Ushering change through telecommunication

1. Ushering change through telecommunication with Hatem Dowidar, Group Chief Executive Officer, e& ISSUE 42 £. 20.99 FALL 2023

3. Editor’s Note “Your brand is a story unfolding across all customer touch points” - Jonah Sachs The Team This quote perfectly exemplifies the message of this edition. 2023 so far, has been one of the most exciting and convoluted years for marketing and branding. With generative AI taking the world by storm last year, it paved the way for businesses to not only reconsider their strategies altogether but also led to quite a bit of pandemonium in the job market. Jay Reddy This year also saw groundbreaking partnerships emerge which are set to alter the course of modern E-commerce to understanding customer James Pringle centricity through AI, this issue of Brands Today dives deep into all the important conversations happening in the business world. Galvin Jamie AI integration is no longer optional for competitive businesses, so what Fiona James do businesses do now? Our exploration of this imperative examines whether companies can afford to ignore AI’s siren call—a question that Kate Hooper echoes the strategic discussions. Eva Morris Have you ever wondered just how deep the AI iceberg goes? With it seamlessly seeping into our daily lives, it’s hard to tell what is human Jim Cooper and what is AI. Google’s new AI policy targets this issue and is now set to Edwin Martin alter the landscape of political advertising- and it looks like we are finally entering into a cookiless world! Is this the impending end of digital Roger Moses cookies? Nancy Louis Re-examine the need for social media in our lives and business and get up to speed with all the important trends in this rapidly shifting landscape. Join us in this edition as we not only report on the industries but also weave the stories of their interplay with global trends and market forces, creating a tapestry rich with insight and foresight. Welcome to the conversation; welcome to the future. Katie Noakes Editor-in-Chief Issue 42

4. Table of Contents Shifting the Luxury Narrative Through Social Design 08 08 Are Your Luxury Investments Safe? The Volatility of the Luxury Home Market 16 Shifting the Luxury Narrative Through Social Design Digital Fashion: A Revolution in Self-Expression and Identity 20 16 Cover Story: Interview with Mr. Hatem Dowidar, Group CEO, e& 25 Are Your Luxury Investments Safe? The Volatility of the Luxury Home Market Exploring China’s New Luxury Consumer 36 The Ice Begins to Crack: Rare Whisky Market Experiences a Historic Downturn 43 Zara Embraces Haircare with a Glittering Holiday Debut 47 20 Women Leaders Shaping The Future: Ba&sh continues its Power Blazer Initiative 51 Digital Fashion: A Revolution in Self-Expression and Identity In the Gilded Underbelly of Desire: A Dizzying Descent into the Global Luxury Market 55 25 Brand Quiz 59 Interview with Mr. Hatem Dowidar, Group CEO, e& The Baa-d New World of Advertising: AI-Powered Sheep Take Over Sheep Inc. Campaign 69 Lessons In Luxury: An Understanding Of Global Luxury Fashion 71 Brand Quiz Answers 73

5. Table of Contents Shifting the Luxury Narrative Through Social Design 08 36 Exploring China’s New Luxury Consumer Are Your Luxury Investments Safe? The Volatility of the Luxury Home Market 16 Digital Fashion: A Revolution in Self-Expression and Identity 20 Cover Story: Interview with Mr. Hatem Dowidar, Group CEO, e& 25 43 The Ice Begins to Crack: Rare Whisky Market Experiences a Historic Downturn Exploring China’s New Luxury Consumer 36 The Ice Begins to Crack: Rare Whisky Market Experiences a Historic Downturn 43 Zara Embraces Haircare with a Glittering Holiday Debut 47 47 Women Leaders Shaping The Future: Ba&sh continues its Power Blazer Initiative 51 Zara Embraces Haircare with a Glittering Holiday Debut In the Gilded Underbelly of Desire: A Dizzying Descent into the Global Luxury Market 55 51 Brand Quiz 59 Women Leaders Shaping The Future: Ba&sh continues its Power Blazer Initiative The Baa-d New World of Advertising: AI-Powered Sheep Take Over Sheep Inc. Campaign 69 Lessons In Luxury: An Understanding Of Global Luxury Fashion 71 Brand Quiz Answers 73

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8. Shifting the Luxury Narrative Through Social Design Imagine a world where every object, every experience, is artists, architects, and designers collaborated to create designed not just for function but also to enhance our objects that were not only functional and beautiful but lives, foster social connections, and promote well-being. also accessible to the masses. Social design's influence That is world where I would want to live in and that is the grew throughout the 20th century, intertwined with world of social design. A vision designed for humanity. various social movements. From the civil rights movement to the rise of environmental awareness, The idea of social design, a movement that's quietly design became a tool for positive change. shaping our world. Social design didn't spring up overnight. Its roots can be traced back to the early In the 1960s, designers like Victor Papanek and 20th-century industrial design movement, Buckminster Fuller challenged the status quo, urging spearheaded by visionaries like Ludwig Mies van der their peers to consider the social and environmental Rohe and Le Corbusier. These pioneers believed that impact of their creations. They argued that design design could and should go beyond aesthetics; it could should not only serve individual needs but also address improve people's lives through functionality and beauty. broader societal issues. This inspired a change in core design philosophy and set course for an entirely new The Bauhaus school, established in Germany in 1919, direction. Today, social design is more relevant than became a breeding ground for this philosophy. Here, ever. From healthcare to education, from urban planning 08

9. planning to technology, it's shaping the world around us In the 1971 manifesto "Design for the Real World," social in myriad ways. design pioneer Victor Papanek laid out the core principles of this transformative approach. Among A marvel of innovation in social design is the "Little Sun" them, three stand out for their potential to forge a solar lamp designed by Olafur Eliasson. This simple, powerful link between luxury and social design: affordable lamp provides light to communities without access to electricity, empowering people and 1. Human-Centered Design: Both luxury and social promoting education and safety. design share the core value of placing the human experience at the heart of everything. Luxury strives to enhance well-being and delight through beauty and pleasure, transcending mere functionality. Social design, on the other hand, focuses on improving the quality of life for all, particularly those facing challenges. This synergy can manifest in luxury products and services that not only elevate the user experience but also address societal needs, promoting inclusivity and fostering well-being for all. 2. Sustainable and Responsible Products: Luxury, traditionally associated with exclusivity and extravagance, is evolving towards sustainability and eco-conscious practices. This aligns perfectly with social Social design is not just a trend; it's a paradigm shift. It's design's emphasis on minimizing environmental about recognizing that design has the power to make a impact through responsible production processes and positive impact on the world. As we move forward, we circular economy principles. Luxury brands can leverage must continue to embrace this approach, creating their resources and influence to develop sustainable products, services, and experiences that not only fulfill products and experiences, promoting responsible their intended purpose but also contribute to a more consumption and fostering a more harmonious just, equitable, and sustainable future. relationship with the environment. This is the hidden beauty of social design. It's not just 3. Ethical Approach for Societal Impact: Both luxury about aesthetics; it's about designing a better world, and social design recognize the inherent responsibility one object, one experience, at a time. that comes with their influence. Luxury carries a weight of expectation, often serving as a symbol of values and “All men are designers. All that we do, almost all the time, aspirations. Social design, on the other hand, seeks to is design, for design is basic to all human activity. The address social issues and contribute to a fairer and more planning and patterning of any act towards a desired, equitable world. This shared commitment to ethical foreseeable end constitutes the design process. Any practices creates a platform for collaboration. Luxury attempt to separate design, to make it a thing-by-itself, brands can champion social causes, offer perspectives works counter to the inherent value, of design as the on critical issues, and actively contribute to global primary underlying matrix of life. Design is com- posing an discourse, using their voice to promote positive change. epic poem, executing a mural, painting a masterpiece, writing a concerto. But design is also cleaning and These fundamental principles provide a blueprint for a reorganizing a desk drawer, pulling an impacted tooth, remarkable convergence between luxury and social baking an apple pie, choosing sides for a back-lot baseball design. Imagine a world where luxury items, imbued game, and educating a child. Design is the conscious with exquisite craftsmanship and innovative effort to impose meaningful order.” technology, also contribute to solving global challenges. - Victor Papanek 09

12. Water purifiers crafted with elegance could provide safe Rawsthorn, and Tawanda Chiweshe, carefully evaluated drinking water to communities in need. Solar ovens each presentation. A common theme throughout the designed with cutting-edge aesthetics could empower finalists' works was their commitment to addressing families in remote areas with sustainable cooking critical issues and creating positive societal change, solutions. showcasing the immense power of design for social good. The luxury industry’s commitment to heritage Particular attention was drawn to the work of Aqui preservation and its expertise in cutting-edge Thami, an Indian artist and activist who hails from a innovation offer a unique opportunity to embrace this marginalized community herself. Thami's work focuses transformative movement. By partnering with social on empowering underprivileged minorities in India, design initiatives, luxury brands can elevate their particularly in Dharavi, one of Mumbai's most densely purpose beyond exclusivity and indulgence, becoming populated areas. a force for good in the world. One of Thami's pioneering projects involved creating Beyond Opulence: Luxury Brands Fostering Creativity and Social Impact inclusive spaces, including the first-of-its-kind feminist library in Asia. This innovative space serves as a vibrant hub for "experimental creation, storytelling, The world of luxury is undergoing a significant shift. documentation, and education." It offers a platform for Traditionally associated with opulence and exclusivity, underrepresented voices and fosters a strong many luxury brands are now embracing a new mission: community, demonstrating how design can be used to to drive positive social change and nurture emerging empower and create positive change. talent. This trend was recently exemplified at the prestigious Hublot Design Prize 2023, where six finalists Thami's work embodies the very essence of social presented their innovative projects, all infused with a design, where aesthetics serves a purpose beyond mere strong social design dimension. beauty. By creating functional and beautiful spaces that empower marginalized communities, Thami The esteemed judging panel, comprised of prominent demonstrates the immense power of design as a tool for figures like Marva Griffin, Hans Ulrich Obrist, Alice 12 12

