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RETAIL PLAN WITH A HIGH BUDGET

SUMMARY OF BUSINESS IDEA

Qatar is renowned as a nation of luxury, and as a result, most retail businesses focus on high-end things while ignoring other items. Of course, this market is particularly helpful since, according to a recent World Economic Forum (WEF) report, Qatar is the region’s second most competitive economy in terms of travel and tourism.

Nonetheless, via the adoption of a hybrid retail approach, the Qatail group has developed an ability to tap into both levels of the market. We want to build a mall in Qatar’s Al Wakrah neighborhood.

B: N This location was chosen because of its proximity to Doha (the country’s capital), as well as the fact that a primary soccer stadium with a capacity of over 40 thousand fans is under construction for the 2022 FIFA World Cup, as well as the ease of accessibility provided by the presence of a seaport in the area.

Finally, Qatail is a combination of a reduced mall (where men’s and women’s businesses are less expensive to rent than in other malls) and E-Tail. Our mall will be in Al Wakrah, and we have designed tactics to tap into the tourist, luxury, and daily retail markets.

THE EFFECTIVENESS OF YOUR BUSINESS IDEA

There are only a few malls in the Al Wakrah region because most of them have congested the Doha region, resulting in little competition but a potential market of around a hundred thousand people, whereas the Doha community, despite its population of 1.5 million, is congested with the retail market, making market dominance almost impossible even with sufficient funds.

SO, HOW VIABLE IS OUR ENTREPRENEURSHIP?

I could go on to divulge details from our feasibility studies, such as the fact that in our chosen area, just one huge mall was identified, allowing for healthy competition and the possibility of retail market supremacy.

Furthermore, we have created a market for ourselves by creating a linked website where each of the individual stores in our mall has its own page, and we are responsible for advertising and delivery both inside and outside of our mall, and we take a percentage of all items purchased through our platform, which is why our stores are inexpensive to acquire.

SUMMARY OF PRODUCTS AND SERVICES

Our store’s merchandise includes, but is not limited to:

The broader public, as well as the market we have built for ourselves, is our market, as it is for other merchants.

Our storefronts will be available for rent, with the exception of one, which will be used for Qatail’s own shop inside the mall.

The items for sale are listed above and would be provided at a discounted or appealing price.

THE MALL OF QATAIL

The mall will have entertainment, fashion, and food, which is why we’ll be submitting bids to theaters, a well-known garment company in Qatar, and a few restaurants and bakeries. The proposal would include reasons why our location is feasible, as well as how our rates are the best everywhere, as well as our economic plans and strategies.

Other markets for stores might include things like family utensils and activity utilities, among other things.

OUR ASSISTANCE

We provide courier services for all of our internal shops, as well as internet advertising and marketing, and, of course, private company space.

ANALYSIS OF THE MARKET

Qatar is a great market for outlets of all categories because of the combination of high spending income, a growing population, and increasing visitor arrivals. According to BMI Research, after a 3.7 percent increase in real GDP in 2015, personal spending is predicted to have increased by 9.5 percent in 2015. This trend is expected to continue, with household spending expected to grow at a rate of 15.8% per year on average through 2020, with estimates through 2022 still looking promising owing to the vast number of fans. According to figures from the Ministry of Development Planning and Statistics (MDPS) and the Qatar Central Bank, such momentum is largely due to a broader boom in retail trade, hotels, and restaurants, which saw blended income rise by 10.47 percent to $15.82 billion in 2015, accounting for 9.2 percent of GDP.

According to DTZ, a real estate services business, the amount of new retail space in the pipeline as of the first quarter of 2016 was more than 1.3 million square meters, spread over 12 department stores at various stages of planning or construction. If completed by the existing timeframes, these measures will increase supply by 220 percent by 2019.

Further potential issues include the lack of distinction in a significantly competitive worldwide industry, maintaining first-rate assurance as customer expectations rise, and the effects of disruptive technology know-how when certain retail locations migrate online. However, the sector’s bright future seems to be especially evident. According to a 2015 report by investment bank Alpen Capital, Qatar’s retail industry has the best growth prospects in the area, with sales growth expected to surpass the GCC average of 7.3 percent, resulting in a 9.8 percent annual rise from 2013 to 2018.

