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Discuss this article (11 Comments)Dubai luxury sales 'incomparable' to last year - BinHendi
by This email address is being protected from spam bots, you need Javascript enabled to view it on Wednesday, 05 August 2009
SALES GALORE: Heavy discounting has failed to spur retail sales in Dubai. (Getty Images)
Sales during this year’s Dubai Summer Surprises (DSS) festival are “incomparable” to last year’s results, one of the region’s leading luxury retailers has said.
“The strong buying that used to happen is not there anymore,” said MohiDin BinHendi, president of BinHendi Enterprises, which owns and operates upmarket stores including Hugo Boss, Brioni and Porsche Design.
DSS, the annual event organised by the Dubai Shopping Festival (DSF), is an important time of year for the city’s retailers, as schools and universities close for the holidays and soaring temperatures keep people from going outside.
But despite offering bigger discounts earlier in the season this year, most retailers have suffered revenue drops of 20 to 30 percent.
“There is no comparison between this summer and last summer, the whole economy is different,” BinHendi said.
Predicting when sales would rebound is impossible, he added.
“Things are definitely going to improve, but how and when I really don’t know… There have been a few improvements, but not a significant improvement."
Earlier this year BinHendi Enterprises shuttered BinHendi Avenue, a luxury retail development that was part of Majid Al Futtaim’s Deira City Centre in Dubai, citing growing competition in the luxury goods market from other, newer malls.
Retailers in Dubai have been more affected by the international recession than companies in other parts of the region due to their reliance on tourism from countries like the UK, the Commonwealth of Independent States (CIS) and Iran.
READERS' COMMENTS
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Habibi - the retailers need to know -
Posted by Syed Maseeha Hussainy, Dubai, United Arab Emirates on Thursday 13 August 2009 at 17:02 UAE time
I am no big expert on retail & not so on the recovery of the world markets either......Let me share this fact with all of you here, the retailers here have priced their goods more than 30% to 40% than in the U.S. & Europe for the same Goods. I recently wanted to buy a laptop, which i eventually did just day b4 yesterday (11.08.09) - I bought a H.P. Dv6 pavilion model. Over the course of my search for the perfect laptop beleive it or not all the major electronic retailers in Dubai are selling the same laptop that i bought for AED 700 to AED 800 plus in their showrooms. I finally got it on a good deal in Computer plaza in BUrDubai, Guess what the laptop box indicated that it was part of a bigger consignment shipped directly to Jumbo Electronics! This retailer had sourced this from Jumbo, while this same laptop model with same specs & color is being sold for AED 590/- plus in Jumbo Electronics showroom opp this computer plaza, besides Shoe mart - All you have to do to check my claim is to cross the street from where i bought the laptop to this jumbo showroom (price disparity just a few meters away). When i checked the laptop prices in India, Singapore, U.K., Canada & the U.S. through some friends and also online i found that the price diff inthe U.A.E. for any model is a minimum of AED 900 to even 150% more in some cases - that too through branded major retail houses in Dubai. The story does not stop there, when i went yesterday to buy my laptop screen film, keypad film, USB mouse, mouse pad, blank dvd's for system backup, external seagate HDD, etc....i just couldnt beleive the price difference in these so called trusted retail chain stores....they have sale and discount and even with discount they are higher by atleast 25 to 40% plus ...... even in petty small items.....now my eyes have really opened as in real wide and the reality has unfolded. I always used to read user's comments in the news articles about Dubai being unbeleivably expensive for no obvious reasons....but my personal experience has opened my eyes and i now know the truth!!!!
Dubai is supposed to be the shoppers haven - MY FOOT! all they do is fleece people here.....the quality of the goods is no superior than in other places, the choices are low for some goods, most of the items on display are outdated or old models, these retailers have no concern about quality and service and what GOES AROUND COMES AROUND...So i truly believe this lean period is LAW OF NATURE or GOD's way of getting even with these unscrupulous traders on the consumer's behalf........
Regards to all, Syed.M.H.