13. commitment to using sport as a catalyst for progress. positive social impact. Through this partnership, they explore the future of sports and aim to inspire future generations to embrace The Hublot Design Prize is just one example of the social responsibility and inclusivity. growing trend within the luxury industry to support emerging talent and address social issues. This shift in Beyond recognizing individual achievements, the perspective signifies a move beyond pure opulence, Hublot Design Prize serves as a valuable platform for towards a more holistic approach that values creativity, showcasing and elevating the work of young designers sustainability, and social responsibility. on an international scale. As Hublot CEO Ricardo Guadalupe stated at the awards ceremony, "We are As this trend continues to gain momentum, the future proud to be able to showcase talented young designers of luxury looks increasingly promising. By leveraging on an international scale." their resources and influence, luxury brands have the potential to create a more equitable and sustainable This year's edition of the prize highlighted the world, making a significant positive impact on the lives emergence of a new generation of "hybrid designers." of individuals and communities around the globe. These individuals demonstrate a heightened awareness of social and environmental issues, moving beyond a Gabriel Fontana, the recipient of the Pierre Keller Prize traditional focus on product design. This shift signifies a at the Hublot Design Prize 2023, has emerged as a significant evolution in contemporary design thinking. leading figure in redefining social roles and norms through the lens of sport. Based in Paris, Fontana's work While the Hublot Design Prize focuses on emerging delves deeper than mere athleticism or aesthetics, talent, established luxury brands are also starting to exploring how sport can be utilized as a powerful tool for incorporate elements of social design into their social inclusion, reflection, and transformation. practices. Dior, not typically associated with social design, has made strides under the artistic direction of "My work focuses on reimagining sport, not only from Maria Grazia Chiuri. an athletic or aesthetic standpoint but also from a social one," explains Fontana. "It involves how sport can be Chiuri has utilized her platform to raise awareness of made more inclusive, reflective, and transformative. It societal issues within the world of luxury fashion. Her encompasses numerous issues like identity, the body, collections often carry powerful feminist messages, group dynamics, and gender norms." exemplified by the iconic "We Should All Be Feminists" T-shirts. These creations spark dialogue and encourage Fontana's mission extends beyond designing objects or critical thinking about gender equality and women's rights. spaces. He aims to challenge existing biases, transform social norms, and ultimately reshape society through Dior's commitment to social design extends beyond its the creation of "new games." own collections. Collaborations with artists like Judy Chicago further amplify this commitment. For the Recognizing the immense influence of sport, he Spring/Summer 2020 collection, Dior partnered with believes it can be the most impactful discipline for Chicago to celebrate femininity and art. This driving positive social change. collaboration continues to resonate with the ongoing major retrospective of Chicago's work at the New "Social design uses different methodologies to tackle Museum in New York, showcasing the enduring impact complex issues," Fontana further explains. "It enables of their collaboration. the evolution of not only interactions but also of the environment and people. The designer's mission is to The Future of Design: Beyond Aesthetics create, but also to push boundaries and inspire change." The work of Gabriel Fontana and the initiatives of Fontana's collaboration with Nike exemplifies his brands like Dior illustrate the growing influence of 13

14. social design. This movement signifies a shift in design focused on serving chosen few. philosophy, prioritizing social responsibility alongside aesthetics and functionality. As designers and brands However, societal evolution cannot be ignored. continue to embrace social design principles, we can Regardless of the industry, the need for engagement is expect to see even more creative and impactful paramount, especially with the pressing challenges of solutions to complex societal issues. our times. This is where new luxury houses emerge, offering products previously thought incompatible with By leveraging their influence and resources, designers sustainable well-being. The concept of "consuming and luxury brands have the potential to drive significant better but less" is gaining traction, even within the world positive change in the world. This emerging trend of luxury, signalling a potential shift in priorities. reflects a growing understanding that design can be a powerful tool for good, not only creating beautiful In conclusion, the dialogue between social design and objects but also building a more equitable and luxury remains complex and multifaceted. While sustainable future. challenges exist due to the inherent nature of luxury, the evolving landscape of social consciousness is driving a A Shifting Landscape: Social Design Enters the World of Art and Luxury shift within the industry. Whether this translates into a genuine commitment to social good or a mere marketing strategy remains to be seen. Nevertheless, The winds of change are blowing through the world of the emergence of new voices and the growing design, particularly within the hallowed halls of art influence of social responsibility represent a captivating schools like ECAL in Lausanne. Nicolas Le Moigne, chapter in the story of design. designer and director of the Master in Luxury at ECAL, observes a distinct shift in student priorities. "In recent years," he explains, "the topics that concern students have been increasingly influenced by social, ethical, and environmental causes." This translates into a design approach that transcends mere aesthetics, incorporating these critical lenses into the creation of objects and experiences. However, ECAL maintains a delicate balance. While encouraging the exploration of social impact within design, Le Moigne emphasizes the importance of artistic freedom. "We don't impose any specific direction," he says, "and we always keep the door wide open for freedom of expression." But the question remains: is there a genuine future for the convergence of luxury and social design? Professor Félicitas Morhart, of Marketing at HEC Lausanne, offers a nuanced perspective. "Luxury, by its very definition, seeks to differentiate and elevate social status," she notes. "Democratizing luxury, in a sense, contradicts its core essence." Morhart argues that luxury caters to a select group attracted to exclusivity and rarity, where social considerations remain secondary. While sustainability may hold increasing importance for consumers, luxury, in its current form, remains primarily 14

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16. Are Your Luxury Investments Safe? The Volatility of the Luxury Home Market 2023 has been a year of measured steps and watchful pauses, with people walking on eggshells. The current cost-of-living crisis which still runs rampant only adds fuel to this fire. While the pandemic's unbridled crescendo has faded, a deeper, more intricate melody whispers beneath the surface, one that speaks of adaptability and the enduring power of well-placed bricks and mortar. In a study published by Colibri Real Estate, they found troubling times ahead for the luxury real estate market. They claim, “ To date, all indications are that those who need to buy and/or sell will continue to do so, but for those whose criteria is more based on ‘wanting to buy,’ there will continue to be a hesitancy while they hope for The real estate market is one of the most ironic markets inventory choice to improve and/or prices to become in the world. For an industry that is so shaky, that it can more favorable. hardly balance the land it sits on, fluctuating like a rollercoaster, the idea of selling homes, I find is Equally, sellers will remain resistant, not just because incredibly sardonic to say the least. The world of luxury they do not want to give up their current low mortgage real estate, was once a vibrant and thriving market of rates, but because they see little inventory to purchase skyrocketing prices and frenzied bidding wars, but now and therefore less reason to lower their prices.” has settled into a more nuanced waltz of resilience and cautious optimism. While October was the only month that showed signs of 16

17. estate frenzy have been replaced by a steady glass of reality. improvement it doesn’t really set the precedent for change. Headlines scream "crash" and "correction," but beneath the For the first time this year, the number of sold luxury surface, the market hums with a different tune: one of properties pirouetted past their 2022 counterparts, resilience, cautious optimism, and a subtle shift in rhythm. single-family homes waltzing to a 2.73% increase and attached properties sashaying to a 7.72% rise. While the era of breakneck price surges is over, the median sold price for single-family homes has held steady around One of the key factors for this is inventory. By following the $1.3 million since July 2022, and attached properties remain basic principles of economics - more supply= more stable at $860,000. This stability underscores the enduring demand, realtors were able to provide buyers with more value proposition of luxury real estate, even in the face of options when it came to buying homes. The housing crisis economic headwinds. has been affecting major cities all across Nort America, making it harder to buy a house. But when buyers have The question everyone's asking is: will prices drop? The more reasonable options, the opportunity to buy homes answer isn't a simple yes or no. Experts predict potential also increase. This, coupled with the recent stabilization dips, but a dramatic crash seems unlikely. The key players in (and potential future decrease) of mortgage rates, has this dance are supply and demand. While a small decrease injected a much-needed dose of confidence into the room. in interest rates could boost buyer confidence, it's unlikely to trigger a sudden flood of inventory. Instead, it might lead This is further confirmed by the Mortgage Bankers to an uptick in sales, as pent-up demand that has been Association (MBA) who announced that waiting on the side-lines finally takes the floor. This suggests a 30-year-fixed-rate-mortgages have dropped by a market finding its groove, not one on the verge of collapse. staggering 67 basis points. From a high of 8.03% earlier this year, mortgage rates have dropped to 7.36% in October However, the dizzying pace of the pandemic years is unlikely 2023. This resulted in a 3% increase in mortgage to return. Those were extraordinary times. Today's market is applications. more measured, with buyers prioritizing long-term value and stability over short-term gains. This shift in focus reflects a broader understanding of luxury real estate as a low-risk asset, a safe haven amidst economic uncertainty, political turmoil, and volatile financial markets. This perception, coupled with the inherent stability of real estate as an investment, paints a picture of a market that, while evolving, remains fundamentally sound. It's not a monolith; regional variations and intricate rhythms exist, requiring a discerning eye and a willingness to listen to the music. The report further adds, “ There is also downward pressure in Canada as fixed-rate mortgages fell between 0.05 to For those who can navigate the changing landscape, 0.35% points in the last week. However, expectations are opportunity still twirls on the dance floor. Hidden gems that any significant rate changes will not happen until later await in niche markets, shifting demand cycles offer in 2024, as Canada takes a more cautionary approach and strategic entry points, and long-term plays hold seeks to bring inflation back down to their 2% goal. potential for significant returns. Importantly, this shows us that when mortgage rates fall, As big as this change is though, the market which will this not only certainly boosts optimism in the real estate be impacted the most are local market levels and market but should see sellers moving forward with the depending on the current demand profile of their plans they put on hold for the last year.” buyers against ongoing supply, some buyers might be looking at an uphill battle. All markets are very different, The champagne flutes of the pandemic-era luxury real 17

