The UAE’s retail industry took a hit over the past couple of years, with the financial crisis sweeping through the country; but the country’s malls have managed to weather the storm by tweaking their marketing strategies. With shoppers becoming more value-conscious, malls have not only catered to those needs, they have adjusted their target. Once focused on high-spending tourists looking to shop and be entertained, Dubai’s malls have started looking closer to home, to the city’s residents.
Shyam Sunder, marketing manager at the Oasis Centre – one of Dubai’s smaller malls, says: “Today, large malls are talking to resident populations to get them to spend more. The period between 2008 and 2009 was a very difficult phase in Dubai, and most of the Dubai shopping population has not been better off financially than they were. Therefore, the sheer propensity to spend is under pressure. At the Oasis Centre, footfall is increasing month-on-month, but sales have not kept up with the footfall. That means that out of a family of four, only one or two spend. People have been very careful in spending on things.”
Dubai’s largest mall, The Dubai Mall, opened its doors in November 2008, as the crisis hit the world; still, footfall does not seem to be slowing down, and Nasser Rafi, CEO of Emaar Malls Group, says The Dubai Mall has witnessed year-on-year growth in visitor footfall. “Apart from consolidating its retail offering with the opening of [the UAE franchise of New York department store] Bloomingdale’s, one of the two anchor stores of the mall [the other being French department store Galeries Lafayette], The Dubai Mall also strengthened its leisure portfolio,” says Rafi. “Key among this was the opening of KidZania in January, and the addition of several new visitor attractions at the Dubai Aquarium & Underwater Zoo, the ice rink, and SEGA Republic.”
Catering to more extravagant demands, The Dubai Mall has positioned itself to attract both tourists lured by its extravagance, and residents looking to be entertained while doing some serious shopping. A shift has taken place in the mall’s strategy, says Rafi, with a focus on below-the-line activities rather than all-out advertising. “Our campaigns are mostly related to the in-mall promotions that coincide with key festivals,” says Rafi. “We are focused on setting new benchmarks in visitor experience by offering continuous promotions, festivals and celebrations that add value to visitors’ lifestyle. Our campaigns reflect seasonal retails trends, as well as a concerted effort from our side to support our retailers.”
Figures on advertising spend from Ipsos revealing the top 10 spending malls between March 2009 and April 2010 are mostly smaller malls, with the exception of two that fit into the large mall category: Ibn Battuta Mall and the recently opened Mirdiff City Centre. The top three spending malls are Burjuman, Wafi, and the Oasis Centre. “The large malls never had to advertise too much in the past, because they were relying on the tourist population to come in,” says Sunder. “But the trend is changing; I see Al Futtaim [the group owns Mall of the Emirates, Mirdiff City Centre, Deira City Centre] and Emaar malls [The Dubai Mall, Dubai Marina Mall, Souk El Bahar] increasing their advertising spend, and I won’t be surprised to see them in the top 10 spenders in the next few years.”
