- March 25, 2021
- Posted by: Waqas Siddiqui
- Category: Others
Importance of Conducting Market Research in Abu Dhabi
Abu Dhabi Economic Outlook – 2021
Abu Dhabi is considered the wealthiest emirate in UAE, in terms of per capita income and Gross Domestic Product (GDP). The estimated GDP for the year 2020 was approximately AED 1.47 trillion (USD 401 billion) which contracted by 7.5% compared to 2019, as result of lower oil production and COVID19 outbreak. The GDP Per Capita for the same period accounted for AED 160,000 (USD 43,005). The economy is expected to grow at a rate of 2.2% between 2021-2023.
Abu Dhabi injected approximately AED 50 billion (USD 14 billion) in 2021 to support small local businesses, research and development, tourism and entertainment industries to increase the GDP contribution of the non-oil & gas sector. The government aims to boost the private sector’s contribution to Abu Dhabi’s GDP from 32% in 2019 to 37% in 2021.
Importance of Market Research in Abu Dhabi
The ideal platform provided by the Emirate has made the environment highly competitive, where businesses compete on quality, price and most importantly the market information. In order to succeed in Abu Dhabi, better understanding of consumers, market and competition is required for companies (new and existing) to make key business decisions.
Advantages of Conducting Market Research – Abu Dhabi
Developing Effective Business Strategies
With the help of a comprehensive market research exercise (i.e. surveys & interviews, business plan and feasibility study), companies can identify potential opportunities, evaluate market demand and devise an effective business strategy.
Understanding Market & Competition
Market research helps companies in analyzing the latest market trends, competition and consumer behavior in Abu Dhabi, Dubai, United Arab Emirates (UAE) and the Gulf region.
Understanding Consumer Behaviour
Market research helps companies in understanding consumer behavior and trends better. With the help of market research, businesses can better understand consumer needs and wants and accordingly position themselves in the market. Most importantly, an effective market research allow businesses to understand the following:
- Target Audience Profiling – Identify customers
- Market Segmentation – Identify niche / segment in the market
- Market Positioning – Position business considering target audience / market segment
- Marketing Mix – Plan effective product / service offering
- Pricing Strategy – Understand key price points
Evaluating Return on Investment (ROI)
Conducting Market research in Abu Dhabi helps companies in better understanding return on their investments. By evaluating the market demand of products and services and through competitor scanning, market research allows companies to ascertain the business potential. Through in-depth market research, companies (existing and new) can not only reduce the risks associated with the investments but also benefit from increased revenues and profitability.
Need For Conducting Market Research – Abu Dhabi
COVID-19 has impacted almost all the sectors in Abu Dhabi and has made the market highly volatile and uncertain. The unpredictable conditions have further increased the need for conducting market research to be highly critical for the long-term success of any business. Organisations that fail to conduct market research tend to drown. Though some organizations conduct internal research, they tend to lose sight of the consumer market research that is required for the growth of their business.
By imparting right knowledge and suggesting practical solutions, market research companies can enable business not just to accelerate their growth but also mitigate potential business risks. Therefore, it becomes essential for businesses (new and existing) to conduct in-depth market research and use information / insights to make key business decisions.
Research Konnection is one of the best market research companies in Abu Dhabi and UAE. Please feel free to reach out on firstname.lastname@example.org to discuss about successfully entering the UAE market, Market Research, Business Plan Development, and Business Setup or Expansion.