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UAE retailers hail Apple Store as grey-market antidote [ITP.net (United Arab Emirates)](ITP.net (United Arab Emirates) Via Acquire Media NewsEdge) UAE Apple resellers have welcomed the upcoming Middle East Apple Store, expected to be based in the UAE, as a means to curb grey market operations and boost overall sales of the US company's products. GALLERY: Leaked images of Apple's iPhone 6 Recent reports, including one by ITP.net's sister site Arabian Business, have suggested Apple may have selected Mall of the Emirates for its first store in the region and that the unit would be Apple's largest by floor space, when launched. Dubai-based news site Emirates 24|7 cited a source within a UAE retailer who speculated that a second store may open in Abu Dhabi. But Apple is confirming no details. When asked for comment on precise location, floor space and opening date, the company's press office shared only its standard statement with ITP.net: "The United Arab Emirates is an important country for Apple. We launched the Apple Online Store, UAE in 2011 and it's one of our fastest growing markets around the world. We look forward to opening a physical store in the region and sharing Apple's unique shopping experience and services." Apple products generally reach the Gulf region many weeks, sometimes months, after their global launch, leading to a grey market in the goods as they are imported for consumers willing to pay an extreme mark-up. When officially available, iPhones and iPads still cost more in the UAE than the same products sold in the US and Europe. GALLERY: Leaked images of Apple's iPhone 6 ITP.net asked UAE retailers what impact the branded store might have on the market for Apple products within the Gulf nation. Continues on next page>> "[It] will certainly improve the branding and experience levels of Apple products in UAE and help as a catalyst to boosting sales," predicted Neelesh Bhatnagar, CEO, Emax. "I expect availability of stock to improve ?and Dubai to become part of wave one of launch and avoid parallel stocks flooding the market." GALLERY: Leaked images of Apple's iPhone 6 Nadeem Khanzadah, head of retail for Jumbo Electronics, also believes the launch of Apple stores in the UAE will have a positive impact on the market. "While the general perception is that it may affect resellers, we feel the [Apple] stores would help promote the brand further and fuel higher demand, enhancing its position as an aspirational brand," he said. "It is worthwhile to note that historically the presence of principals in the retail market has not affected the sales of devices from those brands among resellers." "With the presence of a local Apple Store, you can expect products to get here even quicker after launch and prices to be more competitive, in all likelihood," said Ashish Panjabi, chief operating officer, Jacky's Group of Companies. "This would put pressure on grey-market operators who thrive on limited supply that the local market has at times, or the delayed launch of Apple products in the region. Right now, Apple would probably categorise the UAE as a tier-two or tier-three market in terms of priority; we could see it becoming possibly a tier-one or a stronger tier-two market." GALLERY: Leaked images of Apple's iPhone 6 As the market changes shape, none of the contacted retailers foresee a change in the relationship between the vendor and its regional resellers. Continues on next page>> "We are Apple Authorised Resellers and expect to continue that way," said Panjabi. "Apple's investment in the channel has only increased over the last 18 to 24 months, whether in terms of account management, marketing support, merchandiser support or Apple furniture finding its way onto retailer shop floors. This will continue, I expect, once an Apple Store opens in the UAE." GALLERY: Leaked images of Apple's iPhone 6 Jumbo's Khanzadah agreed and added: "Jumbo is a preferred premium reseller of Apple products, and we are the first retailer in the Middle East [that] established direct engagement with Apple. We do not expect the opening of Apple stores to affect our relationship with the brand." Bhatnagar said: "In terms of relationship with retailers, I feel it will not have any significant impact as we have an ongoing relationship that will continue without any impact on commercial terms." But as Apple Genius bars become a Dubai staple, how will this affect retailers' strategies? "While Apple Stores serve as destination stores, you also need to wonder if you necessarily want to travel to Mall of the Emirates or Downtown Dubai (if these are indeed where an Apple Store could be, based on press rumours) to buy an iPad if you can buy one from your neighbourhood retailer in Sharjah City Centre or Abu Dhabi Mall," Panjabi pointed out. "The Apple Store will be a major draw, but retailers still stand to benefit from Apple opening a store here as we can expect Apple to invest more overall in marketing, supply chain and service, which helps us all." Khanzadah was likewise upbeat: "Jumbo has been putting in place strong mechanics to strengthen Apple's presence in our network of outlets, allotting more space and fixtures for the brand. Moreover... our staff... are certified Apple product specialists. At Jumbo, we are confident of growing our partnership with Apple, and welcome their initiatives in the region." However, Bhatnagar feels work will need to be done to measure up to the perceived customer experience available in Apple's branded outlets. GALLERY: Leaked images of Apple's iPhone 6 "In order to compete with the experience and enhanced customer service level of an Apple Store?, Emax will also upgrade the stores to match up," he said. "Overall it will help the industry in increasing customer service levels." (c) 2014 ITP Business Publishing Ltd. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info). |