As the cultural hub of the Middle East, Egypt has always been a place where art is celebrated in its many forms. One such form would be fashion which has deep roots in Egyptian and Pharaonic cultures.
This document aims to provide context about fashion in Egypt. We will look at the different apparel brands, their approach to quantity vs quality, their history, regional performance, outlook, and market share.
But first, how do you define fashion?
What is Fashion?
If you google the term “Fashion”, you’d be met with this result: “Fashion is a form of self-expression and autonomy at a particular period and place and in a specific context, of clothing, footwear, lifestyle, accessories, makeup, hairstyle, and body posture.”
From the definition above, the words that stick out to us as “Self-expression”, “autonomy”, “period”, “place” and “context”. To put it simply, fashion is when humans in a specific time, place, and context choose to express themselves through what they wear. It could be clothing, footwear, accessories, makeup, and many more things.
Fashion as a Global Industry
After defining fashion as a term, it’s time to look at it as an industry. Fashion is a dynamic industry at the core of fast-moving consumer goods. While the term “fashion” is conventionally associated with the design and style of clothing, accessories, and footwear, the fashion industry extends further.
It includes the production, supply, distribution, and sales of such items, supported by a global network of manufacturers and workforce both in the manufacturing and retail side of the industry. However, it is valuable and necessary to differentiate between the luxury end of the sector and mass-produced, readily available products.
Today, the fashion retail landscape is driven by brands and companies in the latter category. The popularity and power of the fashion industry come from the ever-increasing demand of consumers, which leads to more and more production and sales. Worldwide, the revenue of the apparel market reached a value of 1.55 trillion U.S. dollars in 2021. With projections to grow by more than 25 percent by 2026.
Apparel brands in Egypt
The Apparel market comprises all clothing segments produced for private end customers and is broken down into the following product lines: Women’s Apparel, Men’s Apparel, and Children’s Apparel.
Accessories such as watches and jewelry, handbags, or similar items that do not count as actual articles of clothing are not included. Nike, ZARA, H&M, and Uniqlo are the most valuable fashion brands in the world. In addition, numerous small, middle-sized and big brands operate successfully at a national or regional level.
Generally speaking, the distribution channels can be divided into stationary suppliers of multi-label products (department stores, traditional specialist shops), vertically integrated textile chains (e.g. H&M, Primark), and mail-order businesses (e-commerce, ordering by catalog). Furthermore, some fashion brands seek direct contact with their customers through single-label stores.
Here are some highlights from our research into apparel brands in Egypt:
- Revenue in the Apparel market amounts to US$14.85bn in 2022. The market is expected to grow annually by 7.91% (CAGR 2022-2027).
- The market’s largest segment is the segment Women’s Apparel with a market volume of US$6.49bn in 2022.
- In global comparison, most revenue is generated in the United States (US$312.00bn in 2022).
- Concerning total population figures, per-person revenues of US$139.90 will be generated in 2022.
- In the Apparel market, volume is expected to amount to 2,202.7m pcs. by 2027.
- The Apparel market is expected to show a volume growth of 12.6% in 2023.
- The average volume per person in the Apparel market is expected to amount to 16.8 pieces in 2022.
- By 2022, 99% of sales in the Apparel market will be attributable to Non-Luxury goods.
Quantity vs Quality
In this section, we will divide apparel brands into two different categories. The ones with a focus on individual pieces are usually considered luxury brands. These brands are known worldwide and tend to sell their pieces at higher prices compared to the next category. This high price comes from a combination of quality, scarcity, and the amount of work and craftsmanship that goes into each article of clothing.
The second category will consist of equally large brands, sometimes larger than luxury brands, that pour their efforts into mass production in order to satisfy as many customers as possible. Depending on the company, they strike a different balance between quality and quantity to reach their desired mass production numbers.
As a side note, we are aware that any large company will have mass-produced articles, even if it’s a “luxury” brand. However, this arbitrary divide is purely for the purpose of research and insight.
Luxury Brands
The luxury fashion market is steadily growing in Egypt as customers become more and more westernized. However, the market still has a lot of room to develop as many of the well-known international brands have yet to expand with mono-brand franchised stores.
With the exception of Burberry (3 stores), Paul & Shark (2), BOSS, Emporio Armani, Polo Ralph Lauren (4), Carolina Herrera, Billionaire, Philip Plein, Longchamp, Tommy Hilfiger which are all represented with mono-brand franchised stores in Egypt, all other luxury fashion brands are distributed by the leading local wholesale distributors (multi-brand stores), EGO (several stand-alone locations, street-level) and Beymen (located at Four Seasons Hotel Cairo Nile Plaza.
