Electronics sales up 40pc during DSF
Dubai, February 19, 2011
Some retailers have witnessed sales growth as high as 35 to 40 per cent during the ongoing Dubai Shopping Festival (DSF), said an expert.
Sales growth has been promising during DSF 2011 especially in categories like televisions, smartphones and tablet PCs, said Ashish Panjabi, chief operating officer of Jacky’s Electronics, a leading UAE-based consumer electronics retail chain.
“We’ve witnessed growth rates of up to 35-40 per cent in some of these categories which has contributed to the overall increase in top-line growth during DSF 2011,” he said.
Yet another electronics retail giant, Sharaf DG, experienced “encouraging” sales during the DSF period, according to the company’s head.
“Sharaf DG sales have increased significantly during this year’s DSF period over last year’s DSF. Customers have taken advantage of the attractive offers up for grabs. With the momentum set, we are optimistic that the same trend will continue for the rest of the year as well,” said Yasser Sharaf, managing director, Sharaf DG.
For Eros Group, the sales increased by over 25 per cent during the DSF period. Niranjan Gidwani, deputy CEO of Eros Group, said: “DSF has always been a high sales period for consumer electronics.”
“With a wide range of brands under our portfolio Eros Group makes an impact every year during DSF and this year has been no different. DSF 2011 has met all our expectations as we have grown by over 25 per cent over last year.”
While the two main categories – tablet PCs and Smartphones – clocked majority of the sales for most retailers this DSF, the shopping festival also generated a lot of interest amongst shoppers for products like the Apple iPad, Samsung Galaxy Tab, Apple iPhone 4 and Blackberry smartphones.
“Towards the end of the DSF period, we also saw many people starting to buy televisions in anticipation of the cricket World Cup that is due to start on February 19, 2011,” Punjabi pointed out.
Axiom Telecom, meanwhile, experienced a 15-20 per cent increase month over month, (meaning 20 per cent more footfall and sales vs pre-DSF monthly period) and a 12 per cent increase in value compared to last year’s DSF, according to Abdul Jabbar, the company’s marketing brand manager.
He said: “We have witnessed an influx of visitors to our stores this year, and sales have definitely boosted during DSF,” further confirming the trend of smartphones and tablets.
“This is definitely a smartphone and tablet year. We have seen sales of smartphones triple since their nascent stages. We have also witnessed an increased interest in the tablet PC market.”
Sales for Al Ghandi Electronics, too, picked up between 10 and 15 per cent during the DSF period this year compared to last year’s festival, depending on the electronics category.
Sanjay Gokavi, marketing manager at Al Ghandi Electronics, said: “DSF as an event helps in generating and sustaining growth in the first quarter of the year. There is a synergistic vibe created by DSF organizers along with the retailers as well as key companies that encourage sales increase. It also offers an opportunity to enhance brand visibility.”
He added that the company saw a healthy growth in Blu-ray products with 3D showing signs of demand picking up. Spotting yet another trend in LCD television panels, Gokavi said, people now preferred 42 inches as against 32 inches earlier.
Panjabi said: “The timing of this year’s DSF worked well for us as we saw a visible increase in the number of Chinese and Saudi tourists who shopped with us. With Chinese New Year and the Saudi school holidays overlapping with DSF, we’ve definitely seen more tourists from those countries here.”
He added that Indian tourists also were aplenty.
Sharaf DG’s Yasser Sharaf He said: “DSF being popularized as an annual shopping event both for residents and tourists has helped electronics retailers like us create an expectation for customers to really look forward to the fantastic promotions we put up especially for this event,” adding that DSF is “one of the peak periods” of the year for Sharaf DG.
“Consumers are becoming more tech-savvy. A lot of them have already researched and have already decided the model and specifications they want to buy.”
As a key trend this year, Sharaf pointed out that customers are upgrading their lifestyles and are willing to spend for higher valued items, higher specifications or the latest in technology.
“We have also noticed an increased number of consumers now shifting from the usual phones to smartphones and more so tablets,” he said.
Axiom Telecom’s Jabbar, said: “DSF has now become a matured and well-known event around the world, and this attracts hoards of customers to the city which eventually translates into sales. We always witness a spike in sales during DSF.”
Eros Group’s Gidwani is also of the opinion that DSF is a “well promoted and well organized” event. “A lot of tourist inflow has resulted in a lot of ‘cash and carry’ sales [during DSF] which is always good for business. We have seen a significant increase in footfalls in all our stores across the malls as well as on the high streets,” he said.
The 16th edition of Dubai Shopping Festival, which kicked off on January 20, will end tomorrow (February 20) after a 32-day run. – TradeArabia News Service