Mahallati Jewellery is one of the most well-known and prestigious jewellery brands in the Middle East, and has grown to dominate the market in Dubai. European CEO spoke to Mehran Mahallati, the company’s Vice President and son of its founder, about how the business has grown in recent years, why its offerings are so unique, and how important jewellery is to the Middle Eastern economy.
How did you get started in the jewellery trade?
My father started in the jewellery trade in Iraq as a young boy. He grew up in the souks watching people trade gold and became interested in the importance of it within society. He started his own business through a little shop and from there grew it into what it is today.
How are you competing in the global marketplace?
I find that it is often better to concentrate on one’s own strengths and push through with that rather than look around and try to compete. The jewellery market is very competitive and often volatile. Consumer desire for price competition is often hard to balance with the quality that we find is necessary when working with such precious materials. With the flood of cheaper, lower quality goods, we have found that it’s far better not to try and compete. Instead, we focus on our ability to create our pieces without compromise. In the long run, our customer base has grown through due diligence, trust and reliability in our capacity to maintain quality. We are not a company that mass-produces jewellery. Our pieces are limited and unique; we cater to people who are looking for that everlasting piece and not the season-to-season jewellery items.
How important are luxury products to the Middle Eastern economy?
Dubai has become synonymous with the lifestyle of ease and luxury. A lifestyle where anything one desires is attainable. This is clear when you stroll through the malls. Any brand, whether it be international or local, can be found here, so I would definitely agree that luxury products are extremely important. As one of the only stable economies within the region, Dubai has become a hub where people can express their desire for luxury products and actually buy them. We all aspire to some luxury in our lives and Dubai is the perfect place for it.
What recent developments have there been in the luxury market in the Middle East?
The retail market in Dubai is growing at a rapid pace and so is the luxury sector. The lifestyle here in Dubai necessitates a luxury market. With retail outlets such as the Mall of the Emirates and Dubai Mall in our midst, and new developments coming up such as the Mall of the World, the luxury sector should expect a continuous boom as more and more people come to Dubai is search of a unique lifestyle. I expect Dubai to become the luxury capital of the world.
Can jewellery act as a secure investment option?
In our culture, the most solid type of investment has always been gold, and most gold was traditionally made into jewellery. It is an intricate part of our society and is still prevalent today, especially when two families are joined together in marriage. Women are still given gold and diamond sets as gifts, to serve as a form of security. It is a way in which to maintain wealth, show wealth and, even though it is mainly symbolic now among the upper and middle classes in the Middle East, it is still the most popular way for families to invest their money within the region. Gold and diamonds will always hold significance. Even if the design of a piece is no longer in fashion, the materials will always hold their value. This is the what forms the lasting appeal of jewellery.