Retailers aim to cash in on Eid frenzy
Expect smartphones to steal limelight, followed by laptops and TVs
Dubai: Key consumer electronics retailers in the UAE are looking to cash in on the Eid shopping frenzy, with most offering good discounts and bundled offers to entice tourists and residents alike.
They expect smartphones to steal limelight, followed by laptops and TVs.
Looking at the economics, Neelesh Bhatnagar, CEO of Emax, said that this Ramadan has been extremely good.
“It will be exciting weeks ahead as many Saudi tourists are expected to land in Dubai after the Eid,” he said.
Among the smartphones, iPhones continue to dominate, followed by Samsung S6, HTC One M9, Huawei P8, LG G4 and Sony Z3 +.
“Sales usually drop a little during the first three weeks of Ramadan and then pick up during the last week as people prepare to give gifts to their loved ones. One reason is that the last three to four Eids have come during the summer holidays,” said Nadeem Khanzadah, head of omnichannel retail at Jumbo Group.
Onmichannel retailers (having physical and virtual stores) are offering special discounts on virtual stores on certain products to boost sales.
He said that smartphones are still growing at a healthy pace but tablets and cameras are declining.
Some retailers are offering close to Dh1,000 as cash back or on bundled offers on smartphones and Dh4,000 as bundled offers on TVs.
Bhatnagar said that TVs are expected to do well after mobiles as people look for bigger screen sizes to entertain visitors.
With DSS (Dubai Summer Surprises) set to kick in, retailers expects sales to pick up further as tourist are pouring in as some Gulf countries have declared one-week holidays for Eid Al Fitr.
Bhatnagar said that tourists can only spend time at the malls due to the hot weather outside. So sales at major malls are expected to pick up.
“Tourists buy smartphones rather than TVs while point-and-shoot camera sales are already down due to the cannibalisation of smartphones,” Khanzadah said.
Many retailers are offering zero per cent financing options in tie-up with major banks and this is making a big difference in sales for some retailers.
Zero per cent financing option has made a difference but not so much for Jumbo. The mindset of the people is to “pay by cash or use credit card,” according to Khanzadah. “It is not a buying culture on instalment here. The offers are quite good during this week,” he said.
But it has made a big difference for Emax. “It helps buyers to upgrade and go for better products,” Bhatnagar said.
