Social media comes into its own
12 Sep 2009
For a few hours on Wednesday afternoon, the term #dubaimetro became one of the most popular topics on Twitter, currently the world’s fastest-growing social networking and micro-blogging website. UAE users who “tweeted” – posted it on their Twitter pages to coincide with the inaugural day of the Dubai Metro – saw it as a moment of pride – and a sign the country’s burgeoning social networking community was coming into its own.
For media experts and observers, it illustrated the influence social media wields today and the minefield of opportunities it represents.
“It takes a relatively high volume of ‘tweets’ over a relatively short period of time [to get something to be a trending topic],” said Alexander McNabb, a Dubai-based PR director and active blogger. “To our advantage, the US was asleep. Because in reality you need a much bigger community and we are still very small. But I think it’s a clarion call and it demonstrates the potential of this form of communication.”
Globally, Twitter has seen a dramatic 1,382 per cent monthly global usage growth, according to Nielsen, far surpassing Facebook’s 228 per cent. While Facebook remains the most popular social networking site today, Twitter is quickly evolving into an important component of brand marketing, Nielsen said in a study.
“If you use it properly, there’s no doubt that you can gain a true competitive advantage,” said McNabb. “And there’s no time like now to do that, before everyone jumps onto the bandwagon, and be effective without having to spend enormous amounts of money on advertising.”
McNabb’s company, Spot On Public Relations, on Thursday released the first Middle East and North Africa Twitter Demographics and User Habits Survey. The study, conducted last month, saw the UAE surging ahead in Twitter usage in the region, at 40 per cent, followed by Egypt at 13 per cent and Saudi Arabia at 11 per cent.
While the region’s monthly user number growth stands at a humble 17 per cent, 2009 has been a big year for Twitter, it said, with the total user community increasing at a healthy 300 per cent in the first six months. Twitter was inaccessible in the UAE until August last year when the website was unblocked by authorities.
And marketers better take note – an increasing number of users are also changing their perception of brands as a result of using Twitter, the research revealed. While a massive 70 per cent of respondents admitted to having formed a positive perception of a brand or company, 52 per cent said they have formed a negative perception. “More people are using it as a research tool. They are interacting and engaging with brands and are no longer just satisfied with having messages being thrown at them,” said McNabb.
Carrington Malin, Managing Director of Spot On Public Relations, said the number of users was reason enough for marketers to get involved in the social media sphere. “In the UAE, there are more than 800,000 Facebook users, that’s more than any newspaper can claim in readership,” he said. “There are about 6,000 people on Twitter, that’s more than most trade or weekly magazine can claim in circulation numbers. Consumers are on these platforms talking about things and interacting. Sooner or later they will talk about your brand. So it makes sense to be listening and monitoring. By not doing so, you run the risk of people shaping other information about your brand. And you risk being left behind.”
Emirati entrepreneurs Mohamed Al Awadhi and Peyman Parham Al Awadhi are not going to let that happen to their venture, an upcoming quick-service restaurant serving “fusion shwarmas” called Wild Peeta. For the past two years, the brothers have steadily built their brand online and are now confident they have created enough pre-opening buzz to ensure a positive reception. “We had no advertising or marketing budget. Instead we decided to invest in web services to optimise our presence online and actively interact with potential customers,” said Mohamed Al Awadhi. “It’s paid off handsomely. Through our participation on social networking sites, we have been on the radio, been featured in many magazines and television shows. It’s always a case of somebody who knew somebody else. That’s the beauty of social networks and that’s a great way to build a brand.”
Despite social media’s seemingly huge potential for brand building, many companies in the UAE have yet to warm to the concept. The Spot On PR research shows fewer than 30 per cent of those surveyed use it to promote their companies. Alexander Rauser, CEO of Dubai-based Omnia Connect, an “interactive agency” that provides digital solutions, said larger companies were “still trying to figure out how to use it best. While it’s a great tool for small businesses and entrepreneurs, larger organisations are finding that is not an easy medium to use and adopt,” he said.
“It’s not like advertising where you send a pre-determined message to the consumer. Here, you need to interact with people and you need to appoint someone specifically for that. And that’s where the problem is usually. Because we have a corporate culture that is highly moderated, organisations are concerned about content that goes live. There is red tape and hierarchies through which the message has to pass. That delay is not suitable for social networking where a lot of communication is in real time.”
