Investigation: Yamama Badwan
A number of major traders and suppliers confirmed that the state market is witnessing a remarkable demand for the purchase of alternative goods for international brands, especially in food products, at a rate of 80%, in light of the high prices caused by global reasons, the most important of which are inflation, shipping and petroleum, and without making a difference. Quality makes no difference to the consumer.
They told «Al-Khaleej» that despite the presence of stocks for periods ranging from 6 months to a whole year in some products, they are always looking for alternative markets. Alternative goods also market themselves as long as they are of high quality, competing with other high-priced European products.
The same applies to retail market experts and economists, who expected that the coming period would witness an increase in the demand for alternative goods.
Hossam Rashid, a legal advisor in the Central Vegetable and Fruit Suppliers Committee in Al Awir, explained that major traders have annual contracts with international shipping companies, which contributes to price stability throughout the duration of the contracts, but small traders are vulnerable to high freight prices, as they lack long-term contracts. .
He added that major suppliers have a strategic stock of vegetables and fruits, sufficient for periods ranging from 6 months to a whole year for apples, and 6 months for potatoes and oranges, as there has been no decline in demand for products, as they are among the basic commodities in every home, and they cannot be dispensed with, as Alternative goods market themselves as long as they are of high quality that compete with other high-priced European products.
Rashid said that the percentage of demand for alternative products has risen to 80%, and merchants have provided alternative products of high quality, from the Iranian markets, at competitive prices compared to the products of Jordan, Syria and Egypt, which are distributed to all outlets of the country, including tomatoes, cucumbers, eggplant and cabbage. Pepper, watermelon and melon.
Difficulty choosing
Walid Al-Maghrabi, Director of Procurement at the Emirates Cooperative Society in Dubai, explained that about 300 types of basic and consumer goods are available, bearing the slogan “Cooperation”, which is one of the options available to consumers in light of the high prices, especially as it is characterized by a competitive quality of goods bearing international brands. Rather, it is from the culture of buying the national product.
He said that the benefit of alternatives lies in the fact that they provide more options for the consumer, when he makes his own purchase decision, because there are at least two or more products that can be used for the same purpose, and then the consumer is able to make the difference when making a purchase decision, which requires effort from him. In market research, in light of the multiplicity of outlets and cooperatives, and the large number of attractive offers. In addition, offering consumers more choices helps create a more competitive market.
Al-Maghraby pointed out that some consumers find it difficult to choose alternative products, especially if one of them is accustomed to a certain level of the quality of that commodity, and there are several reasons behind the difficulty of choosing the commodity, including the consumer’s comparison of the properties and benefits of the alternative product, as opposed to the product he used to buy, except that Having high culture and awareness, he is able to identify his needs and purchasing trends.
Spreads
The same applies to Farid Ali Al-Shamandi, a major supplier in Dubai, who explained that the majority of consumers are looking for alternatives to food commodities and vegetables, in light of the state’s open and competitive market advantage, which makes it in the interest of the consumer in the first place, as the price differences Between global and alternative brand goods, it ranges between 20 and 30% at least, and at the same time, the quality between them is similar, which makes the demand for them increase at the present time by more than 50%, without the difference in quality making any difference to the consumer.
He added that traders find it difficult to search for alternative goods for daily products, especially vegetables and fruits, according to the different seasons of the exporting countries, but packaged goods and durables for months, it requires traders to be aware of the seasons of these countries according to the priorities of goods.
weakest link
As for market experts, Ibrahim Al-Bahr explained the importance of rescheduling basic purchases in exchange for luxury in every home, to face rising prices, especially since the consumer is the weakest link in the global inflation equation, which leads to the search for alternatives to products, especially since the state market is full of several types of them, Which provides solutions that satisfy people with limited income.
He called on consumers not to fail to buy from several outlets, but rather to make the purchasing basket distributed among various outlets, according to the lowest price for each commodity, which saves him money, in light of the multiplicity of promotions and the competition of outlets and cooperatives to attract purchasing hands, so that the consumer’s loyalty is to his pocket. Primarily, and not for a specific outlet, especially if it is close to his home or gives him more points for every shopping process.
He pointed out that the quality of similar goods usually varies, but that does not mean that they are not among the options for the consumer, in order to face the flames of prices, the main cause of which is due to inflation and global oil prices. Merchants must also find more alternatives for products, which creates strong competition to gain consumer confidence, and increase the number of promotional campaigns launched by outlets, which is in the interest of the seller and the consumer at the same time.
marginal benefits
Meanwhile, Dr. Osama Sweidan, Associate Professor of Economics and Head of the Economics Department at the UAE University in Al Ain, expected that the demand for alternative goods would rise in the next stage, which means that there is an important indicator of consumer involvement in prioritizing, but the success of this matter depends on providing The appropriate information for the consumer about alternative goods, as the communication sites and their applications play an important role in speeding up the order of priorities.
He explained the importance of moving towards necessities, and staying away from ostentatious or luxury goods, while using the philosophy of reducing or increasing (balancing) purchase quantities of goods to raise or modify the so-called marginal benefits for consumers, because the stages of inflation may be accompanied by a decrease in the prices of some local or alternative goods, especially Most of the world’s current inflation is imported.
confidence boosting
On the mechanism of promoting a culture of alternative goods for the consumer, Sweidan said: These goods may be of lower quality and are the easiest and least expensive solutions in cases of high inflation to protect the family and society, as the promotion of this culture stems from a scientifically proven economic philosophy, which is that individuals must work To maximize their benefits (and not their consumption amounts) within limited or disposable income.
He said: It is expected in the future that consumer demand for alternative goods will cause embarrassment to companies that produce international brands and work to reduce their prices, as when an economic shock such as inflation occurs, these companies have the option to reduce prices by reviewing their production costs and profit margin, otherwise they will lose a part of market share if it does not bow down to the shock.
Achieving competitiveness
Christophe Orset, Head of Commercial and Operations at Carrefour Emirates, at Majid Al Futtaim Retail, confirmed that, on average, Carrefour’s own brand-name products are 20% cheaper than international brands of similar quality, as we can provide And to achieve this competitiveness, as we focus on the quality of ingredients versus marketing and distribution, while we have more than 3,500 items of food products, cosmetics, cleaning materials and non-food products, bearing the “Carrefour” brand.
He said: We constantly conduct quality control and taste checks during the process of developing our products, to ensure that high standards are always achieved. To control the safety and quality of our products, these basic pillars cannot be compromised, as there is a routine testing program by food and safety experts, while tests are conducted on a regular basis for Carrefour’s own products, and routine tests are done by third parties in accredited laboratories, to ensure that these Products are safe and legal, and meet our stringent quality specifications.