Indulgence elevates consumer goods industry to third position in the UAE

Nido takes the top spot from Kraft, which dropped down to 7th place amongst consumer goods brands, according to MBLM’s 2018 Brand Intimacy Report

The consumer goods industry in the UAE built stronger relationships with customers this year, surpassing both apparel and financial services since 2017 to come in as the third most intimate category in MBLM’s 2018 Brand Intimacy Study. The industry increased its brand intimacy quotient from 29.8 in 2017 to 33.1 this year, scoring above the industry average of 30.5 out of a maximum 100.

Brand Intimacy is defined as a new paradigm in marketing, which leverages and strengthens the emotional bonds between a person and a brand. The study reveals that top intimate brands deliver superior results related to revenue and profit growth by creating deeper relationships with their consumers.

Nestle’s Nido was the most intimate brand in the consumer goods industry, leading with a higher score amongst men, millennials and high-income users. The brand ranks highly in the nostalgia archetype, indicating patterns of focusing on positive memories of the past. Looking across categories, Nido was also the only FMCG brand in the report’s top 10 across industries, coming in #7 overall with a brand intimacy quotient of 59.

Regional brands occupied an equal number of positions as international ones in the top 10. This could indicate a potential indifference to product origin, a finding of interest in a region where the majority of consumer goods are imported brands.

“The prevalence of regional brands could also indicate strong future prospects for the industry,” stated William Shintani, managing partner at MBLM Dubai. “As the region focuses on food security and increasing local production, brands have an opportunity to take advantage of the UAE’s evolving lifestyle and consumption patterns, and the diverse range of culturally influenced product preferences found here.”

Other findings of note in MBLM’s Brand Intimacy 2018 report include:

•   Indulgence, which centers on moments of pampering and gratification, was the dominant archetype in the category

•   UK chocolate brand Galaxy was dominant in this archetype across multiple demographics, ranking #2 in the industry and #18 overall

•   Americana Group ranked #3 in the industry and was the highest scoring regional brand in consumer goods

•   Nido and Galaxy had equal percentages of customers in sharing, the first stage of Brand Intimacy, but Nido outpaced the milk chocolate brand with 14% of its users in fusing, the most advanced stage

•   Lebanese luxury chocolatier Patchi ranked #8, falling from 5th place last year

•   UAE based Al Rawabi jumped five spots since 2017 to rank #6, adding to the pool of top ten regional brands

There’s no way to truly cover off on the ins and outs of each of the world’s myriad economies in a single sentence, but generally speaking, global conditions for the fast-moving consumer goods (FMCG) industry remained positive in second-quarter 2018.

Some regions showed significant growth promise, while others showed a slight pullback from gains earlier in the year. With many markets experiencing notable increases in GDP growth, conditions were favorable for manufacturers and retailers. GDP growth, however, doesn’t always mean consumer spending will increase, particularly when inflation is rising.

In contrast to the growth in GDP across many markets, and perhaps reflective of inflationary concerns, consumer confidence around the globe dipped slightly in the second quarter, with the Confidence Board reporting a two-index-point drop in global confidence. That drop in consumer sentiment was reflected in a slight pullback in spending in certain markets, as skepticism about the future had some consumers feeling as though their free cash would be better served in savings rather than on discretionary purchases.

In some markets, growth is becoming harder to obtain, as is the case across the Western Europe’s largest economies, where GDP growth continued to slow in the second quarter. This meant that FMCG sales slowed for a second straight quarter, yet still posted 2.4% in dollar sales growth (down from 4.4% in Q1). GDP growth across Central and Eastern Europe was positive, but in many markets, such as Turkey, the Ukraine and Kazakhstan, inflation rates notably outpaced the economic strides.

We saw strong economic growth across Asia-Pacific as well, where GDP increased across all markets, evidence that U.S.-China trade tensions aren’t yet affecting the region’s economic scenario. As was the case in Central and Eastern Europe, however, the economic strength was countered by rising inflation (although not as notably). Interestingly, the countries with the highest GDP growth also have the most optimistic consumers. That said, however, 11 countries across Asia-Pacific experienced declines in consumer confidence, resulting in a three-index-point drop for the region overall.