The best way to get started is to go at it privately, said Rauser. “Create a private profile and observe how people interact and find similar people and information. Get your marketing manager in as well and eventually build a corporate profile. If you don’t have the time, get a PR company to do it for you or hire a consultant to help you out,” he said.
As rising internet usage propels the growth of social media, companies and brands have to try harder to stay relevant and interesting, said Robert Singleton, Online Marketing Manager for the InterContinental Hotels Group properties at Dubai Festival City. “One day customers may make their choice not simply by the look of a website or the message of an advertisement, but by how a corporation communicates with its clients online, and through their tone of voice when dealing directly with the public,” he said.
Singleton’s company has, in the past, organised various promotional and online competitions on Facebook and Twitter which have garnered huge responses, he said. It has also enabled it to answer direct questions from new and regular customers. “Within the hotel industry, social networking is still in its infancy, however the potential has been unmasked,” he said.
Prashant K Gulati, CEO and Managing Director of Optimistix Ventures, said he hoped Twitter’s growing influence would help foster a strong community in the real world. “It’s been a great medium through which entrepreneurs can support themselves, network and share ideas. So many of us have come together because of Twitter. Our circles would have never crossed otherwise,” he said.
Gulati, along with a group of Twitter users, is also the force behind the first Dubai Twestival Local, one of the 200 Twestival Local events taking place in cities around the world. To be held tonight at The Jam Jar in Al Quoz, Dubai, the networking event will raise money and awareness for Dubai Autism Centre. Twitter users in Dubai also participated at the first Twestival Global in February to help raise money for global charity Water.
“Twitter has been used as a medium for everything from blood donation to tackling complex issues where consumers have found a voice,” Gulati said. “I see it forming a connected community and something that has the potential to build relationships outside of Twitter. I see it helping serious people getting serious returns. But if it becomes a frivolous medium where people take advantage of it to spam and advertise, it will die.”
This article originally appeared on Emirates 24/7.
Taking a bite out of the latest food frenzy
25 Sep 2009
Stores selling the humble cupcake are popping up all over Dubai as the city goes on a major sugar rush and entrepreneurs clamber aboard the bandwagon. The trend reflects the go-getting nature of Dubai and the eagerness of its citizens and residents to latch on to any business opportunity. And the emergence of all those new outlets could be seen as a response to the economic downturn as people seek new financial opportunities in a weakened jobs market.
But though the little iced treats are selling like hotcakes some experts warn the craze could turn out to be half-baked. They say the cupcake economy reflects a classic get-rich-quick business pattern where a new type of product emerges and everyone immediately tries to grab a slice of the action.
As a result the segment grows too quickly and becomes too large, businesses over-extend themselves financially, supply greatly exceeds demand and eventually the bubble bursts. Comparisons are being drawn with the dotcom crash of 2000 and the proliferation of coffee shops in London a few years ago that left a number of people with burnt fingers.
Emirati entrepreneur Ahmed bin Shabib said the cupcake market was already saturated, while Prashant K Gulati, the head of the local arm of an entrepreneurs’ organisation, said new ideas were copied quickly in Dubai. “A lot of entrepreneurs do not put enough thought into market research,” added Gulati. “Instead they copy fads. I would be extremely careful not to ride another fad.”
However, store operators remain unfazed. Indeed, a rising tide of entrepreneurs and home business operators, buoyed by heightened demand, are drawing up business plans and sorting out their finances, while some are already making expansion plans. The global rise in cupcake uptake started in New York as a reaction to the recession. Experts there say the cakes are considered an “affordable indulgence” and are being lapped up by people looking for an instant sugar high. But in Dubai, the trend is being driven by the novelty factor.
Dalia Dogmoch, a partner in Kitsch Cupcakes, which opened last November, said: “Our sales have risen by 15 to 20 per cent each month. We have been very well received ever since we opened. In a climate like this, that is extremely fortunate.” The number of outlets trying to grab a slice of the cake in the UAE is difficult to determine as the segment is largely unorganised, with many suppliers operating from home – but competition is growing, say those in the industry. In the UK, researcher TNS Worldpanel values the cupcake market at £7.3 million (Dh43.8m).
Emirati entrepreneur Shayma Al Fardan, who claimed she and partner Fatima Al Abbas were the first to offer cupcakes with their Sprinklez business in 2006, said she was not surprised by the boom. “When there is a good idea everyone will catch on, and the number of new players has just been astounding,” she said. The company operates out of a kitchen and is planning to open its first outlet soon.
