Throughout the years, Dubai has been a world of style, fashion, and entertainment. This emirate is home to millions of citizens from around the world. Many people from Dubai are into fashionable clothing and they spend a massive amount of money buying fashion. Therefore, a boutique business in Dubai is a great option in the long run.
In this article, we will make sure you understand everything about boutique businesses in Dubai and the best way to do it. In the same vein, you will understand the benefits as well as the process for starting a boutique business. Let us observe:
- How do you start a boutique business?
- Why should you start a boutique business in the UAE?
- Key factors to have in mind when setting up a boutique business
- What are the requirements for opening a boutique store?
- What is the process of starting this type of business?
- How can Connect Free Zone assist you to start a boutique business in the UAE?
     1. How do you start a boutique business?
The big brands of the clothing business did not improvise what they are today. In the same vein, yes, they did trial and error, but the most common thing among them is that they followed a solid business plan and continued scaling progressively. In Connect Free Zone we offer you this step-step-by-step guide to start your boutique business in Dubai:
It is better to be prepared for valleys and peaks as you start your boutique store. We understand that starting a business from scratch is not an easy task, but it is always possible. In addition, remember all the big brands started somewhere.
     1.1. Identify the market’s needs
A successful boutique store will not succeed based on the vanity of its founder. In other words, you can think about a niche in the UAE market that is not currently covered. For instance, is it a line of underwear hoodies? Is it a formal t-shirt your customers can wear on some occasions? You can think about an existing product that is not offered by a major clothing boutique.
     1.2. Develop a business plan
This step will guide your entire adventure as a boutique or clothing manufacturer. Therefore, you may ask yourself:
- What is my main goal for my products?
- Do I want my products to be sold in other stores?
- Will I want to create a private brand like Zara or H&M?
- Do I want to create a premium luxury brand?
     1.3. Identify your target customer
This is step is similar to number 1. Your business objective is not just to identify a clothing product that should exist; but also, to identify the target market of customers for that product. And above all, a brilliant product is useless if it lacks potential users. Similarly, you can consider the positives and negatives of targeting certain demographic areas.
Teenagers are sometimes more style-conscious and more open-minded to word of mouth and online marketing, but they also have limited funds.
On the other hand, middle-aged customers can afford a higher price; but at the same time, they are less concerned about some styles and could be loyal to an already existing brand identity.
     1.4. Start designing
This is where your creative part comes forward. In the same vein, the first collection you put out to the market will establish a great part about you as a designer; thus, make sure you are creating something you would be happy to use as this is your card going forward. That is to say, you must think practically; it does not matter what you are designing, you must think in a cost-effective way.
Successful boutique businesses in Dubai will always find the blend between the attainable and the ideal.
     1.5. Find a clothing manufacturer
Unless you are planning to outsource, sew and cut all material by yourself. Similarly, you will need a solid manufacturing partner. However, this can mean any number of areas. For example, maybe you are looking for colleagues who can assist you make your clothing brand in a home studio; or perhaps you can be looking for a factory that can produce an unlimited supply of products for your boutique while at the same time they are mass-produced.
For many years, clothing manufacturers have been based around the world. It is possible that you find good ones in countries like Sri Lanka, Vietnam, China, Bangladesh, etc. Further, you can travel to the country to see the factory by yourself; but for new boutiques on a budget, they can do this entire process via email and phone.
If your market goals are less ambitious; you can choose a new printed logo of casual wear or existing streetwear. However, you can manufacture the goods for your boutique business in Dubai locally, such as at a POD (print-on-demand) screen printing facility.
     1.6. Choose a market profile, brand name, and logo
If it is the case that can find a way to manufacture your clothing items with reasonable production costs; you are ready to start planning your boutique profile. Thus, it consists of picking a logo, a slogan if necessary, and a business name in addition to designing a website with an e-commerce platform.
Most importantly, all customers like brands with a strong and compelling story, so intertwining into your brand logo, name, or website will also help. Moreover, you can complete this work at the same time the manufacturing process is done; this way you can sell your goods as soon as they are crafted.
     1.7. Choose a price point for your items
This step consists of understanding and identifying your target customers. Certainly, you can choose a price point that covers your production costs and alienates your customers, this way both parties will be happy.
     1.8. Begin the marketing process
In this stage, your new boutique business in the UAE needs brand awareness. That is to say, Instagram has become the best social media platform for this; many influencers are will promote new fashion brands in exchange for products.
     1.9. Set realistic sales prospects
Do not be afraid to partner with another business if you want to distribute too. Just because you are a fashion boutique does not mean you know everything about clothing distribution. If you can reach your sales goals, you will continue growing, as per your business objectives.