In Latin America, where economic conditions have been unsteady in recent quarters, GDP grew nearly 2%, and researchers from BBVA Research project growth of 2.1% in 2019. While not as stable as other markets around the globe, the economic environment in much of Latin America is presently stable, flanked by moderate exchange rate depreciation, reduced political stress and lower inflationary pressure. These characteristics, however, currently elude Brazil, Argentina and Peru, where consumer optimism and general confidence levels are lower.

Regardless of region or market, consumers need to be at the forefront of all FMCG strategies. And that means manufacturers and retailers need to engage with and appease young, urbanized and digitally primed consumers.

Looking for regional- and country-specific insights? Our global Quarter by Numbers series has you covered. These quarterly reports combine macroeconomic data, consumption trends, spending patterns and market commentary to provide brands, manufacturers, businesses, marketers and retailers the insights they need to drive organizational growth.

Here, we look at overarching trends in select countries across our five regions.

HIGH CONFIDENCE AND A TAX HOLIDAY BODE WELL FOR THE MALAYSIAN FMCG MARKET

The second quarter of this year was a period of big change in Malaysia, notably because of a somewhat controversial general election in May, which brought an opposition party into power for the first time since the country gained its independence in 1957.

At the beginning of June, the new Pakatan Harapan (Alliance of Hope) government delivered on its campaign promise to abolish the goods and services tax, which will be replaced by  a new sales and services tax on Sept. 1, 2018. This, in turn, effectively gave consumers a three-month holiday free of taxes. As a result of the government action, inflation dropped to a low 1.3% and food and housing prices fell as a result. Despite the consumer-friendly economic conditions, GDP, while still healthy, increased by 4.5% (lower than in previous quarters), likely due to fewer public investments. That said, however, consumer confidence, as reported by the second-quarter 2018 Conference Board® Global Consumer Confidence Survey, which is produced in collaboration with Nielsen, surged to an index level of 117, the highest it has been since the turn of the decade.

In addition to enjoying a quarter without taxes, Malaysian consumer spending during the Raya festival helped boost FMCG sales 7.1% for the quarter on a year-over-year basis. Food, along with health and wellness items, performed well, with both categories posting single-digit growth through the first half of the year. The beverage, grocery, household and personal care categories have also generated strong growth for manufacturers and retailers this year.

With lower prices for key consumables and consumers’ increasing demand for convenience, smaller-format stores continue to lead channel growth, largely taking share from hypermarkets, which is the only channel to see contraction over the past year.

Looking ahead, early indications suggest that the tax holiday will bolster FMCG spend. That said, however, Malaysian consumers may be reluctant to abruptly change their long-held spending patterns, which have been relatively static for the past few years.

Price, closely followed by quality, remain key drivers when it comes to Malaysian shopping decisions. As prices re-set in September, FMCG players will need to ensure that their promotional strategies are well advertised and executed in July and August to maximize volume sales ahead of the adjustment.

AMERICAN CONSUMERS ARE OPENING THEIR WALLETS FOR FRESH PRODUCTS

As with many markets, change has been prevalent across the U.S. in the first part of 2018. Despite being affected by an array of economic conditions in the second quarter, American consumers remain confident and they increased their FMCG spend by 0.7% on a year-over-year basis during the period. While less than 1%, the uptick represents an uptick of $1.3 billion in quarterly growth.

As with many markets around the globe, inflation is becoming a discussion item for the U.S. FMCG and retail sectors. In the second quarter, inflation was at 2.7%, flat with GDP growth, but up from 1.9% in second-quarter 2017.

In this inflationary cycle, consumers are clearly telling FMCG players that price won’t always deter purchase behavior. We can see this clearly in the fresh food category. Notably, inflation is rising, yet consumers are turning to premium fresh products—a trend that’s benefitting premier fresh grocery stores. And new buyers in this specialty fresh channel have driven the 4.9% year-over-year growth that we saw in the second quarter.

If this premium fresh trend continues, it represents a terrific opportunity to expand high-margin fresh sales (and other higher-margin products) to encourage repetition and adoption among new shoppers. There may also be an opportunity to push value products as a way to encourage increased spending on higher margin categories like fresh. That said, consumers aren’t willing to trade up across the board. Understanding where this expandability exists, and also where consumers are trading down to compensate, requires adoption of a total store, total food view of FMCG.

A HOT SUMMER FUELS FMCG SPENDING IN THE U.K.

