How Exercise Notebook Market is positioned in UAE?

1
How Exercise Notebook Market is positioned in UAE?
2
The UAE has been popularly known for the presence
of highest number of international schools in the
world. The market for exercise notebook in UAE
has been an evolving industry with a gradually
rising presence of local and regional
manufacturers and distributors. Until early
2000s, there was no major player in the market
and the industry thrived on imported products
from major notebook manufacturing
countries. Though, a sizable portion of the
market demand is still met by imports, heavy
efforts are made to raise the rate of domestic
manufacturing. UAE is a highly potential market
for premium notebooks and diaries with increased
rate of influencing factors. The market for
exercise notebook is highly influenced by factors
such as rising number of schools, student
enrolments, child population, number of business
establishments and similar other factors. The
demand for notebooks in the country both local
and export demand are largely catered through the
imports.
3
Since, the country has a lack of domestic
manufacturing and availability of raw materials
coupled with affordable and low cost finished
products from the major exporting countries such
as Indonesia, China, USA, India and others have
supported the rate of imports. However the
country, in the recent years has started putting
efforts in raising the domestic production rate
of exercise notebooks. Such a decision was
influenced by the increasing local demand for
notebooks. The market has two major manufacturers
namely Farook and PSI who are engaged in both
trading and manufacturing. The country has a
high preference of center stapled binding over
other binding methods. Moreover, there have been
cover types like soft cover and hard cover. These
specifications have opened up many options before
the customers making their purchase more
specific. Customer preferences started being more
specific to size of paper, designs, number of
pages and similar features. Online channel has a
tremendous future in the coming years as people
in UAE are getting highly attracted towards
digitization.
4
Which Product Dominates the Exercise Notebook
Market? Imported Products or Domestically
Manufactured The UAE exercise notebook market has
two types of products offered imported products
and domestically manufactured products. Imported
products refer to the notebooks and diaries that
are manufactured in other countries from where
the importers procure the same for domestic sales
and re-exports. In UAE the market demand, both
local and export is largely met through imported
products. As of 2016, the consumer spending on
imported notebooks held a share of and
dominated the market with just share. The
importers import different types of notebooks and
diaries from countries such as China, Indonesia,
USA, India and other major notebook manufacturing
countries. In UAE the manufacturers also import
and export finished products in the notebook
market. Other trading companies include Middle
East Stationery Trading Company LLC, Dubai
Library Distributors and others.
5
Importers either distribute the products directly
to the customers in bulk or they sell it to the
distributors at an importers price where they
earn a margin of . They sell the products
generally in bulk. Selling in small quantities is
not carried out by them. UAE exercise notebook
market lacks in terms of the presence of domestic
manufacturers. However, in terms of total
consumer spending on the domestically
manufactured products garnered a share of as
of the year 2016. The notebook market of the
country possesses only two well-established
domestic manufacturers. PSI and Farook are the
two major domestic manufacturers in the country.
Though they are small in number their production
capacity is equivalent to the amount of products
imported. However, in the recent years increased
efforts are being put in the market for raising
the local manufacturing of notebooks and similar
products.
6
Local stationery stores like Brand Tag have also
started their manufacturing within the country in
small units. Over the years the production
capacity of domestic manufacturers in the country
has also seen a visible increase. The
manufacturing factories for notebooks are located
in Ajman and Sharjah. Domestic manufacturers
either sell their products directly to the
customers who demand for goods in bulk or they
sell it to the area-wise distributors spread
across the country. As the local demand for
exercise notebooks and diaries are increasing,
the focus on the domestic manufacturing is also
rising. Which Product Category Dominated the UAE
Exercise Notebook Market? UAE exercise notebook
market includes seven major product categories
namely notebooks and long books, diaries,
practical book, graph book, drawing books,
pocket/reminder book and others. Notebooks and
long books have dominated the exercise notebook
market of UAE by usage with a share of in the
market as of 2016 among all the variants. These
books are highly demanded among the school and
college going students. The spending on notebooks
and long books among the people has grown at an
average annual rate of during 2011-2016. It
increased from USD million in 2011 to USD
million in 2016.
7
Notebooks have an inherent advantage of slightly
low pricing and compactness which appreciates its
sale over long books that are slightly difficult
to carry in hand, especially for young kids. Long
books are used majorly by the Grade 11 and 12
students. A5 and A4 size notebooks are highly
preferred by the school management in the country
especially for the optimization of baggage
space. Diaries followed notebooks and long books
with a share of in the overall market consumer
spending. Diaries are highly demanded among the
business customers. In corporate houses, the
employees are gifted diaries in the beginning of
every year. This attracts a high demand for
diaries in the new years. One of the major
manufacturers of diaries in the country is
Tellurian. An average price of a diary in UAE is
AED . Diaries are different designs and sizes.
Diaries are generally hard bound. Practical
books refers to the notebooks that are used for
doing subject related project works in schools
and colleges. Practical Notebooks have relatively
long size (mostly A4) and are mainly used for
recording scientific experiments and conduct lab
assignments. Most of the practical notebooks are
designed to have 1 ruled and 1 plain side.
