Service And Personalisation Are Factors Required To Maintain Competitive Edge

Mohammad A Baker, deputy chairman and CEO of Gulf Marketing Group, looks at the state of the UAE’s retail environment, and how brands can improve their chances of success

WITH MORE THAN 80 shopping malls nationwide and an expected turnover of over $51bn by the end of 2021 in Dubai alone, the UAE’s retail sector is a mainstay of the local economy.

Dubai in particular has become synonymous with retailing prospects. The emirate flies the flag for luxury brands and premium shopping malls, and is ranked amongst the highest in the world in terms of penetration by international retailers.

Stocking the latest, most fashionable, must-have items has been a priority for the country’s retailers in the past decade. However, as a result of economic globalisation and evolving consumer habits, a course change is needed in order to futureproof an industry that contributes substantially to national diversification initiatives.

While the UAE’s retail environment is undoubtedly robust, physical storefronts are increasingly being challenged. The fact is that offering a wide range of products to UAE consumers is no longer enough to capture their interest. Consumer habits are also being reformed by the convenience and prevalence of online shopping options, which again offer consumers an enormous wealth of brands from all over the world.

Local UAE retailers — especially those with a strong brick and mortar presence — urgently need to re-focus on wooing consumers through extraordinary customer experiences. Think of Amazon’s entry into the world of physical retail. Amazon Go breaks boundaries and bucks the trend of ‘going digital’ by using smart technologies to deliver a truly exceptional in-store experience. It works because customers in a connected environment want more than the latest styles and brands. In short, they want to be wowed.