Although the U.K. economy got off to a slow start this year, with a slowdown in GDP growth as a result of 12 months of price inflation, the U.K. economy remains strong. While slightly depressed from mid-2017, GDP stood at 1.3% in the second quarter, up from 1.2% in the previous quarter.

FMCG spending remained positive in the quarter and even accelerated later in the period as the region was hit by an unusually hot summer. FMCG value growth came in at just under 2%, down from 3.0% in the prior quarter. Despite the quarter-over-quarter dip, second-quarter 2018 value growth was notably higher than it was in the prior year period.

Notably, the uncertainty surrounding Brexit and the continued rise of energy and fuel costs have not yet deterred consumers’ retail spending. But that doesn’t mean British consumers are spending without concern for the future. To the contrary, consumers in the U.K. remain confident but cautious. They’re willing to be economical, but they’re not willing to compromise. Interestingly, many are safeguarding their grocery funding altogether in order to have flexibility to spend on discretionary purchases, such as out of home consumption, clothing and entertainment.

While there is still pressure on consumer wallets, we continue to see shoppers spend freely on indulgences, celebrations and events. The momentum we’ve seen in the first half of the year should continue in the second half, and we anticipate that FMCG growth to improve and sit close to 3%, with volume growth remaining positive for the remainder of the year.

FMCG CONDITIONS IN COLOMBIA ARE ON SOLID FOOTING

Unlike many markets around the world, Colombia experienced its lowest inflation rate since 2015 in the second quarter. This, coupled with the highest consumer confidence across Latin America and GDP growth of 2.5%, has consumers feeling positive about their personal finances, job prospects and spending money on things they want or need.

While these conditions bode well for a gradual recovery of the FMCG industry in the coming months, consumers remain focused on saving money for household expenses, buying less expensive grocery brands and eating out less. We see evidence of these behaviors across channel spending, as consumers are making larger purchases at less-expensive outlets, such as discounters and cash and carry (C&C) retailers. While these behaviors are typical across the region, some consumers are willing to pay a premium for items that offer extra value be it convenience, health, better flavor, functionality.

This behavior is evident in channel shares where large purchase trips are done in cheaper retail formats (e.g., discounters, C&C) and budgets are closely monitored in small trips with affordable products in Traditional Trade. However, there are still consumers who are open to purchasing premium products or willing to pay extra if the product or service offers something extra that they value—be it convenience, health, better flavor, or functionality.

As such, the opportunity for FMCG players, as in other markets, lies in understanding the key needs or solutions that consumers are willing to spend on.

KENYA’S ECONOMIC GROWTH STRENGTHENED IN Q2

Sub-Saharan Africa’s (SSA’s) economy picked up the pace in the first quarter of 2018*, with regional GDP increasing by 3% year-over-year, surpassing the 2.8% prediction by Focus Economics. However, at mid year, the full-year forecast for the SSA economy was revised down, with GDP for the region expected to grow at 3.4%.

Kenya’s economy is experiencing renewed period of confidence and strong GDP growth. Notably, a recent African Development Bank report projected GDP growth of 5.6% this year and 6.2% in 2019. Kenya’s economy is also more diversified than its regional peers, which has supported its growth over the past decade and given the country the ability to weather the most recent economic storms far more effectively.

In light of improved agricultural forecasts, declining inflation levels and a more stable political environment, consumers in Kenya are more optimistic about their futures. As a result, the consumer confidence index for Kenya increased two index points to 104 in the second quarter of 2018. The private sector has continued to bolster the economy, even though the pace of acceleration was moderate in the second quarter.

In addition to the optimism, consumers are shopping more, as grocery baskets increased in the second quarter, evidence that Kenyans are opening their wallets. The FMCG sector is rebounding, and sales improved in the recent period. Household and personal care categories led the growth. In terms of pricing, food and non-alcoholic beverages saw the greatest declines, while health care items saw the greatest increases.

Kenya is on the road to recovery; however, manufacturers and retailers need to take note of the shifting needs of the consumers and provide value for money offerings to sustain continued spend.

Source:Nielsen 

WPP announces that its wholly owned global digital agency, Wunderman, has acquired a majority stake in Emark, the marketing technology performance company.

Emark delivers Salesforce Marketing Cloud, Commerce Cloud, Service Cloud, DMP, and advertising technology such as Facebook Advertising and Google Ads, as a single, integrated solution.

