Objective and Scope:
The client, a leading advisory firm, was working with a UAE-based FMCG retail company that wanted to expand their business into wholesale. For this, it sought Benori’s support to:
- Assess the overall market of the retail and wholesale sector in the UAE, including the key growth drivers and inhibitors, along with recent trends and developments in the sector
- Analyze the working model of the top trading companies in the UAE and perform a competitive benchmarking
- Provide recommendations and the way forward for the sector
Approach:
We conducted extensive secondary research followed by primary interviews to gain insights into the size of the retail and wholesale sectors in the UAE. The market size of FMCG was derived for both segments through further triangulation. We conducted expert interviews to understand the working models of some UAE-based trading companies, their value chains, and overall market segmentation.
Impact:
The research helped the end client assess the feasibility of entering the FMCG wholesale sector and gain an understanding of:
- The share of FMCG in the retail and wholesale market and the profit margins availed under both segments
- The market segmentation, key competitors, recent developments, and best practices in the sector
- The working model of trading companies and a better analysis of the go-to-market strategy in the wholesale market