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Development of Akemi Glow for Global Market
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Table of Contents
Introduction......................................................................................................................................3
Justification for Product and Country..............................................................................................3
How Does it Work...........................................................................................................................3
Country Research and Analysis Rules and Standards.....................................................................4
Similar Products...........................................................................................................................6
Adaptations Needed to Enter the Target Country............................................................................6
Emerging Trends.........................................................................................................................6
Product Liability..........................................................................................................................7
Product Adaptation Strategy............................................................................................................8
Market Entry Techniques................................................................................................................8
Using PEOs in the Entrance Strategy into the UAE Market.......................................................9
References......................................................................................................................................10
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Introduction
This report's objective is to devise a product adaption strategy for Akemi Glow, a skincare
product that will be promoted and sold in Dubai, United Arab Emirates. The market for skincare
products in Dubai is expanding, and the one-of-a-kind formulation that Akemi Glow offers is
quite likely to satisfy the requirements of the market. This report outlines the steps taken to
justify the choice of product and country, as well as the regulations, conventions, and standards
that apply to the product. It also details the product adaptations that are required to enter the
target market, as well as a product adaptation plan for the global marketplace.
The cosmetics and skin care industries have played a significant role in Dubai's beauty and
personal care industry's quick growth and success. Akemi Glow hopes to cash in on the
company's rapid growth, which has been spurred in large part by the arrival of a new generation
of clients. The persistent effects of social media, globalization, and e-commerce on the purchase
of cosmetic products also contribute to this trend. Global aesthetic trends are shaping the way
people generally approach personal care and grooming(Statista, 2022).
Justification for Product and Country
A skincare product called Akemi Glow is intended to bring out the skin's inherent radiance.
Since it is formulated with natural components, it is appropriate for use on all skin types.
The product is created to satisfy the requirements of customers who wish to keep their skin
looking healthy and beautiful.
How Does it Work
Therapy using Red Light with a (Wavelength between 620nm and 750nm) It is employed for the
anti-aging advantages it gives as a result of its ability to stimulate the production of collagen and
elastin. In addition to this, it is believed that it inhibits the production of cytokines, which are
proteins that bring about inflammation.
Therapy using Blue Light: (Wavelength between 405nm to 420nm)
Due of the antibacterial qualities that it contains, it is used in the treatment of acne.
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This specific wavelength supports the creation of oxygen radicals that kill the P. acnes bacteria,
which are the germs that cause acne. There is no risk of damage being caused to the skin as a
result of this process.
Therapy with Amber Light: (Wavelength between 590nm and 620nm) Used to eliminate waste
from the skin, improve lymphatic movement, and accelerate cellular development, hence
assisting in the formation of new skin cells (cell turnover).
Dubai: Dubai is a well-known tourist destination, and the city's economy is expanding quickly.
The UAE's cosmetics industry is now valued at roughly $2.1 billion, and it is anticipated to
expand at a pace of 6.4% between the years 2020 and 2025. The cosmetics industry in Dubai is
broad, and there is a rising need for skincare products. Because of the city's increasingly
cosmopolitan population and rising per capita wealth, Akemi Glow sees this area as a potentially
lucrative market.
Statistics show that by 2022, the UAE's online sales of cosmetics and personal care products
would account for 24 percent of the market's total revenue of $1.3 billion. The highest
proportion, at $518.8 million, is held by the personal care category, followed by skin care
($292.5 million), cosmetics ($174.5 million), and perfumes ($142.7 million).
Opportunities for U.S. exporters in this market need serious consideration. The United Arab
Emirates (UAE) has a population of 9.9 million, with just 10% being of Emirati descent and 90%
being of other nationalities. The strong buying power of consumers is a direct result of the high
annual per capita income of $53,348. Several variables, such as the wide range of cultural origins
among consumers, influence their wants and preferences, but one constant is their insatiable
appetite for exploring new products and services. There is a global emphasis on cleanliness and
aesthetics, and many customers are drawn to businesses that convey a wealthy lifestyle.
Country Research and Analysis Rules and Standards
The United Arab Emirates has very stringent rules on cosmetics and other personal care items.