8
Drawing books made out of leaves of
drawing-paper, usually blank, but, sometimes
partially printed with elementary designs to be
copied in the blank spaces. Drawing books have
comparatively longer breadth size and carry an
average of 20-50 pages. In 2016 it accounted for
a share of in terms of overall consumer
spending. Graph book sales are heavily
constrained by their usability in stipulated
subjects and therefore have limited scope of
expansion in the overall exercise notebook
market. Scrap books are notebooks with empty
pages primarily used for sticking newspaper
articles, pictures or any other craft materials
to be stored as memorabilia. Scrapbooks come in
multi-colored pages and appealing cover designs
and prices may vary widely depending upon
illustrative and creative designing and paper
quality. Which Purchase Channel Dominates the
Market? Stationery shops refers to the shops that
stocks commercially manufactured writing
materials including paper, notebooks, diaries,
pens, pencils and similar other writing
implements. The factor that influences the
preference of a purchasing channel includes
accessibility, availability, variety, price and
similar factors. In UAE stationery stores are
available in plenty and are easily accessible.
9
Even a less populated emirate has a substantial
number of stationery shops. As of 2016, the
purchase channel that has dominated the UAE
notebook market was stationery store with a share
of in terms of consumer spending. Stationery
stores offer the customers the best possible
price. College and school stationery has also a
comparatively major share in the notebook market
of the country. As of 2016, it accounted for a
share of in terms of overall consumer
spending. The choice of online purchase channel
for buying exercise notebooks and diaries have
not yet gained the desired market traction.
However, it was able to garner a share of in
the overall consumer spending in the year 2016.
Online channels are of two types such as the
stationery shops that have an online selling
portal and e-commerce shopping portals that sell
exercise notebooks along with their other product
line. What are the Major Trends and Issues in
UAE Exercise Notebook Market? The UAE has been
witnessing a rise in the number of school
enrolments from the past few years. The quality
of education in the UAE remains high, despite the
negative impact of including gross tertiary
education enrolment in the Global Competitiveness
Index.
10
The number of schools in the UAE with many of the
parents demanding high academic standards is
similar to the levels seen in the US. While the
UAE and Qatar have both remained at the forefront
in attracting private investors to the education
sector, the UAE has the highest number of
international schools in the world 518 in number
as of the year 2016. Smart education has also
been implemented through the digital education
initiative, the Mohammad Bin Rashid Initiative
for Smart Learning from 2014. The project is set
to introduce smart classes across all schools and
facilitate a modern learning environment by
providing tablets and high-speed 4G networks by
2017. High cost of machinery purchase and
production set up has been a serious challenge
for the market. It has been the reason why
companies outsource their manufacturing process
to third parties. Heavy machineries like
automatic reel to sheet ruling machine and paper
cutting machine cost very high.
11
The business for exercise notebook is highly
seasonal with majority of the demand emerging in
peak season vis-à-vis average monthly sales. It
has been witnessed that the school season which
ranges about 3 months across the country
contributes around to the total sales volume
of exercise notebook manufacturers. How the
Competition is prevailing in UAE Exercise
Notebook Market Competition in the UAE exercise
notebook market is highly concentrated on few
major players. The market demand is largely met
through import of the products from other
countries including China, The UK, The US and
others. The country does not have a strong
manufacturing base. There are only two major
manufacturing companies in the country namely,
Farook International and PSI. The players in the
market include manufacturers and trading
companies. Trading companies execute the import
and export of exercise notebook products in the
market.
12
The market is dominated by two major players
namely PSI and Farook. The market share is
derived out of the share of domestic
manufacturers revenue share in the market. Other
layers include the small manufacturers within the
country whose production capacity, distribution
network and geographical expansion is limited in
comparison to the major players. These players
compete against each other on the basis of
parameters such as type of paper, size, material
used, binding, design, distribution network,
number of stationery stores, geographical
penetration and similar other factors. What is
the Future Outlook for UAE Exercise Notebook
Market Exercise notebook market of UAE is
anticipated to showcase a decent growth at a CAGR
of during the forecast period 2016-2021.
Growth during this period shall be supported by
the rising population of the country, rising
school enrolments, focus on domestic
manufacturing, probable increase in the rate of
imports and similar other factors. Moreover, the
number of international schools is also rising in
the country.
13
As of August 2017, UAE has the highest number of
students studying in international schools in the
world. In addition, an event named Paper world
Middle East is scheduled to be held in Dubai from
27 February 1 March, 2018. It showcase of all
kinds of paper products and stationery items from
all across the world. Such an event is expected
to make the people aware about the different
varieties of the product and encourage people to
buy the best suitable ones for their uses. All
these factors with more similar factors shall
augment the market growth. The overall consumer
spending in the exercise notebook market of the
UAE is expected to reach USD million by 2021.
14
Sourcehttps//www.kenresearch.com/consumer-produc
ts-and-retail/home-and-office-furnishings/uae-exer
cise-notebook-market/142302-95.html Contact
Us Ken Research Ankur Gupta, Head Marketing
Communications Ankur_at_kenresearch.com 91-901537824
9