Retailers expect Dubai’s semi-annual electronics extravanganza to stimulate sales after tepid results during the recent Eid holiday.
Famed for its “bundling” of stock to entice even the most reticent of buyers, Gitex Shopper kicks off tomorrow at the Dubai World Trade Centre.
The UAE’s biggest electronics retailers are forecasting a jump in sales of up to 15 per cent from last year’s event.
“In the current retail climate, the peaks and troughs are exaggerated,” said Omar Abushaban, general manager of Plug-Ins. “Smartphones will of course drive the sales, but after lukewarm Eid holiday sales, partially because Gitex was so close, we think sales will jump at least 15 per cent on last year.
“A good Gitex week will see our turnover match a month’s trading of normal sales. That’s why it’s so important.”
Prices are often slashed during the eight-day event, with retailers eagerly matching and cutting prices to drive sales.
Smartphones are expected to dominate attention at Gitex, with an expected 30 per cent sales spike.
“In the run-up to the event, we have seen smartphone sales multiply by more than 35 per cent, and this has been a trend over the past four quarters,” said Nadeem Khanzadah, the head of omnichannel retail at Jumbo Group, which expects an overall year-on-year sales increase of 5 to 10 per cent at this year’s event.
He said forecasts that smartphone penetration in the GCC will reach 80 per cent by year’s end also add to positive expectations for sales.
The Middle East and North Africa region was among the fastest-growing regions for smartphone sales in the world in the second quarter, according to Gartner, a technology research company.
The regional growth in smartphones is being spurred by Google’s Android and Apple’s iOS operating systems, with the pair accounting for more than 95 per cent of the smartphones shipped in the first quarter.
With the iPhone 6S arriving in the UAE on October 10, the price of iPhone 6 has fallen to Dh2,199 from Dh2,799, so Apple fans could expect a further price reduction at Gitex.
“We don’t plan on cutting the price of the 6S further, but the nature of Gitex means as it gets later in the week, we may have to,” said Mr Abushaban.
After smartphones, the most popular categories at the show are laptops, tablets and ultra-high-definition televisions.
“At the last Gitex, more than 100 exhibitors participated in the show, which drew over 211,000 visitors and resulted in total sales of Dh259 million. This year, we’re expecting the numbers to surpass that,” said Neelesh Bhatnagar, the chief executive of Emax Electronics.
ascott@thenational.ae
