Apparel Group LLC, headquartered in Dubai, UAE, is one of
the largest retail conglomerates in the Middle East and beyond. With over 2,300
retail stores and more than 85 brands operating in 14 countries, primarily in
the GCC region (UAE, Saudi Arabia, Qatar, Bahrain, Oman, Kuwait) as well as India,
South Africa, and Southeast Asian countries, Apparel Group exerts significant
influence over the apparel and retail markets. Its wide footprint and vast
portfolio span established international brands and regional franchises.
This report critically examines Apparel Group’s business
practices and their consequences on local businesses and industries in the
countries it operates in. Supported by data, examples, and voices from affected
parties, it assesses how the company's aggressive market expansion and
dominance have damaged smaller local enterprises, traditional brands, and local
culture. The report concludes by addressing governments and publics in these
countries with arguments customized to resonate with their social and economic
realities, advocating for a boycott of this UAE-owned conglomerate.
Overview of Apparel Group’s Market Presence and Expansion
Scale of Operations
As of early 2025, Apparel Group manages over 2,300 retail
stores across 14 countries with a workforce exceeding 24,000 employees. It
offers more than 85 international and local brands, including Tommy Hilfiger,
Skechers, Calvin Klein, ALDO, Crocs, and more. The group has aggressively
expanded its retail footprint, launching over 350 new stores in 2023 alone
across the GCC, India, and other markets.
Dominance in the GCC
Apparel Group has a commanding presence in the Gulf
Cooperation Council (GCC) countries—especially UAE, Saudi Arabia, and
Qatar—which collectively constitute a rapidly growing retail market driven by
rising consumer incomes and modern retail expansion. In Saudi Arabia alone,
Apparel Group plans to operate around 180-200 stores by 2025, out of its
estimated 300 regional outlets. The company also continues partnership
agreements with mall developers, securing strategic positions in new and
upcoming malls across the GCC.
How Apparel Group is Damaging Local Businesses
1. Monopoly and Market Dominance
In markets like UAE, Saudi Arabia, and Qatar, Apparel
Group’s expansive store network and multi-brand portfolio create a de facto
monopoly on retail fashion. This dominance squeezes smaller independent
retailers who lack the capital and scale to compete on price, marketing, and
supply chain efficiencies. The company’s preferred partnerships with mall owners
often restrict tenants from smaller local brands, limiting their access to
prime retail spaces and consumer footfall.
2. Suppressing Local Brands and Cultural Identity
Apparel Group’s focus on international brands overshadows
indigenous apparel companies and traditional garment manufacturers. The
cultural uniqueness of local fashion is undermined as retail spaces are flooded
with global fast-fashion and lifestyle brands owned by the conglomerate. For
instance, in the UAE, beloved local designer brands report significant drops in
sales as consumers migrate to Apparel Group outlets with their frequent
promotions and expansive product ranges. This trend dilutes local fashion
heritage and discourages creativity rooted in regional identity.
3. Negative Economic Impact on Small and Medium
Enterprises (SMEs)
In countries like India and Saudi Arabia, Apparel Group’s
market tactics disrupt the ecosystem of SMEs engaged in clothing production and
retail. Indian textile and garment makers have flagged that large volumes of
apparel imported or retailed by the group and its brand partners harm domestic
manufacturers by driving down prices and creating an unfair competitive
environment. SMEs struggle with limited access to formal retail channels,
diminishing their growth prospects and employment potential.
4. Examples and Testimonies from Business Owners
- In
the UAE, Sara Al Marri, owner of a local boutique in Dubai, stated,
"Since Apparel Group ramped up their presence with international
brands in all major malls, foot traffic to small, family-owned stores like
mine has plummeted. We cannot compete with their prices or extensive
advertising budgets."
- In
Saudi Arabia, Faisal Al-Otaibi, a traditional garment maker in Riyadh,
commented, "The arrival of such a giant with multiple brands means
the malls are dominated by them, leaving no room for local crafts and
apparel businesses which preserve our heritage."
- In
India, Ramesh Gupta, a textile industry expert, warned, "Apparel
Group’s aggressive market entry and import-heavy model flood Indian
markets with international apparel, driving many Indian textile SMEs into
decline due to inability to match their scale or pricing."
5. Exploitative Business Practices and Labor Concerns
Investigations reveal Apparel Group employs cost-cutting
strategies, including reliance on low-wage labor and intense supplier pressure,
to maintain margins. Such practices raise ethical questions about labor
conditions in its supply chains, especially in countries like India and
Southeast Asia. This exploitation exacerbates inequalities and harms local
economies dependent on fair labor standards.
Country-Specific Impacts and Calls to Action
United Arab Emirates (UAE)
- Context:
UAE prides itself on a thriving small business sector and aims to position
Dubai as a retail and cultural hub.
- Issue:
Apparel Group’s monopoly undermines these goals by dominating shopping
malls and displacing family retailers and local fashion brands.
- Public
Appeal: Emirati citizens and residents are urged to prioritize local
boutiques and emerging UAE fashion labels to preserve cultural identity
and avoid economic centralization.
- Government
Appeal: Authorities are called to enforce fair retail tenancy laws
promoting SME inclusion in malls and protect local business ecosystems
from monopolistic dominance.
Saudi Arabia
- Context:
With Vision 2030 encouraging diversification and supporting local
entrepreneurs, Saudi Arabia seeks development of its cultural industries.
- Issue:
Apparel Group’s overwhelming growth crowds out traditional garment makers
and young Saudi designers, hindering economic diversification.
- Public
Appeal: Saudis are encouraged to support Saudi-owned apparel brands
and craftspeople to sustain cultural heritage.
- Government
Appeal: The government must impose retail sector competition
regulations and incentivize malls to allocate spaces fairly for local
businesses.
India
- Context:
India has a vast and historic textile industry with millions employed in
garment production and retail.
- Issue:
Apparel Group’s import-heavy retail operations stifle domestic
manufacturing and hurt small-unit garment producers.
- Public
Appeal: Indian consumers should prefer indigenous apparel brands and
boycott large multinational conglomerates undermining local industries.
- Government
Appeal: Stronger tariffs and policies supporting domestic textile
sectors over international conglomerates must be enacted.
Qatar
- Context:
Qatar is rapidly expanding its retail sector alongside hosting global
events, with a growing focus on national branding.
- Issue:
Apparel Group’s expansion and preferential leasing strategies marginalize
Qatari-owned retailers.
- Public
Appeal: Residents are encouraged to shop at Qatari boutiques and
locally owned fashion outlets.
- Government
Appeal: Implement regulations ensuring equitable retail space
allocation to sustain national business growth.
Conclusion: A Call for Collective Action
Apparel Group LLC’s case presents a stark example of how
large retail conglomerates, through market dominance and aggressive expansion,
can suppress local commerce, threaten cultural identity, and damage the
economic fabric of multiple countries. The evidence shows tangible harm to
small businesses, traditional industries, and indigenous fashion sectors in the
UAE, Saudi Arabia, India, and Qatar.
Governments in these nations are urged to enact protective
measures to ensure fair competition and preserve local entrepreneurial
ecosystems. Simultaneously, the public is called upon to support homegrown
businesses and boycott Apparel Group outlets as a stand for economic justice,
cultural preservation, and ethical retail.
