The jewelry industry in Dubai has been booming for some time now. Dubai is among the greatest cities when it comes to the trading of gold and other precious metals. This has been among the major growth factors when it comes to the jewelry industry. Dubai has some of the best jewelry stores, but this does not mean that new businesses cannot penetrate the market. Creating value to consumers will enable Jwelix to penetrate the market and establish a favorable market share. Among the ways that the business aims at creating value is introducing new designs every now and then. Despite there being many jewelry stores in Dubai, most of them keep the same designs for a long time. Bringing new designs to the market is likely to attract a favorable market share since consumers have something to look out for at all times. All the products and services that are going to be offered are purely designer and branded. This is something that intrigues most jewelry consumers in Dubai (Chesbrough, 2013). It is more of a luxury city hence the liking for this preference. The business will also be providing high-quality products at lower prices compared to competitors. This is likely to result in low-profit margins for the business, but this will be offset by increased sales levels. Selling at a lower price will help the business to capture a substantial market share, which will result in increased profits in light of the margins involved.

The business is going to make money since the e-commerce market in Dubai is increasing in the recent years. People of the United Arabs Emirates are yet to embrace e-commerce exponentially, but the prospects are quite good. In 2016, the value of e-commerce in UAE was estimated to be around US $2.8 billion. There is the expectation that the market will grow to $10 billion by 2018 (Forbes, 2016).  Currently, Dubai alone accounts for 46% of online shoppers in UAE. These figures combined with the fact that the jewelry market experienced a 6% growth in value in 2016 due to continuous fall in gold prices means that it is a favorable time for a new business to join the e-commerce industry in Dubai (Euromonitor, 2016). The value of the market is likely to grow even further hence if Jwelix positioned itself favorably and used appropriate strategies it is likely to make money from the industry. The growth of e-commerce in Dubai has been attributed to growing connectivity as the number of people using the internet has increased. The growth of social media platforms and increased use of smartphones has also played a vital role in this growth.

The target audience for the business will be expatriates.  They contribute to a substantial percentage of the city’s population hence creating a prospect of obtaining a substantial market share. Most of the expatriates working in Dubai are paid favorably hence can afford luxurious jewelries. Given the competition in Dubai for the jewelry industry, it means that the jewelries are favorably priced compared to most of their home countries. This is to say that they will take the opportunity to purchase such products for their friends and families back home too. The target audience will be divided into two, categories; expatriates aged between 21 to 35 years. The other category will involve expatriates aged 35 years and above. Dividing the consumers into these categories is favorable as it will help in providing designs based on trends of various age groups. It makes it easier for targeted marketing too as these categories are likely to be reached with ease while using different media for the sake of conversion based on each category’s preference.

When it comes to the competition landscape, by the end of 2015, Damas had remained to be the leader in the jewelry market as it accounted for 21% of the value share (Euromonitor, 2016). The company benefits from a formidable reputation of quality products. Joyalukkas Holdings is also a big force to reckon with as it accounts for 9% of the value share (Euromonitor, 2016). There are other competitors that include Taiba, Kyra, and Hamsa among others. Taiba and Kyra price their products highly while Hamsa, on the other hand, offers few designs. These are things that Jwelix can leverage on, by offering reduced prices while still maintaining high-quality standards and ensuring there is the production of new designs every now and then.   When a business creates value for consumers, they are likely to remain loyal due to the satisfaction that is being derived.

References

Chesbrough, H. (2013). Open business models : how to thrive in the new innovation landscape. Harvard Business Press.
Euromonitor,. (2016). Jewellery in the United Arab Emirates. Euromonitor.com. Retrieved 11 February 2017, from http://www.euromonitor.com/jewellery-in-the-united-arab-emirates/report

Forbes,. (2016). E-Commerce Gains Ground On Malls In UAE With $2B In Online Sales. Forbes.com. Retrieved 10 February 2017, from http://www.forbes.com/sites/suparnadutt/2016/11/11/e-commerce-gains-ground-on-malls-in-uae-with-2b-in-online-sales/#36be9c0730e5

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