Future Retail - Highest Retailer Representation Globally

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KSA 6th Globally Kuwait 4th Globally Highest spending: UAE Qatar KSA 50 %+ 45 % 40%+ Newly available shopping space is bolstering apparel industry’s expansion. Foreign retailers found success working with local partners such as Al Tayer, Alshaya, Rivoli Group, Majid Al Futtaim, and Chalhoub. Source: 2013 Global Retail Development Index, AT Kearney “A good e-commerce website will see about a 2% conversion rate the comparable rate for a destination bricks-and-mortar retail store is 20% to 30%.” Source: Jon Provisor, chief information officer of Guidance, a Marina del Rey By 2015 Dubai’s Gross Leasable Area (GLA) will increase by 14% and in Abu Dhabi (where mall space is scarce) GLA will rise by 48%. Source: 2013 Global Retail Development Index, AT Kearney 34% of UAE consumers report making online B2C transactions E-commerce: From bricks to clicks, Acuity Middle East, 2012 UAE 2nd Globally 12% 19% 22% 13% 20% 8% 4% 1% 1% MID-RANGE FASHION LUXURY & BUSINESS FASHION SPECIALIST CLOTHING COFFEE & RESTAURANTS OTHER VALUE & DENIM HOMEWARE & DEPARTMENT STORES CONSUMER ELECTRONICS SUPERMARKET Highest Retailer Representation Globally Percentage of Retailers Entering EMEA By Sector UK UAE US Spain China France and Germany Italy Russia Saudi Arabia 1 8 6 7 3 5 9 4 2 MENA Region Is Gaining Five Million Consumers Per Year 34% “In my opinion for this region, there is even more opportunity for M-Commerce. So many people don’t have a laptop, but they do have a phone.” Source: Sonia Lekhal, Regional Marketing Director, Souq.com UAE Remains Attractive in Apparel Spending 39% 60% of consumers globally prefer to pay by cash. of consumers In MENA prefer to pay by cash. Source: 2013 Retail Apparel Index, A T Kearney Source: Ernst & Young's 2012 MENA Customer Barometer Source: How Global is the Business of Retail, CBRE, 2013 Dubai Abu Dhabi 14% 48% futureretail.ae

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MENA Region Is Gaining Five Million Consumers Per Year Countless challenges may cross your path to international retail success, however in real terms; there are just four potential gateways: Selecting a business model and strategic expansion plan Generating customer traffic (either in-store or online) Progressing prospects to the buying stage Getting your customers to return Live analysis of topics including location planning, pricing strategy, customer service, e-commerce and marketing will arm you with proven methods to convert your customers at each decision stage. Be privy to the latest industry advancements disclosed by the brand innovators themselves, in order to drive your sales, increase your profits and ultimately secure, protect and expand your brand.

Transcript of Future Retail - Highest Retailer Representation Globally

Page 1: Future Retail - Highest Retailer Representation Globally

KSA6th

Globally

Kuwait4th

Globally

Highestspending:

UAEQatarKSA

50 %+ 45 % 40%+

Newly available shopping space is bolstering apparel industry’s expansion.

Foreign retailers found success working with local partners such as

Al Tayer, Alshaya, Rivoli Group, Majid Al Futtaim, and Chalhoub.

Source: 2013 Global Retail Development Index, AT Kearney

“A good e-commerce website will see about a 2% conversion rate the comparable rate for a destination bricks-and-mortar retail store is 20% to 30%.”

Source: Jon Provisor, chief information officer of Guidance, a Marina del Rey

By 2015 Dubai’s Gross Leasable Area (GLA) will increase by 14% and in Abu Dhabi (where mall space is scarce) GLA will rise by 48%.

Source: 2013 Global Retail Development Index, AT Kearney

34% of UAE consumersreport makingonline B2C transactions

E-commerce: From bricks to clicks, Acuity Middle East, 2012

UAE2nd

Globally

12%

19%22%

13%

20%

8%4%

1%1%

MID-RANGE FASHION

LUXURY & BUSINESS FASHION

SPECIALIST CLOTHING

COFFEE & RESTAURANTS

OTHER

VALUE & DENIM

HOMEWARE & DEPARTMENT STORES

CONSUMER ELECTRONICS

SUPERMARKET

Highest Retailer Representation Globally

Percentage of Retailers EnteringEMEA By Sector

UK

UAEUSSpain

China

France and GermanyItalyRussia

Saudi Arabia

18 67

3

5

94

2

MENA Region Is Gaining

Five MillionConsumers Per Year

34%

“In my opinion for this region, there is even more opportunity for M-Commerce. So many people don’t have a laptop, but they do have a phone.”

Source: Sonia Lekhal, Regional Marketing Director, Souq.com

UAE Remains Attractivein Apparel Spending

39%

60%

of consumersglobally prefer to

pay by cash.

of consumers In MENA preferto pay by cash.

Source: 2013 Retail Apparel Index, A T Kearney

Source: Ernst & Young's 2012 MENA Customer Barometer

Source: How Global is the Business of Retail, CBRE, 2013

Dubai Abu Dhabi

14%

48%

futureretail.ae

Page 2: Future Retail - Highest Retailer Representation Globally

2 in 5 consumers enter stores withno set idea of what to purchase. "�ese consumers are waiting to be influenced throughgood customer service." E-commerce: From bricks to clicks, Acuity Middle East, 2012

?? Primary Drivers for Investment inTechnologies for Retail Organisations:

ImproveCustomerService

Source: What’s Driving Tomorrow’s Retail Experience? Motorola, 2012

will focus onthe following:

Many retailers are testing the waters in UAE before venturing into other markets due to:

Decreasing

• Costs• Shrinkage• Customer Complaints• Operating Expenses• Overtime• Effort• Manual Efforts• Redundancy• Employee Stress• Conflict

Increasing

• Profit• Sales Revenue• Efficiency• Customer Satisfaction• Product Turnover• Multiple Sales• Employee Retention• Shareholder Value• Return on Opportunity• Consistency

Who You Will Meet

Selecting a business model and strategic expansion plan

Generating customer traffic (in store or online)

Progressing prospects to the buying stage

Getting your customers to return

Discover How To Excel in �e Following:

Consumers want

To help shape innovation

Rewards for loyalty

Payment options

GCC consumers expectedto continue spending on basic items like food and education.

Retailers like Panda and Lulu have taken a third of the time to open 100 stores when compared to Western

counterparts, such as Morrisons, Waitrose, and Sainsburys.

22%16%

16%

14%

12%

1%

8%

Tourism

Large expatcommunity

Sizeable retailsegment

Ease of doingbusiness

Food = Largest Segment ofConsumer Expenditure in �e Region

"Essentially, Future Retailis a tool to improve yourbottom line."

Rizwan Asim,SSC Al-Suwaidi Holding Company, KSA

51%

18%Keep PaceWithCompetitionIncrease

Inventory Choice

IncreaseCustomerTouch Points

ProvideInformation/Promotion

CreateProductAwareness

ImproveProductDelivery Times

Solve StaffShortages

Other

Source: Dr Martin Fabel, Partner A.T.Kearney

Retailers Retail Operators Mall Operators Store Designers

Facilities Managers Legal Advisors Investors/Financiers

Consultants TechnologyProviders

Professional ServiceProviders