Documente Academic
Documente Profesional
Documente Cultură
IN MIDDLE EAST
Group Members:
Roll Name
nos.
33 Priti Sawant
39 Shubharun Bose
48 Darshika Desai
52 Shraddha Ghode
Retail life cycle
• Higher Spending
• Sophisticated competition
• Retail in spotlight
• High risk
• Medium potential
SWOT
• Long term Focus • Focused on Certain
• Slow Scaling Up Places(Western
• People centric States and low
management presence in south)
Style • Slow Growth
• Discount Policy • Sustainability of Low
• Clear Price based pricing
STRENGTH WEAKNESS
Differentiation • No frills
OPPORTUN
THREATS
ITY
• Online Retailers • Technology
• Online Startups • Personalization of
services
PESTLE ANALYSIS
1. POLITICAL
• UAE’s Retail sector growth for 2018 – 3%. Online retail growth for 2018 – 95%.
• Since 2010, capital formation in the wholesale and retail sector has more than
doubled.
• FDI investment in retail and wholesale trade has increased from AED 16781 in 2007 to
AED 62000 in 2012.
• According to JLL, gross leasable area (GLA) in Abu Dhabi’s retail sector
grew from 1.9m sq metres in 2012 to 2.6m by the third quarter of 2015.
• The country follows an Open – Door policy for foreign trade. (tax-free status,
freemarket policy, flexible commercial laws, 100 per cent foreign ownership)
3. SOCIAL
• Abu Dhabi is the capital and the Population – 3 million (62% of UAE’S
population)
second most populous city of
the United Arab Emirates.
• Major cultural and commercial centre Out of the Total Population of 3 million,
550,000 are Emiratis.
• Commercial hub of UAE.
• Abu Dhabi also ranks as the 67th most
expensive city in the world.
Indian Migrants in Abu Dhabi:
• Official religion: Islam. 2 million.
• The emirate covers 67,341 km2 , nearly
87% of the UAE.
Indian expatriates in the UAE - largest
• The population density is community of Non-
Resident Indians (NRIs) in the world
21.73/km2 (56.3/sq mi), making it the
largest emirate in the UAE.
Number of individuals employed in the
retail sector in UAE is around 165,000, of
which around 162,500, are expatriates.
4. TECHNOLOGICAL
• A quarter of journeys in Dubai to be driverless by 2030.
• The retail sector in Abu Dhabi is regulated by ADDED (Abu Dhabi Department
of Economic Development), in accordance with Federal Law 24/2006.
• The Department for Consumer Protection has since 2011 worked with major
retailers to establish fixed prices on everyday household consumables.
• Value Added Tax has been introduced in UAE from January, 2018.
• There are four major federal laws affecting foreign investment in the UAE: the
Companies Law, the Commercial Agencies Law, the Industry Law, and the
Government Tenders Law. 19 new laws are being discussed to encourage FDI.
Positioning competition
D mart
Trade
EDLP
shows
Organic
and
gluten
free
PRODUCTS
Veggies, Fruits, Dairy
Footwear
• Penetration pricing
• 6-7% lower than competitors
• Major competitor : Lulu Hypermarket
• Conservative audience- large scale discount on grocery & non-
grocery items
• VAT- 5%
PLACE
• Labor migrants
• Proximity to
market, malls,
competitors.
PROMOTIONAL STRATEGIES
Bulk
EDLP Gift Purchase
Coupons Coupons
Television &
Newspaper
Festival (English-
Discounts Arabic-Hindi- Hoardings
Urdu)
NEWSPAPERS NEWS FESTIVALS