World Economic Forum 2014:
Dubai is now globally recognized as "First of Infrastructure & First in Quality of Roads."
- Automotive Sector:
- Niche Market for both luxury cars (9% for the country's total car sales in 2012)
- Mass Market for Buses & Trucks.
- Lucrative Market: Secondary Cars (Especially Auto Spare parts. Our Focus for today.)
- Dubai is really a market full of opportunities: Because it's both a 'Gateway to the Middle East' & Domestic Market itself.
- Dubai Auto parts: Grew by Dh40Billion in 2013, compared to Dh37Billion in 2012.
- Key Trading Partners by country: Total Imports that accounts for 61% (Dh 14Billion) - 68%
- 1st - Japan (Dh5.7Billion)
- 2nd - South Korea (Dh3.2 Billion)
- 3rd - China (Dh2.3Billion)
- 4th Germany (Dh2.3Billion)
FURTHER
RECOMMENDATIONS:
OPERATIONAL LOGISTICS:
Good Technologies
Sea Freight/Shipping:
Most cost effective compared to Air Freight. (More info will be provided in the upcoming report.)
OMNI-CHANNEL LOGISTICS
Where we want to Go ASAP.
NAME:
Yu Han (a.k.a Cindy)
PROFESION:
Chief Happiness Officer (CHO) & Market Consultant from CLOUD CONSULTING PTY. LTD.
Why we need Good Data!!!
"Extension to the power of ONE..."
GCC:
Dubai (U.A.E)
Dubai (U.A.E)
OBJECTIVES
TEAM 10:
Yu Han (Cindy), Jiang
SID: 430053092
Government/Legal Structures:
Gulf of Co-operation Council:
- An Inter-regional government union that consists 6x Countries that includes:
- Saudi Arabia
- Kuwait
- Bahrain
- Qatar
- Oman
- U.A.E (Dubai)
- Different Legislation: GCC law + Regional legislation.
Further Details will be provided within the Report.
- General outline.
- Client Profile (Good Technology) - Expectations & Purpose for Market Selection Criteria.
- Market Selection Criteria
CLOUD Consulting. Pty. Ltd.
How much do you know about Automotive opportunities within Dubai?
RECOMMENDATIONS:
MARKETING ISSUES:
Key Issues Identified:
Considerations: Ask ourselves...
- Partnership + Regional Alliance
- Marketing
- Business Development
- IT/CRM.
- Not Getting Paid. (Global Marketplace - Unpredictable.)
- Marketing Risks: Cultural Specific. Tend to visualize online & cultural-wise - They are very protective.
- Previous issues with Fraud. (2002)
- Registration Policies (Gulf News, 2010) - From Mirsal 1 - Mirsal 2. (More strict policies applied by Dubai Customs.)
- Mirsal 2: More sophisticated that M1 - Requres more detail of car registration for all car retailers & suppliers.
- Dubai is focusing on "Investing with Quality."
- How is GT going to Market themselves? (Communication)
- What is their message & values they want to sent out & create for Target audiences?
- How can we quickly establish Global operation that captures instant Global Reputation + competitiveness.
- Who are their Target Market (Distributors + End Users?)
IT/CRM:
BUSINESS DEVELOPMENT:
If customers is King. Then Quality Data is the key.
- Building Client profiles.
- Conduct a further Market analysis based just to sharpen our AIM.
MARKETING
3 Phases:
- Phase 1: U.A.E (Dubai) - Building Repuation & competitiveness to exploit on existing Market Opportunities presented within the Gateway of Middle-East - Nigeria & Venesuela.
- Phase 2: US Market from Dubai. '
(US & GCC Coucil - More detail in the report.)
- Phase 3: Chinese Market (Preferably Tianjin, Beijing & Shanghai.)
We need to set up a new Web page!
INTRODUCTION:
Good Technology (GT)
- Current Webpage is almost too informative.
- Lacking Cultural considerations. (Arab Translations.)