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19. estate market and a belief in the stability of property and the way they respond to changes is also drastically ownership, regardless of the wealthy buyer's financial different. There will be a lot of conflicting analysis situation. Even though some of those buyers gave up on because all markets are not equal and results from a buying property in 2023 because of fatigue, North American perspective could look very different at disappointment or perhaps hesitation, by 2024 they may the grassroots level. be able to come back as the inventory has improved. As with any market, there will be much debate about The art of selling and buying in this market needs a how things are going to work in the coming year. critical and analytical approach; understanding the However, it is always an opportunity for those who have realities and setting expectations accordingly will been prepared. There are niches in every market: ensure that goals are achieved. For those who can whether you move to a place that offers a better cost of navigate the changing landscape, opportunity still twirls living, recognize luxury pockets or types of real estate on the dance floor. Hidden gems await in niche markets, that are next in the demand cycle, or simply wait until shifting demand cycles offer strategic entry points, and you find a property that is below market value. long-term plays hold potential for significant returns. There is still considerable confidence in the luxury real 19 19 19

20. Digital Fashion A Revolution in Self-Expression and Identity While some may be quick to dismiss the metaverse as a tech-savvy generation wants from brands in the digital passing fad, a recent report from Roblox suggests world. The data reveals a clear demand for branded otherwise. Gen Z, the platform's fastest-growing attire that mirrors their physical wardrobes, along with demographic, continues to spend significant time and the ability to effortlessly modify appearances, including money in these virtual spaces, particularly when it hairstyles and body types. In the first nine months of comes to digital fashion. 2023 alone, Roblox saw a remarkable 165 billion avatar updates (a 38% increase from the previous year) and an I was taken aback after reading the numbers from a impressive 1.65 billion digital fashion items purchased (a recent to report published by Vogue which claims that- 15% increase). Roblox boasts a staggering 70 million daily active users, with Gen Z individuals (aged 17-24) leading the charge. "It's not just about picking one look," explains Christina This age group offers invaluable insights into what this Wootton, Chief Partnerships Officer at Roblox. "They are 20

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22. To gain deeper insights into Gen Z's preferences regarding actively experimenting with their digital identities, avatar styling, Roblox conducted a survey of 1,545 individuals constantly evolving their avatars." This insight is crucial aged 14-26 across the United States and the United for brands looking to connect with Gen Z in these Kingdom who self-identified as active in virtual worlds, not burgeoning digital spaces. just limited to Roblox. The research also analysed behavioural data collected throughout 2023 until September. While metaverse hype may have cooled off in recent months, with many brands shifting focus towards more The findings reveal a significant willingness among Gen Z practical technology applications, the potential of this users to invest in digital fashion. Over half of respondents new frontier remains undeniable. Global searches for expressed their openness to spending up to $10 per month "metaverse" may have dropped, but industry analysts on avatar styling, while 19% and 18% expressed interest in like Globaldata predict a significant rise in revenue, spending up to $20 and $50-$100, respectively. reaching a staggering $400 billion by 2030. The gaming market, meanwhile, is expected to soar past $665 billion These statistics highlight the growing importance of digital in the same timeframe, highlighting the immense self-expression within this generation. As Christina Wootton, potential of interactive digital experiences. Chief Partnerships Officer at Roblox, emphasizes, over half of the surveyed individuals prioritize expressing themselves through their avatar's wardrobe compared to their physical appearance (compared to 42% in the previous year's survey). Additionally, 85% believe the importance of digital fashion has escalated despite the declining metaverse hype. Interestingly, Gen Z's engagement with virtual spaces extends beyond the digital realm, with physical trends influencing digital styles and vice versa. At least 84% of the participants acknowledge how their physical style is inspired by their own and others' avatars. This influence has led them to experiment with hairstyles, embrace bolder fashions, and even explore gender-fluid styles in the physical world. Wootton believes Gen Z doesn't view Roblox through Moreover, 84% expressed a strong likelihood of trying a the lens of the broader metaverse narrative. "This isn't a brand in the physical world after experiencing it virtually. platform that simply popped up and became a trend," she emphasizes. "Our users have been deeply engaged Wootton further points out that digital self-expression and for over a decade, so their understanding and authenticity within immersive spaces positively impact approach are quite different." This sentiment was mental health. A staggering 88% of respondents believe echoed in Roblox's recent stock jump after exceeding expressing themselves in these spaces has fostered greater third-quarter revenue estimates and experiencing a comfort in expressing themselves physically. They also perceive 20% user growth. the metaverse as less judgmental compared to the real world. Looking beyond the hype, one thing is clear: Gen Z is As Roblox's avatar ecosystem evolves, incorporating layered actively shaping the future of digital fashion and clothing options, diverse body types, and enhanced pushing boundaries within virtual spaces. For brands communication tools, Gen Z's interest intensifies. To resonate seeking to remain relevant and engage this influential with this audience, successful brands prioritize listening to generation, understanding their desires and embracing the community rather than dictating their own the potential of platforms like Roblox is crucial. This new preferences. Wootton, who guides brands in developing frontier offers exciting opportunities for creativity, their Roblox strategies, observes a growing focus on connection, and self-expression, and Gen Z is leading incorporating creators' perspectives. the charge, proving that digital fashion is here to stay. 22

23. identified by Gen Z in the survey were Y2K fashion, pink, "Gen Z demands influence over their avatar's wardrobe and neutral colours and beige, cargo pants, and sheer dresses. expects brands to listen," Wootton says. "Communication Cultural moments are also reflected digitally, with purchases within immersive experiences and brand engagement of mermaid-themed items increasing by 182% this year. with Gen Z are undergoing a fundamental shift. Brands can no longer simply present something and hope it resonates. Actively listening and incorporating community feedback is crucial for staying relevant." This in-depth analysis of Gen Z's preferences and behaviour within the metaverse sheds light on their evolving approach to digital fashion and self-expression. Brands seeking to connect with this generation must acknowledge their desire for agency and embrace collaborative approaches that prioritize their voices and perspectives. Fashion in the Metaverse: A New Frontier for Self-Expression But the metaverse isn't just about trends; it's also about As the metaverse continues to evolve, fashion brands are self-expression and representation. When asked which finding new ways to engage with the next generation of avatar options helped them feel fully represented, hair, skin consumers - Gen Z. This digitally native demographic is tone, facial features, and body size were all rated as highly already spending significant time and money in these virtual important by users. This highlights a growing need for worlds, and their demand for digital fashion is growing rapidly. brands to offer a wide range of customization options, allowing users to create avatars that truly reflect their unique According to a recent survey by Roblox, over 70% of Gen Z identities. users update their avatar's clothing on a regular basis. This desire for personalization extends beyond clothing, with Brands like Fenty Beauty, Elf, Givenchy Beauty, Maybelline, users also expressing a strong interest in customizing their Nars Cosmetics, Nyx Cosmetics, and L'Oréal have already avatar's hair, skin tone, body size, and makeup. established a presence on Roblox, recognizing the opportunity to reach a new audience in this emerging Interestingly, trends in the physical world are having a market. They have also partnered with endemic creators to significant impact on digital fashion. The top five trends co-create products, tapping into the community's creativity and understanding of what resonates with users. The potential for brands within the metaverse extends far beyond traditional fashion items. Special emotes (movements and dances), virtual accessories, and even limited-edition items like the Gucci ice cream cone that was "served" within eight hours, demonstrate the potential for creative expression and engagement within these virtual spaces. For brands looking to stay ahead of the curve, we believe that understanding the needs and desires of Gen Z is crucial. By focusing on brand recognition, exclusivity, customization, and creativity, fashion brands can tap into the vast potential of the metaverse and connect with a generation that is defining the future of digital self-expression. 23

