Friday, August 17, 2007

Is the omani consumer ready for the city center expansion just yet?

I saw muscati's post on the new shops opening in city center and i was like WOW, finally ill be able to get clothes from Oman.
But i couldnt help but think, will Omani's buy from these stores?
Most of these stores such as gap,zara etc will do pretty good since they sell quality products at moderate prices.
Lacoste and tommy hillfiger however are of a much higher caliber. There is im sure a market for it in the sultanate. How long will that last though?
I have noticed that most Omani's spend more than they used to 10 years ago.
But will the number of people purchasing from these stores be enough to keep these stores open?
Countless times we have seen shops and restaurants close in Oman and we think to ourselves , why?
You always thought you saw plenty of people there.
It is however a fact that the reason most of these places closed down is because of cash flow problems. Basically not enough cash inflow from revenue.
I dont work in market research. Heck i dont even work. I do know my country though, and it is questionable whether or not these shops will survive. Lets just hope for the best and pray to god that they stay open long enough for us to shop in them =D .

11 comments:

Twister said...

Considering that Salam stores has managed to stay open...they should work as well...

Because in oman...(or in the middle east for that matter, even in australia)...hilfiger and likes sell quite a lot during sales...

muscati said...

Lacoste and Hugo Boss are both sold at Salam Stores and they regularly sell out of some of the items. I assume that Salam Stores would be opening both shops in City Center.

I think it's a test of the Omani consumer's spending power. Someone has to open a shop to see if people would buy a shirt that costs 40 rials, or a suit for 400 rials. They might fail, but id they succeed then they would be more willing to bring more designer brands to Oman. In the early 1980's we had more designer stores in Oman than there were in Dubai. Now we have none.

By the way, look at this way: you have stores like First Choice and Hanayen that sell women's abayas for as much as 200 rials each, and they are thriving. Compared to them, a 45 rial Lacoste shirt isn't expensive.

Arabian Princess said...

I had the same thought when I saw the list, but I agree with muscati, these shops need to be tested .. and I guess there is a market otherwise why Omanis rush to dubai in every holiday??

Modee said...

sorry wasnt around in the 80's to see that :P
the only designer i remember in oman when i was young was versace
well i guess your right
this could encourage people to go on more risky ventures in the sultanate thus improving the standard of living here :)

Twister said...

The brands sell most of their stock during sales anyway...people jump on them when 40-rial shirts are reduced to 20 or less...my mom got a Gerry Webber jacket from Salam stores last season for OMR 37 in a sale..it originally cost OMR 85..similar for other things...

Modee said...

then they need to be on sale all year just like daniel hetcher in dubai :P
i think these shops will be mostly packed by teenagers, newly graduates and young couples. i dont really see the older generation of oman flocking these stores

muscati said...

Modee- Oman's population is 75% young. That's why all these big brands are interested in opening here. They want to get to the young people's pockets. Their target are people in their teens, twenties and thirties.

Modee said...

75% young
but whats the percentage of those that can afford that?
5%???
and how many of that 5% will purchase regularly from them?

Twister said...

u r still forgetting the bi-annual sales...

Eclipse said...

Unlike Duai, we dont have middle class expatrates who's got that high buying power to buy those clothes. So I can only see failure of these shops in the making. At Muscat there is this Pier Cardin shop which is most of the time empty, so I wonder how these new shps will survive.

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