You might have visited Dubai’s luxury department stores and boutiques where you will have no doubt observed something unusual Balmain’s most recent range of skirt suits are frequently discounted. 

Balmain is a luxury fashion design house known for its sparkling malls and access to designer goods. It is intriguing to reflect on why Dubai, a metropolis for the affluent, would be bedecked with many coats of the high fashion brand. First of all, I’d like to highlight the most crucial factors.

High Market Saturation

Dubai is a front-runner in terms of choosing itself as a top-class luxury destination for all the shopping freaks. Although the upcoming opening of a multi-brand luxury store in the city will open new opportunities for well-off residents, tourists and fashionistas, the number of such retail outlets will potentially increase. But, to be exact, the large deposits of stores carrying the same prêt-à-porter goods will exceed the real demand and consequently lead to oversupply.

Besides, Balmain in excess makes it so convenient to the point that you don’t even have to get out of the city; there are their products everywhere – Mall of the Emirates and Dubai Mall. When sellers put a greater supply than needed in the market the prices tend to fall as buyers are not buying with huge margins. Frequent sales by Balmain are a sign of cutthroat competition between luxurious retail outlets located in Dubai.

Seasonal Tourism Fluctuations

Tourism is one of the leading industries of Dubai, but it is a constant struggle to maintain the influx of tourists all the time in attendance due to the seasonal changes. The busiest retail seasons in Dubai usually are from October until April when the volume of visitors would reach millions that flood this city to the beach and shopping. Though May and September is a time of hot and humid weather with subsequent drops in visitor numbers it is still the period of the highest attendance

It is the seasons that determine people's purchasing history, especially for luxury fashion. Due to the fact that Balmain makes use of fabrics and leather that are in dark tones, people who prefer winter clothes are more attracted to the store. With summer drawing near in Dubai, stores start having a sale in Balmain supplies to lure low-season tourists and local buyers who are tempted to buy on the spot. This creates an opportunity to order the products that are in high demand and low supply at the moment.

Strong US Dollar

As most products are currently priced in US dollars, the significant fluctuations of the currencies have to a large degree affected the retail sector in Dubai. Today, the dirham is managed to the dollar of the United States of America. Correspondingly, if the currency of the UAE becomes stronger in comparison with the currencies of other countries, Dubai may not appear as an attractive destination to foreign visitors as its products may become more expensive for them.

A direct consequence of the Balmain dollar producing its collections in Euros is that a more powerful dollar affects tourist buying relative to the dollar as tourists’ currencies that are weakened compared to the dollar. To fascinate the buyers distressed by the price overrun luxurious brands in Euro Eurder Dubai stores provide discounts. The contrast helps the store to bankroll and play the game on the passenger’s side as well.

Buyers Seek Value

A lot of wealthy individuals with average income and above come from different parts of the globe because of the tax-free zone features in Dubai. Yet, consumers of high net worth are not in a different situation since they have to base their buying decisions on the price, they perceive of the product. For the Dubai shopper fashion, particularly high-end brands means a lot, but they usually want a good return on their investment.

We can safely conclude that Balmain is regarded as a luxury brand because it takes pride in high-end craftsmanship for creating timeless pieces. The price of Balmain’s designs is higher than average. Reputation and the brands’ positioning are often linked to the high price tag, but this is too high for some consumers, and the perceived value is lower than they expect. A core function of strategic sales is the securing of Balmain exclusives and price ranges attractive to customers within the shopping budgets of an aspiring consumer base. Both discounts and sales are tailor-made for savvy luxury shoppers who might become in a rush and decide to snap the bargain later.

Conclusion

In the strongly competitive retail environment of Dubai such as luxury malls, Balmain does the magic between being exclusive and being too much. Markdowns are beneficial in pushing the stock through the sales during the tourism seasonal period and the fluctuating cycles of tourism. Also for consumers who attached much significance to status, the frequent Balmain sale events eventually made it feasible to obtain the designs of the brand at a reasonable price. Being able to watch celebrated designers having a coffee, and then witnessing exotic fashion items going into a trash bin leaves one with a bitter aftertaste.