Posted by Syed Maseeha Hussainy, Dubai, United Arab Emirates on Thursday 13 August 2009 at 17:02 UAE time
I am no big expert on retail & not so on the recovery of the world markets either......Let me share this fact with all of you here, the retailers here have priced their goods more than 30% to 40% than in the U.S. & Europe for the same Goods. I recently wanted to buy a laptop, which i eventually did just day b4 yesterday (11.08.09) - I bought a H.P. Dv6 pavilion model. Over the course of my search for the perfect laptop beleive it or not all the major electronic retailers in Dubai are selling the same laptop that i bought for AED 700 to AED 800 plus in their showrooms. I finally got it on a good deal in Computer plaza in BUrDubai, Guess what the laptop box indicated that it was part of a bigger consignment shipped directly to Jumbo Electronics! This retailer had sourced this from Jumbo, while this same laptop model with same specs & color is being sold for AED 590/- plus in Jumbo Electronics showroom opp this computer plaza, besides Shoe mart - All you have to do to check my claim is to cross the street from where i bought the laptop to this jumbo showroom (price disparity just a few meters away). When i checked the laptop prices in India, Singapore, U.K., Canada & the U.S. through some friends and also online i found that the price diff inthe U.A.E. for any model is a minimum of AED 900 to even 150% more in some cases - that too through branded major retail houses in Dubai. The story does not stop there, when i went yesterday to buy my laptop screen film, keypad film, USB mouse, mouse pad, blank dvd's for system backup, external seagate HDD, etc....i just couldnt beleive the price difference in these so called trusted retail chain stores....they have sale and discount and even with discount they are higher by atleast 25 to 40% plus ...... even in petty small items.....now my eyes have really opened as in real wide and the reality has unfolded. I always used to read user's comments in the news articles about Dubai being unbeleivably expensive for no obvious reasons....but my personal experience has opened my eyes and i now know the truth!!!!
Dubai is supposed to be the shoppers haven - MY FOOT! all they do is fleece people here.....the quality of the goods is no superior than in other places, the choices are low for some goods, most of the items on display are outdated or old models, these retailers have no concern about quality and service and what GOES AROUND COMES AROUND...So i truly believe this lean period is LAW OF NATURE or GOD's way of getting even with these unscrupulous traders on the consumer's behalf........
Regards to all, Syed.M.H.
Prices and after sales service
Posted by Dubai lover, Dubai, United Arab Emirates on Friday 7 August 2009 at 17:54 UAE time
I wrote before on price, and saw the note from Me about Customer Service. I couldn't agree more with what was said. Further, I would like to ask Dubai merchants why they sell their products here with warranties that usually half of that extended to consumers in North America, Europe, and Asia. Whether you're buying luxury goods, electronics, or cars consumers in Dubai are offered warranties less than that offered to other consumers in US, Europe, Singapore and Hong Kong. I have also had some nightmares trying to get manufacturers reps in Dubai to respect the terms of the warranties of their products (last of which was related to a mobile phone.) Naturally consumers - like myself - will tend to order light and expensive items abroad to benefit from better prices, more warranties, and as Me rightfully stated better customer service. You would not be humiliated or have to go six times to a distributor complaining about a dysfunctional mobile phone which has made me vow not to buy a mobile phone from Dubai again (just one example.) Dubai merchants will need to go back to basics: price and customer service so that they can see a serious rebound in their business.
Posted by Dubai lover, Dubai, United Arab Emirates on Friday 7 August 2009 at 17:54 UAE time
I wrote before on price, and saw the note from Me about Customer Service. I couldn't agree more with what was said. Further, I would like to ask Dubai merchants why they sell their products here with warranties that usually half of that extended to consumers in North America, Europe, and Asia. Whether you're buying luxury goods, electronics, or cars consumers in Dubai are offered warranties less than that offered to other consumers in US, Europe, Singapore and Hong Kong. I have also had some nightmares trying to get manufacturers reps in Dubai to respect the terms of the warranties of their products (last of which was related to a mobile phone.) Naturally consumers - like myself - will tend to order light and expensive items abroad to benefit from better prices, more warranties, and as Me rightfully stated better customer service. You would not be humiliated or have to go six times to a distributor complaining about a dysfunctional mobile phone which has made me vow not to buy a mobile phone from Dubai again (just one example.) Dubai merchants will need to go back to basics: price and customer service so that they can see a serious rebound in their business.
retail store
Posted by z.abdulla, dubai, uae on Thursday 6 August 2009 at 23:11 UAE time
all the clothew or stores in dubai malls are very expensive not evey one can afford the prices are very high,shoes bags furnitures even rents are still high plus food tooo all the world is in finanacial crisis ecept here do not forgetthe petrol too
Posted by z.abdulla, dubai, uae on Thursday 6 August 2009 at 23:11 UAE time
all the clothew or stores in dubai malls are very expensive not evey one can afford the prices are very high,shoes bags furnitures even rents are still high plus food tooo all the world is in finanacial crisis ecept here do not forgetthe petrol too
Price..price...price...
Posted by Dubai lover, Dubai, United Arab Emirates on Thursday 6 August 2009 at 22:55 UAE time
Dubai merchants price their goods at 20-40% premium to precisely same merchandise in Europe and US. It's amazing particularly in light of no corporate taxes and no sales tax. Dubai merchants will need to go back to basics: price...price...price, in order to see a serious rebound in their business.
Posted by Dubai lover, Dubai, United Arab Emirates on Thursday 6 August 2009 at 22:55 UAE time
Dubai merchants price their goods at 20-40% premium to precisely same merchandise in Europe and US. It's amazing particularly in light of no corporate taxes and no sales tax. Dubai merchants will need to go back to basics: price...price...price, in order to see a serious rebound in their business.
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