Opening a perfume business in Dubai can set you on the road to financial prosperity. But you should only venture out on your own after you have completed your research and created a solid business plan. The UAE Perfume market is worth 500 million dollars. The market is further projected to reach 685 million dollars by 2023. Dubai has had robust growth in the number of international perfume houses setting up here over the last couple of decades.
Understand the Market of Perfume Business
Historically, perfumes have played a major part in shaping international trade within the middle east. The region has had its native ingredients which have now become familiar the world over. International brands have raced to the GCC to cater to the expat and local market with significant disposable incomes and a taste for premium brands. In recent years, social media has played a part in boosting the popularity of many local brands.
Setting up a Manufacturing Facility
If you are looking to start a perfume manufacturing facility, you have several free zone options available to you. Jebel Ali Free Zone, Dubai Industrial City and Dubai South Free Zone all provide facilities to cater to perfume manufacturing. Which free zone you select can depend on the size of the facility that you seek, logistics suppliers available on site and costs of incorporation.
In terms of costs, Jebel Ali charges a premium; however, this location is one of the most developed and has well-established suppliers. And the infrastructure that could come in handy for a new business. Dubai South is the most affordable free zone. It has the added benefit of being located next to Al Maktoum International Airport, which has cargo flights going to all corners of the globe.
Getting a Retail Shop in Dubai
There are plenty of entrepreneurs who have made their fortunes by setting up a perfume retail outlet. A retail spot in one of the many shopping malls in Dubai attracts not only local expats with high disposable income but caters for the growing tourist market. In a survey of tourists visiting Dubai, a bottle of perfume was one of the most popular gifts or purchases for personal use. With a massive surge of tourists during Dubai Expo 2020 and beyond, it is easy to see why there will be robust growth in this sector.
A retail shop in most locations in Dubai will require that you incorporate via a local license through the Dubai Department of Economic Development (DED). Such a license requires a local national as a partner. Our business consultancy firm can help you obtain such a partner while simultaneously protecting your business interests.
If you want to set up in a shopping mall, you will need to get in touch with the management of the mall. You will find that popular sites have a waiting list and you are required to commit to a lease for an extended period. Some malls require you to contribute a certain amount of your sales to the property management firm. Therefore it’s critical that you study the lease and conduct due diligence.
Perfume Business Ownership
If you are keen on having 100 percent ownership, you can open your retail shop in a free zone that has retail options such as the DMCC in the JLT area of Dubai. You will find that JLT provides you with a variety of options when it comes to retail spaces as well as access to a large expat residential community. The company incorporation process is very simple. Using their online portal, you can keep track of the progress of the various steps.
Whether you set up a manufacturing facility or a retail outlet, marketing is critical to the success of your perfume business. Companies have turned to less traditional sources such as social media influencers and bloggers to make a new brand familiar to their target audience. You will need to decide which type of marketing yields the best result. Whichever approach you choose, be sure to dedicate considerable resources to it as the success of your business depends on it.
Let Us Take Your Stress Away
Our business consultants are experienced with company incorporation as well as the particulars of starting a perfume business. We will help you to complete the process in a stress-free manner so you can focus on your business. Contact us today for a free no-obligation consultation.