- Cultural-wise: It appears that Dubai is very Multi-cultrally diversed with only a small portion of emirates mostly located in Abdu Dhabi.
- Yet, the Top level of this community tends to be very protective.
- Adopt in their culture: Find an Arabic translator who understands the local knowledge & customs.
- Initial Improve on the website: Offer Multi-language translations.
- As GT is a Global Business - Thus, we need to create Global Market Awareness.
- End Users: Younger Target groups - Preferably First time car owners. (18yrs - 32yrs)
Q: Are we going there Alone?
NO!
- Going hand in hand with Australian Companies to Dubai.
- Form regional alliance with local companies in Dubai.
YES?
- Contact Australian companies currently located in Dubai.
- Send them a small sample via DHL/Australia Post.
- Conduct Business Negotiation.
- Much Reliable with Potential partners having their ID already checked & verified.
- But still Risky. (IP).
- Protects IP.
- But Vulnerable.
Market Risks
- Good Technologies (GT) is a recent Start-up company that has its ambition for new market opportunities to accelerate & grow.
- Grace: Founder & CEO of GT- Sole Distributor of 'Jetpia Products' since 2007 obtained from S. Korea.
Expectation/Purpose:
To assist GT by identifying the underlying Market opportunities that ensures instant caputures of Market access & but also building a bridge in assistance to build a business network within the selected Market.
Market Opportunities: Automotive Spare parts Sector.
Dubai Cars & Automotive Free Trade Zones (DUCAMZ)
- What is it?
- Where is it?
- Who will it actually benefit?
Q1: This is an 8 Million Square Feet Free Trade zone that is soley for Automotive Re-Exporting purposes.
Q2: Located in Ras Al Khor, Dubai.
Q3: Everyone. Because DUCAMZ actually created a Win-Win situation that promotes 100% foreign ownership.
- 100% Foreign Ownership.
- Attractive Working Environment.
- Access to the a Market of 2 Billion People. (And Counting...)
- No Currency Restriction
- Competitive Freight Charges.
- No Corporate Taxes for 50 years. (Renewable Concession).
- No Restriction on the Maximum imports of Automobiles.
- Excellent support services from Dubai Ports Authorities & Other service institutions.
- NO Import/Export Duties.
LEFT OR RIGHT HAND?
Industry Snapshot:
- Overall, Automotive sector is very lucrative. (Confirmed Multiple sources.)
- Especially within the Second-hand aftermarket. (Worth Billions of Dollars.)
- This is because Dubai can be a great source of market nourishment for GT - both as a Market itself or a Gateway.
- Commonly, Auto Export can be mainly categorized within left or right handed goods:
= Left Hand Automotive Goods (Domestic Dubai Market.)
= Right Hand A. Goods (Other Regional Markets such as (Venezuela, African countries- Nigeria.)
- Dubai Cars & Automotive Free Trade Zones. (DUCAMZ)
- Market Opportunity2: Growing awareness within the areas of 'Long term sustainability' - Especially within fuel efficiency.
Market Opportunity (Environmental)
LEFT HAND:
- Goods exported to Domestic Market.
RIGHT HAND:
- Goods exported to Other countries: India, Afganistan, Pakistan, Yemen & other African countries.
- Growing awareness on the promotion of 'Green Sustainable Infrastructure.
- 2030 Sustainability Strategy - A Report conducted based on the 'Four Pillars of consideration: Economic, Environmental, Society & Culture.
- AIM: To Achieve 'Zero Carbon Emission'.
- Fuel Saving Efficiency.
- Their Values: 'Spirit of Wellbeing.'
- 2030 Sustainability Strategy: Reduction energy consumption by 30% by 2030.
- Logistics (Sydney - Jebel Ali Port)
- Travel Time (Ship Freight) approximately 38 days from Jebel Ali Port. (Online Calculation.)
- Plus 37 Minutes of Transport travel time from Mina Jebel Ali Port to Ras Al Khor. (DUCAMZ)
(Source: Sea Freight Logistics)