Once you have your concept established (clothing you can sell in limited amounts) you are ready to partner up with co-investors. And yes, we understand that it would be cool to own your entire business and keep your future profits. But when most business starts to grow, they need access to more capital.
Taking on a business partner who can provide all this said capital in exchange for a part of the company is one of the most traditional ways to do this.
     2. Why should you start a boutique business in the UAE?
Starting a clothing or boutique business in the UAE is a massively beneficial decision in the long run. However, we must analyze all the aspects and the benefits. Some common benefits of this type of commercial activity include:
- A huge market: Dubai has a very active and busy fashion industry. In addition, people in Dubai love fashion a lot and it is unquestionable that the city is a huge market for the fashion business. As mentioned before, you must come up with a solid market plan.
- No taxation: When you start this type of business in the UAE, you will not need to worry about taxes. Certainly, this is valid in some free zones; so, if you are starting this journey in Dubai, you can take advantage of the zero-taxes policy.
- Affordable cost: Setting up a boutique business in Dubai is affordable. But it is necessary to decide if you want to start only a physical boutique business or an online e-commerce business as well. Boutique businesses in Dubai are inexpensive. Further, you must pay for the trade license and prices variy from visa application to other fees.
- Online payment options: When you start this business in the city you can take advantage of all the payment options. Therefore, if you have your business registered online, you must think and determine what requirements you need. Further, you can also take advantage of a shared desk; and the DED issues the license.
     3. Key factors to have in mind when setting up a boutique business?
3.1 The type of boutique shop
You can decide what type of boutique business you want to open in Dubai. Moreover, you can make this choice based only on your interests. But you can open a high-end fashion store that sells luxury brands and is focused on famous and rich individuals.
On the other hand, you can open a modern boutique that sells fast fashion. In the same vein, these stores are mostly visited by young individuals. The other option is to open a wholesale garment store.
3.2 Location
You must select a location that:
- Is highly-visible.
- Has a lot of traffic.
- No nearby competitors so you can focus your marketing strategy accordingly.
    4. What are the requirements for opening a boutique store?
Getting Local Support: the first step you need to take to start your business is to partner up with some local support. In addition, this support must come from a UAE national or sponsor entity; because it is mandatory in the city and other parts of the UAE to have a local sponsoring if you are a foreign national.
Unless you are considering a Free Zone, you will need to partner up with a national UAE that will own 51% of the business. However, in Connect Free Zone we can assist you in this process as well as sponsoring your business.
- Business License and Registration: you must apply to the DED to obtain pre-approval for your boutique store.
- Choose your business jurisdiction: you must choose a business jurisdiction that goes along with your requirements. After that, you will need to structure your business in accordance with the DED schedule.
- Lease or rent shop premises: once you have decided your location for your retail store in the UAE that fits your business needs; the Dubai Municipality (DM) must approve it.
- Required Documentation and PRO: you must complete a lot of paperwork to receive the permission, approvals, visas, and certifications from different entities if we consider the jurisdiction and the shareholding structure of your business.
     5. What is the process of starting this type of business?
- Submit a valid copy of your visa and passport.
- Obtain the No Objection Certificate for the trade name and initial approval.
- Draft and sign the Memorandum of Association with the UAE local partner/sponsor.
- Complete the shop space and sign the lease.
- After that, submit the mentioned documents to the DED and obtain the voucher.
- Collect the license.
     6. How can Connect Free Zone assist you to start a boutique business in the UAE?
In Connect Free Zone we understand that starting a business journey on your own can be an overwhelming task. That is why we offer you discounts, packages, and standard pricing if you want to start your business in Dubai Mainland or Free Zone. On the other hand, we can also sponsor your business boutique business in the UAE so you can set up quickly in Mainland Dubai.
Working side-by-side with us will allow you to focus solely on your business; we will take care of all the boring paperwork and deal with the authorities. In addition, we have more than 21 years of experience working with businesses across all industries in Dubai; which helped us to acquire the best expertise we need to assist your start-up.
Here you will find the best business locations for your business. In the same vein, we will make sure you obtain the benefits the different jurisdictions will offer you. We compare free zones, their regulations, rules, and locations.
Would you like Connect Free zone to help you start a boutique business in Dubai? If you want us to focus on building and starting your company along with you or if you have different inquiries; you can always reach us via contact@connectfz.com. Or if you prefer, you can call us at +97143316688.
On the other hand, if you would like to submit your resume or CV; please go to thetalentpoint.com or send an e-mail to contact@thetalentpoint.com. Most importantly, we do not store the resumes and CVs you send us.