The United Arab Emirates is one of the top consumer electronics and appliance markets in the world. According to the Euro Monitor, after Hong Kong, the UAE ranks second in the world in terms of consumer electronic use per capita. With the UAE's population rising at such a rapid rate, and Expo 2020 just around the corner, this activity is expected to explode. The electronics market in Dubai is well-known. The well-organized chain of merchants and wholesalers is the major reason for it becoming a desirable destination for electronic buyers. Furthermore, sophisticated stocking and storage facilities, as well as a long-standing reputation for dependability, have all aided in the growth of this sector.
The UAE's overall consumer electronics turnover is expected to be around USD 2.9 billion. Consumer electronics are in high demand due to re-exports and vacationers. Due to low import duties and direct supply from manufacturers, prices in Dubai are 15 to 20% lower than in other marketplaces in the region.
How can you start an electronics company in Dubai?
To begin trading in Dubai, you must first obtain an electronics business license. It can be organized as a limited-liability corporation (LLC). There are 40 various electronics trading activities to choose from; depending on your needs, you must choose the choice that best fits your company's description.
Pointers you should follow
Recognize Your Local Competitors
The first step in beginning any firm is to do a thorough analysis. As a result, go to your local electronics store and find out:
- What exactly are they up to?
- How much do they have on hand?
- What pricing tactics do they employ?
- What city are they in?
- How many employees do they have?
- What are their hours of operation?
- How much do they pay in salary?
- What kind of rent are they paying?
- What are the different brands that are available on the market?
Registration and licensing
To avoid any problems, the most important step is to formally register your firm and get a business license. Above all, registering your firm separates your personal and business assets and responsibilities. As a result, if you're thinking about how to establish an electronics firm, you should think about registering it first.
Business plan
The following are essential elements of a solid business plan:
- The Company's Name (Use the business name generator tool to save time deciding for name)
- A brief description of your company
- You'll sell a list of gadgets with prices on it.
- Job Roles for Mission & Vision
- SWOT analysis
- Examining the market
- Strategy for sales
- Source of funding
- Estimated revenue
- Advertising Strategy
- Business Expenses
- Growth Plan
Customers
It's critical to know who your target market is. As a result, there are a few things you should learn about your local customers. As an example-
- What is your city's most popular brands?
- How much does your average customer spend on a monthly basis?
- What features of items do your local customers prefer, such as a double door refrigerator or a single door refrigerator, window air conditioning or split air conditioning, and so on?
Investment
For all of the latest electronics devices, as well as a variety of other products such as store fixtures, lease payments, employee compensation, and advertising, the electronics business requires a substantial capital expenditure.
Location
The location of a store is critical when it comes to attracting customers. A company's performance is best in high-traffic areas. As a result, if a store's location is conveniently accessible to all, demand will increase, and the store's prospects of survival will improve.
Choosing the proper products has a direct impact on your company's growth and popularity. Furthermore, there are two options for obtaining the goods:
- Purchasing directly from wholesalers based on your assessment of consumer preferences and budget.
- Agreeing to work with a brand or purchasing a franchise so that they can keep track of all your inventory. You can also order any specific brand products that you believe are in high demand in your niche.
Many activities can be combined into a single license if they belong to the same activity group. In the Jebel Ali Free Zone in Dubai, a rising number of Japanese and South Korean enterprises have begun operations. Those dealing in products made in China, Korea, Thailand, and Malaysia are doing quite well because their products are priced very competitively.
