future retail - highest retailer representation globally
DESCRIPTION
MENA Region Is Gaining Five Million Consumers Per Year Countless challenges may cross your path to international retail success, however in real terms; there are just four potential gateways: Selecting a business model and strategic expansion plan Generating customer traffic (either in-store or online) Progressing prospects to the buying stage Getting your customers to return Live analysis of topics including location planning, pricing strategy, customer service, e-commerce and marketing will arm you with proven methods to convert your customers at each decision stage. Be privy to the latest industry advancements disclosed by the brand innovators themselves, in order to drive your sales, increase your profits and ultimately secure, protect and expand your brand.TRANSCRIPT
KSA6th
Globally
Kuwait4th
Globally
Highestspending:
UAEQatarKSA
50 %+ 45 % 40%+
Newly available shopping space is bolstering apparel industry’s expansion.
Foreign retailers found success working with local partners such as
Al Tayer, Alshaya, Rivoli Group, Majid Al Futtaim, and Chalhoub.
Source: 2013 Global Retail Development Index, AT Kearney
“A good e-commerce website will see about a 2% conversion rate the comparable rate for a destination bricks-and-mortar retail store is 20% to 30%.”
Source: Jon Provisor, chief information officer of Guidance, a Marina del Rey
By 2015 Dubai’s Gross Leasable Area (GLA) will increase by 14% and in Abu Dhabi (where mall space is scarce) GLA will rise by 48%.
Source: 2013 Global Retail Development Index, AT Kearney
34% of UAE consumersreport makingonline B2C transactions
E-commerce: From bricks to clicks, Acuity Middle East, 2012
UAE2nd
Globally
12%
19%22%
13%
20%
8%4%
1%1%
MID-RANGE FASHION
LUXURY & BUSINESS FASHION
SPECIALIST CLOTHING
COFFEE & RESTAURANTS
OTHER
VALUE & DENIM
HOMEWARE & DEPARTMENT STORES
CONSUMER ELECTRONICS
SUPERMARKET
Highest Retailer Representation Globally
Percentage of Retailers EnteringEMEA By Sector
UK
UAEUSSpain
China
France and GermanyItalyRussia
Saudi Arabia
18 67
3
5
94
2
MENA Region Is Gaining
Five MillionConsumers Per Year
34%
“In my opinion for this region, there is even more opportunity for M-Commerce. So many people don’t have a laptop, but they do have a phone.”
Source: Sonia Lekhal, Regional Marketing Director, Souq.com
UAE Remains Attractivein Apparel Spending
39%
60%
of consumersglobally prefer to
pay by cash.
of consumers In MENA preferto pay by cash.
Source: 2013 Retail Apparel Index, A T Kearney
Source: Ernst & Young's 2012 MENA Customer Barometer
Source: How Global is the Business of Retail, CBRE, 2013
Dubai Abu Dhabi
14%
48%
futureretail.ae
2 in 5 consumers enter stores withno set idea of what to purchase. "�ese consumers are waiting to be influenced throughgood customer service." E-commerce: From bricks to clicks, Acuity Middle East, 2012
?? Primary Drivers for Investment inTechnologies for Retail Organisations:
ImproveCustomerService
Source: What’s Driving Tomorrow’s Retail Experience? Motorola, 2012
will focus onthe following:
Many retailers are testing the waters in UAE before venturing into other markets due to:
Decreasing
• Costs• Shrinkage• Customer Complaints• Operating Expenses• Overtime• Effort• Manual Efforts• Redundancy• Employee Stress• Conflict
Increasing
• Profit• Sales Revenue• Efficiency• Customer Satisfaction• Product Turnover• Multiple Sales• Employee Retention• Shareholder Value• Return on Opportunity• Consistency
Who You Will Meet
Selecting a business model and strategic expansion plan
Generating customer traffic (in store or online)
Progressing prospects to the buying stage
Getting your customers to return
Discover How To Excel in �e Following:
Consumers want
To help shape innovation
Rewards for loyalty
Payment options
GCC consumers expectedto continue spending on basic items like food and education.
Retailers like Panda and Lulu have taken a third of the time to open 100 stores when compared to Western
counterparts, such as Morrisons, Waitrose, and Sainsburys.
22%16%
16%
14%
12%
1%
8%
Tourism
Large expatcommunity
Sizeable retailsegment
Ease of doingbusiness
Food = Largest Segment ofConsumer Expenditure in �e Region
"Essentially, Future Retailis a tool to improve yourbottom line."
Rizwan Asim,SSC Al-Suwaidi Holding Company, KSA
51%
18%Keep PaceWithCompetitionIncrease
Inventory Choice
IncreaseCustomerTouch Points
ProvideInformation/Promotion
CreateProductAwareness
ImproveProductDelivery Times
Solve StaffShortages
Other
Source: Dr Martin Fabel, Partner A.T.Kearney
Retailers Retail Operators Mall Operators Store Designers
Facilities Managers Legal Advisors Investors/Financiers
Consultants TechnologyProviders
Professional ServiceProviders