The acquisition further strengthens WPP’s and Wunderman’s growing global Salesforce practice in delivering marketing and advertising technology solutions for data-driven and personalised customer interaction.

Founded in 2000, Emark is recognised as a preeminent provider of Salesforce multi-cloud strategy and solutions in Europe, with a strong Marketing Cloud pedigree. Headquartered in Haarlem, Netherlands with international offices located in Barcelona, London and Poland, the company employs around 120 people and serves a wide range of clients across sectors including Bugaboo, ECCO Shoes, Marks & Spencer, Randstad, Scotch & Soda, and The Macallan.

Wunderman is the world-leading digital agency whose mission is to inspire people to take action. It brings together 9,200 creatives, data scientists, strategists and technologists in 200 offices in 70 markets.

Looking to Replicate UAE Success in Exciting Kuwaiti Market 

Justmop.com, the trendsetting on-demand home services platform founded in the UAE, announced today that it has expanded into Kuwait, citing the young, discerning population as a key driver of this decision.

Over the past 4 years, justmop has established itself as the ‘go to’ option for cleaning services par excellence and it is this client confidence that has prompted their expansion program to go international.  

A cost-effective option with prices starting at 2KWD per hour, justmop currently offers two packages across the country: 5-hour cleaning and 10-hour cleaning.

“The reason for this is that houses in Kuwait are larger than the ones in the UAE where we have a minimum service requirement of 2 hours,” said founder Ali Cagatay Ozcan. “We may offer the original 2 hour option if the market calls for it. We are flexible and reorient based on market demand. In brief, one sentiment guides us: to save time for our customers so they can use it more effectively and leave the cleaning up to us. We want them to come home to a pristine environment after a hard day’s work and feel good about it.  That is our reward.” 

“Our success in the UAE can be attributed to our ability to study markets in-depth, regularly update the service bandwidth and co-relate client feedback to make for a bespoke service, ensuring adjustments as per requirements and demands. We are, therefore, certain that the professional, unobtrusive and efficient service we have perfected will appeal to the discerning audience in Kuwait,” he added.

The company has had a tremendous run in the UAE with annualized gross revenue of more than USD 4Mand over 20% MoM growth in the last 6 months and chose to expand after a fair amount of due diligence.

“We researched the needs and priorities of this market before entering it with our portfolio. For us, feedback and data we receive are paramount and shape our next step in not just being the best but in setting the standard for the cleaning sector,” said Kerem Kuyucu, co-founder of Justmop.

“We went straight from our base in the UAE to Kuwait for a specific reason. The new generation in Kuwait is young and entrepreneurial and has high disposable income. All the right boxes got ticked. Apart from the exciting demographics, the serviceable market size is very attractive which is validated by other online startups' track records and there are no major barriers to entry. All combined, we were affirmative to launch Kuwait and the initial response has been exciting. We are happy to see that our due diligence was accurate.” he added.

In a day and age of fast moving technology and tech savvy generation, it is no surprise that smartphone giant iPhone is the most positively talked about brand amongst millennials in the UAE while Facebook is the most popular brand with youngsters in Egypt.  Although Saudi Arabia’s state airline Saudia is the most favourably discussed brand among Saudi youth, iPhone is next in line as the second most popular brand among millennials in the country.

YouGov’s daily brand tracking tool, BrandIndex, considered the opinions of respondents aged between 18 and 34, collected online over the past year, to discover the 10 brands they’ve talked about the most positively with friends and family, whether in person, online or through social media.

Digital brands dominate the rankings in the UAE and Egypt. Although iPhone continues to charm youngsters in all three countries, Apple receives accolade in the UAE and Saudi Arabia, ahead of rival brand Samsung. 

Quick-service restaurant chains are demonstrating strong resonance with this age group in the region with the presence of brands like KFC, Al Baik and McDonald’s in the rankings. Although in the UAE, KFC has moved up the rankings to number eight, in Egypt it has moved down to the seventh spot this year. 

Banking and travel are also proving to be engaging topics of discussion among youth with airline brands like Emirates, Saudia and Egypt Air leading to positive conversations among millennials in the UAE and Saudi Arabia. Alrajhi Bank and National Bank of Egypt rank high for millennials in Saudi Arabia and Egypt respectively. Ride-hailing service providers such as Uber and Careem are also becoming increasingly popular with the youth in Egypt.  

