Dubai Shopping Festival: What Is It and How Do Brands Benefit?

From the beginning of December to mid-January, the UAE celebrates the Dubai Shopping Festival, put on to support businesses and allow customers to win some fabulous prizes. Created by Dubai’s Department of Tourism, there aren’t just great deals on offer, but concerts, exhibitions, fairs and more.

As this year’s festivities have come to a close, we wanted to speak to agencies in the UAE to hear about how brands approached the celebrations and how this reflects the trends of the coming year. In 2024, it’s no surprise that it’s all about personalisation, sustainability commitments, innovation and of course, the topic on the tip of everyone’s tongues – AI. An event which indicates to brands what the following year will bring, it seems that despite economic challenges, the market is set to see a small rise in spending, and brands have to adapt to capitalise on this.

To hear more about the Dubai Shopping Festival and its impact on the city, as well as how brands utilised it to see what 2024 has in store, LBB’s Nisna Mahtani speaks to experts from Proximity Dubai, VML Dubai and Media.Monks Dubai.

This year, we saw brands adopt multiple strategies to encourage consumers to spend.

For instance, to create a sense of urgency and excitement, brands often leveraged limited-time offers and flash sales during the festival period. Joint promotions and exclusive bundles were offered to attract a broader consumer base. Loyalty programs with exclusive perks and rewards during the festival incentivized repeat purchases.

Moreover, Given the evolving retail landscape, brands emphasise online channels, ensuring a seamless and user-friendly e-commerce experience. Online-exclusive deals, free shipping, and convenient return policies were highlighted to attract digital consumers.

In terms of spending predictions for 2024 - Based on historical trends and the continued growth of the retail sector in the UAE, it's reasonable to anticipate a positive spending outlook. The ongoing recovery from global events affecting the economy could contribute to increased consumer confidence and spending.

Consumers in the region are likely keen to see brands demonstrate a commitment to sustainability, social responsibility, and innovation. Brands that align with these values and showcase a genuine connection with their customers' aspirations are likely to resonate more effectively and drive increased spending.

The Dubai Shopping Festival (DSF) is not your usual sales event. It has evolved into an actual season to be celebrated and enjoyed. And while shopping remains at the core of it, the city fills up with concerts, exhibitions, fairs and so much more. 

In simple words, DSF has become an experience.

That being said, for brands, it’s not all flowers. Competition for space and visibility is fierce, and many advertisers treat the festival as another must-win challenge – just as they do with Ramadan, Back to School or even Christmas. This need for brands to stand out and offer experiences and relevance has proven to be even more important in 2023, as up to 48% of local consumers dedicated a considerable amount of time towards researching brands before making major purchases in the UAE (GFK Consumer Lifestyle Study 2023). Merely putting a currency sign and the word ‘sales’ next to it is not enough to capture consumers’ attention. However, they do carry a significant value when it comes to conversion.

Moving into 2024, despite inflationary concerns, cost of living, fear of unemployment, and geopolitical conflicts, the expectation is to see consumer spend increasing by 5% (Mastercard Economic Outlook 2024). This positive consumer spend prediction comes on the back of strong government visions aiming to provide a more positive and solid economy in the years to come.

Ironically, 2024 will be a year where compromise will potentially drive consumer spend in the UAE. Such growth will likely be divided between needs and wants (i.e. finding the right optimisation of disposable income), so the little pleasures of life can still, somehow, be enjoyed.

Certain aspects of the retail industry may be considered saturated, while others continue to witness fast growth and innovation. This also depends on the geographic location and market segments. In Dubai, the home of some of the world's largest and most luxurious shopping malls, the retail industry plays a significant part in the city’s economy, but are brands making use of the latest technology, specifically AI, to drive more value and boost their sales this year - and how can they profit from connecting AI to their retail strategies? 

It is safe to say that the need for hyper-personalisation has become a must to survive - also in retail. Hyper personalisation refers to an advanced level of customisation in which the offering is tailored to fit the individual’s preferences and interests, it is moving from a macro scale to a micro one where each individual is treated uniquely. It can be achieved through leveraging sophisticated data analytics and artificial intelligence models powered by machine learning algorithms to not only meet the customers’ needs but exceed their expectations to be able to drive loyalty.

Safe to say, brands participating in the Dubai Retail Festival can profit a lot from harnessing AI within their strategies. AI can support the brand in determining the most effective channels, timing, content, and segments by analysing vast amounts of data with speed, to enable what we call ‘personalised marketing’. AI algorithms can analyse the demand, the customers' purchasing behaviours and suggest amendments to the production frequencies and pricing. 

Moreover, AI can enhance inclusivity through voice and image recognition in which customers can search for products using their voice commands or image preferences. It is important not to forget augmented reality as well where AI-driven AR experiences allow customers to try on products, making the online shopping experience more interactive and personalised. All in all, I expect we will see the Dubai Shopping Festival transform over the next few years to cater to the consumers' needs, creating hyper-personalised shopping experiences for them.