Dubai So what’s the big deal about the Dubai Shopping Festival (DSF)? Twenty years after its launch, does it offer anything new? Are its overwhelming promotions, raffles and discounts for real? How do these ‘crazy’ clinchers come about? Do they make a difference to shoppers?
As XPRESS set out to dissect the anatomy of DSF, the inside story proved revealing. DSF remains the biggest driver of the shopping sector, not just in Dubai, but all of the UAE. Here’s why:
Mother of all Sales
DSF, held at the start of the New Year, sets the tone for the entire year’s sales. “The main sale periods on the Dubai shopping calender include DSF, Dubai Summer Surprises, Ramadan and Eid, besides the two editions of Gitex. But retailers reserve the best deals and discounts for DSF as it is the biggest of them all,” says Kabir Malkani, head of marketing at Lamcy Plaza and Arabian Center.
Babyshop General Manager Ruban Shanmugarajah agrees. “Our sales go up by 30-50 per cent during DSF, which makes it the biggest trading period in the year.”
Even electronics majors swear by DSF. Says Emax CEO Neelesh Bhatnagar: “Unlike GItex which is only for eight days, DSF is a month-long affair. People have more time to analyse deals, so we have to come up with outstanding offers.”
Peak tourist
The fact that DSF begins in the festive New Year season and lasts for a whole month when Dubai’s weather is at its best enhances the shopping experience. This year Dubai Airports broke all previous records by handling 650,000 passengers across its three Terminals during the opening DSF weekend between January 2 and 4.
David Macadam, CEO and vice-chairman of the International Council of Shopping Centers and Middle East Council of Shopping Centres says: “Everyone globally is looking for a pleasant shopping experience, convenience and good value on big brands. DSF fits the bill on every count.”
Kulwant Singh Lama of Lama Tours adds: “There is no better time than this for tourists to visit Dubai, enjoy the beautiful weather and excellent hotel packages and retail promotions on offer.”
It’s party time
DSF is a time when a cultural blitzkrieg is unleashed and the whole city is in a celebratory mood. Innovatively decorated and lit up streets, souqs and malls vie with each other to present a kaleidoscope of colour.
This year’s ‘Journey of Celebrations’ is set to be the biggest in the festival’s history, with over 150 mega events and attractions be it at crowd-pulling favourites like Global Village and the regular malls or offbeat attractions like Market Out of the Box and Giuliana Rancic’s pop-up shop. Besides performances by artists on streets, in parks and malls, there are also prized shows like Mama Mia and the Romeo & Juliette Les Ballets De Monte Carlo to name a few.
“The mood has to be right for a good sale to materialise. DSF is truly party time and the ambience makes a world of difference,” says Malkani.
City in sync
Thanks to a city in sync and the co-operation between different stakeholders, DSF is a huge success year after year. Says Laila Suhail, CEO of the DSF organiser Dubai Festivals and Retail Establishment: “The core team consists of about 50 people handling numerous tasks, but the actual implementation of DSF involves complex logistics made possible through the coordination between Dubai government departments and the private sector. As we see it, everyone in Dubai is involved with DSF in some way or the other.”
This year the public created history by taking part in the making of the 22 carat handmade 5.52km Dubai Celebration Chain as it entered Guinness World Records.
Are discounts for real
DSF promotions and discounts are the real clincher when it comes to boosting sales in Dubai. But just how are they arrived at?
“With DSF being the most crucial sale in the calender year, we begin planning the deals two-three months in advance,” says Bhatnagar of Emax.
“This sale is critical to vendors, distributors and retailers as the maximum tourists come to Dubai, so we maximise our offers. We not only clear old models but also promote the latest models, by striking a balance between demand and supply. With sales going up by at least 25 per cent during DSF, we deal with triple the volumes.”
Babyshop’s Shanmugarajah says the increased volumes make up for the discounted prices. “Dubai is very competitive and we need to constantly create a buzz on the shop floor and create the best value for customers. The structure of the discounts depends on many factors. “In apparel, we look at the shelf life of a product. If a product has just hit the floor and is available in full variety, size, colours and other options, the discounts would start at 25 per cent. On the other hand, if the size or other options of an old product are limited, the discounts could go up to 75 per cent.”
Srikanth Parthasarathy, Senior VP of Homes R Us, says there is a thumb rule when it comes to regular and discounted sales. For every 100 pieces of a product procured, a retailer expects to sell 60-70 pieces at the full retail price.
“Around 25-40 are sold at a discount of 40-50 per cent while the last five are given away at 40-70 per cent discount. If we don’t clear these stocks, we lose the opportunity to sell fresh stocks. This could mean that we sell five to 10 per cent of the products at below cost but the customer benefits from it.”
The biggest attraction remains the 100 kg of gold and 40 carats of diamond worth Dh15 million being offered as prizes against the purchase of gold. As for their funding, Dubai Gold and Jewellery Group Chairman Tawhid Abdullah explains: “DFRE contributed Dh5 million while the rest was raised by DGJG’s 600 members. Increased gold sales by 30 per cent and coupon sales also generate revenue. We have distributed three million coupons, up from 1.6 million last year. Each coupon costs Dh5.”
What about credibility
Whether it is raffles or discount offers, checks and balances by authorities ensure there is no foul play. As such the DSF sale carries a lot of credibility.
“Retailers are required to give a list of the prices for every item they sell before and after the discount. Those caught inflating prices are heavily fined and stand to lose their business licence,” says Parthasarathy of Homes r Us.
The raffles too are very trustworthy. Lamcy Plaza’s Malkani explains: “Before entering any promotion, we fill out a DFRE form with specific details about the mechanics of the draw, the value of money committed and a copy of the ad or creative which must be duly stamped. There can be no change in the promotions once this application is approved.”
Similarly, Dubai Economic Department which conducts every raffle draw in town ensures that the wins are genuine. “The DED inspector makes a photocopy of the winning coupons and takes it with him. We have the originals and get in touch with the winners. We have up to 60 days from the end of the promotion to contact the winner. If the winner doesn’t show up, we have to intimate the DED and submit the unclaimed prize to them. We also have to provide proof of the winners who collected the prizes,” adds Malkani.
