Making sure consumer promotions stay relevant

I have been in the retail business for over three decades now, which has given me a hands-on knowledge of the forces that create value for the retail industry. One of these key forces is promotions.

A marketing technique that dates back to the 19th century, they have evolved over time to include several methods and tactics, all designed to increase sales by giving consumers more incentives to buy more. Now, they are a common marketing practice by retailers all over the world and usually held around certain periods or occasions cherished by different markets and cultures.

In some cases, consumer events have acquired a much bigger role to become a real leverage for sectors other than retail and for the economy in general. Dubai is an ideal case in point. Supported by a sophisticated retail sector, a multitude of hyper- and community malls, a long-standing trade heritage and, above all, a leadership vision that accentuates commerce, Dubai has taken retail promotions beyond conventional thinking to be a key driver of the micro- and macroeconomy.

With key annual platforms such as DSF and DSS, Dubai has become a globally recognised retail promotions hub. These have attracted millions of local and overseas consumers to enjoy the sales bonanza and stand a chance to win prizes such as luxury cars, cash in the millions of dirhams, gold and much more. Their impact has spilt over even into sectors such transportation, tourism and hospitality.

Consumer promotions in Dubai aren’t only about discounts and prizes. New thinking has succeeded in positioning them as annual occasions to promote family values, cultural diversity, and ultimate entertainment experiences. The DSF’s slogan ‘One City, One Family, One World’ has appealed to millions.

A whole city gets mobilised to increase their allure and appeal. Who won’t fall in love with Dubai when the city is resplendent in colours and decorations during DSF or when the Modhesh character greets you at all corners of the city during DSS? Then there are the fireworks and the many musical and entertainment shows representing different cultures hosted by the city’s malls and other venues.

The continued success is because there is an authority that sets the criteria and controls compliance by retailers. The Dubai Economic Department’s role gives credibility to the promotions and reassures consumers that their rights are protected.

This approach to consumer promotions has paid off; figures show that until 2013 over 50 million people visited Dubai during DSF, spending a total of Dh117 billion. As an observer from inside the trade, I can say that the event did help pulling traders from around the world to Dubai, consolidating further its position as a global commerce hub.

Apart from all the positive attributes of consumer promotions, I believe these offer an optimal opportunity for the retail industry to get closer to consumers and understand better their expectations. The feedback would certainly help increase the relevance of such events to consumers, which would in turn help avoid monotony.

Promotions have been around for so long a time. But, as Dubai demonstrates, they could fuel an activity spike in other sectors. Ensuring their sustainability and cross-border impact is as much the responsibility of the private sector as it is of the public agencies.

— The writer is the CEO of Emax.