Title: Distribution System of Sport apparel in the United Arab Emirates
Sportswear sales in the United Arab Emirates are benefiting from the lifestyle changes and media coverage that it is receiving. Consumer is now using sports apparel. The United Arab Emirates has the highest concentration of retail chain stores per head in the world. There are over 1000 hypermarkets in United Arab Emirates, with Lulu hypermarkets owning the largest number of retail stores in the region (The Futurist 7). Retail chains this include retail stores such as hypermarkets, supermarkets and small shops in malls. Our goal is to have our product available in all retail store in U.A.E. The scale of distribution system required is large, so that it can serve a sizable part of the market. The role of chain stores is to link to the consumers. They connect producers with consumers. Online retail stores are available to the United Arab Emirate clients. It offers the opportunity to serve a wider market that was not previously accessible (Gitman et al 19).
Distribution concentrations in the United Arab Emirates are intensive distribution density and selective distribution density depending on the product and target market. The target market is market is people aged 16 – 30 years old. These are active customers of sport apparel, this segment often shop and especially in Mall areas. They are the trend setting group. The target market will debut on product lines.
Distribution laws that impact on the product
The United Arab Emirates legal system recognizes the registered and unregistered commercial/business oriented agents. In the United Arab Emirate, there is no difference between a distributor and an agent. They are known as commercial agents. The law favors registered agent, and choice of the right agent is important because a contract entered into by a producer and registered agent cannot be ruminated except when determined by a government committee (Rushton). The terms of contract differ. They depend on the sales volume and the agent. The responsibilities and performance measures are usually clearly defined.