YouGov also looked at brands that have experienced the biggest uplift in positive word of mouth over the last year. Holiday Inn Hotels & Resorts has seen the greatest improvement among the UAE millennials this year, while Aquafina and Telecom Egypt have seen the biggest uplift in their word of mouth among millennials in Saudi Arabia and Egypt, respectively. 

Scott Booth, Head of YouGov BrandIndex in MENA commented, “YouGov BrandIndex enables us to cross-reference WOM with positive Buzz and allows us to measure the most talked about brands among young consumers. The dominance of technology brands in the rankings suggests that youth today are constantly engaging with technology and these brands have been able to build a positive image among the digital natives. The appearance of the airline, banking and quick service restaurant brands in the top ten indicates that these brands have rightly used their marketing strategy to charm the youth that has led to positive chatter among the Middle East millennials.”

Get to know the inspirational Dubai-based ‘Millennial’ Entrepreneur Bringing Online Luxury Shopping to a Whole New Level

Suhina Kohli Bahl, the 25-year old creative brain behind Dubai’s new online fashion brand Curador, an exciting new fashion label set to tap into the Middle East’s tech retail potential with the launch of an e-commerce website this October 2018. The online store, named Curador by SKB, will offer the full range of brand fashion items that are currently showcased at Collage Fashion and Tiffany Tower, Jumeirah Lake Towers.

Here, Suhina shares her insights about herself, running a business at 25, design inspirations and love for Dubai:

Q: What inspires you to venture to online luxury retail?

SKB: I started appreciating and getting inspired by all the amazing design talents I saw around the world. I love travelling so I easily get inspired by new places, people I interact with and authentic experiences. This inspired me to create a fashion line that will reflect the joy, bliss and by SKB to achieve but it has to be more relatable to the millennial market. 

Q: Did you study fashion design?

SKB: No, I have a degree in Psychology and Business Entrepreneurship. My courses gave me a clear understanding on consumer behaviour and running my own business. My creativity to curate and design are innate passions.

Q: Who/What are your design inspirations?

SKB: I love self-portrait. Designer Han Chong has a huge impact on my designs as I adore the fact that he was able to mix modern feminism, sophistication, flattering concepts and a little dash of quirkiness together. This is what I would loveCurador by SKB to achieve but it has to be more relatable to the millennial market.

Q: How do you describe yourself as a young designer?

SKB: I am an explorer who loves to experiment with my style. I always look for something new, something that excites me, so expect a range of fresh, edgy and unique designs in every collection.

Q: Who are your target markets?

SKB: I believe my designs are ageless. Any woman can wear my designs as long as they love to standout, never afraid of breaking the rules of fashion and have full confidence of who they are. The online store caters to the millennial consumer. As we know, this generation is very tech-savvy. If they prefer to check out the garments in person they will still have the option to visit my showrooms in Collage Fashion, Al Wasl Road and 28th floor, Suite 2810 at Tiffany Tower in JLT.

Q: How was it setting up a business in Dubai?

SKB: It’s a big risk for me but I am always up for a challenge. I believe Dubai is very systematic in terms of opening a business and as a young entrepreneur I hope to inspire other young people to invest and start their own businesses. The sense of responsibility and maturity you will learn as you go along the process will help you appreciate life even better and give you a fresh perspective on life.

Q: What is your brand DNA?

SKB: Create, Curate, Carry. I would like to take people on a fashion journey around the world with style and fashion. Curador by SKB is always searching for something new and fresh to offer our customers. Expect never before seen designs inspired by our world travels.

Q: How do you balance business and creativity?

SKB: Creativity is innate but business is a constant learning process. The trick is always to balance because one without the other is unacceptable in any thriving business. One must always find a way to complement commerce with creativity and vice versa.

Q: Tell us your view on the consumer behavior of the UAE market?

SKB: The people of the UAE, both expats and residents, are fearless fashion shoppers. They have the power to purchase luxury goods in a snap and whatever they imagine can come to fruition with just one swipe of a card. The sense of luxury and love for aesthetics of this country makes it so inspirational for a designer like me to create more designs.

Q: Any fashion tips?

SKB: Trends are what you make for yourself, so dress yourself the way you feel. Always be comfortable but don’t be afraid to try new styles as long as it gives you the confidence and satisfaction you deserve. Wear your second skin with pride.

Q: Message to yourself

SKB: Curate and create. Offer others what you see yourself wearing.