DEMOGRAPHY AND WEALTH

Qatar’s per capita GDP reached $100,000 in 2015, due to the oil and gas resources it has exploited since the early 1970s. According to the Boston Consulting Group, the world’s fourth-highest density of households with more than $1 million in private wealth is 116 per 1000, following only Switzerland (135), Bahrain (123), and Luxembourg (120). (BCG). According to BCG, this generation grew by 3.7 percent in 2014 and will rise by another 4.1 percent by 2019. Also favorable are demographic trends. Large influxes of foreigners have seen the population more than treble in the last two decades, rising from little over half a million in 1995 to 2.53 million in March 2016, fueled by many waves of labor-intensive development. With a population growth rate of 8.93 percent in 2015, the consumer base has extended significantly, encouraging middle-class spending, a trend that shows no indications of slowing down. Qatar’s population is around 85% non-Qatari and 75% male, reflecting the prevalence of unmarried males among foreign workers, who largely hail from India, Nepal, the Philippines, Egypt, and Bangladesh.

PATTERNS FOR DEVOTING TIME

An MDPS study on family finances, released in 2014, highlights the retail consequences of this development. This analysis, based on data from 3723 families in the fiscal year 2012/13, found that Qatari households earned an average monthly profit of QR88,217 ($24,200) whereas abroad homes earned QR24,415 ($6700), a disparity partially explained by differences in average family size (8.7 and 4.3 persons, respectively). Non-Qatari households spent QR18,084 ($4970) per month on average, whereas Qatari families spent QR49,663 ($13,600) per month on average. Food was spent in similar amounts by both companies (16 percent and 15 percent, respectively), while ratios in categories like durable goods (9.8% and 3.3 percent), clothing (5.7 percent and 3.4 percent), and private care were significantly different (5.1 percent and 2.2 percent ). Many basic services, like utilities, health care, and education, are provided free of charge to Qataris, allowing them to spend more money on non-essential items. Consumer costs have remained steady, with the trade charge set at 3.64 riyals per US dollar and inflation predicted to be 1.5 percent in 2016, down from 1.9 percent the year before.

Tourism is another important source of retail sales. In 2015, 3 million international visitors spent QR34.1 billion ($9.4 billion) in Qatar. Arrivals are expected to reach 6.14 million by 2026, with expenditure rising to QR48.6 billion ($13.3 billion), thanks to initiatives to expand the country’s cultural offerings and cruise sector.

CLIMATE FOR BUSINESS

The retail environment is also advantageous on many other levels. As part of the National Development Strategy 2011-16, a six-year component of Qatar National Vision 2030 aimed at diversifying the economy away from hydrocarbons, the government has been spending billions of dollars on motorways, ports, power plants, and other infrastructure. In AT Kearney’s “2015 Global Retail Expansion Index,” which looked at the elements that drive successful retail investment, Qatar was ranked fourth out of thirty countries. The quantity of retail space that will be available in the future years, according to the study, will be a windfall to a market that was previously “limited by inadequate supply.”

Another driver is international events; Doha hosts a number of high-profile meetings and conferences each year, luring business visitors who then spend their money in the city’s shops. With tens of thousands of visitors expected to come to Doha, which should have a new metro system in place by then, demand is expected to surge in the run-up to the 2022 FIFA World Cup.

In Qatar, the retail business is separated into three categories: organized retail, freestanding showrooms, and traditional retailers, which are mostly located in souqs, or public marketplaces. According to DTZ’s “Property Times” study, organized space in Qatar, dominated by malls, reached 643,000 square meters of gross leasable area (GLA) in early 2016, up from roughly 500,000 square meters in 2010 and distributed among 14 big retail malls. There is a total of 800,000 square meters of the display area. Traditional merchants have a diminished but still considerable presence, notably infamous sites like Doha’s refurbished Souq Waqif, whose numerous items are a key draw for both tourists and residents.

Unorganized retail accounted for 70% of available space in 2014, according to Al Asmakh Real Estate Development Company, followed by malls (18%), souqs (7%), and hypermarkets (5%), with malls’ share, predicted to be more than triple to 65 percent by 2018 given the current construction pipeline. According to Al Asmakh, Qatar has 285 square meters of structured retail space per 1000 people, compared to 1380 square meters in Dubai and 1030 square meters in the US, however, this is anticipated to rise to 900 square meters once planned constructions are finished.

Retail rents have been increasing even as supply has increased. According to DTZ figures, the monthly cost per sq meter of retail space increased from QR150 ($41.2) to QR225 ($61.7) per sq meter in 2008, before continuously rising over the following six years. Between January and September 2015, it climbed from QR250 ($68.60) to QR300 ($82.32). Despite a 38% increase in available space, prices have almost doubled in the last seven years, indicating tremendous demand. According to DTZ, occupancy rates have remained high, with the majority of big malls fully leased.

