Dubai: Key consumer electronics retailers in the UAE are looking to cash in on the Eid shopping frenzy, with most offering good discounts to entice tourists and residents alike.
Some retailers are offering 100 per cent of the purchased product value as bundled offers.
“Sales usually drop a little during the first three weeks of Ramadan and then pick up during the last week as people prepare to give gifts to their loved ones. One reason is that the last three to four Eids have come during the summer holidays,” Nadeem Khanzadah, head of retail at Jumbo Electronics, told Gulf News.
With DSS set to kick in, Khanzadah expects sales to pick up further as tourist are pouring in as many Gulf countries have declared one-week holidays for Eid Al Fitr.
“TV sales have shown a very good increase, especially in 46-inches and above. Sales of 46 inches have grown almost 50 per cent. Sales of 32-inches have been very small,” said Deepak Babani, CEO of Eros Group.
He said that smartphones have done very well and with the introduction of global launch of Samsung Galaxy S5 Duos (dual SIM option) in Dubai, sales are expected to multiply this week.
Eros has registered almost 35 per cent increase in Eid sales.
Sean Connor, general manager of Plug Ins, said that sales have been very aggressive in the last 10 days. “Our sales have been up by 16 per cent. We are offering exclusive discounts on smartphones, TVs and some of Apple products,” Connor said.
Tourists
Ashish Panjabi, COO at Jacky’s Electronics expects sales to climb. “Ramadan sales have been better than the past many years. So the same trend will continue this week even after the Eid Al Fitr. Many Gulf tourists have already landed in Dubai,” said.
He said that tourists can only spend time at the malls due to the hot weather outside. So sales at major malls are expected to pick up.
Jacky’s has registered a 15 per cent increase when compared to Eid to Eid sales, and around 15 per cent increase compared to last month.
Smartphones are the clear winner, followed by TVs, notebooks and tablets.
“People give tablets and smartphones as gifts,” Panjabi said.
Jumbo is expecting around 25 per cent growth in Eid to Eid sales. The same trend is expected to continue for the entire week.
“Tourists buy smartphones rather than TVs while point-and-shoot camera sales are already down due to the cannibalisation of smartphones,” Khanzadah said.
Bank tie-ups
Many retailers are offering zero per cent financing options in tie-up with major banks and this is making a big difference in sales for some retailers.
“We have around 13 banks working with us, and the reports from banks show a healthy growth through this option,” Panjabi said.
When it started two years, Babani said there was big demand for zero per cent financing. But he said as all the retailers started going for this option, Jacky’s has not benefited much. Only 20 per cent of the people buy through this option.
Zero per cent financing option has made a difference but not so much for Jumbo. The mindset of the people is to “pay by cash or use credit card,” Khanzadah said.
“It is not a buying culture on instalment here. The offers are quite good during this week. We are offering 100 per cent as bundled offer value on certain products,” he said.