Q: What are your hopes and dreams for your business?

SKB: I hope Curador by SKB becomes one of the best-curated fashion websites and brand in the GCC and worldwide. I hope to become a big name in the e-retail market and gain commercial success by distributing our merchandise to big department stores. I would like to expand as fast as we can and reach out to as many people as possible all around the world. 

By introducing an online store, the brand aims to reach a wider audience – particularly capturing the attention of a tech-savvy millennial market. Curador by SKB will allow its international customer base to order at the click of a button, with those residing in Dubai able to collect items at the store of their choice or opt for the convenience of home delivery. An in-store e-reservation service will be introduced later this year, along with the opening of a catalog showroom at 28th floor, suite 2810 Tiffany Tower in Jumeirah Lake Towers (JLT) last August 2018.

This web-based portal will enable customers to acquire the brand’s contemporary, ready-to-wear style offerings, which are known for adopting some of the finest sartorial customs from around the globe.

In its annual Martech Report, top ten international accountancy firm Moore Stephens, along with WARC, the worldwide authority on advertising and media effectiveness, has valued the global marketing technology market at an estimated $99.9 billion.

The study, carried out amongst more than 800 UK, North American, Asia-Pacific and European brands and agencies was initiated to better understand the scale of opportunity, and reveals not only a huge existing market, but one that continues to grow exponentially. Indeed, when asked about the outlook for the market, brands expect to increase their investment in martech for the year ahead. This is particularly true in the case of Europe (excluding UK), where nearly two thirds (63%) said they expect their budgets to increase.

In the UK and North America, brands have increased their martech budgets by 44%, meaning it's now worth up to $52 billion. These brands are spending nearly a quarter (23%) of their budgets on martech, up from 16% 12 months ago. Interestingly, brands in the UK and North America are also keen to spend on in-house technology.

63% of technology budgets were spent in-house - compared to 44% last year - a figure Moore Stephens believes is driven by a desire from brands to excel in their customer experience, coupled with an element of mistrust in agencies.

Damian Ryan, Partner, Moore Stephens, said: "Investment in martech has reached a tipping point over the last 12 months. Established marketers in disrupted industries, such as insurance and financial services, realise they need to invest if they are to future-proof themselves, and view martech as a key area of investment. Just look at Nationwide Building Society's recent announcement of £1 billion investment in tech. Staying relevant is key, but taking on the new breed of competitors - such as Revolut is creating a big rethink."

"All the while, agencies are struggling to stay relevant. Clearly marketers are seeking to build in-house strength and are set to spend more on martech to remain competitive. Our research finds that this budget is coming from media spend and will have a resounding impact on the value of media-centric agencies."

Looking at the global market, those who said their budget will increase expect to see an average increase of 13%. Even more indicative of a fast-growing market is the fact that around one-in-five (18% in North America, 17% UK) expect increases of more than 25% in their martech budgets over the next year.

Moore Stephens and WARC also looked at the specific technologies behind this burgeoning market. On a global scale, perhaps unsurprisingly, email remains the most likely avenue for martech, used by 79% of marketers. This is closely followed by social media, with 77% currently using the technology with a further 18% expecting to use in the next 12 months.

The most planned for tactic in the year ahead, interestingly, is SEO - an established marketing discipline, but one which continues to change as algorithms develop. The biggest rise, year-on-year for the UK & North American market, was the use of martech for analytics, measurement and insights, selected by 75% - a 19% rise on a year ago.

The study showed that the most established tech currently in use is that of 'internet of things' (IoT) and connected devices. Second is 'voice' which has seen rapid development over the past year, influencing the way searches are made online and driving progress in areas such as voice optimisation. A new wave of martech tools will likely emerge, and when the results are broken down by region, the UK is likely to be the most progressive in terms of voice search, with 36% stating they currently use a tool in this area, and a further 11% planning to do so in the next few months.

Ryan continued: "There is no question the future looks big and bright for the entire market. Voice is a technology we're watching very closely. In many households, Alexa has evolved from being a source of music and news to become more like a member of the family. Along with being great fun for quizzes and questions - there's a clear trend towards VAL (voice activated lifestyle), the implications for marketers here are immense.

"Though the market is burgeoning, the study also looked at what the barriers are to future investment. Understandably, the number one restriction for 43% of respondents, is marketing budget constraints. Second, however, for over a quarter (26%) was a lack of understanding of the technology coupled with increasing complexity is creating issues for marketers."

