Changing Retail Scene in Dubai from Bazaar to Mega Malls

Subject: Global Scale Management
Pages: 6
Words: 1658
Reading time:
6 min
Study level: PhD


The retail scene in Dubai is slowly changing from bazaars to mega malls as city is transforming into one of the leading business hubs in the region. The city of Dubai has become one of the most important business districts not only in the region, but also in the entire world. In the past, bazaars were very common along the streets of this city. Many business transactions were conducted in these small business stalls, and this was able to sustain the needs of the residents at that time. Things have, however, been changing rapidly as this city is gaining relevance in the global map. Investors started streaming into the city as the region became attractive to the world, especially because of the abundance of oil. The bazaars were no longer able to sustain the needs of the city residents as the population was rising steadily. The city planners and real estate investors realized that there was an urgent need to restructure the city plan in order to accommodate the increasing population. It was because of this pressure that the retail scene has been experiencing a consistent change over the years, from bazaars to mega malls.

Importance of the Research

Conducting research requires the investment of time and resources in order to come up with a quality report. For this reason, it is always necessary to state the importance of the research clearly in order to justify the need to conduct it. In this research proposal, the focus is on analyzing the changing retail scene in Dubai, from bazaars to mega shopping malls. This is an important topic when it comes to analyzing the changes that have been taking place in the international markets. Dubai has increasingly become one of the most important cities in the Middle East. This city has received massive attention not only from the regional players, but also the international business society that considers it strategically located. This topic will help in understanding how this city has been transformed over the years in order to meet the increasing demand of international players. It is also important to investigate this area of research in order to understand the path that this change has taken, the impact on the business environment, and the possible trend that this will take in the future. With this knowledge, it would be easy to predict the future and, therefore, plan for it adequately.

Consumer Purchasing Behavior in Dubai

Although the United Arab Emirates is regarded as one of the emerging economies, the living standard in the city of Dubai is high. Most of the city dwellers fall in the middle class, with a good percentage being ultra-rich. The booming business in this city has enhanced the standards of living. This means that the consumer purchasing behavior reflects that of the middle class members of the society. Their purchasing decisions are always based on the superiority of a product other than the price. Although the price is a factor that cannot be ignored by the business entities, it does not play a leading role in defining the decision of the buyers in the market. Some recent researches have indicated that members of this city do not fear spending. They are, however, always keen on spending on products of high quality. This means that the bazaars are not the right place to sell to these consumers who are after quality. The mega malls offer the best environment for these consumers based on their purchasing behavior.

Shift to International Brands

It is important to note that the constant exposure of the city of Dubai to the world as a central trading center in this region has introduced many international brands into the local market. Many multinational corporations have ventured into this market either through strategic partnerships or direct market entry approaches. It means that the locals are exposed to products from various parts of the world. These international brands have created a competitive environment in the market, forcing some of the local players to adjust their quality. Consumers in this market go for the best products, and one of the ways of determining the quality of a product is to analyze the strength of its brand. Products with strong brands such as Apple, Sony, and Samsung are known to perform well in this market. On the other hand, weak brands always struggle in the market, and sometimes they are forced to look for a lower market segment in this region in order to remain operational.

Modernization and Cultural Changes in Buying Patterns

Dubai remains one of the cities most exposed to the modernization taking place in the Middle East. The government of Dubai has been keen on promoting this city as a center for trade, and this attracted many Western investors. This has brought massive changes as the members of this society accepted technology and some of the changes that come with it. The modernization has been witnessed in various sectors of the economy, especially the transport and communication sectors. As the movement into and out of the city became easy, the society has been interacting with people from all over the world. Some come as tourists while others come for business purposes. They come with their own cultural practices, and this influences the locals that are constantly interacting with them. The interaction has brought some clear cultural changes in the buying patterns. The Western visitors always prefer buying a brand when making their purchasing decision. For instance, a tourist walking into a shop would demand a Samsung or Apple laptop. When the two brands are not in the store, they will not make any purchase of the product even if other well known brands are available. In fact, they would prefer paying more for the brand that they prefer. This buying pattern would have an impact on the business entities.

They get to learn that the brand of a product is one of the most important attributes when defining buyer behavior. They start stocking such preferred brands, charge some extra fee, and explain to their buyers that those are the best brands in the world. The tour guides and those who get to interact directly with such visitors also learn this habit. As a result of this, there has been a cultural change in a buying pattern in this city as consumers go for the brand other than the price. They believe that specific brands offer higher quality than others in the market.

Tourist Hub

The city of Dubai has become one of the leading tourists’ attraction destinations in the world. The government of Dubai has worked tirelessly to change the face of the city, from a small town that was strategically located for those looking for oil to the city with some of the best amenities. Burj Khalifa, the tallest building on earth, has been a major tourists’ attraction site that has seen people coming from Europe, the United States, and Africa just to see it. The government has worked on the issue of security in the city, making it a safe destination for visitors. The city also has some of the ultra modern means of transport, even to remote locations, making the movement of tourists memorable. They can use electric metro trains, metro buses, or water transport. The state-of-the-art communication system has also attracted tourists from various parts of the world. Another factor that has seen Dubai replace many cities in Africa and Asia as the desired destination is the fact that the community has embraced the Western culture. Most of the Dubai residents are Muslims, but this has not stopped them from interacting freely with the visitors. This has made many tourists believe that this is the only region in the entire Middle East where religious beliefs and culture are not allowed to injure positive interaction. Tourism is one of the leading income earners for this country.

Benefits of the Research

As mentioned above, this research is very important not only to the researcher, but also to other relevant organizations and the academic community. To the researcher, the study will offer the perfect environment to analyze and understand some of the changes that have been taking place in the retail industry. It will make the researcher understand the trend that has been taking place and the possible future of the industry. It will also increase the knowledge of the researcher on this topic. Business organizations in the retail sector may find the research helpful when making decisions about their future plans. To the academic community, this document will help in providing a body of literature that can be used to understand this topic by future researchers and other academicians.

Area of Interest and Its Benefits

In this doctorate program, the chosen area of interest in this proposal will enable the researcher to develop an independent body of knowledge on the changes that have been taking place in this industry. The researcher expects that by the end of this study, it will be possible to develop a theory that may explain the changing retail scene that has been taking place in Dubai and other similar cities. It is important for the researcher to develop such theories that can help in the development of other smaller cities in this country and other cities in the region. The area of interest will also offer the researcher an opportunity to bridge the gap of knowledge that is visible in this area of research. This way, other researchers, young academicians, the business society, and many other relevant stakeholders may get the knowledge they need on this topic. To the young academicians, this document will offer a strong footing into the field of international business. To other researchers, this will be an important piece of literature that would provide them with the proper insight into the topic. To business organizations, this document will provide the best knowledge to guide them in their decision making processes.