Yet, the stock for most brands within these multi-brand stores is limited, both in product range and sizes. Mention must also be made that not all merchandise is of the most recent seasonal international collections. Some highlights of the Luxury brand market in Egypt include:
- Revenue in the Luxury Fashion segment amounts to US$190.80m in 2022. The market is expected to grow annually by -2.70% (CAGR 2022-2027).
- In global comparison, most revenue is generated in the United States (US$25,000.00m in 2022).
- Concerning total population figures, per-person revenues of US$1.80 are generated in 2022.
Fast Fashion Brands
Fast fashion refers to businesses providing consumers with quick-release products with short renewal cycles and fast delivery. Fast fashion defines designs that come from the fashion runway to retail stores swiftly. One of the characteristics of fast fashion is that it includes clothes becoming cheaper to attract a younger age group of customers who would be more in tune with what’s popular in a given period of time.
Compared to luxury brands, fast fashion has cemented itself in the Egyptian market and the minds of Egyptian consumers. Social media is considered the main source of branding and
selling of fast fashion brands. Fast fashion brands such as Zara, H&M, Bershka, LC Waikiki, Arafa, and more are some of the many stores operating in the Egyptian market to great success.
Highlights of the Fast Fashion industry in Egypt include:
- Revenue in the Fashion segment is projected to reach US$1.46bn in 2022.
- Revenue is expected to show an annual growth rate (CAGR 2022-2027) of 19.90%, resulting in a projected market volume of US$3.62bn by 2027.
- With a projected market volume of US$266.00bn in 2022, most revenue is generated in China.
- In the Fashion segment, the number of users is expected to amount to 56.4m users by 2027.
- User penetration will be 30.5% in 2022 and is expected to hit 48.9% by 2027.
- The average revenue per user (ARPU) is expected to amount to US$45.11
Mention-worthy foreign brands in Egypt
Ten years ago, no one would have imagined buying high-end products right from the heart of Cairo. However, nowadays, average local malls display impressive lines of international brands and designers. Despite the relatively expensive prices for these products, these brands are only expanding in Egypt and their popularity is rapidly increasing among people.
Egypt has been witnessing the expansion of famous international brands in its market. During the previous month, the fashion industry took two major leaps. American clothing company Tommy Hilfiger decided to make its runway collection available in Egypt for the very first time in the company’s history, something that manifests the strength of their local sales.
Meanwhile, Italian luxury clothing company Salvatore Ferragamo enlarged its selection of products available in its Cairo store to include apparel, as the local market has been embracing the brand sufficiently.
Walking the same line, in coordination with their 10th anniversary in Egypt, MANGO decided to expand their investments in Egypt, and establish one of the biggest concept stores in the country. Other international brands with a strong presence in Egypt include but are not limited to Calvin Klein, Lacoste, H&M, LC Waikiki, Nike, Adidas, Zara, Bershka, and Louis Vuitton.
Mention-worthy Egyptian brands
Amidst an ever-evolving landscape, a few Egyptian brands and individuals have managed to carve out a space for themselves in the scene. Here are some Egyptian fashion brands to keep your eyes on.
Maison Yeya
Maison Yeya is a creation of Yasmine Yeya and it’s a modern Egyptian fashion brand that has impressed a global audience with its mesmerizing gowns. Yasmine’s creations feature sculpted drapes and polished craft, constructed in luxurious bridal textiles such as duchess satins and silk chiffons.
Maison Yeya gowns are designed to celebrate modern elegant women that are classic as well. Interestingly enough, Yeya has never imagined that one day she’s going to become a celebrated fashion designer. She was making dresses just for fun till it hit her that this could be her career. Nowadays, Maison Yeya is on a promising journey of dressing brides around the world.
Amina K
Founded by Amina Khalil in 2009, Amina K is a local fashion brand inspired by traditional Egyptian clothing for pharaohs. After studying fashion design, Khalil spotted an opportunity in the fashion scene for ‘ethnic-inspired garments’, made from local textiles by Egyptian artisans.
Most creations are handmade by artisans in local workshops across the city of Cairo. Amina K’s collection includes a range of women’s wear, accessories, eyewear, and men’s shirts. The pieces are unique and can be integrated into everyone’s individual style.
Arafa
Started in 1907 in the Egyptian Delta region, then relaunched in 1977, Arafa is one of the premier Egyptian apparel retail stores. Nowadays, you can see one of their numerous branches in many locations throughout the greater Cairo region. They have expanded their repertoire to include all kinds of clothes like athletic apparel, casual clothes, work suites, and accessories of all kinds.
Other notable Egyptian brands include Cottonil, Okhtein, Fufa, Zahan, Norine Farah, and many more.
