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| 24 September, 2018

Dubai will remain an attractive destination for retailers, tourists

The growth for the retailers will mainly come from offering quality products at right price

Image used for illustrative purpose. The Dubai Mall area in Downtown Dubai, in July 2016. Image supplied by developer Emaar.

Image used for illustrative purpose. The Dubai Mall area in Downtown Dubai, in July 2016. Image supplied by developer Emaar.

Emaar Properties

Dubai continues to attract global brands from new markets due to higher growth and it will also remain a strong magnet for tourists and shoppers alike from different corners of the world, industry executives said.

Shailesh Dash, chief executive officer and founder of Al Masah Capital, said emirate has been on top of retail graph by any numbers and it keeps growing as more and more people come to Dubai, hence, it becomes attractive destinations.

Going forward, he pointed out that the growth for the retailers will mainly come from offering quality products at right price.

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"I believe Dubai offers much higher growth rate as it is growing at a double-digit rate. But growth in consumer space is in lower single digit in many parts of the world. People now look at quality products at the right price tag. And this is where the growth is for retailers," Dash said at the launch of Brazilian cosmetic brand O Boticrio outlet in Mirdif City Centre. The brand operates around 4,000 branches in 10 countries and plans to add another one in Dubai Mall later this year. Launched in the UAE in partnership with Millennial Capital, O Boticrio intends to expand operations to other GCC countries with Saudi Arabia high on the agenda. The two parties will establish online partnerships with leading e-Commerce portals, stores in stores targeting the departmental stores and pharmacies, and expansion to Saudi Arabia in Q4 2019.

Andreea Danila, founder and managing director of Millennial Capital, stressed that the company chooses brands that has exponential growth potential locally and regionally.

"We look at organic growth and acquisitions also definitely is the way forward. At this time, we don't find quality local aspect that we can acquire or expand into region. We look into companies that offers 5-6x returns on our investments," she said.

Millennial Capital already runs a footwear brand from Miami and aims to introduce a jewellery brand that is categorised into affordable segment.

"We normally look into investing in phased approach and into the brand. For us, investment size ranges from $1 million to $5 million in each series. In early 2019, we will be raising up to $5 million," she added.

Andr Farber, vice-president of Business and Franchises at O Boticrio, said, "We are bringing the Amphora store in Dubai in a new format that defines the evolution of physical retail by offering consumers unique experiences. It will provide interactive content coupled with a visual aesthetics created to attract visitors to the brand's stories. The new store will offer some of the most innovative retail technologies; helping us connect better with our customers through services that set us apart." -waheedabbas@khaleejtimes.com

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