Expanding your eCommerce Business to Dubai – 7 Important Considerations

Your Retail Coach

Expanding your eCommerce Business to Dubai – 7 Important Considerations

Index Your Retail Coach

1. Introduction 2. Market Analysis 3. Feasibility Study 4. Business Plan 5. Mode of Entry 6. Marketing Strategy 7. Financial Analysis 8. Web/App Customization 9. Summary

1. Introduction Your Retail Coach

The gulf region is set to grow exponentially within the next few years

The internet penetration rate in the UAE is 90%

The eCommerce sales in the region are heavily skewed in favour of Dubai as the city houses 6 out of 10 of all online buyers

Dubai Executive Council seeks to increase the share of eCommerce in the local economy

It also aims to reduce the cost of eCommerce operations by a fifth

Index

2. Market Analysis Your Retail Coach

 Identifying the market segments, defining your target segment, market size, competition, substitute products, etc  A report from 2018 shows that software products hold 41% of the country’s eCommerce market while clothing and fashion accessories hold 17% and 14% respectively  It is evident that there is low penetration in the fashion and clothing segment  But only further market research could tell whether there is market potential or not  Presence of similar competitors is a quick way to shed some light on market potential

Index

3. Feasibility Study Your Retail Coach

 Answers whether a business idea would be feasible or not and if a compatible business environment exists  Assesses the actual ground-situation by taking into consideration all the relevant environmental factors having impact on business  Important to be convergent with the laws and regulations governing international eCommerce business and such companies in the UAE  Factors that need to be considered are supply chain and distribution network and infrastructure, support of banking services, meeting technological requirements  Another important aspect to consider is the taxation environment and labour laws in the UAE for eCommerce businesses

Index

4. Business Plan Your Retail Coach

 Creating and delivering the business offering to the target market segment over and over again  This will include considering  Regulatory permissions and compliances for doing business  Laying out the logistical  Supply chain and distribution network plan  Human resource management  Marketing strategy  Office and administration  Financial planning

(capital

requirements,

profitability,

break-even, etc.)  Technology and technology partners

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5. Mode of Entry Your Retail Coach

 There are several modes of entering as a business entity into new geography  Establishing fully owned subsidiaries  Partnerships  Franchising  Mergers and acquisitions  Strategic alliances  Joint ventures  Exports  There are pros and cons of each of these entry modes in different countries

Index

6. Marketing Strategy Your Retail Coach

 Impressing customers in the UAE can be a tough job with global brands functioning at full-throttle  There might be a tiny window to communicate the value of your offering to your customers  There is no scope for inefficiencies in the delivery and distribution network  No competitive business in the UAE can afford to play below the industry standards and customers’ expectations

Index

7. Financial Analysis Your Retail Coach  After a business plan is prepared, more precise details are available for better financial assessment  Some important aspects to be covered under financial planning include:  Assessment of capital requirements  Operational expenditure budget  Sales forecasts  Projected cash flow  Planning for working capital management  Projected income statement  Projected profit and loss statement  Projected balance sheet  Break-even analysis  Ratio analysis Index

8. Web/App Customization Your Retail Coach

 This is where your brand interacts with your customers at the working level  Their is the need to customize an eCommerce website/app to make it compatible with the audiences for whom it is meant  Customizations need to fine-tune the local requirements like host country’s official currency, using host country’s official language

Index

9. Summary Your Retail Coach

Expanding your business to a new country can be challenging, but YRC helps your business to complete these challenge successfully

Dubai is one of the fastest growing country for eCommerce business, so expanding your business in this region will be a great opportunity for you

From Market Analysis to Web/App customization, YRC ensures a successful business setup.

Index

For further details and fulfilling your consultancy and SOPs needs, please visit us at 

https://www.yourretailcoach.in/expanding-your-ecommerce-business-to-dubai-7-important-considera tions /



http://www.yourretailcoach.ae



https://www.businessprocessxperts.com/

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