The United Arab Emirates (UAE) is one of the global financial hubs attracting companies and potential business giants worldwide. The region has the potential to provide immense support to businesses, especially in the engineering and technology sector.
If you are a company that plans to expand in the UAE, there is a good chance of success, and there are many reasons for it. First, as you start learning about the local culture and consumer behaviours, it becomes easier to establish and expand in the consumer market.
This article will look into the five essentials needed to win the local consumer market in the UAE.
Targeting the Locals
The UAE has something to offer everyone. However, Arabic is the primary language for communication. So, if European brands want to enter the UAE market, they might be dealing with documentation in a language which is not native to the market. Therefore, one of your first steps should be to seek the assistance of a specialist translation services agency.
Working in Arabic makes it easier for you to target the locals, even though the country has less than 12% of Emiratis. So, is it essential to take up Arabic translation services if the Arabic speakers’ ratio isn’t that large?
Working in Arabic will help you establish your business as a native business. At the same time, UAE residents prefer local products more than imported ones. We will talk about that later in this post. But, when you work in the Arabic language, there is a higher chance of attracting consumers.
What Does the UAE Consumer Market Look Like?
The consumer market in the UAE is evolving considerably, and it’s not what it used to be about a decade ago. As a result, both UAE and Saudi Arabia have experienced some drastic changes in their consumer behaviour, and these changes are worth noting.
Especially if you are a business looking to find its feet in the UAE market, understanding these changes will give you a winning chance with your consumers. So, before we discuss the considerations about the UAE consumer market, here is a look at some stats that indicate the latest trends in the consumer sector:
• The UAE is quickly becoming price sensitive. People in the Gulf region are more conscious about spending as nearly 80% believe they may lose their jobs.
• For consumers, brands have become a secondary option. So, they are less likely to stay loyal to their brand and focus more on less-expensive options.
• The competition keeps getting more challenging as more brands enter the market, making it tougher for sellers to win the consumer market.
• The UAE is more health-conscious than ever. Now, more people prefer low-fat, low-sugar products as they expect a better return on investment for their health.
What Companies Should Consider Stepping into the UAE Market?
Here are five crucial things to consider if you want to win the consumer market in the UAE.
1. Understand the Cultural Diversity in the Country
The UAE is one of the few countries globally rich in cultural diversity. With the locals forming less than one-eighth of its population, the UAE is home to many nationals from India, the Philippines, Pakistan, Egypt, Bangladesh, and many other countries.
It means that the UAE is home to many different customs, languages, and religions. Moreover, languages like English, Urdu, Hindi, Bengali, Malayalam, etc., are also widely spoken here.
This means that businesses must understand the need for language translation services in this region. If language and cultural diversity aren’t your priority, you can have difficulty fitting into the UAE consumer market.
At the same time, cultural diversity gives you more chances to explore different businesses. For instance, the Burj Khalifa in Dubai is set to celebrate festivals, national days, and various occasions globally. This means that the country welcomes cultural celebrations, allowing more inclusivity.
2. Local Goods are in High Demand
The UAE consumer is inclined to buy more local products. It’s one of the emerging trends in the country. A survey revealed that nearly 80% of consumers prefer local products.
Interestingly, the trend is common among locals and expatriates living in the UAE. Therefore, businesses that want to establish themselves in the UAE must find ways to include local products if they’re going to win the consumer market.
Moreover, using local ingredients to prepare food items is an excellent way to create a local appeal, especially for foreign companies. Here, it’s also helpful to take up Arabic translation services to understand different ingredients and how to choose them for other food products.
3. Set Product Pricing Strategically
Locals are pretty conscious of product prices. Price is one of the primary reasons why they prefer local products. So, businesses must set strategic pricing for their products to target consumers more accurately.
When it comes to setting strategic pricing, some of the essential factors include:
• Pricing Gaps
• Competitor pricing
• Brand health
• Brand Equity
• Consumer Affordability
The winning brands tend to compensate for a possible price reduction through reduced trade funding.
4. Invest in Data Analytics
The top brands in the UAE have equipped themselves with the most advanced data analytics tools. It’s a rising trend, but many companies still need tech resources to manage their current customer base.
There seems to be a significant gap in customer management tools in the UAE, which means that businesses are yet to master their customers’ preferences. Therefore, companies cannot target customers appropriately, and there is a lack of optimization.
So, while opting for an Arabic translation service is essential, businesses must also use advanced data analytics tools to examine and predict consumer behaviour more accurately.
5. Focus on Finding and Attracting Talent
A good percentage of businesses in the UAE consists of a diverse workforce. In other words, the workforce comes from different countries, and local workers are still in smaller numbers.
However, with the rising trends of nationalism and support for local products and workforce, a business needs to target the local talent from the country.
It creates even more appeal among consumers who are likely to buy from local businesses. While you’re focusing on recruiting locals, it is also essential to invest in their training and prepare them for a competitive business environment.
The UAE is a great place to expand your business. However, having adequate knowledge of the local market will help you better understand what’s needed to win local consumers in the region. Hence, acquiring Arabic translation services can be a significant step to targeting your customers and optimizing your business for locals.