Amy Rodgers, Research Editor, WARC, concluded: "There has been no discernible sign that the rate of growth within the martech space is slackening. With data volumes continuously increasing, this research shows that data, analytics and automation are key focuses for martech investment globally as marketers look for help with metrics and measurement. Understanding of the technology available continues to be an issue for brands, however, and with many planning to move tech in-house over the next year, agencies will have to adapt to a changing, advisory role in the martech strategies of their clients."

The “Young Arab Media Leaders” programme entered its second week in Abu Dhabi toady (Sunday, September 23, 2018) with a session on how to create a distinct media identity, featuring Her Excellency Noura Al Kaabi, Minister of Culture and Knowledge Development.

The “Young Arab Media Leaders” programme is organised by the Arab Youth Center (AYC) under the patronage and directives of His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Presidential Affairs, and AYC Chairman. Taking place over the course of two weeks, the event attracted 100 young men and women from 15 Arab countries, including media professionals and influencers.

In her session, H.E. Noura Al Kaabi asserted that the “Young Arab Media Leaders” programme is one of the most prominent of its kind in the Arab world, lauding its role in honing and developing the skills of the media leaders and professionals of the future.

“A distinct media identity is an increasingly important asset in these modern times where media channels and instruments have exploded, making the media landscape much more complex, particularly following the advent and proliferation of social media networks and the subsequent rise of influencers who, over time, channelled their influence towards commercial goals,” H.E. explained.

“Specialising in one subject and maintaining consistency is essential for creating a distinct media identity on these networks,” H.E. Al Kaabi continued. “The rampant imitation we see today in the influencer community is stifling innovation. Creativity and individuality are rooted in loving one’s work, collaboration and teamwork, as well as dedication to achieving a common goal centred around transparency and enriching content.”

The Minister of Culture and Knowledge Development went on to note that pretention does not build a solid and distinct media identity, which, instead, stems from character, playing one’s strengths and not pursuing the monetisation of content as a sole or primary objective. This identity outlines the future of influencers on social networking sites, H.E. asserted, adding that the quality of the content and message delivery are the fundamentals of popularity and success on these platforms.

“The youth have a critical role to play in building the media ecosystem of the future. We have many examples of young pioneers who succeeded in creating a significant following; the challenge now is continuity and we look forward to seeing young Arab professionals with their own popular shows,” H.E. Al Kaabi said, noting that Arab culture is rich and capable of keeping up with the rapid developments and advanced technologies.

The first day of the programme’s second week included a workshop conducted by The National newspaper, discussing how to get a scoop and dominate the digital scene in the media sector. This was followed by another workshop titled “Why We Love Social Media”, which underlined these channels’ extraordinary ability to transfer information and news, as well as their role in verifying the credibility of the sources. The following workshop introduced participants to the various media channels, while the final session shed light on media culture and the most influential media platforms in the Arab world.

The “Young Arab Media Leaders” programme includes a series of training workshops and specialised courses in traditional and digital media, which seek to hone and develop the young participants’ talents. It also includes seminars and lectures targeting young Arab journalists, as well as field visits to the most prestigious media organisations in the world, which allow the young professionals to gain first-hand knowledge and insight into media best practices, straight from the most prominent institutions and figures.

The Arab Youth Center is working with a set of new strategic partners to organise the second edition of the programme, namely: The National Media Council (NMC), Media Zone Authority – Abu Dhabi (twofour54), Dubai Media City, The National newspaper, National Geographic magazine, Forbes magazine, Edelman PR, Haykal Media, YouTube, Facebook, Pyramedia, and CNBC, in addition to the programme’s existing partners: Thomson Reuters, CNN, Bloomberg, Al Arabiya, Sky News Arabia, MBC Group, Dubai Media Inc., Abu Dhabi Media, American University of Dubai, New York University – Abu Dhabi, Twitter, UTURN, Google, Asharq Al-Awsat and Al Hayat newspaper.

A delegation from Dubai Internet City (DIC) – the region’s largest specialised technology business park – will visit Poland for a five-day roadshow between the 24 to the 28 September as part of its outreach to engage Polish entrepreneurs and business leaders, along with those in the wider Eastern European region.