NICHES

Other retail categories are also doing well. In 2015, e-commerce sales in Qatar were expected to reach $1.2 billion, accounting for barely 2% of total retail sales in the GCC area, while Qatar Duty-Free sales were predicted to be between $350 and $400 million. Automobile sales, another important indication, increased by 9% year over year to about 43,000 between January and May 2015.

SUMMARY

Retailers profit from a favorable business environment, consistent consumer spending, and a booming economy. Kareem Shamma claims that “In terms of oil fee decreases and their impact on consumer spending, Qatar should be very protected,” says one analyst. “Qataris have one of the greatest, if not the biggest, spending capacities in the Gulf, so it shouldn’t influence retail shopping in Doha.” Furthermore, the population is increasing year on year, which will continue to increase consumer spending in the Qatari market in comparison to other of its Gulf neighbors.” As new shops open and options proliferate, competition for retail spending in Qatar is likely to sharpen in the coming years. This may lead to a renewed focus on entertainment and leisure aspects, notably in Doha’s shopping malls.

N: B; For this reason, we chose the Al Wakrah area for our location.

SUMMARY OF COMPETITORS ANALYSIS

KEY PARTICIPANTS

More than half of the present structural retail space is housed in the three major malls. The City Centre Mall in Doha’s West Bay region has increased to 140,000 square meters after adding 10,000 square meters in 2015. It now houses a diverse mix of businesses, ranging from grocers to high-end luxury items.

Villagio Mall in Al Rayyan attracts 1.5 million monthly visitors thanks to its Venetian-style interior, luxury focus, a 13-screen cinema, and indoor entertainment area with gondola rides, Ferris wheel, go-kart racing, bowling, billiards, and ice skating.

Meanwhile, a soft opening was held in April 2016 for the 160,000-square-metre Gulf Mall, which has over 200 retailers and a theater. Landmark Mall is the fourth biggest in terms of square footage, with 58,000 square meters. It first opened in 2000 at half that size before expanding in 2005 and 2007-08. The single-story structure, which is designed to resemble a turreted Qatari castle, houses luxury items, a theater, and the Circus Land amusement park.

Lagoona Mall is the country’s fifth-largest shopping mall, with 53,000 square meters of retail space, a European piazza area, and over 160 businesses. Ezdan Mall, Hyatt Plaza, The Gate, Royal Plaza, Centrepoint, and Dar Al Salam Mall are some of the other local retail centers.

PRIMARY MAJOR PROJECTS

Three major mega-projects account for the majority of the proposed additional retail space. Doha Festival City, with 244,000 square meters of GLA, will be Qatar’s biggest mall. It includes an 18-screen movie theater, a five-star hotel with 460 rooms, and a 38,000-square-meter amusement park separated into four zones: a snow park, an Angry Birds theme park, a Virtuosity gaming venue, and Juniverse, a mock home shuttle for kids. Monoprix, IKEA, branch store Harvey Nichols, and household goods seller Ace Hardware are among the most prominent tenants, with the latter two making their maiden excursion into Qatar.

The second large-scale project is the Mall of Qatar, which has a GLA of 256,000 square meters and is situated near Education City. It has a 19-screen cinema, a five-star Hilton hotel, a 16,000-square-meter domestic recreation area, and a 5000-square-meter glass-domed atrium with a stage.

The third project is Place Vendôme, a 230,000-square-meter Parisian-style mall being built in Lusail’s Entertainment City sector. It is surrounded by roughly 500 planned villas and three towers, including two five-star hotels with 250 rooms each and a serviced-apartment building. Along with a 20-screen theater, domestic entertainment center, and spa, a central amphitheater will include water and laser aspects for events.

MIDDLE MARKET

The number of mid-market stores in Qatar is also increasing. Al Meera, a supermarket chain, opened 10 new branches in 2015, including Al Thumama, Al Wajba, and Jeryan Njeima. As of April 2016, it has 47 locations, with plans to increase it to 55 by the end of 2017. The Spar Group has signed a contract with local distributor Qatar National Import & Export Co to run its brand in Qatar, with the first supermarket set to open in December 2016 and plans for four more by the end of 2017. Although sales are expected to grow at a 9.2 percent yearly pace from 2013 to 2018, reaching $59.3 billion, supermarkets and hypermarkets are still underdeveloped in Qatar.

Strategic possibilities already in place

Because of the underdeveloped market in the Al Wakrah area, our research found that competitors were underperforming.