Canadian-born Farah Gokal-Ghazzawi, who runs Sweet Stuff with her sister Aaliya, dismissed the “fad” accusation. “Cupcakes have been around for the past 60 years or more,” she said. “If it was going to fade it would have done so. Also, Dubai is so competitive and businesses thrive on competition.”
Dana Jallad, who owns the Dubai franchise of Amman-based Sugar Daddy’s Bakery and is managing director of Sugar Daddy’s International, said her Dubai outlet had done better than the original store in Jordan. “As long as you put a quality product out there people will come to you, recession or no recession,” said the marketing executive-turned-entrepreneur, who opened her store last December. “But behind all of that there has to be a proper plan, a definite business model, for how one wants to take the brand forward,” said Jallad. “It has not been easy to start up the business but we have had a pretty good journey so far and we have had fantastic acceptance for our product.
Both Gokal-Ghazzawi and Jallad are already eyeing GCC expansion opportunities. Kitsch Cupcakes, however, does not want to “spread itself too thin”, said Dogmoch. “We would love to expand eventually but it is not about expanding quickly, but expanding properly,” she said. An increasing number of home-based cupcake bakers are jumping into the fray.
Lily Tejeda, who has been taking orders from home since February, is looking at a possible store opening next year with her business partner and friend Rima. Tejeda, who bakes under the name Lima’s Treats, does not think the cupcake industry in Dubai is undergoing a bubble cycle. “Cupcakes have been around for a long time, it is just that now they have gotten more exposure thanks to movies such as Sex and the City,” she said. “And no, I do not think it is going to go bust. Each cupcake store has its own identity, its own speciality and there is plenty of room for everyone.”
The emirate’s cupcake story, it would seem, is following hot on the heels of New York, with many outlets even replicating names. And that worries Gulati, President of the Dubai arm of The Indus Entrepreneurs (TiE), a global non-profit group dedicated to fostering entrepreneurship. Gulati admitted he knew very little about the cupcake industry, but said new ideas were copied very quickly in Dubai. “If one idea is successful elsewhere everybody thinks it is easy to do. That is when it becomes a bubble. Today, in every industry, you will find ‘me-toos’.”
He said Dubai’s aspiring entrepreneurs should carefully consider the nature of the business environment before starting out. “There are a million other elements such as rent, hiring people, getting permits, the cost of licensing et cetera. Then there is the whole issue of branding, advertising and differentiating yourself from the growing competition. Small businesses might not be able to afford that.”
Businessman bin Shabib, who publishes the bi-monthly lifestyle magazine Brownbook, said the cupcake craze was already over. “Let’s say you are targeting a population of 170,000, which is a generous estimate. And let’s say about 10 per cent would buy a cupcake, that is roughly 17,000 people who are potential customers. Of that, how many would buy cupcakes regularly? Compare that to the estimated number of players, and I am not so sure. “They need to make sure they are organising themselves in a way that will cultivate a regular clientele, a regular audience. All of this goes beyond just selling cupcakes.”
Roundup
Kitsch Cupcakes
Mixing fashion and cupcakes, Kitsch opened in November last year on Jumeirah Beach Road following the concept’s success in Beirut.
Sugar Daddy’s Bakery
Opened in December last year, this outlet on Jumeirah Beach Road’s The Village Mall has already eclipsed the original store in Amman, say its owners.
Sweet stuff
Started by sisters Farah Gokal Ghazzawi and Aaliya Gokal, this is Jumeirah Beach Road’s third cupcake outlet and opened in June this year.
Sprinklez
Not to be confused with New York’s Springkles, this is one of the first cupcake companies to take off in Dubai in 2006, according to its owners. Still working out of a kitchen, Sprinklez recently signed a partnership with Emirati animated television franchise Freej .
Lima’s treats
A home-run business by friends Lily Tejeda and Rima, Lima’s Treats is eyeing a store opening some time next year. Currently, their biggest orders come from corporate event organisers.
Sweet secrets
Run from home by mother-of-two Karen Van Zyl, Sweet Secrets currently caters for private parties and events. Van Zyl says she has no immediate plans to open a store.
Scrumptious Cupcakes
Another home initiative, the owners of Scrumptious Cupcakes have been catering for birthday parties, weddings and themed events.
This article originally appeared on Emirates 24/7.