25. C O V E R S T O R Y Interview with Mr. Hatem Dowidar, Group CEO, e& Hatem Dowidar is the Group CEO of e&. He joined the principle is clear: innovation that delivers superior value. Group in September 2015 as Group Chief Operating It is this forward-thinking approach that has driven the Officer and was appointed as Chief Executive Officer, exponential growth of our businesses. International in March 2016.Following is the short conversation Katie Noakes, Editor of Global Brands The market's confidence in our strategic efforts is Magazine had with him: reflected in our third quarter financial results. e& reported consolidated revenues of AED 13.4 billion with Given then current state of affairs, where every company is only focused on its balance sheets and keeping its investors happy, how does e& stand out from the crowd? What key areas of operations, both internally and externally does the company focus on? a YoY increase of 3.3 per cent while consolidated net profit was AED 3.0 billion, a year-over-year increase of 20 per cent. Our subscriber base has also grown remarkably and our financial indicators reflect the strong demand for our digital and data services. e& embodies a vision that is powered by a growth As we move towards technological leadership, we are mindset, progressive outlook, and an innovative spirit, taking advantage of transformative technologies such this commitment has been the cornerstone of our as 5G, AI, blockchain and IoT. You only need to look at e& success. At the heart of our vision is the focus on life's efforts in the non-telecom space to see this. Our hyper-scaling, achieved through a deep understanding acquisition of a 57 per cent stake in STARZPLAY Arabia of our customers across our markets. Whether it's demonstrates our ambition to strengthen our feedback from our customers, shareholders, partners or international presence and deepen our activities in employees, we listen and act. This has enabled us to digital verticals. With the investment into Careem, there revolutionise the way businesses operate in the markets are also several growth opportunities with our strengths we serve, and to continually innovate to bring in fintech and multimedia, coupled with their services communities together in new ways. and regional footprint, will accelerate our joint vision towards a regional super app. This partnership will set The digital age is calling, our evolution as a technology new standards of product innovation and customer group is reflected in our significant investment in innovative digital solutions. This is accelerating the digital transformation of the communities across the 16 markets we serve. Our business structure reflects a carefully considered diversification into five key verticals: etisalat by e&, e& international, e& life, e& enterprise and e& capital. Each of these verticals has distinct strategies that enable us to respond to the needs of our different stakeholders, both locally and globally. They symbolise our proactive approach to harnessing the immense potential of the rapidly changing digital environment. The guiding 25

26. C O V E R S T O R Y the right partnerships and also incorporate technologies experience throughout the region. in our services and solutions to achieve our vision. By broadening our horizons, our verticals such as e& In the industry and internally, AI is a technology that has capital and e& enterprise have strengthened our left a profound impact and is also transforming industries, capabilities. Recent collaborations with companies such which will only grow in the coming years. At e&, we as Smartworld and Bespin Global MEA have extended partnered with Microsoft to explore the integration of the our reach, while strategic investments such as VUZ and technology into our services, becoming a powerful tool for Lablabee demonstrate our determination to remain at improving customer experience helping businesses the forefront of technological progress. provide more personalised customer support. Our UAE operations led by etisalat by e& are already setting industry e& is evolving and always pushing boundaries. our benchmarks with certifications on Open API that has journey is just beginning. reflected internally in efficient integration, streamlining e& has already established itself as a major player in the telecommunication industry, and it is exciting to see you embracing and making the move to 5G through your latest efforts in investing research and technology. How does e& plan to continue this growth trajectory and stay competitive in the market? the development and operation of complex services. Thanks to the UAE’s leadership’s vision this has also supported us in charting out our ambitious plans for AI. In the last year, the country has rolled out multiple digital strategies to establish itself as a global AI powerhouse by 2031. that aligns seamlessly with the UAE Centennial 2071 vision of fostering a robust knowledge-driven economy. 3 e& is not just a telecom company; we are a heritage built The impact of AI on the region's economic augmentation over 47 years, constantly evolving and innovating to stay is monumental. Projections show that by 2030, AI will at the forefront of the digital age. Our aim has always infuse a staggering $320 billion into the Middle East and been to be more than a service provider; we want to be North Africa region, predominantly through industrial the trusted partner in the interconnected digital world. We automation savings. On a global scale, AI's economic do this by adopting a customer-centric approach while contribution is anticipated to hit a massive $15.7 trillion. leveraging the latest technologies, analytics and innovation. Similarly, 5G has revolutionised every industry since its The strong growth of our subscriber base, which has launch with its faster speeds and lower latency, supporting reached 167 million by the third quarter of 2023, is a the growth of IoT, autonomous vehicles and smart cities in testament to our progressive approach. This significant the Middle East and globally. At e& with continuous leap has been achieved through network expansion, investments over decades into the networks, today the smart investment and commitment to delivering a UAE ranks globally among 143 countries in 5G mobile seamless digital experience. speeds and in the NPS (Net Promoter Score) as well, that determines the customer experience on the network. The strength of our brand is unrivalled, with 'etisalat by e&' reigning as the leading brand across all sectors in the Edge computing is another technology that will help with Middle East and Africa. This is reflected in our 'AAA' rating real time data processing and is being used in a variety of and prominent position as one of the world's top telecoms industries in the Middle East, especially oil and gas, brands in the 2023 Brand Finance Global 500 report. manufacturing and transportation. With etisalat by e&’s successful launch of the ‘Microsoft Azure for Multi-Access But we're not just about connectivity, we're about Edge Computing for Enterprises (MEC)’ service, it was enhancing lifestyles. As we embarked on this journey of another first in the region that was made available across making a mark in the global technology industry, and various sectors. moving from a telco to a techco, it was essential to strike 22 26

27. C O V E R S T O R Y The distributed ledger technology blockchain is making a With ADDED, they will look at Industry 4.0 and sustainable major difference in creating secure and transparent manufacturing, as part of efforts to achieve the Abu Dhabi transactions. UTC, the fintech blockchain platform of e& Industrial Strategy's (ADIS) objectives by adopting enterprise is the first commercialised solution now that technologies like cloud computing, cybersecurity, Internet has 12 banks onboard, which is a cloud-native solution that of Things (IoT), and Artificial Intelligence (AI) to empower detects suspicious transactions, prevents fraud and manufacturing enterprises in Abu Dhabi. duplication, and supports a wide range of trade-related documents that are validated and inspected in real time. All these technologies are transforming our lives and making a major impact regionally and globally in the 5G has also supported the growth of IoT which is coming years. At e&, we are in a unique position to expected to have a major impact on the global contribute to the future of the region by investing in these economy in the coming years. According to a report by technologies and developing new products and services McKinsey, IoT could generate up to $11.1 trillion in that leverage them, while creating more sustainable and economic value each year by 2025. The Middle East is greener future. also expected to see significant growth in the IoT market in the coming years. According to recent reports and In short, the telecoms and technology landscape is studies 4 , the IoT market in the Middle East is expected changing and so are we, enabling e& to remain not only to grow to 42.8 billion by 2028. relevant, but indispensable. e& enterprise’s focus on IoT support governments and In a world marred by corporate social responsibility, and where sustainability is the focal point for many businesses and consumers alike, how does e& align its corporate goals with the growing environmental concerns and the need for a sustainable future? enterprises to ramp up their efforts to elevate to data-driven and highly automated organisations. By investing in IoT technologies, businesses can improve their efficiency, productivity, and profitability. Governments can use IoT to improve the quality of life for their citizens by developing smart cities and smart In today's rapidly changing business landscape, infrastructure. A great example is the recent organisations need to lead with purpose, especially when collaboration with Emirates Health Services (EHS) and it comes to sustainability and corporate responsibility. At Abu Dhabi Department of Economic Development e&, we are deeply committed to playing our part in global (ADDED) to develop and advance technologies and climate action and understand the importance of aligning initiatives to improve the overall customer experience in our mission with global environmental, social and healthcare and manufacturing. EHS will work with e& governance (ESG) standards. enterprise to explore cloud-based enterprise system and platforms for community health programmes, Embedding sustainability into our DNA is at the heart of specifically focused on healthcare seekers in the our ethos, not an afterthought. Through a focused effort, Northern Emirates. Together with e& enterprise, they we have integrated these principles into our systems and developed the ‘Digital Clinic’, the aim was to improve access and quality of care through the integration of digital technologies into clinical workflows, evidence-based care and shared decision making in a sustainable and scalable way. 27 27