Additional initiatives include our competitive pricing strategy and our integrated online and courier service for all purchases made on our website.

PLAN OF ADVANCED MARKETING

SALES AND MARKETING

PROMOTIONAL STRATEGY AND ADVERTISING

MARKETING PLAN

This is one of a company’s most basic requirements, and at Qatail, we’ve developed sales methods that set us apart from the competition and demonstrate our ability to flourish via creativity and thorough research.

DISTRIBUTION AND SALES STRATEGIES
HIGHLIGHTS OF MARKETING PLAN
GET PEOPLE INVOLVED BY USING THE FOLLOWING STRATEGIES
  • Pamphlets that educate
  • Billboard
SEEK COMMUNITY EXPOSURE THROUGH THE FOLLOWING METHODS
  • Sponsorship
  • Particularly Low Prices
USE NETWORKING TO YOUR ADVANTAGE
  • Networking for Business
  • Exhibit

STRATEGY FOR USE OF SOCIAL MEDIA

This means utilizing/targeting the social media platforms that our prospective customers use on a daily basis (tourists etc.). Our mission is to build, communicate, and expand brand awareness (increase the buzz about it). Targeting our clients would include using retail and retail-related blogs, as well as Twitter, Facebook, Instagram, and Snapchat, among other significant social media venues. Video techniques would be largely used to effectively network and interact with these customers, tying them to specific moments captured during their visit to our mall.

  • Qatail’s tweets are retweeted utilizing Twitter teams.
  • Google advertisements — SEO-friendly website, YouTube ads, and blogs powered by Google.
  • Facebook advertisements – Targeted to socialite groups and Facebook users with a passion for shopping or ecommerce.

INDIGENOUS PROMOTIONAL STRATEGY AND ADVERTISING

Type of ad: For media release information and advertisements, see newspapers and online publications.

HIGHLIGHTS FROM THE MIDLEVEL BUDGET PLAN

The introduction or rental of space for the purpose of establishing a hypermarket is included in the mid-level budget plan. In the Doha district of Qatar, we would be renting a retail location for the hypermarket.

This location was previously picked because Doha (the nation’s capital) has a population of over 1.5 million people and is well-known among consumers. Taking into account that key stadiums with capacities of over 40 thousand people are being constructed or are in the process of being developed for the 2022 FIFA World Cup.

VIABILITY

According to data from AL Asmakh real estate development company, unorganized retail accounted for 70% of available area in the United States in 2014, followed by shops (18%), souqs (7%), and hypermarkets (5%), with malls’ share expected to more than triple to 65 percent by 2018 given the current construction pipeline.

Because the hypermarket market is underserved, obtaining a mall location for the hypermarket would no longer be a challenge.

SUMMARY OF THE PRODUCT AND SERVICE

The following are some of the goods available in our store:

Our market is the general public, as well as the market created in Doha as a result of the city’s tourism attractions.

The available items are shown on the left side of this document and would be useful at reduced or enticing pricing.

HYPERMARKET IN QATAIL

Fashion, food, appliances, home décor, and other major items would be offered at the hypermarket, which would also have a recreation area. Other items for the hypermarket might include household utensils as well as sporting goods, among other things.

OUR AVAILABILITY

We provide courier services for all of our items, as well as advertisements and online advertising.

ANALYSIS OF THE MARKET

Qatar’s retail business will be the fastest-growing in the region in the next few years, according to a new report, as more modern malls, supermarkets, and hypermarkets open their doors.

According to Alpen Capital’s latest GCC Retail Industry Report, Qatar’s retail industry is anticipated to grow 9.8% a year on average between 2013 and 2018. This is much more than its Gulf neighbors, who are expected to grow at a rate of between 6% and 7% per year during the same time period.

Supermarkets and hypermarkets, which the research describes as “extremely underdeveloped in Qatar,” are one of the primary businesses fueling Qatar’s retail growth.

It predicts that their growth in Qatar would average 12.1 percent each year through 2018, in part because more international brands are expected to build outlets in the country. Spar Group’s licensing arrangement with Khimji Ramdas Group, for example, will allow it to expand in the area, with “a significant portion of this investment aimed at Qatar,” according to the record.

Qatar’s continued population expansion, its unusually youthful population, global demographics, and infrastructure improvements in preparation for the 2022 World Cup are all factors in the predicted increase in hypermarket and supermarket revenue in the future years.

Other trends that will contribute to the growth include more inhabitants in the region who are more likely to spend more money on healthy and pre-prepared meals.

