 2011. She is the founder of ZILLIO Atelier, distinguished by selling high-quality products from internationally renowned designers. In the past, she has been marketing manager for Barovier & Toso, Bosastrade, Arte Veneziana and Misha Milano.
A founding member of the first Gulf-Dubai Soroptimist International Club, an international all-women’s association, Zillio also lends her name to TheItalianBrands, established in collaboration with Archiade, which aims to give due prominence to Italian brands on the interiors, lighting and furniture market within the GCC (Gulf Cooperation Council).
“I work closely with architects, interior designers, as well as local institutions, entrepreneurs and decision makers with the aim of promoting the Italian lifestyle,” she explains to Milano Home. “Trust, shared vision and clearly defined goals are the key elements in building successful partnerships.”
What are the factors that favour Italian manufacturing in the Middle East?
“Craftsmanship, style and design first and foremost, joined by passion, quality and glamour. While there are clear differences in consumer tastes and behaviour, what they have in common is the constant search for new and exciting products, innovative design solutions and the search for emerging brands.”
A snapshot that exhaustively describes the attitudes and preferences of such an extensive area is almost impossible. “The very concept of retail alone differs from country to country,” adds Zillio. “Historical and geographical issues are mixed with different cultural roots, which is why it isn’t possible to define a framework that can convey a coherent, homogeneous vision.”
Profoundly different realities coexist and contrast within the same community.
“So-called Locals and Expats operate in the market. A distinction has to be made between Expats who are highly educated, qualified and move in high-level contexts (managers and investors) and those with a medium-low profile, who are forced to emigrate for work reasons. They spend as little as possible on housing as their time abroad is uncertain and the income is used to meet basic needs.”
The United Arab Emirates is undoubtedly the most dynamic and responsive country ever; here too, however, differences have to be stressed.
“Dubai as an emirate and city is definitely different to Abu Dhabi. Dubai is a city designed to astonish and attract ‘high-spending’ tourists, able to secure enough revenue to make up for the lack of earnings from the sale of oil (the locals’ main, if not only, source of income, the production of which has been declining over time). In addition to attracting tourists from all over the Middle East, a policy has been put in place to attract big investors of all kinds, providing them with extra-favourable conditions to invest without bureaucratic and/or tax constraints.
In a context where affluence and luxury have found fertile ground, the aim has been to have the finest of everything, cost notwithstanding. What matters is that the item is beautiful, unique, striking and if possible inimitable, so that it offers an unrepeatable experience.”
What role do social media and communication in general play within this sphere of egocentrism?
“The media and especially social media have played and continue to play a very influential role in the Middle East. They continually emphasise the image of the article, focus the communication system on beauty, originality, design of the item, amplifying the message incredibly. It should never be forgotten that, even if they are luxury products, in this area everyone can always have the top of the range and the details make the difference.
This strategy is also pursued by opening immense malls where people can walk so far they can get lost and where they can find everything. Taking the Dubai Model as an example, the country that is now trying to implement the same strategy is Saudi Arabia.”
Which solutions and products is demand heading towards?
“The famous brand, so-called ‘known luxury’, is the most in demand. Among products, there’s growing interest in perfumes and room fragrances, a market niche that’s gaining acceptance and appreciation among all income bands.”
What are the main opportunities that Middle Eastern countries offer Italian companies?
“Today it’s difficult to talk about opportunities. The offering is wide-ranging and diversified and the spaces to inhabit are increasingly narrow. We also mustn’t overlook the competition from Asian countries – China first of all – alongside countries like Turkey, Spain and Portugal, which produce products of acceptable quality at prices decidedly lower than Italian ones.
That’s doesn’t mean that it’s not possible to cultivate ambitions. New outlets may well be found by operating differently compared to the past. How? By keeping an eye on the territory through a fixed presence and initiating very large-scale medium- to long-term investments. In other words, in this area you have to be physically present, you have to have competent staff who are up to date, and you have to invest time and money.”
What are the characteristics and patterns of market behaviour?
In the retail sector, accessories and the like, manufacturers sell to specialised distributors who talk directly to stores and showrooms.
In furnishing, the figure of the architect and interior designer is still central. As specialised consultants, they accompany clients in their purchases. The project can then take several paths. Interior designers can also act as buyers, purchasing directly from the source (manufacturer) or from Italian dealers, which allows them to obtain cheaper discounts than those available on the domestic market. Alternatively, they can also contact local dealers and get a better price by making arrangements with the dealer to save on the fee.
At the same time, contractors are moving on two fronts. On the one hand, they’re seeking the best price on offer, either on the domestic market or by approaching the producer of the goods directly; on the other hand, they can decide to change product or party according to the advantage or delivery time requirements.”
How are the stores that are present organised?
“In the United Arab Emirates particularly, there are similarities with the models found in the major international markets (Italy, United States, Asia).
In other Middle Eastern countries, physical sales channels are diversified: they range from department stores to single-brand stores, from concept stores to coffee shop/stores.
How do consumers prefer to make their purchases?
“No preference emerges in the approval index; I’d say it’s a 50/50 split between online and shop. Some go to the shop first to see the product in person then think it over and proceed to make the purchase online.
It’s a method that more often than not becomes a necessity. Going shopping like in Italy is often impossible due to traffic and adverse weather conditions (in June in some places in Kuwait, Saudi Arabia and the UAE, temperatures exceeded 50 °C). It’s no coincidence that all shops and stores also sell over the internet.”