28. C O V E R S T O R Y ESG-centric services while preserving the environment for processes, with a particular emphasis on energy efficiency future generations. and the use of renewable energy. We see it as our duty not only to manage our environmental footprint, but also to Our commitment to education and the democratisation cultivate a vision of a sustainable future that resonates of technology is exemplified by our collaboration with with governments and the business community. Code.org, which aims to enrich computer science education in the Middle East, Asia and Africa. By joining The UAE's ambition to be at the forefront of climate forces with partners, we stimulate innovation and pave change solutions has found a committed partner in e&. the way for transformative solutions that improve the Every facet of our business embodies sustainability, as education ecosystem. clearly demonstrated by the pivotal role we played in joining the UAE Independent Climate Change e&'s commitment to inclusion extends beyond technology Accelerators (UICCA). Our participation in major events and is reflected in our efforts to ensure gender balance such as the COP28 conference is not just a representation; and the empowerment of women within our Group and in it is a demonstration of our commitment and underlines the markets in which we operate. As a technology our goal of achieving zero net emissions from our Group's conglomerate, we have leveraged our capabilities to operations in the UAE by 2030. provide free communication services to communities in need, such as those in Morocco and Libya, demonstrating e&'s pursuit of sustainability is demonstrated through our unwavering commitment to social responsibility. tangible actions. For example, our switch to energy-efficient wireless equipment at mobile network In conclusion, as e& continues its growth trajectory, our sites has resulted in a staggering 52 per cent reduction in core principles of sustainability, inclusion and corporate energy consumption. In real terms, this equates to an responsibility remain firm and guide us every step of the annual reduction of 7.6 tonnes of carbon emissions per way. Our journey is not just about business expansion; it's site. Through these initiatives, we hope to lead the way for about ensuring that every step we take leaves a positive others to join us in our collective journey towards a and lasting impact on our world. sustainable future. Our responsibility extends beyond the environment to the What positive impact will the strategic partner- ship with Vodafone and e& have on the current customer base and the region as a whole? well-being of society. Our membership of global initiatives such as the Edison Alliance reinforces our commitment to The recent partnership with Vodafone marks a pivotal digital inclusion and supports the United Nations' moment in the development of e&. As we move forward, it Sustainable Development Goals. e& has also been at the is imperative that we articulate the strategic nuances and forefront of electric mobility in the UAE with its 'Charge&Go' initiative. More than just a charging network, this initiative embodies our commitment to a sustainable future and aligns perfectly with milestones such as Emirates Net Zero 2050 and the Dubai Integrated Energy Strategy 2030. Technology inclusion remains at the forefront of our vision. We have launched digital accessibility initiatives, as a result of significant collaboration with key players in the energy sector. At the same time, the relentless influence of AI on our industry is driving us to partner with global technology and ESG stalwarts, enabling us to deliver 28

30. C O V E R S T O R Y transformation, ensuring that businesses and the public potential benefits that this collaboration brings to our sector benefit from our combined offerings. clients and the region as a whole. In short, this partnership -is about shaping the future of Our partnership is a testament to e&'s unwavering the technology and telecoms landscape in globally by commitment to leadership and innovation. As we ensuring unrivalled quality of service and innovation. consolidate our position as Vodafone's cornerstone shareholder, we are advancing a strategic relationship that A company is just as efficient as the employees it hires, and with instances of remote work having proved to be largely successful, what are e&’s thoughts on the future of remote work? Do you see it as a necessary part that needs to be adopted in to today’s work culture, and do you think by implementing it on a company wide scale will impact your operations? began in May 2022 when e& first invested in Vodafone. The depth of this partnership allows us to leverage our respective operational strengths, as well as our extensive and complementary geographies. Among the opportunities for business collaboration, the enterprise segment stands out. Together with Vodafone, we want to redefine the way cross-border digital services are delivered to multinational companies and government The world of work has undergone a profound organisations. We envisage a full range of services, from fixed transformation, largely driven by the increasing use of and mobile connectivity, IoT, cybersecurity to cloud services, remote working. I believe it is essential to articulate our promising holistic digital transformation. strategic perspective on this transformation and its implications for our operations and people management. Procurement is another key area. By pooling our The appeal of remote working is not hard to see. Its knowledge, we are not only sharing best practice, but also potential benefits, such as cost savings, increased looking at joint procurement to drive efficiencies and productivity, employee retention and improved work-life value. What's more, our combined ambitions in carrier, balance, make it a powerful strategy for modern wholesale and roaming make us potential leaders in businesses. But with these benefits come challenges. delivering an unrivalled digital infrastructure. Managing geographically dispersed teams, ensuring seamless communication and combating feelings of Technological progress remains at the heart of our isolation all require deliberate strategies. concerns. Together, e& and Vodafone are charting a technological course that includes the evolution of At e&, we are not just spectators of this evolution, but OpenRAN, ensuring that our technology solutions are active participants in shaping the future of our ready for the future. professional culture. Our initiatives such as 'work from home Fridays' and the two-day hybrid working policy are Our strategic collaboration is already bearing fruit. Our evidence of our adaptive approach. In addition, our joint venture with Vodafone Business, which resulted in targeted efforts, such as the Remote Working for New the acquisition of a major customer, the Al Futtaim Group, Mothers programme, underscore our commitment to to develop a software-driven network of the Al Futtaim employee wellbeing. Group, is an important milestone. This partnership underlines our ability to deliver superior value to Harnessing the benefits of remote working also means multinational customers by leveraging our combined tapping into global talent pools, fostering agility and scale and regional expertise. promoting a culture of innovation. This requires infrastructure investment in collaboration tools and a shift The MoU signed between Vodafone Business and e& in management mindset towards trust. What's more, as we further strengthens our commitment. Our shared embark on this journey, we must ensure that our remote intention is clear: to be at the forefront of digital workers are integrated into the Group culture and events. 30

31. C O V E R S T O R Y utilises the power of technology and digital solutions to Governments and regulators have a key role to play in refine our services and drive operational excellence. developing a broader ecosystem. At a time when there are concerns about the potential decline of urban areas due to Our strategy is based on a holistic approach to remote working, I see this as an opportunity. The key is not to innovation and technology. It's not just about adapting, choose between remote and face-to-face working, but it's about reimagining our future. Our vision is not just to integrate the strengths of both, a hybrid model. This growth, but sustainable growth. We aim to broaden our approach can rejuvenate urban centres while offering scope through the seamless integration of non-telecom individuals the flexibility they seek. verticals and a diversified geographic footprint. Key acquisitions in the telecoms and technology sectors such as Mental wellbeing remains a cornerstone of our elGrocer, Smartworld, STARZPLAY Arabiya, Bespin Global approach. In 2022, we introduced a 24/7 helpline, and the merger with Khazna underline our intention. reaffirming our commitment to the mental health of our team. Employers must be proactive in addressing While these acquisitions play a key role in our digital any mental health issues that may be exacerbated by journey, it is the partnerships that crystallise our remote working. technology strategy. Collaborations with giants such as Microsoft, META, NICE and Oracle equip us with Furthermore, equipping our remote workforce with the cutting-edge digital solutions, ensuring e& stays ahead necessary technology and tools is not just an obligation, of the rapidly evolving digital curve. What's more, our but a strategic investment. It ensures efficiency, aligns investment in Smartworld and alliance with DataRobot with our commitment to supporting our employees strengthens our capabilities in IoT and AI. It's not just and strengthens our drive to achieve the collective goals about acquiring technology, it's about orchestrating of the organisation. transformative solutions for our customers and strengthening our positioning in cybersecurity, cloud, Finally, when it comes to the dynamics of working hours IoT and AI. for remote workers, flexibility is key. While some roles may require strict adherence to specific schedules, Collaboration remains at the heart of our approach. Our others may thrive on a more flexible schedule. As long as engagement with technology leaders such as Microsoft, the outcome meets the organisation's objectives, the Google and Amazon accelerates our pace of innovation. approach can remain adaptable. This synergy allows us to design and refine products, gain deep customer insights and venture into In conclusion, as we navigate this evolving terrain, our previously uncharted territory. compass at e& is clear: prioritise employee wellbeing, ensure operational efficiency and remain committed to At the same time, we recognise the importance of fostering a culture of trust, inclusion and innovation. The digital financial solutions. Strategic alliances with future of work is a collaborative journey, and at e& we're financial giants such as MoneyGram, VISA and excited by the prospects. Mastercard reinforce our commitment to disrupting the traditional financial paradigm. With e& life our ambition Digital transformations are the key to a successful future for any organisation. How is e& keeping up with the times, and adding new technologies to repertoire to improve its areas of operations? goes beyond simple transactional offerings; we aim to revolutionise financial inclusion for the people of the UAE by combiningsecurity, flexibility and intuitiveness. Our fintech arm, e& money, embodies this ambition. As the UAE's pioneering digital payment service, In today's dynamic business landscape, the need for digital authorised by the Central Bank, its vision is bold: to transformation is clear and at e& we have strategically become the UAE's financial super-app of choice. This positioned ourselves at the forefront of this change. e& 31

32. Remit Choice money transfer was initiated by a team of seasoned professionals with remarkable expertise and entrepreneurial acumen. Since 2019, Remit Choice has been committed to revolutionizing the remittance industry by offering exceptional services that prioritize expats' convenience and satisfaction. The journey to Remit Choice began in the United Kingdom, and within 4 years, we extended our network to 70+ countries, and our roots keep growing across the world. Remit Choice's CEO, Mr. Ansab Rizwan, shared his visionary aspirations, "Our ultimate goal is to serve communities globally by becoming the preferred choice for people seeking to send money across borders. At Remit Choice, we're not just doing remittances; we focus on empowering lives, transforming economies, and creating a world where everyone has a fair chance to flourish. We strive to facilitate seamless international money transfers, empowering millions of overseas individuals and supporting their loved ones back home. Our unwavering determination and hard work have made us a true testament to enhancing the lives of those we serve." Remit Choice Money Transfer has already made significant strides in achieving its vision. Through dedication and innovation, we have achieved remarkable success. Remit Choice was awarded 'Best Online Payment Platform UK,' 'Most Innovative Online Remittance App UK,' and 'Most Trusted Online Payment Platform, UK' 2023 by GBM in the recent past." Our services are accessible around the clock, making it incredibly convenient for customers to move money abroad whenever needed. Remit Choice makes remittance easier than ever for 300K overseas and aims to make the same for struggling unsung heroes wherever they are. Our mission, vision, objective, and goal revolve around how we can make a positive impact in the lives of people overseas and prosperity in world economies, and we are well on our way. Our achievements thus far are a testament to our unwavering commitment to serving our global community 32 with complete satisfaction.

