A summer filled with surprises

Dubai: An industry-wide collaborative effort by the retail, tourism and airlines sectors is needed to "encourage" the UAE markets without relying solely on seasonal promotion events, said Chairman of Dubai Shopping Malls Group (DSMG) Majid Saif Al Ghurair.

As retailers cross their fingers for a more robust sales season during the Dubai Summer Surprises after tough times last year, the industry needs to look at the bigger picture industry leaders say.

"The industry has to work together: Airlines, shopping malls, retail discounts altogether make the industry flourish again as it used to be in previous years," said Al Ghurair, adding that retailers cannot passively stand by and wait for something to happen. "We need to enhance the offering for customers to come to Dubai."

The main problem for shopping malls, the main attraction in Dubai and the hub of DSS activities, is customer spending, not footfall.

"There are many visitors, but if they can't spend like the earlier days then it's a problem. We concentrate not on visitors but on those who visit and spend. We convert the visitor into someone who visits and spends," said Al Ghurair.

He added that due to the global economic crisis, people are more careful about their spending and are on the watch for bargains, which has affected shopping malls.

Spending in malls during the DSS 2009 fell 10 to 15 per cent, although the figure varies between the malls and products, said Al Ghurair.

"We can't take the booming years as a benchmark and continue on those levels," Al Ghurair noted.

"What happened before we didn't dream of, no one could believe it. Office space rent was higher than retail space. That never happened in Dubai. You can't expect that to stay forever."

Al Ghurair predicts that spending will "stabilise" as the retail industry has seen the "bottom of the market" and can look forward to "consolidation" as it adjusts to the current size of the market.

Expectations for 2010

DSS Chief Executive Officer Laila Suhail said she would not compare her expectations of spending in DSS 2010 with the results of 2009 because of the economic crisis and the fact that this year's DSS is only seven weeks long compared to nine weeks last year.

"Retailers have to be really smart in terms of how they attract consumers to their store — especially the visitors rather than the residents themselves," she said.

DSS seems to have come at the nick of time for retailers this year. "Actually, I was in one of the shopping malls the other day and one of the retailers came and talked to me and said, ‘When are you starting DSS' and I said ‘In two weeks.' I think because the mall was a bit empty," Suhail said.

Suhail added that the Government of Dubai and the organisers of DSS understand the impact of the "economic slowdown" on retailers and the ensuing cuts in marketing budgets. Accordingly, they have re-planned their strategies and sponsorship or participation fees to accommodate retailers' slashed budgets, she said.

DSS adds value to retailers as there are offers galore for residents who shop before going home for the summer. This plus tourists and back to school promotions attempt to increase footfall and encourage consumer spending in the three months of promotions, said Suhail.

"From a retail perspective we are expecting really good, genuine offering because retailers who are trying to play in this tough time are shooting themselves in the foot. They have to be able to attract shoppers and give them real added value because consumers are smart and especially during this time they are cautious about spending," Suhail said.

Return on investment

For Dubai Events and Promotions Establishment, which organises the DSS, the return on its Dh60 million investment in the DSS is to promote the events, tourism, and retail sectors, said Suhail.

"We are a government organisation, we are not looking at our product commercially that it should make money for us. We make sure our spending is planned in a way that we cover our expenses. That's why the majority of costs are covered by sponsorship and participation from retailers in addition to customers who are considered investors because they are the ones who support us to do much better," said Suhail.

Summer in Dubai

But is it easy to sell the idea of coming to Dubai in the sizzling summer? After all, there is so much time families or individuals can spend circulating in malls.

Suhail replied that while most DSS activities are centred on the malls, visitors can also go to the 37,000 square metre Modhesh World for hours of fun and entertainment for kids or make use of the various spa packages in the city's hotels.

Looking forward, Suhail said DSS next year will coincide with Ramadan, leading to changes in the "DNA" of the event.

Modhesh

A brand by himself

You have seen him bobbing precariously in bridges and highways, waving madly as you drive by in summer.

Upbeat, bright, and yellow Modhesh has been the most recognisable face of Dubai Summer Surprises (DSS).

But was is so ‘modhesh' or amazing in Arabic about Modhesh?

Born in 2000, the character represents Dubai and promotes the idea of ‘Big fun for little ones' which was the DSS slogan, said DSS CEO Laila Suhail.

"Over the years he has evolved to become a brand all by himself. Modhesh is a toy who stands for fun, entertainment, and adventure among children with the values of Dubai and therefore he represents our culture and reflects the globalisation we have in the city of Dubai," she said.

The inspiration for the little guy came from the idea of a father gifting his child a box from which Modhesh pops out like a jack-in-the-box, explained Suhail.

Reasoning

But what is the reason behind DSS in the first place?

"The objective of launching this event in Dubai was to boost tourism during the lean summer months and to attract visitors to come Dubai during the hot summer holidays," said Suhail. "Yes we had a lot of question marks around us whether it will work during the summer months and it did. For the last 12 years, we have been organising DSS as one of the region's premier and most popular summer festivals."

The tourism industry reported a five per cent increase in hotel bookings in the first quarter of 2010 compared to the same period last year, said Eyad Abdul Rahman, executive director of media relations and business development at the Department of Tourism and Commerce marketing.

He added that tourism is "in good shape" and that DSS is an addition not a stimulant to tourism in the country.

— D.K.Y.