Challenges Faced by Sales Executives in FMCG UAE Market - By Nair Santosh

FMCG sales executives working in the pre-sales domain in the UAE face a variety of challenges and problems. These challenges are related to market dynamics, customer relationships, regulatory environment, technological adaptation, and personal pressures. Here are some of the key challenges indicated below

1.?Insufficient On-the-Job Training: In today's fast-paced environment, everyone is inundated with information, making it challenging to capture anyone's attention and quality time. This is especially true for a manager, as most of their time is spent addressing & responding to emails. As a result, communication can be draining, leaving the manager with little to no time to provide on-the-job training.

2.?Sales/Target Pressure: Sales executives often feel overwhelmed as they struggle to find a clear direction to progress. They are frequently evaluated solely on sales numbers, leading to conclusions based solely on this data. Instead of considering a broader perspective from the Daily Market Report (DMR), which highlights the activates and action instead their performance is predominantly assessed based on the Daily Sales Report (DSR) indicating accomplished sales numbers.

3.?GPS tracking: is implemented with the intent of monitoring efficiency, but often results in the mechanical prolongation of an individual's actions, rather than fostering their creative potential. It can also place undue pressure on sales professionals, as they may feel compelled to always be reachable and constantly in motion, particularly while driving, which can lead to distractions and potentially missing the correct exits. This pressure arises from various external factors beyond their control, diverting their attention towards responding to location-related inquiries instead of focusing on generating more creative solutions.

?4.?Language and communication as a barrier: In the UAE, salespeople often encounter a situation where they have managers from different nationalities, leading to communication in a language that may not be the native language for both the salesperson and the manager. This linguistic challenge can sometimes result in frustration for both parties, and the final response, after reaching a point of exhaustion, might be "Khalli Walli"

5. Cultural Indifferences: In the UAE FMCG market, cultural differences can have a substantial impact on the performance of a sales executive. Understanding and respecting cultural norms, communication styles, business etiquettes, and consumer behaviors are crucial for successful sales in this diverse market. Sales executives need to adapt their strategies to cater to the preferences and expectations of customers from various cultural backgrounds to effectively navigate and excel in the competitive FMCG sector in Dubai. The way a Arab National (non-GCC national) responds to Pardon by nodding his head is typically a gesture of saying NO by an Indian/ South Asian

6.?Lack of clarity: The inability to understand the intricacies and nuances of Business Development Agreements (BDAs) and listing processes can have a significant impact on the performance of sales executives in the UAE FMCG market. BDAs are crucial for expanding market reach and establishing strategic partnerships, but without a comprehensive understanding of how they work, sales executives may struggle to effectively utilize these resources. Additionally, the listing process is vital for getting products into retail outlets, and a lack of comprehension can result in missed opportunities and delays in reaching consumers. In the highly competitive FMCG market in the UAE, it is essential for sales executives to master these aspects in order to drive growth, secure product placements, and achieve success. Factors such as BDA terms, rebates, display arrangements, category space allocation, promotional calendars, variations in recommended selling prices (RSPs) across different key accounts, merchandise management, and promoter management can vary across each account, making it even more crucial for sales executives to understand and navigate these variations for optimal performance and results.

7.?The lack of product knowledge and competitor knowledge: can significantly impact the performance of an FMCG sales executive in the UAE market. Without a deep understanding of the features, benefits, and unique selling points of their own products, sales executives may struggle to effectively communicate value to potential clients. Additionally, a lack of awareness about competitors' products and market positioning can hinder their ability to differentiate and highlight the advantages of their offerings. This can lead to lost sales opportunities, reduced customer confidence, and decreased market share. To excel in the competitive UAE FMCG market, sales executives must prioritize developing comprehensive product and competitor knowledge to effectively drive sales and stay ahead of the competition. Product Training is crucial as a salesman can pay attention and develop interest in competitor products only when he knows about the product he deals with

8.?Lack Drive: A sales executive in the UAE FMCG market may lack drive due to various reasons such as lack of motivation, unclear goals, feeling undervalued, or dealing with burnout. To flare up their drive, it's essential to provide clear and achievable goals, offer recognition and rewards for performance, provide professional development opportunities, and foster a positive and supportive work environment. Additionally, open communication, feedback, and empowering the sales executive to take ownership of their work can help reignite their motivation and drive in the competitive and fast-paced FMCG sector in the UAE

9.?Collections: One of the significant issues faced by sales executives in the UAE FMCG market is payment and collection from the market. It is common for companies to send sales orders on credit terms to customers, and sometimes, these customers may delay payments or abscond overnight, which can lead to significant issues for sales executives. The process of sending out SOA (Statement of Accounts) on time and following up with customers for payment can be time-consuming and stressful. Sales executives may fear losing their job or the company shutting down due to the losses incurred. This issue can be mitigated by implementing better credit control policies, ensuring transparency and timely communication between the finance and sales departments, and integrating payment follow-up procedures into the sales process. Additionally, companies can consider reducing credit terms, conducting credit checks on new customers, and exploring alternative financing options to address this issue proactively.

10.? Price Sensitivity: Customers are highly price-sensitive, necessitating frequent price negotiations and discounts, which can impact the low revenue generation by the sales executive as to retain the sales, he is at time forced to offer heavy discounts/ offers

11. ?Market Competition: Intense Competition in FMCG sector of UAE is highly competitive with numerous local and international brands. Sales executives must constantly innovate and differentiate their offerings to attract and retain customers. Price Sensitivity: Customers are highly price-sensitive, necessitating frequent price negotiations and discounts, which can impact profit margins.

