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Dubai: Start-ups and small business owners in the UAE are clearly thinking about two fundamental questions beyond interest rates and inflation costs – what are their chances of finding a consumer base? If they manage to do that, is it enough to stay in business?
Whether starting or expanding their business, these owners are using the present to succeed. Many of them are doing so in the UAE at the same time, whether in tech or digital, or old-fashioned retail, properly adapted, or even trendsetting categories like fitness.
One constant – no one will prevent access to business.
“Today’s startups are turning their attention to using artificial intelligence and machine learning (ML) to disrupt micro-segments of the ecosystem to meet consumer demand,” said Eddie Maalouf of Toughlove Advisors. Industry is irrelevant.
Startups are now targeting specific points rather than disrupting the entire system.
-Eddie Maalouf, Toughlove Advisors
“They’re creating payment gateways and microfinance and automating logistics and last-mile delivery, whether they’re providing consumables, rides or services.”
Opportunities are opening up 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 SMEs by 2026, up from 50,000 to 50,000. Once the program reached critical mass, all it did was dramatically reduce time-to-market and visibility for SMEs. “As part of this initiative, we will continue to support local businesses and SMEs, helping them grow by giving them access to customers on Amazon.ae and our technology and logistics solutions through Amazon,” Amazon said in a statement. a statement said. then.
- In late January last year, Majid Al Futtaim’s Carrefour franchise “joined” Zola Collective at its flagship store in the Mall of the Emirates. The women-owned health and lifestyle brand is one of 14 start-ups/SMEs to be selected for the 2022 Majid Al Futtaim Launchpad programme.
- Eco-friendly fashion platform Only Ethikal has launched a crowdfunding campaign with Eureeca to “expand its product line and increase its regional presence”. The company set a goal of raising $250,000 and the campaign ran for 90 days on the Eureeca platform.
- Zbooni has launched a chat-to-shopping marketplace in which it wants “highly rated” Emirati brands to enter. If a customer finds a product they really like, they continue to chat and complete the purchase. CEO and co-founder Ray Assaf calls it a more “human approach to business.” and e-commerce.
- And there’s always private equity that can back business models that have the opportunity to continue to grow. Emirati brand Carter & White has just secured AED 40 million in Series A funding. The luxury clothing and accessories company will open its first store in Riyadh’s Al Faisaliah Center in the fourth quarter. Then add other stores in the Gulf and then on to Europe. (A pop-up store will open in Porto Cervo, Italy, from June to September.
Shouldn’t the rate hike force a rethink?
What the above reveals is that the platform is there, and the funding is good enough to make it a punch. But given the rising cost of capital since March 2022, shouldn’t businesses, especially start-ups, be extra careful? (With the Fed raising interest rates 10 times, financing costs have certainly risen.) Stewart Miller is the founder of The Platform Studios, a boutique fitness club that was acquired by local entity FitnGlam. He thinks interest rates and all of that can be looked at differently.
“Growth in the UAE and (consequent) potential wage increases should ease the pressure on consumers’ wallets and boost disposable income,” Miller said. “Our target demographic prioritizes health and wellness — after (their) rent (payment commitments). So our business is well positioned.
“While there are many (fitness) operators in this market, success will go to those who offer a value-driven rather than a commoditized business model.” As Dubai’s population grows and more people place health and wellness In the first place, there will be ample opportunity.
With Dubai’s population growing and more people making health and wellness a priority, there will be ample opportunities.
– Stuart Miller, The Platform Studios
Great changes after the epidemic
Industry sources say the post-pandemic shift in business and entrepreneurship is still emerging. The proof is, look at the deals happening in the cloud kitchen space, where bigger players are acquiring niche operators and creating more scale. The speed at which the cloud kitchen concept has grown is directly a result of post-Covid changes in consumer behavior and trends. It is not unique. Anything to do with expanding the scope of digital payments or BNPY is also happening in the post-pandemic period.
As the post-Covid phase takes over, wellness-focused businesses are definitely the go-to, alongside entrepreneurial ideas that disrupt conventional notions.
In the second case, it even means opening a physical store. “While there are many success stories of brands becoming huge online in a short amount of time, the percentage is very small,” says Gautam Sinha, creative director and founder of Nappa Dori, a luxury leather accessories brand from India that recently Opened a store in Dubai.
“What they don’t realize is that even though an online marketplace is easy to build, maintaining it in the long run is another matter. Not only are you going to be in the most competitive market, but you need deep pockets to be successful with social media marketing in See it online. Everyone is competing for that attention.”
Brick and mortar stores aren’t going anywhere – people need tactile retail to create an emotional connection with customers.
– Gautam Sinha of Nappa Dori
Yes, there are other concepts of time never overtaking. Connect with customers, whether physically or digitally. In the UAE, business owners have the opportunity to do it all.
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