33. C O V E R S T O R Y shopping journey. includes an unwavering commitment to innovation, demonstrated by a wide range of fintech products This is a significant milestone in our journey of covering everything from remittances and bill becoming a digital telco, and a testimony to our payments to investments and insurance. constant endeavour to implement innovative digital solutions. With the launch of the 'EASE' store, we The road ahead for e& money is exciting. We are on the proudly become the world's first telecom company to verge of launching new capabilities such as companion offer such a distinctive customer experience. cards, loans and investments. Leveraging our core strengths, our horizon includes a wide range of fintech Today we also stand at the intersection of innovation offerings tailored to a diverse customer base, in line with and sustainability, and it is only fitting that we take this our ambition to be the pinnacle of digital wallets and moment to reflect on the profound impact of financial apps in the UAE. technological advancement on our world. We are committed to embracing this responsibility In summary, e&'s digital transformation journey is not a wholeheartedly, and taken a major step to support reactive strategy, but a proactive plan, finely tuned to electric mobility in UAE with the soft launch of the evolving needs of our customers and the market at ‘Charge&Go’. large. We're not just navigating the digital age, we're shaping it. With Charge& Go, e& isn't just part of the conversation; we're leading it. It signifies our commitment to shaping e& is well recognised for its dedication to innovation. Could you tell us about some of the recent ground-breaking innovations or initiatives especially in AI that have notably influenced the company's achievements? a sustainable future and cements e&’s position at the helm of the electric mobility metamorphosis. The momentum behind Electric Vehicles (EVs) is expected to grow exponentially, with global sales In today's hyper-competitive marketplace, adapting to soaring, and the UAE is making significant strides. change is no longer enough. It's about anticipating it, Industry statistics reveal that more than 10 million managing it and using it as a catalyst for sustainable electric cars were sold worldwide in 2022 and this is growth. At e&, we don't just keep up with innovation, we expected to grow by another 35 per cent to reach 14 million. define it. Let's look at some of our recent transformative initiatives that not only enhance our offering, but also We expect annual EV demand growth of 30 per cent set a new course for the industry. from 2022 to 2028. Charge& Go is more than just a charging station network. It's a commitment to a This year we have taken a major step by launching our greener future and part of our commitments to reach own AI autonomous store experience with ‘EASE’, the net zero in our UAE operations by 2030. We're self-service store in Dubai at Al Kifaf, a first in the strategically placing our stations nationwide to offer country. EASE stores leverages on our expertise and users a dependable, affordable, and easily accessible technological capabilities to align with future customer charging solution. The initiative aligns us with needs to offer a unique shopping experience. With transformative goals such as the Emirates Net Zero 20502 access to all consumer products and services including and the Dubai Integrated Energy Strategy (DIES) 2030. mobile devices and accessories at their fingertips the fully automated store incorporates cutting-edge This ecosystem results from collaborative ventures with technologies such as AI, machine learning, sensors, key energy stakeholders aiming to provide a reliable, smart gates, digital touch points, and autonomous user-focused charging journey. e& is aiming to establish device and trade-in machines. These technologies work one of the largest electric vehicle charging ecosystem, together to provide our customers with a seamless 33

34. C O V E R S T O R Y collaborating with both government and private brings knowledge to millions of people. And our sectors to achieve this vision. investment in Ikigai Labs underlines our commitment to the democratisation of technology. At e&, we don't just envision a greener tomorrow; In a world increasingly dominated by data, making AI we're actively enabling it. we're working accessible isn't just good business, it's responsible collaboratively to realise the UAE's vision of its most business. expansive EV charging network. Through Charge& Go, we're promoting electric mobility and building a Beyond strategic moves and investments, e& holistic, end-to-end EV charging solution that's both remains deeply rooted in its commitment to reliable and accessible.The soft launch of our ‘Charge integrating smart living solutions across all of its & Go’ epitomises our sustained efforts in the services. It is embedded in our ethos, ensuring that sustainability sector while simultaneously advancing our B2B clients benefit from increased operational technology, particularly within the mobility services efficiency, improved customer engagement and sector. data-driven insights. Further reinforcing our commitment to disruptive As we move forward, our goal remains clear: to stay at innovation, our venture capital arm, e& capital, has the forefront of technological advancement and been at the forefront of investing in companies that ensure that our clients, partners and stakeholders are redefining industry standards. Take our benefit from the myriad opportunities this dynamic investment in almentor, a video learning production era offers. We are not just part of the digital company. Its focus on creating compelling Arabic revolution, we are its architects. content not only fills a regional content gap, but also 34

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36. Exploring China’s New Luxury Consumer China's digital revolution has unleashed a fascinating phenomenon - the rise of the young luxury consumer. Gen Z and millennials, armed with tech-savvy skills and growing purchasing power, are now driving the luxury market in unexpected ways. Not only are they embracing established brands like handbags, ready-to-wear, and shoes, but they're also developing a keen interest in hard luxury items like fine jewellery and watches. This trend is fuelled by two key factors. Firstly, the lingering effects of the pandemic have heightened the perceived value of high-end products as investments. Hard luxury, with its enduring quality and timeless appeal, sits at the heart of this phenomenon, offering both present and future gratification. Secondly, Chinese luxury consumers are looking beyond tradition. While they respect established watchmaking To shed light on this evolving consumer base, Vogue houses, they're also captivated by fashion watches and Business China conducted a comprehensive survey lines from the same luxury groups. This discerning among its young readership. The findings, presented in audience seeks timepieces that align with their unique our white paper, Decoding China's Young Luxury Watch aesthetics, resonate with their emotional needs, and serve Consumer, offer invaluable insights into the preferences as powerful symbols of their social status. and motivations of this influential demographic. Beyond aesthetics, discerning consumers are With 500 participants, representing both Gen Z and increasingly scrutinizing branding, production millennials, the survey delves deep into their lifestyles, refinement, and exclusive price points. This presents a luxury consumption habits, watch-wearing preferences, unique opportunity for luxury watchmaking brands in purchase motivations, brand preferences, and product China's vast, yet underpenetrated market. However, the needs. This data-driven analysis provides a roadmap for landscape remains dynamic, and brands must adapt luxury watchmaking brands navigating the and implement timely strategic planning to stay ahead complexities of the Chinese market. of the curve. By understanding the aspirations and desires of this new generation of connoisseurs, brands can tailor their offerings to resonate with their individualistic tastes and The landscape remains dynamic, and brands must adapt and implement timely strategic planning to stay ahead of the curve. investment-driven mindset. This is a crucial step in unlocking the immense potential of the Chinese luxury watch market and crafting a future where fine timepieces remain coveted symbols of status, self-expression, and enduring value. 36

37. A New Era of Sensible Luxury: Chinese Consumers Redefine Opulence Forget the days of frivolous spending and impulsive splurges. In China, a new generation of luxury consumers is emerging, one characterized by sensibility and pragmatism. While their desire for luxury remains strong, their approach is more measured and investment-oriented. However, amidst this broader trend, one category stands This shift is evident in a recent study by Vogue Business out: luxury watches. Despite economic uncertainties, and Barclays Research, which reveals that over half of Swiss watch imports into China have seen remarkable China's high-spending demographic aged 18-24 growth, increasing by an average of 8.7% since 2021. This prioritize savings and investments over immediate enduring appeal can be attributed to the perception of gratification. This financially savvy generation is actively luxury watches as tangible assets with high-value diversifying their portfolios, with nearly 50% investing in preservation. In times of economic flux, owning a stocks and shares. Clearly, luxury purchases are no well-crafted timepiece offers a sense of stability and longer just about indulgence, but about long-term security, making it a worthwhile investment. value and financial security. 37

