ID :
41979
Wed, 01/21/2009 - 15:52
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https://oananews.org//node/41979
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DSF consumer spending likely to reach Dh10b
Dubai, Jan 21, 2009 (WAM) - This year's edition of the month-long Dubai Shopping Festival (DSF) is likely to see consumers spending rise to Dh10 billion and visitor numbers reach 3.2 million, a top official said according to a report in “Gulf News.”
Laila Suhail, the chief executive of the DSF Office, said they aim to maintain the momentum witnessed during the Shopping Festival last year, although they have revised their strategy to attract visitors and stimulate consumer spending amid the economic downturn.
"The effect of the global recession compelled the DSF Office to devise a different marketing strategy to attract visitors. Accordingly, efforts were on to promote DSF 2009 in markets relatively unaffected by the crisis such as the GCC (Gulf Co-operation Council), Russia, Iran, India, China and Japan," Suhail told Gulf News.
Consumer spending and confidence in the UAE are already showing signs of fatigue, as people worry over the impact of the financial crisis on their wallets, according to industry sources. The trend is seen to dampen sales, thus retailers have been urged to revise their marketing strategies.
"At times of slowdown, we observe that consumers reallocate their spending according to hierarchy of needs. High priority categories like food, healthcare and education are the ones on which consumers would like to maintain their spending levels," said Sevil Ermin, UAE managing director for The Nielsen Company. "Medium-priority categories will see reduced consumption and switches to value brands during the slowdown.
"During this slowdown, value proposition gains critical importance. Retailers and manufacturers need to focus on understanding changing needs of consumers and work on value proposition," Ermin added.
At times like these, Suhail said retailers and hotels need to come together to offer shoppers value-added promotions "on a scale bigger and better than previous" DSF editions in order to revitalise consumer sentiment.
"While the global recession has affected countries around the world and questions arise about consumer spending, the DSF Office is playing a vital role in re-energising the retail and hospitality sectors in Dubai," Suhail said.
The mega shopping event has snowballed consumer spending every year, from Dh2.15 billion in 1996 to Dh10.2 billion in 2006-2007, when expenditure was the highest as the extravaganza lasted 45 days.
In 2008, spending stood at Dh10 billion and the number of visitors reached 3.2 million.
Laila Suhail, the chief executive of the DSF Office, said they aim to maintain the momentum witnessed during the Shopping Festival last year, although they have revised their strategy to attract visitors and stimulate consumer spending amid the economic downturn.
"The effect of the global recession compelled the DSF Office to devise a different marketing strategy to attract visitors. Accordingly, efforts were on to promote DSF 2009 in markets relatively unaffected by the crisis such as the GCC (Gulf Co-operation Council), Russia, Iran, India, China and Japan," Suhail told Gulf News.
Consumer spending and confidence in the UAE are already showing signs of fatigue, as people worry over the impact of the financial crisis on their wallets, according to industry sources. The trend is seen to dampen sales, thus retailers have been urged to revise their marketing strategies.
"At times of slowdown, we observe that consumers reallocate their spending according to hierarchy of needs. High priority categories like food, healthcare and education are the ones on which consumers would like to maintain their spending levels," said Sevil Ermin, UAE managing director for The Nielsen Company. "Medium-priority categories will see reduced consumption and switches to value brands during the slowdown.
"During this slowdown, value proposition gains critical importance. Retailers and manufacturers need to focus on understanding changing needs of consumers and work on value proposition," Ermin added.
At times like these, Suhail said retailers and hotels need to come together to offer shoppers value-added promotions "on a scale bigger and better than previous" DSF editions in order to revitalise consumer sentiment.
"While the global recession has affected countries around the world and questions arise about consumer spending, the DSF Office is playing a vital role in re-energising the retail and hospitality sectors in Dubai," Suhail said.
The mega shopping event has snowballed consumer spending every year, from Dh2.15 billion in 1996 to Dh10.2 billion in 2006-2007, when expenditure was the highest as the extravaganza lasted 45 days.
In 2008, spending stood at Dh10 billion and the number of visitors reached 3.2 million.
