Lubricating Retail Growth through Healthy Collaboration and Cooperation
1. Lubricating retail growth through
healthy collaboration and cooperation
Public-private partnership is one of the pillars of the UAE’s – and particularly Dubai’s – remarkable
success in forging innovative initiatives that are a win-win proposition for all players. Harnessing
technology for smart governance and e-transformation, creating entertainment-cum-shopping
infrastructure, devising attractive promotions and shopping events – all have contributed to the
remarkable success of the country, which as one panellist puts it, defies the laws of economics
“The digital revolution is
is getting more and more
seeing the retail industry
difficult,” observes Dr
growing in not-soAli M Al-Khouri, director
conventional ways. The
general, Emirates Identity
shift from an analogue to
Authority (EID).
a digital environment is
“Retailers are going
leading to a paradigm shift
global to capture a larger
in consumer behaviour
share of the $1.4 trillion
that can be a bit of a
e-commerce market.
human paradox. On the
But to reap the benefits,
one hand, the emergence
businesses need to analyse
of sophisticated gadgets
changing consumer
Dr. Ali M Al-Khouri
and smart devices are making people
behaviour to put the correct market
reclusive. Yet, at the same time, they
segmentation and strategies in place,” he
are omnipresent through social digital
adds.
networks. This is making the buyer-seller
Al-Khouri points out that big data is
relationship highly complex, with the
lending support to businesses to explore
disruptive nature of technology making
new frontiers of innovation and increase
the game even harder for the retail
productivity. But big data is also facing
industry. Be it products and services or
identity challenges, necessitating a more
value perception, targeting consumers
robust identity infrastructure in the retail
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industry. “Retailers will have to build a
trustworthy relationship with customers
who are driven by a set of emotional
values. But it isn’t that easy to gain the
trust of customers. Complicating the
situation further is growing instances of
identity fraud. People are being victimised
by data breaches and the retail industry
is doing little to prevent identity theft,” he
elaborates.
Al-Khouri says it is in this context that
governments the world-over are putting
in place mechanisms to ensure a safer
environment to support the retail industry.
For example, the UAE government has
recognised the need for a robust identity
management infrastructure to support the
retail industry and positively transform
the overall business scenario.
“We currently issue smart identity
cards to both locals and expatriates
2. collective – not individual
Al Falasi, director –
residing in the country that use
– benefit (for example
strategic alliances division,
advanced technology to provide multiforming the Dubai Gold
Dubai Festivals & Retail
factor authentication while ensuring
and Jewellery Group), yet
Establishment.
confidentiality and integrity. They can
fiercely competitive; the
“Take the example
benefit not just the retail industry and
ability of the public and
of the Dubai Shopping
e-commerce but e-governance initiatives
private sectors to scale up
Festival (DSF), which
as well. The technology, which provides
and sustain – the Global
has drawn 47 million
higher level validation, verification and
Village being a classic
tourists to the emirate
authentication of an individual’s identity,
example; and finally the
since 1996, the total
can be used by retail businesses to
ability to course correct.
visitor spend being over
prevent fraud and put in place a seamless
“The role of the
$31.03 billion. Tourism has
service delivery mechanism. We are also
Avishesha Bhojani
government is to create opportunities and
always been a driver of the retail sector
undertaking trials to see if the card can
it’s for us to create economic value out of
in Dubai, a popular family destination.
be used on mobile devices to streamline
these opportunities,” Bhojani says.
And we continuously work towards
the authentication process,” Al Khouri
Tom Miles, CEO – Saadiyat Cultural
attracting more tourists
explains.
District retail management, Tourism
to directly benefit the
According to him, this
Development and Investment Company
retail sector, offering
national validation gateway
(TDIC), has more to add. “People from
shopping opportunities
will make identification
all parts of the world travel to Dubai
as well as new forms of
processes seamless,
to savour a world-class shopping
entertainment that benefits
enhance service delivery
experience. It’s because we always try
residents as well,” he adds.
and vastly improve
to innovate and do better. After every
Avishesha Bhojani,
business processes, leading
shopping festival we have a wrap-up
group CEO, Bates PanGulf,
to healthy bottom lines.
meeting between the government and
quotes His Highness Late
“The benefits of e-tailing
private sector representatives – including
Sheikh Rashid bin Saeed
are huge. But less than
malls owners and retailers – to discuss
Al Maktoum, who said
1% of retailers in the UAE
the achievements, challenges and areas
if it’s good for business
are leveraging it. That’s
Saeed Mohammad Mesam Al Falasi
for improvement. That’s why we have a
it’s probably good for Dubai. “That’s a
why the EID is undertaking all measures
great deal of respect for a government
testament to public-private partnership
to support and facilitate the transition
that gives us the vision to go bigger and
and the genesis of the DSF, probably
to a digital retail environment,” adds
better,” he explains.
the world’s greatest public-private
Al-Khouri.
When asked if the UAE has enough
partnership in the retail sector. Other
Another example of strong publicmalls, Miles counters with the thrust that
initiatives followed, such as the Global
private collaboration is the shoppingthe country, and especially
Village, Dubai Summer
cum-entertainment initiatives, especially
Dubai, defies the laws of
Surprises (DSS) and the
in Dubai, to attract global tourist footfall
economics.
latest Dubai 24 Hours,
to the country and cater to the resident
“There’s been growth
an idea that took eight
population as well. One such immensely
in population, rapid rise
days to concretise. The
innovative concept conceived by the
in tourist numbers and
government proactively
government to benefit the retail industry
dramatic growth of gross
innovated and branded the
is the Dubai 24 Hours initiative started
leasable area for retail,
business model, supporting
last year. This year, it ran for two days
which continues to rise. It
it with advertising dollars,
during the Eid Al Adha celebrations.
doesn’t make sense but it
the retailers on their
“The 24-hour shopping experience,
works. Malls keep coming
part enthusiastically
surely a first-of-its-kind globally, turned
up. The emergence of The
implementing each
out to be a huge success. One saw people
Dubai Mall forced the likes
initiative through their
walking around the malls in their pyjamas
Tom Miles
of Wafi and Burjuman to do some course
participation,” asserts Bhojani.
at midnight and even later. There was a
correction, keeping in mind current
He lists the factors behind the success
plethora of activities – both in-mall and
market needs. But, undeniably, all of
of the home-grown business concepts – a
outside – to keep people entertained.
them are doing good business. Take the
government keen to enable and promote
Every emirate also ran promotional
example of one of the oldest malls, Deira
public-private sector collaboration; its
campaigns that saw consumers flocking
City Centre, which is doing great business
wherewithal to innovate; public officials
to retail outlets day and night. Such
even today. If we push this process of
capable of speedy and efficient execution;
initiatives clearly demonstrate the
building more malls, it will only get
faith of the private sector in the
power of public-private collaboration,”
better,” he concludes. n
government; a private sector aiming for
points out Saeed Mohammad Mesam
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