Dubai: Value-for-money concepts are starting to make a return in the UAE’s retail landscape, confirmation that the free-spending consumer attitude has started to taper off significantly.
“These days without a retailer willing to make a visible cut on his listed prices, consumers are not committing to a transaction,” said Prakash Bhojwani, President and CEO of Time Machine Group, which operates the ‘Big Brands’ outlets. “And if one retailer cannot bring his price down to expected levels, there are many who are doing so just to seal that purchase.
“More shoppers in the UAE are taking to value purchasing and, in effect, creating new possibilities for retailers,” he added.
That also means retail possibilities are springing up in high-movement locations such as the Metro and Business Bay. “For Big Brands, we consciously chose to go in for emerging locations,” said Bhojwani. “It’s a misconception that shoppers will patronise a retailer only at the malls.
“If we maintain a pricing model that is 30-40 per cent lower than like-for-lile brands, we can build up the volumes we need to sustain the business. And we can do so even in an environment where online sales keep on growing.”
In fact, the tools of digital and social media are being used extensively by retailers to finetune the message for the intended audience. “Via social media, brands have the distinct advantage of providing customised offers according to the target demographics and psycho-graphics,” said Shyam Sunder, Head of Marketing, Centrepoint.
“However, brands must [still] be cautious in the messaging they promote through these mediums, as research shows that consumers prefer the use of social media platforms for softer messages such as trends, news and insights rather than hard-selling [of] offers and promotions.
“Stats show that engagement with audiences dips when this balance is upset.”