12. Customer Relationships: High Customer Expectations: Customers expect high levels of service, including timely responses, accurate information, and personalized attention. Meeting these expectations consistently is demanding. Building Trust: Establishing and maintaining trust with customers is crucial for long-term success. This requires continuous engagement and reliable service.

13. Market Understanding & its Diverse Needs: The UAE market is diverse, with varied consumer preferences influenced by the multicultural population. Understanding and catering to these diverse needs can be challenging. Changing Trends: Keeping up with rapidly changing market trends and consumer behaviors requires continuous market research and adaptability.

14. Understanding of Regulatory Compliance & Complex Regulations: The UAE has stringent regulations for FMCG products, including health and safety standards, labeling requirements, and import regulations. Ensuring compliance with these regulations is essential but can be complex and time-consuming. Documentation: Handling the necessary documentation for compliance, such as certificates, permits, and invoices, requires meticulous attention to detail.

15. Technological Adaptation including digital tools: The increasing use of digital tools and e-commerce platforms in the FMCG sector requires sales executives to be proficient in using these technologies for sales tracking, customer relationship management, and market analysis. Continuous Learning: Staying updated with the latest technological trends and tools is essential but can be challenging and requires ongoing training. Salesman generally when he is set , or in a smooth ride never bothers to invest on self by learning and acquiring new skills like presentation skills, communication skills, Excel skills, digital marketing skills and so on

16. Economic Factors &Fluctuations: The UAE's economy is influenced by global oil prices and regional geopolitical stability, which can affect consumer spending patterns and demand for FMCG products. Inflation and Costs: Rising costs of goods and inflation can impact pricing strategies and profitability.

18. Sales Targets and Pressure: Sales executives often face high sales targets and quotas, creating significant pressure to perform and achieve results. Competitive Environment: The competitive nature of the job, with the need to outperform peers and secure bonuses or incentives, can be stressful.

19. Customer Acquisition and Retention: Acquiring New Customers: Identifying and acquiring new customers in a saturated market can be challenging and requires innovative sales strategies. Customer Retention: Retaining existing customers through exceptional service and relationship management is equally challenging but essential for sustained success.

20. Logistical Coordination & Supply Chain Issues: Coordinating with the supply chain to ensure product availability and timely deliveries is critical but can be hampered by logistical issues. Stock Management: Ensuring optimal stock levels and managing stock outs or overstock situations requires careful planning and coordination.

21. Lack of Growth Opportunities within the Organization: Despite consistently strong performance, employees find limited or no opportunities for advancement. This is particularly frustrating when they observe customer satisfaction, increasing sales, and overall organizational growth. However, they are still overlooked for promotions, with management suggesting that the sales executive can address any deficiencies on their own

In summary, FMCG sales executives (pre-sales) in the UAE face a complex set of challenges that require a blend of market knowledge, customer relationship skills, regulatory understanding, technological proficiency, and personal resilience to navigate successfully.

#fmcg #fmcgexpansion #fmcggrowth @indianfmcgcompanies #uaefmcgcompanies #fmcgdistributorsinuae #fmcguae #fmcgindia #fmcgcareers #fmcgcareeruae #fmcggcc #fmcgbrands #fmcgsales #fmcgsalestrainings #fmcgtrainings #fmcgjobs #uaebusiness #uaemarket #consumergoods #uaeinvestment #uaeindustry #businessopportunities #markettrends #brand #businessopportunitesinuae #supermarketsinuae #hypermarketsinuae #salesgrowth #horeca #distributorsinuae #gulfood #saudifoodshow #saudifoodexpo #jobsseekersinuae #jobsinuae #careersinuae #fmcginindia #sales #salestraining #fmcgtraininginuae #fmcgtraining #salesmanager #fmcgmanager

FMCG, FMCG UAE, FMCG BUSINESS IN UAE, UAE FMCG MARKET, UAE MARKET, UAE FMCG INDUSTRY, FMCG DISTRIBUTORS IN UAE, BRANDS IN UAE, FMCG BRANDS, FMCG GROWTH, FMCG EXPANSION, FMCG ENTRY IN UAE, BRAND ENTRY IN UAE, START BUSINESS IN UAE, FMCG INDIA, FMCG CAREERS, FMCG SALES, FMCG SALES TRAININGS, SALES GROWTH, BUSINESS OPPORUTNITIES IN FMCG, MODERN TRADE, HORECA, EXPORTS, GULFOOD, GULF FOOD, SAUDI FOOD EXPO, JOB SEEKERS IN UAE, JOBS IN UAE, CAREER IN UAE, SUPER MARKETS IN UAE, HYPER MARKETS IN UAE, CONSUMER GOODS IN UAE, BUSINESS OPPORTUNITIES IN UAE, FMCG IN INDIA, HOW TO INCREASE SALES, HOW TO INCREASE PROFITS, HOW TO EARN MORE, HOW TO INCREASE TURNOVER, FMCG SALES TRAININGS, SALES TRAININGS, FMCG SALES MANAGER, FMCG BUSINESS DEVELOPMENT MANAGER, FMCG BRAND MANAGER, FMCG TRADE MARKETING MANAGER

UAE FMCG HEAD & SPECIALIST – SALES, MARKETING & BUSINESS DEVELOPMENT, FMCG SPECIALIST, BUSINESS DEVELOPMENT

By Nair Santosh- Every dip of Knowledge makes us better