Middle East retailers are looking towards retail analytics to grow their businesses

By Alexandra Orloff

Retailers in the GCC are looking at more mature markets, where analytics systems have been in use since the 1990s, however Middle East retailers are now ready to seek greater use and insight into business processes.

With an ever growing competition and lingering effects and challenges of the economic downturn; the retail industry is looking for new ways to improve their performance using use analytics. The areas to monitor are entry market, stores opening, product category, generate bigger value, inventory practice and faster response to competitors’ shift.

Middle East retailers are increasingly using data analytics to get a better understanding of their customers, differentiate themselves from competitors, and fuel their growth.

However, there are four imperative principles to implement retail analytics:

1. Structure the capability around available customer data.

2. Implement gradually and don’t over-commit to technology.

3. Institutionalize and formalize the use of data in business processes and across the organization.

4. Get executive sponsorship and hard-wire analytics into the organization.

Though regional retailers already have a substantial amount of data from POS systems, surveys, market research, and other sources; Booz recommends that retailers develop analytics gradually through limited pilot deployments, as there is still a lacking in expertise

It is vital to understand that the journey only begins in the Middle East, and retailers should use at the time being rather fundamental solutions which can offer major results. “However, as retailer’s system evolve toward more advanced forecasting and inventory policies, they will need to evaluate each subsequent wave of analytical development on its own merits and determine whether the investment continues to offer sufficient value’, said Karl Nader, senior associate Booz & Company.

Study by Booz & Company : Retail Analytics: The Route to Improved Profitability for Middle East Retailers

Advertisements

3 Comments

Filed under Luxury Middle East, Study

3 responses to “Middle East retailers are looking towards retail analytics to grow their businesses

  1. Mohamad Chammah

    Can you send me a copy of these valuable articles

    Thanks

  2. Pingback: RetailWire Discussion: BrainTrust Query: Why In-Store Implementation Is the Next Frontier « Meyers Research Center: THE BLOG

  3. Pingback: RetailWire Discussion: BrainTrust Query: Non-Retail Change Agents « Meyers Research Center: THE BLOG

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s