The trip comes at a time when relations between Poland and the UAE are growing in strength. With bilateral trade valued at US$1 billion (AED3.67 billion) back in 2015 according to the Embassy of the Republic of Poland in Abu Dhabi, economic exchange between the two countries has seen a steady increase, while tourism is also on the rise – with an estimated 70,000 visitors having travelled between them during the past half year.

Faisal Hammoud, Head of Business Development for Dubai Internet City (DIC) and Dubai Outsource City (DOC), said: “Due to its strategic geographic location, ease of access and entry for businesses, and the announcement of landmark new federal laws that will allow 100 per cent foreign ownership in certain industries, we can predict that Dubai’s growth trajectory is set to escalate rapidly in the upcoming years.”

He added: “We foresee lucrative trade and investment opportunities for Polish businesses at DIC. It is encouraging to note that DIC is a key contributor to Dubai’s vision to become one of the world’s smartest and most innovative cities. Our easy business set-up policies and diverse community – which is home to businesses of all sizes, from industry-leading multinationals, to homegrown success stories and early stage startups – enables businesses to thrive, and helps them realise their growth potential.”

Valued at nearly US$8 billion (AED29.4 billion), the UAE’s domestic IT market is expected to grow at an average of 5 per cent annually between 2017 and 2022, as per figures from the International Data Corporation (IDC). On the other hand, Poland’s IT market was worth US$16.5 billion (AED60.6 billion) in 2017, having grown 1.7 per cent over the previous year. The country’s economy grew by 4.6 per cent in 2017 and is set to surge 4.5 per cent this year.

Speaking on the investment potential for Polish companies, Moneer Faour, Dubai Bureau Chief at the Polish Investment and Trade Agency, said: “We are pleased to partner with DIC on its visit to Poland. The Polish economy – especially its tech industry, through the evolution of local start-ups – is rapidly gaining momentum. With Dubai’s tech landscape evolving at its current pace, we believe that the time is right for businesses in Poland to consider branching out to the city via Dubai Internet City to reach a wider global market.”

The roadshow will present networking opportunities to C-suite executives, while encouraging Polish business leaders and decision makers to explore possible collaborations in Dubai’s private and public sectors.

DIC is home to over 24,000 professionals working across 1,600 tech companies, including leading Polish names such as Comarch and RTB House. Earlier this year, companies in DIC announced over US$2 billion secured in investments since the business park’s launch.

In April 2018, UAE petrol station operator, Abu Dhabi National Oil Company (ADNOC Distribution), announced the introduction of self-service refuelling pumps at their petrol stations with full-service fill-up available as a premium charged value-added service.

After running trials across a number of outlets, the change was extended to a wider network of fuel stations at the end of June.

In a market where customers have grown accustomed to having an attendant refuel their vehicles at the pump whilst remaining seated in their air conditioned vehicles, this change has been somewhat poorly received. YouGov BrandIndex, the daily brand perception tracker, shows declines in multiple metrics ever since the announcement.

Overall brand health perception as measured by Index dropped from 18.1 in mid- June to a low of 12.4 at the end of July. However, the brand recovered slightly by the end of August to 14.2 points. Sentiment towards the brand also suffered a similar fate declining from 14.7 down to a low of 10.1 in early July but has since recovered to 13.4 nationally by the end of August. This has led Consideration of visiting an ADNOC Distribution petrol station decline nationally from 14.1% in early June down to a low of 12.8 % by end of August.

The declines are even more pronounced amongst residents of Abu Dhabi where overall brand health has declined from 22.6 in mid- June down to a low of 10.6 a month later and recovering marginally to 12.4 by end of August. At the same time Sentiment declined from 21.2 down to a low of 7.9 but has also recovered to 15.4 points as of the end of August. This has also lead to Consideration of ADNOC Distribution amongst residents of Abu Dhabi dropping from 24.7% in June (before the service was introduced) down to 10.7% by the end of August.

Imran Ahmed, YouGov’s Head of Client Services in MENA said, “Although one of the positive outcomes of switching to a self-service model is providing greater convenience to customers by reducing queues and wait time, it remains to be seen whether UAE residents and especially those who reside in Abu Dhabi will become accustomed to self-service and make this switch in the longer run or cough up the AED10 for an attendant to fill their tanks. It will also be interesting to see whether ADNOC Distribution’s competitors in the UAE, and in the wider MENA region, will ultimately adopt a self-service model or carry on with the full service petrol stations.”