Retailers say a mix of big-name brands and lifestyle products will help drive sales at a Dubai electronics show this week.
The semi-annual Gitex Shopper event opened on Wednesday, with vendors including Sharaf DG and Plug Ins forecasting daily sales would be 50 per cent higher compared to the last edition.
“With UAE customers changing their phones every six months to a year, Gitex is a marketing pitch,” said Nilesh Khalko, the chief executive of Sharaf DG. “Gitex Shopper gives visibility and exposure to our product range and drives major sales.”
Traditionally the event is known for its bundled offers. However, as margins fall amid increased competition in the sector, retailers are differentiating their offerings by including top-of-the-line brands in the bundles rather than the no-name products of previous years.
“Our customers from the last shows were unhappy with some of the bundles, so we have changed to big brands such as Sennheiser, Sony, Ferrari and Apple,” said Nadeem Khanzadah, the general manager of Jumbo Electronics. “Bottom lines are under pressure locally and globally. We change our prices daily as other retailers target our prices and we theirs.”
Luxury cars are also being included in the bundles again. A BMW and an LG 55-inch TV are offered together for Dh99,950 compared to their combined list value of Dh155,000. Last year 150 of the cars were sold. Mini Coopers are also being offered with the same TV at a Dh46,000 discount on the combined list price.
This year lifestyle products including washing machines and fridges are on sale at the event, but some of the big local retailers have held back from taking more space to showcase these items.
“Dubai World Trade Centre rents are always a factor,” said Sean Connor, the general manager of Plug Ins. “It’s dependent on the response, so we will see next year for the lifestyle offering.”