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39. long-term value. This shift presents exciting opportunities for The Chinese luxury watch market has experienced brands that can adapt to the evolving preferences of their consistent growth throughout 2023. Vogue Business increasingly sophisticated clientele. By focusing on quality, and Barclays Research highlight that the purchasing craftsmanship, and cultural relevance, luxury watchmakers power of high-net-worth individuals has steadily risen, can position themselves for continued success in this driving demand for premium products. Notably, over dynamic and ever-evolving market. half of respondents spent more than RMB 22,500 (£2,500) on luxury items in Q3, with 28% specifically Beyond Timekeeping: The Rise of Luxury Watches as Fashion Statements and Identity Markers purchasing luxury watches. This trend is expected to continue, with consumer spending projected to rebound in Q4, fuelled by the upcoming gifting season. Gone are the days when luxury watches were solely considered instruments of timekeeping. For a growing number of consumers, these exquisite timepieces have transcended their practical function, evolving into powerful symbols of self-expression, social status, and personal accomplishment. Recent surveys reveal a fascinating shift in consumer attitudes towards luxury watches. A staggering 60% of respondents view these timepieces as fashion accessories, crucial for expressing their individual style and sophisticated taste. Owning a luxury watch is no longer just about telling time; it's about making a statement about who you are and One of the key drivers behind this revival is the growing what you value. sophistication of the younger generation. For them, luxury consumption is not just about ostentation but about For nearly half of consumers (48%), acquiring a luxury watch enhancing their personal brand and showcasing their is a deeply personal act of self-reward and motivation. It discerning taste. They appreciate high-quality represents a tangible symbol of their achievements and a craftsmanship, heritage, and timeless design, making reminder of their aspirations. Wearing a luxury watch luxury watches a natural fit for their investment portfolio. becomes a daily affirmation of their personal journey and a Moreover, luxury watches are deeply embedded within source of pride. Chinese culture. As the study reveals, over 50% of professionals wear luxury watches in professional Beyond personal satisfaction, 33% of respondents settings, highlighting their association with status and acknowledge the social significance of luxury watches. professionalism. This cultural significance further These individuals view them as a powerful tool for elevates the appeal of luxury watches and positions conveying their social status and belonging within their them as a valuable asset beyond their financial worth. circles. In a society increasingly focused on image and perception, owning a prestigious timepiece can elevate Chinese consumers are demonstrating a refined one's social standing and command respect. understanding of the luxury watch market. They are adept at selecting timepieces that seamlessly align with different Interestingly, the factors influencing purchasing decisions occasions and contexts, enhancing their individual style and paint a clear picture of this changing landscape. The brand's sophistication. This discerning approach is shaping the prestige (45%) and exterior design (43%) emerge as the top future of the luxury watch market, which will undoubtedly considerations for consumers. This highlights the cater to the evolving needs and aspirations of this new importance of both the brand's heritage and the watch's generation of Chinese consumers. aesthetic appeal, which ultimately contribute to the wearer's desired image and social standing. The Chinese luxury landscape is undergoing a fascinating transformation, one that emphasizes sensible choices and 39

40. The Chinese luxury watch market boasts a diverse and dynamic consumer base, with distinct segments exhibiting unique preferences and behaviors. Here, we delve into three key segments shaping the future of this market: 1. The Watch Connoisseur: Representing the core of the socioeconomic landscape, this segment is primarily comprised of traditional, male-dominated individuals. These discerning collectors are deeply passionate about horology, valuing exquisite However, it's not just about outward appearances. craftsmanship, heritage, and technical innovation. They Nearly a third of consumers (29%) value the meticulous actively seek investment-worthy timepieces from renowned craftsmanship and legacy of the brand. This enduring brands, appreciating the history and stories embedded appreciation for high-quality Swiss-made watches within each piece. speaks to the enduring value of tradition and craftsmanship in a world increasingly dominated by 2. The Aspirational Elite: mass production and fast fashion. This segment consists of financially prosperous individuals climbing the career ladder. Driven by ambition and success, The rise of luxury watches as fashion statements and they view luxury watches as a symbol of accomplishment identity markers presents a fascinating opportunity for and social status. Their preferences lean towards established brands. By understanding the evolving motivations of brands with bold, recognizable designs that reflect their their consumers, brands can tailor their marketing and aspirations and newfound wealth. design strategies to resonate with this new generation of passionate collectors and style-conscious individuals. 3. The Fashionologist: Economically independent and socially savvy, the In a world where image and self-expression are Fashionologist is a millennial woman who embraces paramount, luxury watches have moved beyond their individuality and self-expression. For her, luxury watches are functional purpose, becoming coveted accessories that fashion statements that complement her personal style and define and elevate the wearer's individuality and social enhance her sophisticated image. She gravitates towards standing. This trend is undoubtedly here to stay, and unique, trendy designs that make a bold statement, often watchmakers who can adapt to this evolving landscape venturing beyond traditional brands to explore niche or will continue to enjoy success and influence in the world independent watchmakers. of luxury. It is exciting to see how the watch market reacts and The research further classified the Chinese luxury watch responds to brands trying new partnerships and market into three segments. approaches. For example, recently, Richard Mille unveiled the thinnest watch ever. The Richard Mille RM UP-01 Ferrari is a marvel of engineering. Unveiling the Thinnest Watch Ever Made: The Marvel of Engineering Behind the Richard Mille RM UP-01 Ferrari 40

41. The initiative's goal of resource conservation is also on our The world of haute horology witnessed a historic feat in radar, including our circular water recovery system. We use earlier this year with the unveiling of the Richard Mille almost 100% recycled gold, the rest is grandfathered, and RM UP-01 Ferrari. This ultra-thin timepiece, a testament 85% recycled steel. As for the third objective dedicated to to human ingenuity and engineering prowess, has inclusiveness, we have a charter that ensures equal pay for shattered all previous records, claiming the title of the men and women. So, yes, we are in line with the initiative.” thinnest watch ever made. At a mere 1.75mm thick, it eclipses the previous record holder, the Bulgari Octo The IWC Miratex doubles down on IWC’s sustainability approach using only sustainable products to make the straps and has an extremely low carbon Footprint. Finissimo Ultra, by a hair-thin 0.05mm. But beyond its record-breaking thinness, the RM UP-01 Ferrari is a marvel of intricate craftsmanship and technical innovation. Richard Mille, renowned for pushing the boundaries of watchmaking, has once again redefined the possibilities of this intricate art form. The future of luxury watches in China glimmers with a promise of continued ascent, fuelled by the rising affluence Another interesting watch to keep an eye out for how it of young professionals who increasingly value quality and would perform is IWC. Formula 1 teammates for craftsmanship. To captivate this discerning generation, Mercedes AMG, Lewis Hamilton and George Russell brands must cultivate vibrant online communities, fostering were seen in an ad sporting the new IWC Schaffhausen personal connections and forging narratives that resonate. Performance Chronograph AMG. Sustainability and ethical practices, once whispers on the periphery, will become central chords in the symphony of luxury, demanding brands to demonstrate their commitment with unwavering clarity. As technology and design waltz hand-in-hand, we'll witness a flurry of innovation, pushing the boundaries of what a timepiece can be. And finally, the lines between luxury and fashion will blur into a vibrant tapestry, as consumers yearn for watches that not only tell time, but tell the story of their unique style. In this dynamic dance of pragmatism, passion, and progress, With IWC also undergoing important personnel the brands that embrace the rhythm of this symphony will changes and releasing new products, it is worthwhile to be the ones whose timepieces continue to shine the see how the Chinese market react to their new launch. brightest in the ever-evolving landscape of Chinese luxury. It They also entered into an agreement with supermodel is exciting to see how brands continue to fit the luxury Giselle Bündchen last year to build and deliver on their narrative as spending powers shift, and so does the taste of environmental and sustainable goals. consumers. Will reaching towards a sustainable goal help luxury watchmakers stay ahead or will it come down to their When asked in an interview by Cristina D’Agostino celebrity endorsements or something completely different? about their sustainability policy, Giselle said,” Yes, we are Only time will tell. in line. It's a very important initiative and I'm delighted that it has come to life. For ten years, we have been at the forefront in tracing our watches’  components at IWC. But it is true that the current environmental challenges are too great to be met alone, we must join forces to accelerate.” She further added “one of the three goals of the initiative is climate resilience, and on this point our total supply of renewable energy meets it, as does the implementation of our Green IT strategy. 41

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43. The Ice Begins to Crack: Rare Whisky Market Experiences a Historic Downturn For over a decade, the world of rare whisky auctions Several factors contribute to this softening market. The has been a haven of seemingly unshakable growth, ongoing economic slowdown in China, a key player in offering investors a seemingly safe haven in a volatile the luxury goods market, is undoubtedly playing a market. Yet, the tide appears to be turning, with significant role. Additionally, the wider slump in recent data revealing a concerning trend: a 7% drop demand for luxury items, evident in the recent in the value of transactions for "fine and rare" single warnings from industry giants like Diageo and the malts in the 12 months to September 2023. This Scotch Whisky Association, suggests that the whisky significant decline, following the previous year's 19% market is not immune to broader economic anxieties. increase, marks a chilling shift and raises questions Key Performance Metrics about the future of this once untouchable asset class. Fine wine has proven to be a robust investment, The analysis, conducted by investment bank Noble & surpassing bonds, fine art, and stamps over the Co and based on over 8,500 transactions, paints a analyzed period and nearly matching the performance picture of a market in transition. While the number of of UK equities. The compounding effect over time is bottles sold increased by 10%, the overall value fell to crucial, as evidenced by real returns of 90x for wine, £27 million, representing the first major drop since compared to 14x and 22x for art and stamps, and 292x 2012 (excluding the 51% plunge during the COVID-19 for UK equities. pandemic). This stark contrast highlights the significant impact of the current economic climate, even on previously resilient sectors like rare whisky. 43

