Local companies for the production of food commodities have called for the necessity of granting the local product prominent display spaces in sales outlets, with reduced rental fees, which supports the ability of those products to compete with their imported counterparts.
She assured, for "Emirates Today", that allocating areas for the local product, similar to the agricultural products initiative that was implemented recently, is enhancing the growth of the local food industry.
In turn, the officials of the outlets agreed that it is difficult to give a price advantage and allocate prominent areas for large companies, stressing that the priority of support is allocated to small and medium companies.
Positive feedback
In detail, the CEO of United Food Company, Fathi Al-Khayari, said, “Supporting the competitiveness of food products manufactured in the country by allocating prominent spaces for them in sales outlets, and giving them a price advantage in display fees, is an important issue that has a positive impact on enhancing local production in Facing intense competition with imported production. ”
He stressed that the idea is already applied in a number of countries in the region and other foreign countries, as it allocates spaces for the product bearing the "Made in the State" brand, and gets a price transaction at reduced rates for the supply of products, compared to the prices of the offer for foreign goods.
He continued: «It is possible that the idea, as new in the market, may face difficulties in persuading the sales outlets to implement them, but it will have many benefits in supporting the national food industries, and developing their capabilities to exist in an expanded scope in the local market, in order to support their export capabilities. To foreign markets.
Market competition
In turn, Dr. Al-Tijani, CEO of Al-Rawabi for Dairy and Juices, said that “local food products face high market competition challenges with different products, especially with high production costs, compared to imported products that have lower operating costs, with low fees. Electricity and Water ».
He stressed that giving companies that manufacture in the state a price advantage to display their products in sales outlets, and allocating prominent areas for these products, such as agricultural commodities, will have many benefits in supporting the marketing power of local products.
Increased promotion
The director of marketing services at the National Foodstuff Company, Sanjay Bhatia, agreed with his counterparts that granting dedicated and prominent areas for displaying food commodities manufactured in the country through sales outlets and reducing display fees on shelves will have several positive effects, which contributes to enhancing product competitiveness. National markets.
He emphasized that the allocation of exhibition spaces, similar to what was provided for agricultural products, would increase the promotion and marketing of local products on a larger scale, which would reflect positively on the local industry in that sector, as well as reduce the costs of renting shelves.
Market policies
Meanwhile, the general manager of the Emirates Cooperative Society, Mohammed Youssef Al Khaja, said, “It is difficult to give a price advantage and allocate prominent areas for local food commodities in the sales outlets for free, as it contradicts the market policies for collecting supply fees from all companies, and specifying the areas according to operations Rent ».
He added that small and medium enterprises in the food sector are the first to obtain support, which is already provided to companies that operate under the umbrella of the Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development, or the "Khalifa Fund", as small companies are granted the right to offer fees for periods of up to Three months, upon confirming the marketing of the products, it is contracted for longer periods with reduced offers of up to 50%.
Priority of supply
Suhail Al Bastaki, Director of Marketing and Happiness Department at the Union Coop, agreed that granting local food companies a price advantage and dedicated spaces contradicts the marketing resource policies regarding the collection of rental fees for displaying shelves of companies' products in sales outlets.
Al-Bastaki added, “But the (Union cooperative) management provides facilities for national food companies, through priority of supply, other than foreign companies, for which a specific time is allocated for supply that is difficult to change, in addition to granting national companies facilities in payment periods, compared to the collection operations of foreign companies ».
In the same context, Rashid Bin Howiden, director of supply and merchandise promotion at the Sharjah Cooperative, said that “registration fees for displaying in shelves are part of the profits of the sales outlets, and therefore it is difficult to give preference to large local companies, compared to small and medium companies producing food commodities, which Promises first support from outlets. ”
He added that consumer demand is one of the main determinants of the companies ’strength in the market and sales outlets, and therefore, it is important for companies to follow development policies for capabilities that support the continuous promotion of their products.
Priority for small businesses
The official spokesman for the centers of the "Markets" group, affiliated to the Dubai Government Investment Corporation, said
Abdul Hamid Al-Khashabi, “The group supports small and medium-sized companies in terms of preference for display fees, as it is the first to support from its large counterpart producing food commodities, which has the ability to face the intensity of competition and develop its business.”