A person wishes to appear beautiful and to be welcomed by the society in which he or she lives. Appearance is important because one can quickly be recognized in society, and the way one dresses shows one's personality. Fashion plays a vital part in everyone's life and it helps them to express themselves creatively. You may have seen that just by looking at a person's clothing sense, you can deduce nearly 40% – 50% of his lifestyle, community, occupations, and so on.
Recognizing that clothing is one of the most important needs for human life. The apparel industry has taken its potential for success to the next level. With a population of 9.68 million inhabitants, the Middle East market has become one of the most gripping grounds for the fashion industry on a global scale. By infusing creativity and employing strategic business moves, the region has been able to reach any potential market. When it comes to the fashion industry, Dubai, the UAE's capital, has proven to be a lucrative ground. The area provides a wide variety of market prospects in nearly every field, including the apparel industry.
FASHION SECTOR IN UAE
The fashion industry has covered a large market in the United Arab Emirates by excelling and introducing various business strategies. According to Dubai Chamber Research, the UAE's apparel retail sector added a significant sum of $12.3 billion in 2018, with an average growth rate of 4.8 percent. From 2019 to 2023, the market is projected to increase even further. According to Euromonitor International report, the fashion industry has had a major impact on the retail market. The sector has been doing extremely well, drawing buyers from all over the world.
Since there are several dedicated zones focused on different industries, the United Arab Emirates is an excellent choice for any company. The government has supported industry professionals with several specialist fields to help them develop their businesses. When it comes to the fashion industry, the Dubai Design District was formed to capitalize on it. Let's take a closer look at it.
The Design District in Dubai is a special region for the design industry.
The Dubai Design District, which opened in 2013, is a master-planned community devoted to the global design industry. The zone, as a business park, offers a multitude of opportunities for business owners, developers, and innovative minds to come forward and develop their businesses. By 2019, the apparel industry is expected to have a worldwide valuation of 1.7 billion dollars.
The revenue numbers have been gradually growing, suggesting that there is a major incentive for industry investors to concentrate on this market. Another driving force in the MENA region's fashion industry is the Dubai Shopping Festival (DSF), which draws millions of tourists to the UAE's ground, boosting the retail, tourism, and hospitality industries all at once.
SHOPPING FEST IN DUBAI
Dubai is known for its creativity, and in order to boost industry revenues at a breakneck pace, the Emirate of Dubai arranged the "Dubai Shopping Festival." The festival is one of the most popular and extravagant activities in the city's history, having been held for the past 24 years. Every year, the Dubai Shopping Festival (DSF) sees a huge rise in the number of local and foreign visitors. It rose by ten percent in 2018. The event is one of the main growth factors for the retail industry, which is forecast to rise at a CAGR of 5.3 percent from 2018 to 2023. Take a look at DSF's sales growth since its inception.
As you can see, the holiday season draws a lot of interest and can therefore be helpful to your fashion business. Apart from the statistics I've outlined, let me guide you through the key reasons why you should try your fashion business concept in the UAE.
The Benefits of Starting a Fashion Business in the UAE
Because of the following factors, corporate buyers and owners from around the world prefer the UAE as the ultimate business platform.
1. Huge Business Opportunity
If you want to work in the fashion industry, Dubai's land is a thriving business platform. Consumer investment in the UAE is expected to top $261 billion, according to projections. When it comes to clothing and accessories, the average customer invests about 7% of their income on it, suggesting that there is tremendous demand for companies, consumers, and owners.
2. The Opportunity to Choose Strategic Locations with Flexibility
Any market division in the UAE is served by a variety of business licenses. Any company, whether it be manufacturing, selling, or anything else, must obtain legal permission to operate. If you engage in general trade, for example, you must obtain a General Trading License. If it comes to producing or importing and selling products, you'll need to get the proper permits.
3. Obtaining a Business License
Any market division in the UAE is served by a variety of business licences. Any company, whether it be manufacturing, selling, or anything else, must obtain legal permission to operate. If you engage in general trade, for example, you must obtain a General Trading License. When it comes to producing or importing and exporting products, you must secure the required permits.
4. Easy Business Formation
Another advantage that draws business investors to the UAE is the region's simple business setup procedures, which are applicable to a variety of locations like the Mainland, Free Zones, and Offshore. Experienced advisors are preferred by business practitioners because they are familiar with the legal process.
5. Visas are easily accessible.
An investor visa is required to do business in the United Arab Emirates. Around the same time, if you plan to recruit a foreign workforce, you must supply the required workers with an occupational visa. The government has taken a number of steps to make it easier for business owners to acquire visas, enabling them to continue with their incorporation without delay.
PROCEDURE TO START A FASHION BUSINESS IN UAE
To begin the process of forming a fashion company in the United Arab Emirates, follow the steps below in order:
1. Starting the market analysis process.
The first and most significant step is to perform market research. To succeed in the industry, you must first consider the target area and demographic, as well as their tastes and preferences. Understand the needs that must be addressed, evaluate the competition, and grasp the market's strategic tactics. This will assist you in gaining a greater understanding of the industry.
2. Be clear about your services and target market.
After you've finished your analysis, you need to be confident of the items you're able to market. You must have a good understanding of commodity demand and availability, as well as an active network to support it.
3. Choose a strategic location for your company.
As previously reported, the UAE area offers versatility in terms of choosing a location for your company. Make sure you pick the best location for your needs.
4. Be knowledgeable about records and send them to DED in a timely manner.
To obtain a paper business license, you must send the following paperwork to the Department of Economic Development (DED). The following documents are included in the package:
Completed the application form to the best of your skill.
Copies of the shareholder's passport and visa
Original and naming acceptance NOCs
MOA/AOA (Memorandum and Papers of Association)
5. Collect the licence after it has been approved.
Following the submission of the papers, you must obtain confirmation of approval. Once you've been licenced, you'll need to get a special business licence. The licence you receive will serve as a legal permit that will authorise you to pursue business operations, which will thus serve as a requirement.
6. Make accounting and bookkeeping a priority.
You should keep a detailed account of the profits and losses made at any point of your company from the beginning. Maintaining accurate accounting and bookkeeping reports would allow you to keep track of your business's break-even point and profit margins.
7. Make Product Marketing a Priority
Opening a fashion shop is useless unless and until you attract relevant foot traffic. To do so, you should work on product promotion, which essentially involves introducing promotional techniques to sell your product.
8. Create an Online Presence
In today's competitive business climate, having an online presence is critical for establishing a broad consumer scope. Create a website that showcases your brand and allows you to reach out to a local, global, and foreign audience.
You now know how to launch and run a fashion company in a step-by-step manner. Are you, though, knowledgeable of the various market opportunities open to you? Are you perplexed? If you want to get serious about the apparel industry, you should concentrate on one of the following market opportunities:
Creating a Fashion Store
A Complete Online Business
Manufacturing Industry
Wholesaler
The fashion industry continues to be a wide market that, if appropriately addressed with the right tactics, can be lucrative. Dubai is a suitable place for applying the principle of creating a fashion-related business organisation. Proceeding with the rules and regulations without sufficient information, on the other hand, could prove difficult.
Furthermore, any mistake made during the establishment process could prove to be a challenging job, since it could result in the licence being revoked. The best practise is to work with industry advisors who can analyse, streamline, and lead you through the process as smoothly as possible.
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