46. Vintage Variability - Each year in Bordeaux wines has Examining the appreciation pattern of high-quality distinct characteristics, and vintages are not mixed. The wines, particularly first growth clarets, reveals a strong value of wines from different vintages of the same wine appreciation over three to four decades post-vintage, can vary significantly. For example, as of the report's with an estimated real average price appreciation of writing, Farr Vintners offers a case of 2000 Mouton 2.7% over the initial 40 years. Although there is limited Rothschild for £19,500 (in bond) and a case of 2002 for a appreciation between 40 to 80 years, these wines considerably lower £4,650 (in bond). experience a resurgence in value as they become antiques, driven by collectors. Maturation Process - Bordeaux wines mature in barrel and subsequently in the bottle, undergoing an evolving Historical trends showcase that fine wine did not flavor profile due to oxidation. This evolution may render appreciate in real terms during the first quarter of the the wine undrinkable, but collectors may still purchase 20th Century. Notably, during the Second World War, them at this stage. In contrast, Single Malt Scotch wine prices surged over 600%, disrupted by trade issues, Whisky, once bottled, remains inert, and the bottle can followed by a sharp decrease post-war. Subsequent be opened and resealed without impacting the quality growth occurred mainly from the 1960s, with real price of the remaining whisky. Vintages in Scotch whisky are drops exceeding 20% coinciding with wealth shocks in typically expressed as simple age statements with 1973-75, 1980, 1990-1992, 2003, and 2011-12. minimal variation objectives. The findings emphasize market volatility, indicating Bottle Life and Storage - A bottle of wine, once opened, that the wine market experienced significant price has a limited life, even with advanced storage fluctuations during certain periods, aligned with wealth mechanisms. Conversely, drinkers can return to single shocks. It is important to note that investing in fine wine malt Scotch Whisky even months after the bottle has carries risks, and past performance does not guarantee been opened. However, the "angel's share" in whisky, future results. where liquid evaporates from the cask, results in a declining volume over time, unlike wine. The appreciation of premium Single Malt Scotch Whisky, although likely influenced by similar dynamics, Fifthly, the extension of vineyards poses a challenge, exhibits significant distinctions compared to the fine making it exceptionally difficult to expand wine Bordeaux wine upon which this analysis is based. production. In Bordeaux, the renowned Chateaux are closely situated, often separated only by walls or roads. Supply Constraints- In Bordeaux wines, despite being In contrast, while some distilleries may reach capacity, collectively branded as first growths under the 1855 most have the flexibility to respond to demand by classification, individual wines face greater constraints. installing additional distilling capacity. However, the The wines are blends of grape varieties, and each spirit from this expanded capacity won't be released to vineyard possesses a unique style that varies yearly the market for many years as it matures, contributing to based on the harvest. This stands in contrast to the delayed emergence of fine and rare products. distilleries, where the mechanism of distilling is more consistent. 46

47. The scarcity of supply, a key allure in the wine market, shares parallels with Single Malt Scotch Whisky. In the 1990s, the influx of Asian buyers, drawn by scarcity, became the catalyst for sustained price increases in fine wine. An interesting perspective was shared by a tee-total property developer from Indonesia who explained that purchasing significant stocks of wine, such as a 1982 Cheval Blanc, had strategic value. Opening a bottle reduced the supply, thereby increasing the value of the remaining stock. While scarcity also exists in older Scotch Whisky stocks, this might be a temporary phenomenon. Over time, it could be mitigated by additional whisky production maturing and entering the market. Currently, the industry is actively employing mechanisms of differentiation to create scarcity and exclusivity, showcasing a deliberate effort to maintain and enhance the perceived value of these premium spirits. Looking beyond the immediate challenges, it's crucial However, the impact is not uniform across the market. to consider the broader context of the rare whisky High-end bottles, valued at £10,000 and above, are market. The past decade has witnessed unprecedented experiencing a more noticeable decline. Potential growth, driven by a confluence of factors like rising buyers, wary of the current climate, are choosing to hold disposable incomes, increased interest in luxury goods, onto their prized possessions rather than risk selling at and the emergence of online auction platforms. This lower prices. This is evidenced by the flat prices of period of sustained growth has inflated prices to bottles in the broader premium whisky market, despite previously unimaginable levels, raising questions about a 17% increase in volumes. This cautious behaviour the long-term sustainability of such a trajectory. indicates a clear shift in buyer sentiment and a reluctance to invest heavily in the current environment. The current softening might be a much-needed correction, introducing a sense of equilibrium to a Despite these challenges, some distillers remain market that has been outpacing itself. It may offer an optimistic. They believe that the growing demand from opportunity for the industry to focus on the quality and new markets in Asia, combined with the timeless craftsmanship of the product itself, rather than solely appeal of premium brands and well-crafted whiskies, relying on the allure of exclusivity and investment will ultimately sustain growth. Huw Wright, managing potential. director of Holyrood Distillery, emphasizes the importance of quality and storytelling, stating that Ultimately, the future of the rare whisky market remains "whiskies with a good taste and a captivating story" will uncertain. However, one thing is certain: the ultimately weather any economic storm. once-unstoppable force is now facing a new set of challenges. Whether the tremors in the market develop While the long-term impact of this softening remains into a full-blown earthquake or simply a temporary blip uncertain, it presents a potential opportunity for on the radar remains to be seen. One thing is for sure, collectors seeking to acquire valuable bottles at more though: the story of the rare whisky market is far from attractive prices. However, the market's resilience will over, and the next chapter is set to be a fascinating one, depend on a complex interplay of factors, including the filled with twists, turns, and unexpected developments. global economic climate, consumer confidence, and the continued emergence of new markets. 47

48. Zara Embraces Haircare with a Glittering Holiday Debut “All That Glitters Is Not Gold,” but your hair sure is! Zara is one of my favourite brand and never fails to keep itself out of the limelight. In my eyes, it is one of the few brands that has been consistently improving and growing, throwing caution to the wind and arguably becoming one of the more popular luxury brands in the world renowned for its trendsetting designs and dynamic approach to the industry; is making waves once again with its unexpected and daring foray into haircare. This bold move marks a significant shift for the brand, venturing beyond the confines of clothing and accessories to embrace the vast world of hair beauty. The launch of "Glitter In Gold, Make-Up For Your Hair", a limited-edition capsule collection, isn't merely a fleeting experiment. It's a carefully curated and meticulously crafted testament to Zara's commitment to innovation and collaboration. To helm this exciting new project, the brand has enlisted the expertise of Guido Palau, a legendary hairstylist whose name is synonymous with iconic editorials and campaigns for renowned brands like Vogue, Prada, and Yves Saint Laurent. Palau's creative vision shines through in the collection's captivating products, aimed at transforming holiday hairstyles into dazzling works of art. Each piece is meticulously designed to elevate your festive look, adding a touch of sparkle and playful sophistication. The "Glitter In Gold" Collection comes beautifully packed with all the essentials you need to be the star of the night. The Gold Fixing Gel allows you to perfectly sculpt your hair- capturing your vision and leaving behind a sleek and polished finished with a hint of shimmering gold. But that’s not all, the “Glitter In Gold” Collection also brings with it the Shiny Effect Spray, Golden Finish Hairpins and a Wide-Tooth Comb, to give you that perfect voluminous hair. These carefully curated products come together in a beautifully designed gift set, priced at €39.95. This exquisite package makes the perfect holiday indulgence for yourself or a loved one who

50. While this may help Zara see a spike in their sales this appreciates a touch of glamour and originality. holiday season, it is still too early to tell how their hair division will fair in the long run. Multiple reports claim that 2023 may But the brilliance of "Glitter In Gold" extends far beyond be a difficult year for luxury brands in general, so whether this the products themselves. To truly capture the essence move proves to be successful remains to be seen . However, of the collection and showcase its versatility, Zara has Zara Hair is a name to keep an eye on. Their commitment to partnered with the renowned Kaia Gerber, daughter of quality, creativity, and affordability promises to revolutionize the legendary Cindy Crawford. Gerber's infectious the haircare landscape, offering fashion-forward consumers a energy and undeniable beauty bring the collection to unique and empowering way to express themselves through life in a series of playful tutorial videos, demonstrating their locks. As Zara embarks on this exciting new journey into how easily you can incorporate these products into your haircare, one thing is certain: the future of beauty is own holiday hair looks. undoubtedly bright and full of glittering possibilities. "I trust no one more than Guido when it comes to my hair," says Gerber, highlighting the strong bond between her and Palau. "He always knows how to make it look amazing, and he's so much fun to work with." This foray into haircare marks another chapter in Zara's ongoing exploration of beauty. In 2021, they collaborated with renowned makeup artist Diane Kendal to launch their first-ever comprehensive makeup line, showcasing their dedication to offering consumers a diverse range of high-quality beauty essentials. In 2020, their partnership with the iconic British fragrance house Jo Malone resulted in a unique collection of affordable luxury perfumes, further solidifying their commitment to providing customers with curated selections of beauty products beyond just clothing. However, "Glitter In Gold" serves as a mere teaser for what the future holds for Zara Hair. The brand has confirmed that this initial capsule collection is just a glimpse into their larger vision, with a full line of essential hair care products set to launch in 2024. This ambitious expansion, fuelled by their collaborative spirit and dedication to innovation, marks a significant step forward for the fashion giant, solidifying their place as a brand that caters to all aspects of self-expression and personal care. With the combined forces of industry legends like Palau and Gerber, Zara is poised to make a significant impact on the haircare world. Their reputation for cutting-edge design, affordability, and collaboration with leading industry figures positions them perfectly to disrupt the market and offer consumers a fresh and exciting alternative to existing brands. 50