DUBAI
Apple’s opening of its third store in the UAE is justified by the demand for Apple products, according to industry experts. Apple sent out an invite on Thursday announcing the opening of its third retail store in the UAE and the second in Dubai — at the Dubai Mall, on the evening of April 27. Apple already operates outlets in Mall of the Emirates in Dubai and Yas Mall in Abu Dhabi.
Sukhdev Singh, vice-president at market research and analysis services provider AMRB, said that the demand for Apple products justifies the opening of their new store at Dubai Mall. “When looking globally, Apple is the only brand which has the highest per shop revenue when compared to others, including fashion brands. Those per square feet of sales Apple stores have done have justified its brick-and-mortar stores, in addition to its online sales,” he said. He added that what Apple is trying to do is build a “strong interaction” with consumers amid their [consumers] shift to e-commerce.
Apple is targeting the country’s creative community with a two-level store with a tagline “Creativity. Connected,” as was stated on the company’s invite for the Dubai Mall store opening. The outlet will feature more than 150 products including Apple Watches, iPhones, MacBooks, Beats headphones, iPads, iMacs, Apple TVs and select third-party accessories.
Nikola Kosutic, Research Manager at Euromonitor International, said that e-commerce is expected to explode and the UAE market is ripe for it.
The e-commerce market in the UAE is expected to grow by 21.21 per cent to Dh1.59 billion this year compared to Dh1.32 billion a year ago, whereas the consumer electronics industry is expected to grow by just 1.69 per cent to Dh12.07 billion this year, from Dh11.87 billion last year, as per the research firm’s estimates.
AMRB’s Singh said that it is a great move from Apple and the stores are not only meant for sales but also for developing brand interaction with consumers, holding workshops and servicing.
“The service centre at the Mall of the Emirates is overbooked and customers have to stand in the queue to buy products and get their products serviced. Sometimes customers have to wait for a longer period just to get an appointment,” he said.
Apple had opened its first two stores in the UAE on October 29, 2015.
Nadeem Khanzadah, head of OmniChannel retail at Jumbo Group, said that Apple opening its third store shows how the country is getting importance. Justifying the move, he said: “Apple needs a bigger store as the demand for its products is growing.”
Apple has more than 490 retail stores in 20 countries besides online stores available in 39 countries. While majority of the US giant’s stores are located inside shopping malls, it has also built several stand-alone flagship stores in high-profile locations.
Apple is also planning to open its first store in Singapore, South Korea and Taiwan this year.
