One of the things you should pay attention to when conducting UAE market research is the consumer behavior of the population of this country. By knowing consumer behavior in various steps, from conducting research to business execution and investment, it can be more focused.
To get this consumer insight, you can check several explanations summarized below!
Understanding Consumer Behavior in Dubai
From various countries in the world, the people of Dubai are known as big and loyal shoppers. A survey in 2017 found that around 34% of people are fine with spending any amount of money to get products from their favorite brands. [1]
Even though it looks tempting, this also requires extra effort because the population’s expectations in this rich country are also high. So, to get this loyalty, you must know some of their behaviors before designing business strategies.
1. Hard to Impress
In general, Middle Eastern consumers like to shop online through single-brand sites. This option is popular because they believe the official site can provide the best service.
However, this does not apply to consumers from the UAE. The majority (65%) of them expect to be able to connect personally and be able to provide services tailored to them. [2]
Therefore, good personal relationships with consumers must be the primary consideration when you run a business in this country.
2. The Majority Live in Luxury
Because the population’s economy is relatively high, it is easier for luxury brands to enter this country’s market. The love of UAE residents for luxury brands is evident from how they control 30% of the luxury brand market in the Middle East.
Residents of this country can allocate 30% of their salary to buy luxury goods. Local and international luxury brands also can compete in this market because people prioritize expertise and product quality. Therefore, global and regional brand owners can compete healthily.
3. The Demographics Are Unique
Even though the female population in this country is only around 27.8%, their purchases can reach 80% of total spending. The amount of money they spend can get 43% of their monthly income.
In addition, the country’s population is dominated by expatriates from several countries. This could be an opportunity for international brands to join because they already have their own segmentation.
By looking at customer behavior through the UAE market research above, you already have a solid basis to enter this country’s market. Therefore, make sure the execution is correct so that you can successfully gain the loyalty of the UAE population.
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