Why Is Market Research So Important For New Business Ideas in Dubai?

Why Is Market Research So Important for New Business Ideas in Dubai?

A viable business strategy based on a deep understanding of the local market is the best way to maintain and establish a competitive advantage in a rapidly changing economy like the UAE. Thus, market research can be very helpful when starting a business setup in Dubai, whether selling products or providing services. This is particularly essential for new companies that rely heavily on sales and consumers in the earlier months because of limited resources. Here, market research ensures those sales will continue to come following the timely actionable market insights.

Thus, ideally, your new company established in Dubai or growth possibilities within the area must go through fundamental market research procedures to guarantee a seamless market entry in the UAE. This article will discuss market research and explain why it is so important for exploring new business ideas in the UAE.

What is Market Research?

Market research is an in-depth study to learn more about your target market and their regular practices, aspirations, and requirements before purchasing a product. However, there is no fixed rule or policy when it comes to the perfect solution. One strategy may work well for businesses in medicine but not so well for someone running a food industry. One or a combination of the following market research methodologies may help analyze how your new business setup can prosper.

Common Market Research Methodologies

Common Market Research Methodologies

Business setups in Dubai can opt for several cost-effective markets research alternatives, many of which may be done quite simply in-house, including:

  • Focus Groups
  • In-depth interviews
  • Observations
  • Online surveys
  • Video conferences and interviews
  • Mystery Shopping & Surveys

It's also a good idea to check with your local market research experts, as many of them, will be able to help you find the right approach.

The Importance of Market Research 

Here are some of the many crucial reasons why we believe the market research is critical for company formation in Dubai:

 Recognize and Capitalize on Business Opportunities

Recognize and Capitalize on Business Opportunities

Once you've done your market analysis, you'll have a clear understanding of which market segment you plan to serve (target customers); whether UAE mainland or a Free Zone Business would align more with your goals. You’ll identify what marketing channels you might use to reach your prospects and what their purchasing preferences are. After all the above, it will be easy to identify potential business leads to increase sales and clientele. 

Take these examples

·         Partnering with Other Companies: A market research study can help you discover the demographics of your target consumers. It will help you find other companies catering to them and help you establish mutually beneficial relationships with these firms.

·         Make Attractive Offers: Examining what other goods and services your consumers are interested in may help you boost sales by combining products, like add-ons and product combinations.

·         Explore New Areas:  It may help you market your goods and services that are compatible with the culture and geography of your customers.

Outsell Your Opponents

Your business setup in Dubai will do better if you get to know your customers. Market research consultancy services can help new businesses discover their customers’ requirements and desires and how to satisfy them. These are just a few ideas local market research consultants can help you outsell your competition:

·         Target Unhappy Customers: Learning about your target consumers' dissatisfaction with your opponents' goods may help you design better alternatives to address their pain points and attracts consumers who are willing to switch brands.

·         Locate an underserved customer segment: Through market research, you can discover if there are any sectors that your rivals may have overlooked. It will open up an array of new opportunities for your business creating new markets with unique services.

Reputable market research and bespoke consulting services such as Corporate Consultancy & Development can offer you advanced analytics to make more educated corporate strategic choices.

Their reliable market research consultancy will provide you with an in-depth SWOT analysis without bias and help minimize risk by proactive planning. In addition to market research, they also help you determine the feasibility of your business setup in Dubai and collect the data you need to secure financial resources.  

Wrapping Out

All in all, new business investors must seek assistance from local consultants as these experts can effectively help you expand your business horizons in the UAE market and focus on areas you might have overlooked otherwise.

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