Retail businesses that focus on music and video recordings in the UAE are currently experiencing a boom, given the fact that the UAE is a melting pot of cultures from around the world. The UAE’s population seeks unique audio and visual content and stores that cater to this demand are enjoying significant gains. If you want to know how you can successfully set up a retail business for music recordings and establish a retail business for video recordings in the UAE, then you’re in the right place! Keep reading this SetHub blog to know more. Whether you’re looking to stock classics, sell niche records, or even carry the latest streaming equipment, this guide will put you on the right path.
Market Research and Business Planning
Every business idea needs a strong foundational plan to get started, and a retail business for music recordings is no different. To start, you need to conduct some thorough market research in order to answer the following questions about your customers:
- Who are they?
- What do they like?
- How much will they spend?
If you identify the current craze in relation to video recordings in the UAE, you’ll be able to understand whether a demand for specific types of music and video content exists. They could be anything from old records from the 70s and beyond, international hits or even educational content.
Armed with this information, you can begin writing your business plan. Your plan must have details about the following:
- Your objectives
- Your target audience
- How you plan to make a profit
To have accurate information about the above, outline your financial projections, marketing plans and expenses that may come up. A comprehensive business will ensure that you will always stay on track as you begin this entrepreneurial journey. It will also go a long way if you ever need to source funding or if you enter into a partnership in the future.
Choose a Location
Since you have outlined your business model and target audience in your business place, you have to pick a location according to them. If you are targeting a younger audience, it would make sense to locate your store in a place where young people tend to spend their free time. This could be in a mall, near schools or trendy cafes. These areas also attract a lot of foot traffic, so you would be expanding your potential customer base as well. If you seek to attract an older crowd with some records from the golden era, setting up shop in a more residential and quieter neighbourhood will do you good.
Once you’ve pinned down the location, make sure that your store’s layout is inviting and comfortable so that your customers can browse leisurely through your selection of music and videos. This is especially important if you plan to allow customers to preview items before purchasing.
Register Your Business
To set up any business in the UAE, you need to follow the steps in order to ensure compliance. A retail business for music recordings in the UAE is no different. Here is a quick outline of the steps you’d need to take:
In the UAE, you are given a series of choices when it comes to choosing your business structure. For the purpose of setting up a business of this nature, we would recommend going with a free zone company that will offer you 100% ownership as a foreigner in the UAE. However, if you want to target the UAE domestic market and do business in UAE Mainland, you can go with an LLC.
You would also need to obtain a business licence which will cover your retail activities including music and video sales. To find out more about this, the Department of Economic Development (DED) will be your go-to resource.
VAT registration is also an important part of the business setup process. The UAE has a 5% Value-Added Tax (VAT), and you’ll need to register for it. VAT is usually passed on to customers, so it’s crucial to understand how it works and how to apply it to your sales.
Source Your Inventory
As a retail business, your business will be driven entirely by your inventory. As it is the heart of your business, make sure you have a selection that is in line with the requirements and tastes of your target customers.
Whenever possible, make your purchases from major music and video distributors, This will ensure that your items will be genuine and current.
Try to have a mix of flavour by stocking local music and independent films in your collection. By supporting these small timers, you will showcase that your business is different from other mainstream outlets. This can also help you carve out a niche.
The UAEs expat population demands international content. Therefore, stocking exclusive recordings from certain countries may add an appeal to your store.
Remember to stay in tune with licensing laws and restrictions for certain materials. This will prevent you from stocking items that are restricted or require special permissions.
Marketing and Attracting Customers
Now that you’ve laid the groundwork, it’s time to attract customers. Here are some strategies to help get the word out:
Use platforms like Instagram, Facebook, and TikTok to highlight your new additions. You can also host live listening/watch parties, or even give tours of your store.
Collaboration with local artists, playing host to launch events and regular listening socials can turn our store into more than a place to make purchases. It would have the potential to become a hub for enthusiasts.
Setup your own loyalty programme so that repeat customers will be offered discounts or free gifts.
Through these strategies, you’ll be well on your way to building a customer base that loves music recordings and video recordings in the UAE.
Manage Inventory and Sales Effectively
For a retail business for music recordings, it’s important to monitor your inventory and track which items sell best. Use a reliable POS system that integrates inventory management, making it easier to reorder popular items and avoid overstocking items that don’t move quickly.
Consider analysing sales trends regularly. Noticing a surge in demand for certain genres or videos? Adjust your inventory accordingly. The better you manage inventory, the more profitable your business can become.
Final Thoughts
If you do this right, your retail business for music and video recordings in the UAE will benefit from the immense potential that exists in this market. If you plan effectively and stock a carefully curated selection, you can turn your passion for music and video into a lucrative business! When doing your research, try not to rush. Take your time because in the end, the results will pay off. If you strive to create a space for enthusiasts, you’ll attract vinyl buffs to niche film fans and so much more. Your store could become a beloved spot for video recordings in the UAE and music recordings alike. Good luck with your new venture and we hope you can establish a cult following!
How Can SetHub Help?
If you need any further assistance in relation to the establishment of your very own retail business for music and video recordings in the UAE, reach out to us at SetHub! We have a wealth of experience with business setup in Dubai and beyond and our team is always on hand to answer any questions you may have. We recommend scheduling a call with us so that we can discuss your plans and aspirations together. After we have a sound understanding of your long term business goals, we will advise on the best course action to get you up and running! We look forward to working with you on this promising venture.
