DUBAI — Chalhoub Group, the luxury retail group that has distributed more than 400 international labels across the Middle East for seven decades, is venturing into brand building with Makette, a modular handbag and leather goods line launched this month.

The debut marks a strategic pivot for the family-owned company, expanding beyond its traditional franchise model to create proprietary brands with global ambitions.

Ana Canadas, Chalhoub Group’s director of fashion innovation, pointed to an industry trend: luxury handbag prices have surged 60 to 90 percent since 2019, driven by rising raw material costs and supply chain pressures. Meanwhile, some luxury houses shifted production to lower-cost locations, she claimed, compromising quality even as prices climbed.

“People say the bags

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