Challenges faced by Retail Textile Businesses in the UAE

UAE is home to many retail businesses, and it is hard to find space that stays in the market. It takes a lot of effort to build a business up and to remain competitive in the UAE market.??

“According to the Statista Market Forecast, revenue in the fashion industry is projected to reach a whopping US$2,337 million in 2021, growing at an annual growth rate of 11.88% by 2025 to reach a projected market volume of $3,662 million.”?

As the number of establishments goes up, the intensity of challenges also gets harder. Here are a few among the long list of issues faced by textile retailers in the UAE. It is not to scare you but to prepare you for tomorrow. Have a look at this and keep a close eye on your textile business and its numbers.?

Intense Competition??

The UAE has a highly competitive retail market, with many local and international brands. Almost all the world-famous brands have outlets in the UAE. So, it is challenging to market individual brands or stores.??

Operating Costs??

High costs for rent, labor, and logistics eat into the profit margins of retail businesses in the UAE. Finding space in the market itself is a tough job. Even if the owner finds a space, it needs to be furnished with trial rooms, mirrors, and so on.??

Therefore, it is important to keep an eye on operating costs, by leveraging automated accounting solutions like SimpleAccounts.?

Demand for different styles?

UAE is home to people of different nationalities and their choices are entirely different. Not every person follows the same fashion trends. People prefer different types of clothes in different seasons. So, it is hard to stock all such products in a single store. Also, it takes intense research too.???

Product portfolio management is therefore a key component to textile business success.?

Seasonal Sale Patterns?

The UAE experiences seasonal fluctuations in consumer spending. It is not the same throughout the year. The peak shopping season typically occurs during the months of November and December. It challenges retailers in maintaining steady sales and revenue. Thus, it is crucial to keep sales and revenue under accurate management.?

Changes in Consumer Preferences and fashion styles?

Consumers in the UAE are becoming increasingly sophisticated and demanding, with higher expectations for product quality, customer service, and shopping experiences. Retailers must stay up-to-date with these changing fashion trends and choices to remain in the market. It takes much time and effort in keeping up with all the new trends.??

E-commerce websites and online shopping trends?

“It’s predicted that 32% of total market value will be generated via eCommerce and online sales by 2023.”?

Many consumers are opting to shop online rather than in physical stores. One or the other kind of discount sale season is always active on E-commerce sites.? It is very easy to find clothes from any part of the world at a very reasonable price online. This has increased competition and put pressure on retailers to create a strong online presence.?

Capturing online sales in accounting software will ease the management of stock, revenue, and trends and will make the whole online selling process stress free.??

Quick order fulfillment and return policies?

The textile businesses need to be fully equipped to dispatch every order at the earliest. They need to have trusted sources to fulfill bulk orders on time. Return policies for clothes are another issue faced by the textile industry.??

A flexible procure-to-pay solution, like the one available on SimpleAccounts, will be of great support.?

Regulatory Compliance and Tax variations?

Retail businesses in the UAE must comply with a range of local regulations related to licensing, taxation, labor, health, safety, and more. Failure to comply with any of these can result in fines, legal issues, and damage to the business's reputation.??

Avoid fines and declare your VAT ahead of time using SimpleAccounts, a VAT-compliant accounting solution.?

Accounting complications?

Retail businesses need proper accounting systems and it takes a huge sum of money to find a professional to manage the accounting work.?

No lock is made without a key, and all locks have individual keys. But for all the accounting issues a textile retailer faces, we have a specially crafted solution, SimpleAccounts. Keep things as simple as you can.?

SimpleAccounts is your key!??

Overcome all the accounting challenges with SimpleAccounts.