[ad_1]
Dubai: Startups and small business owners in the UAE are clearly looking beyond interest rates and the cost of inflation, focusing on two fundamental questions – what are their chances of finding a consumer base? If they manage to do this, will it be enough to stay in business?
Whether starting a business or expanding it, these owners are taking advantage of the moment to try to succeed. Many of them are doing it all at the same time in the UAE, whether in the tech or digital space, old-school retail with a twist, or even in trend-spotting categories like fitness.
There is one constant fact: there is no stopping anyone from entering this industry.
“Today’s startups are shifting their focus to leveraging artificial intelligence and machine learning (ML) to disrupt micro-segments of the ecosystem to meet consumer needs,” said Eddie Maalouf of Toughlove Advisors. “[That is]regardless of industry. Startups are now targeting specific points rather than disrupting the entire system.” Startups still face the same challenges as before, namely limited access to capital, lack of resources, competition from established players, and access to local networks and resources limited. These challenges are unlikely to disappear anytime soon.Therefore, the success of a new venture still depends on its business model and scalability potential
New startups still face previous challenges of limited access to capital, lack of resources, competition from established players, and limited access to local networks and resources. These challenges are unlikely to disappear anytime soon.Therefore, the success of a new venture still depends on its business model and scalability potential
-Eddie Maalouf, Toughlove Advisors
“They are creating payment gateways, microfinance, automated logistics and last-mile delivery, whether they are offering consumer goods, rides or services.”
Opportunities are emerging across categories and platforms. For the right idea or product, there are platforms and funding available.
- Amazon’s UAE business plans to “showcase” the products of up to 100,000 small and medium-sized enterprises in 2026, increasing this number from 50,000 to 100,000. Once the program reaches critical mass, its impact will be to dramatically reduce SMEs’ time to market and visibility. A statement from Amazon said: “As part of this program, we will continue to support local businesses and small and medium-sized enterprises by providing them with opportunities to reach customers on Amazon.ae, as well as the technology and logistics solutions we provide through Amazon Fulfillment. program to help them grow.” At that time.
- At the end of January last year, Majid Al Futtaim’s Carrefour franchise store “opened” at Zola Collective’s flagship store in the Mall of the Emirates. The woman-owned health and lifestyle brand is one of 14 startups/SMEs recognized as winners of the Majid Al Futtaim Launchpad program for 2022.
- Eco-friendly fashion platform Only Ethikal has launched a crowdfunding campaign with Eureeca to “expand its product line and expand its regional reach.” The company has set a goal of raising $250,000, with the campaign running on the Eureeca platform for 90 days.
- Zbooni has launched a “chat-to-store” marketplace in the hope of attracting “highly rated” Emirati brands. If a customer finds a product they really like, they’ll continue the chat and complete the purchase. CEO and co-founder Ray Assaf calls it a more “humane approach to business.” There is also e-commerce.
- And there’s always private equity available to support business models that have a chance of continuing to grow. Emirati brand Carter & White has just received AED 40 million in Series A funding. The luxury clothing and accessories company will open its first store in Riyadh’s Al Faisaliyah Center in the fourth quarter. Then add other stores in the Bay Area and then Europe. (A pop-up store will open in Porto Cervo, Italy, from June to September.
Shouldn’t rising interest rates force a rethink?
All of the above shows that the platform already exists and the funding already exists to take advantage of it. But given the rising cost of capital since March 2022, should businesses, especially emerging ones, be extra cautious? (With the Fed raising interest rates ten times, financing costs have certainly risen.) Stewart Miller is the founder of The Platform Studios, a boutique fitness club that was later acquired by local entity FitnGlam. He thinks interest rates and all that can be looked at in different ways.
“The UAE’s economic growth and potential wage growth should ease pressure on consumer wallets and increase disposable income,” Miller said. “Our target group prioritizes health and wellness – within (their) rental (payment commitments) After that. So our business is in a good position.
“While there are many (fitness) operators in this market, success will belong to those who offer value-driven rather than commoditized business models. As Dubai’s population grows and more people prioritize health and wellness, There will be ample opportunity.”
By focusing on building community and delivering quality experiences, niche entities can attract loyal customers and maintain sustainable profits
– Stewart Miller of Platform Studios
Many changes have taken place after the epidemic
Industry insiders say the post-pandemic transformation of business and entrepreneurship is still unfolding. For evidence, look to the deals happening in the cloud kitchen space, where larger players are acquiring niche operators and creating greater scale. The pace of development of the cloud kitchen concept is a direct result of changes in consumer behavior and trends post-COVID-19. This isn’t the only one. Anything related to expanding the scope of digital payments or BNPY also happens in the post-pandemic period.
As the post-COVID phase approaches, health-centric businesses are undoubtedly at the top of the list, along with entrepreneurial concepts that disrupt traditional concepts.
In the second case, it even means opening a physical store. Gautam Sinha, creative director and founder of Indian luxury leather accessories brand Nappa Dori, said: “Although there are many successful cases of brands developing and growing in a short period of time on the Internet, the proportion is very small.” In Dubai.
“What they don’t realize is that even though an online market is easy to set up, sustaining it in the long run is another matter. Not only do you have to enter the most competitive market, but you also need deep pockets to be able to build a presence through social media marketing. Be seen online. Everyone is competing with each other for attention.”
Bricks and mortar stores are not going away – people need tactile retail to create an emotional connection with customers.
——Gautam Sinha of Nappa Dori
The ReSHA brand will be launched in 2022, with an initial establishment cost of approximately AED 25,000, covering logo design, photography, materials and labor.
We conceptualize the design and then find the right materials for the design. Our designs tend to blend Western influences with classic patterns and silhouettes. We source the best fabrics from India and the United Arab Emirates, with Dubai being a major hub for global textile import and export.
– ReSHA brand launched by Rehana and her sister Shana.
“It’s possible to start a fashion e-commerce business with just Dh10,000, but getting initial traction is the real challenge,” said Rehana of ReSHA Brands.
Image Source:
It is true, there are other concepts, that time never transcends. Connect with customers, whether physically or digitally. In the UAE, business owners have the opportunity to do it all.
An Emirati startup produces $15,000 worth of perfume for the U.S. market
“We identified a demand for luxury fragrances in the Middle East and the United States and capitalized on it. In a short period of time, we created customized niche fragrances for a variety of occasions. Prices range from $9,000 to $14,995 per custom fragrance Between dollars. Limited edition – 10 pieces – from an institution in Los Angeles.”
Each piece is worth $100,000 and contains 500 ml of natural flavors in special packaging.
——Jimmy Chaco
[ad_2]
Source link