Page 28 - Gulf Marketing Review

C O V E R S T O R Y

“The year 2018 should be an
improvement over 2017, as the
region looks to build on where
it left off in the previous year”

THE FIRST SIX MONTHS COULD BE
CHALLENGING FOR BUSINESSES

Nadeem Khanzadah, Head – OmniChannel Retail, Jumbo Group

The UAE continues to be an important market to online retail websites to research prices as witnessed at the Gitex Shopper Autumn
for consumer electronics in the Middle East and descriptions including product reviews edition. One overarching trend in the consumer
and North Africa, due to its strategic position by popular gadget blogs before buying electronics industry is the soaring consumer
as a regional hub and re-exporter of devices. products in store. demand for smartphones with more powerful
In addition, the country has always been a The year 2018 should be an improvement cameras and seamless performance.
launchpad for key product announcements over 2017, as the region looks to build on where Many organisations, Jumbo included, are
from major brands. it left off in the previous year. approaching VAT as an important business
Among the key trends that we have seen There has also been significant focus on transformation project that will positively impact
influencing consumer spending in the sector technologies such as artificial intelligence (AI), the industry and economy in the long term.
are the increased focus on smart technologies augmented reality (AR) and virtual reality (VR), We expect that the first six months could be
and devices across different demographics, due to increasing consumer demand for new challenging for businesses but, over a period of
including the rise in online and mobile services. sensory experiences. time, we expect it to stabilise as both consumers
These trends have contributed to the demand Innovation and immersive experiences are and operators become familiar with VAT.
for smartphones and tablets. at the forefront of consumer technology and We are not expecting any major negative
There has also been a considerable shift in are some of the biggest factors impacting impact on our sales from VAT, as consumers
online purchases for consumer electronics and the latest trends. who want to make purchases will continue to
home appliances, which are the most popular The future also belongs to the versatile buy, with or without VAT. It is important to note
products sold on e-commerce platforms. A and the flexible, and cloud technology is that the proposed five per cent rate will be
growing number of consumers are turning demonstrating how relevant it is for customers, among the lowest standard rates in the world.

28 I GULF MARKETING REVIEW I DECEMBER 2017/FEBRUARY 2018