Supermarket and hypermarket sales in the Gulf as a whole are expected to reach US$59.3 billion by 2018, representing an annual growth rate of 9.2 percent.

FACTORS AFFECTING GROWTH

Another factor driving overall retail growth in the area, particularly in Dubai, is the surge in luxury sales, which include designer garments and accessories, brand-name watches and jewelry, and fragrances.

While the research describes Qatar as a “growing market for luxury retail,” the majority of Qatari consumers choose to shop in London, New York, Paris, Milan, or Dubai. Although designer product costs in Qatar are normally higher than in the other places mentioned, and stock selection might be restricted, the study finds no reason for this.

One of the most important factors contributing to the region’s retail development is the construction of more modern shopping malls, which are increasingly chosen by many people over local businesses and souqs due to the ease of parking and climate-controlled atmosphere. The following is from the report:

“Given the present undersupply and tremendous potential, Qatar’s retail area might see significant expansion in the next few years.”

From 445,600 square meters in 2013 to 651,200 square meters in 2018, it predicts a 7.9% annual rise in area dedicated to “modern retail sales,” or malls, in Qatar.

During the time period under question, a considerable number of new retail malls are slated to build or have already opened in Qatar.

Gulf Mall, opened in early 2014 near Ezdan on the Expressway, has a total retail area of 160,000 square meters. Tawar Mall, which is next to Landmark, is about half the size of Landmark. It was expected to open at the end of 2014, but it didn’t until 2015.

The North Gate mall, which will be built farther north on the Expressway, will have 100,000 square meters of leasable space, although it is also expected to run out of space.

The Mall of Qatar and Doha Festival City, which opened at the end of 2015 and September 2016, respectively, are two of the region’s biggest malls.

Meanwhile, the US$1.25 billion Place Vendome development, set to open in 2017, will comprise the Marina Mall, which will be positioned along the waterfront, as well as around 400 companies.

However, as a consequence of all of these openings, there will be fatalities. Colliers International, a retail real estate brokerage firm, warned in late 2013 that if supply continues to outrun demand, vacancy rates could grow, especially in older malls, causing landlords to decrease rents.

Still, more new malls mean more opportunities for international enterprises to get prime spots, which might diversify Qatar’s present shops in the coming years, providing clients with more alternatives and a broader assortment of goods.

PLAN OF MARKETING

SALES AND MARKETING

PROMOTIONAL STRATEGY AND ADVERTISING

MARKETING PLAN

This is one of a company’s most basic requirements, and at Qatail, we’ve developed sales methods that set us apart from the competition and demonstrate our ability to flourish via creativity and thorough research.

DISTRIBUTION AND SALES STRATEGIES

HIGHLIGHTS OF MARKETING PLAN

GET PEOPLE INVOLVED BY USING THE FOLLOWING STRATEGIES

  • Pamphlets that educate
  • Billboard

SEEK COMMUNITY EXPOSURE THROUGH THE FOLLOWING METHODS

  • Sponsorship
  • Particularly Low Prices

USE NETWORKING TO YOUR ADVANTAGE

  • Networking for Business
  • Exhibit

STRATEGY FOR USE OF SOCIAL MEDIA

This means utilizing/targeting the social media platforms that our prospective customers use on a daily basis (tourists etc.). Our mission is to build, communicate, and expand brand awareness (increase the buzz about it). Targeting our clients would include using retail and retail-related blogs, as well as Twitter, Facebook, Instagram, and Snapchat, among other significant social media venues. Video techniques would be largely used to effectively network and interact with these customers, tying them to specific moments captured during their visit to our mall.

  • Qatail’s tweets are retweeted utilizing Twitter teams.
  • Google advertisements — SEO-friendly websites, YouTube ads, and blogs powered by Google.
  • Facebook advertisements – Targeted to socialite groups and Facebook users with a passion for shopping or ecommerce.

INDIGENOUS PROMOTIONAL STRATEGY AND ADVERTISING

Type of ad – For media release information and advertisements, see newspapers and online publications.

HIGHLIGHTS OF A LOW-BUDGET PLAN

Our retail approach will be just an online retail platform, i.e. E-Tail, for the cheap budget (e-commerce). OR, if they already have a website, we would advertise bids to operate as their courier service and distribute their products to customers.

FINANCIAL INFORMATION FOR THE THREE BUDGET OPTIONS

This concept would need a total investment of little more than £1 million pounds, but the benefit is that it can be presented to business enthusiasts and investors who may be interested in investing in this idea, and I believe the next FIFA World Cup will be a significant boost for investment.

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