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It may be a better strategy to find a distributor first who can help you to get your products in smaller chains or individual stores, and then help you to get to the big names. Or to start online.
In this article you will find more information on the retail market and guidance on how to convince retailers and distributors to work with you.
Our local consultant will help you find the right distributors or retailers and convince them to work with you.
The United Arab Emirates (UAE), a federation of seven emirates in the Arabian Peninsula, has a population of about 9.9 million as of 2023. It is known for its oil wealth, futuristic architecture, and international business hubs.
The UAE’s economy, with a GDP per capita of around $43,000 USD in 2023, is highly diversified. Although oil and gas remain significant, sectors like finance, tourism, real estate, and aviation play major roles. Dubai and Abu Dhabi are key drivers of economic growth.
Major cities include Dubai, known for its modern architecture and vibrant business environment; Abu Dhabi, the capital and a cultural and economic center; Sharjah, recognized for its cultural contributions; and Al Ain, known for its universities and gardens.
The United Arab Emirates’ economy is thriving and opportunities to do business in the country are many:
These factors, combined with a strategic, accessible location for major regional markets, an excellent reliable infrastructure and an extremely pleasant, stable and safe working environment are key elements why Dubai and the other Emirates attract businesses.
Carrefour: A global retail brand, Carrefour has a strong presence in the UAE since its entry in 1995. It is known for offering a wide range of products including fresh groceries, electronics, clothing, and household essentials. Carrefour stands out for its commitment to sustainability and customer satisfaction, blending luxury and affordability in its shopping experience.
LuLu Hypermarket: Founded by Indian-born businessman Yusuff Ali M.A, LuLu Hypermarket is a key player in the UAE retail sector. With multiple hypermarkets, supermarkets, and department stores, LuLu offers quality goods from around the globe. Known for hosting cultural and festive events, LuLu Hypermarket is integral to the diverse community fabric of the UAE.
Spinneys: Established in the 1960s in the UAE, Spinneys is renowned for its selection of fresh produce, premium meats, gourmet products, and international brands. Spinneys is a leader in sustainability and community involvement, regularly supporting local agricultural projects and emphasizing eco-friendly initiatives.
Waitrose: A British supermarket chain, Waitrose has established its mark in the UAE market, offering a luxury shopping experience with a focus on quality and international products. They are committed to ethical sourcing and environmental sustainability, featuring a selection of Fairtrade items and eco-friendly packaging initiatives.
Union Coop: Established in 1982, Union Coop is known for serving both Emirati and expatriate communities through a vast network of outlets. They offer fresh produce, household essentials, and products from local and international brands. Union Coop is unique for its cooperative structure, reinvesting profits back into the community and supporting various charitable initiatives.
There is a number of FMCG agents active in Dubai with access to supermarket buyers. Please be aware that having an agent often included paying a commission. For small quantities this may seem favorable, but if you expect a larger market it may be cheaper in the long run to have someone working for you on a part-time basis for a monthly fee.
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
Where it comes to hotels, research shows that if you check these platforms, in 80% of the cases you have the lowest room rates.
If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
Distributors are risk averse, they know the portfolio they have and tend to be happy with it. They can’t just add a product or service to their range, since it will cannibalize on others:
Getting your products imported and delivered in a specific country can be a challenge. I have good experience with Tecex, who can act as your importer of record and even physical distributor. If you leave your details, they will contact you.
I always put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.
When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.
Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.
Be well prepared. All retailers expect you to prove why they are going to make more money with your product than with their current assortment. So you must know the competition.
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