UAE consumer firms see 10% income surge in 2014

Dubai - Nearly 50 per cent of consumer companies in the UAE said they could boost their income by 10 per cent in 2014, far outstripping the global trend where only 15 per cent had seen similar growth, a survey has revealed.
All of the UAE respondents in the survey said that expansion and top-line growth are going to be critically or very important to success over the next one to two years - compared to a global response of just three-quarters, according to KPMG's third annual 'Top of Mind' consumer survey that was conducted in conjunction with the Consumer Goods Forum (CGF).
Besides top-line expansion, consumer trust and a sound omni-channel strategy - a multichannel approach to sales - are top priorities for consumer company executives - both globally and in the UAE, said the survey report.
KPMG and CGF surveyed close to 550 senior consumer, manufacturing and retail executives globally to gain insight into the economy, the impact of competition and critical disrupters for the consumer industry. For the first time, respondents to the survey included key decision makers from consumer businesses based in the UAE.
Bajpai, a partner with KPMG Lower Gulf and the leader of its retail practice, said while growth and expansion have traditionally been top issues for senior management, executives globally and in the UAE have identified this as their top focus for 2015.
"The focus on omni-channel echoes the strong annual growth in e-commerce globally, as well as the increased role of the Internet throughout the customer's path to purchase and the supply chain. However, delivering on omni-channel potential is widely recognised as a challenge. At the same time, 70 per cent of UAE respondents feel that protecting customer and company data is going to be important to company success over the next 24 months."
Willy Kruh, the global chairman of KPMG's consumer markets practice, said with top-line expansion and growth being this year's top priority as well as the top challenge, the survey data clearly shows that a new battleground is emerging - how to understand and win over customers.
"There are some hard choices to be made to build or maintain a competitive advantage. Companies must be aware of - and address - potential disruptors," said Kruh.
The survey identifies six specific levers that are likely to exert the most influence on a company's ability to grow revenue - grouped as drivers (consumer trust and omni-channel), enablers (consumer knowledge and supply chain), and derailers (data security and sustainability and corporate social responsibility).
Consumer confidence in the UAE was the highest among Middle East countries for the first quarter of 2015, according to the latest Nielsen Global Survey of Consumer Confidence and Spending Intentions.
At 115, the UAE had the highest index score in the region and the fourth highest globally, an increase of one point from the fourth quarter of 2014 and well above the global average of 97.
- issacjohn@khaleejtimes.com