These rules impose constraints on the kind of ingredients that may be used, as well as
requirements for product labeling and safety evaluations. The United Arab Emirates (UAE)
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adheres to the standards for cosmetics that have been established by the Gulf Cooperation
Council (GCC). These regulations include precise criteria for scents, colorants, and
preservatives. To prevent any legal complications, Akemi Glow should make certain that the
items it sells comply with these standards. The government of the United Arab Emirates is
cracking down on counterfeit goods and making the $1.3 billion market for beauty and personal
care items more appealing to U.S. exporters with high-end brands and valuable trademarks.
Laws and regulations, together with inspections and collaboration with registered trademark
owners, are used to enforce a "zero-tolerance" stance against importers of counterfeit items.
Whenever a company discovers counterfeit goods on the market, they may register a complaint
with the Department of Economic Development in any of the Emirates. Very crucial is the role
played by customs officers in keeping tabs on products entering and leaving the country. The
Dubai Customs Authority, for instance, is a government agency that oversees border security,
community safety, and the facilitation of lawful international commerce and travel. The Dubai
Customs Authority sponsored awareness seminars to educate the public about the issue of
counterfeits and confiscated thousands of dollars' worth of fake cosmetics and personal care
items between 2020 and 2022.
Beauty Products Revenue per Capita
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Similar Products
A number of firms have been quite successful in launching their skincare products on the market
in Dubai. One prominent example of this is the French skincare brand La Roche-Posay, which
has successfully built a foothold in the market in Dubai. The company makes a variety of skin
care products that may address a wide range of customer needs and skin types.
BioLux is another product that gives customers control over how and when your skin heals.
NASA's discovery of the curative potential of light energy led to its use by a world-renowned
dermatological facility. BioLux generates blue, amber, and red light energy using Light Emitting
Diodes designed for cosmetic usage. Without the use of harsh chemicals or UV rays, different
wavelengths may regenerate skin cells, cure dark spots, battle acne, and diminish fine wrinkles
(MyDermaDream, 2022).
Ibarra thinks that individuals will have an easier time using a mask that doesn't need them to use
their hands (which in turn makes them more compliant). This is a favorite of hers; it's a high-
quality medical choice with full-face coverage and both red and blue light modes. Both can be
found in one location, which is a huge plus in our book. It's also quite convenient since a session
just takes three minutes off of your day (Rud, 2022).
Adaptations Needed to Enter the Target Country
Emerging Trends
The usage of technology in the beauty business is a worldwide trend that is on the rise. Akemi
Glow need to think about integrating technological processes into both the process of developing
new products and the techniques it uses to promote those products. For instance, the use of
artificial intelligence (AI) and augmented reality (AR) in the field of skincare has the potential to
improve the customer experience and make it simpler for them to choose the appropriate goods.
In order to establish a formidable brand in the United Arab Emirates (UAE), businesses need a
well-thought-out marketing plan that takes into account the country's unique cultural norms and
practices. Social networking and marketing via influential people are both quite popular with
UAE market customers, as they are everywhere else in the globe. The United Arab Emirates has
an estimated 9.83 million social media users and a smartphone penetration rate of 97.6 percent,
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with 80.2 percent of the population using the WhatsApp messaging app. Word of mouth and
social media presence are particularly influential in the UAE due to the country's small
population and dense metropolitan areas.
Distributors in the UAE are responsible for product registration. Only UAE-based enterprises
with a current registration and license may use the municipal registration portals in Dubai and
Abu Dhabi. For example, the site for the Dubai Municipality's application to register consumer
products has tabs for "Required Documents," "Service Procedure and Steps," and "Other Useful
Information."
Product Liability
Many countries have distinct product liability laws. While creating items for the international
market, it is necessary as a result to give careful consideration to the potential dangers and
solutions for preventing them. In order to prevent any potential legal concerns, Akemi Glow
should make certain that the requirements and laws that are applicable in Dubai are met by its
goods. Every links in the distribution chain must have the burden of responsibility in the event of
a harm caused by a defective product. Because of the rules that businesses must follow,
consumers have come to anticipate a certain level of quality from the goods they purchase.
Manufacturers and retailers put themselves at risk of legal action when their products fail to
fulfill these standards. Both contract violation and legal liability may establish product liability.
Whenever a question of product responsibility arises and neither the contract nor the applicable
legislation provides a clear solution, private international law will be looked to for guidance. The
term "product liability tort" refers to cases filed against a manufacturer or those responsible for a
product in order to resolve claims of harm or disagreement based on negligence or strict
responsibility. So, much of the globe, including Europe, Asia, and North America, has enhanced
its product liability regulations (Roy, 2021).
Foreign exchange risk refers to the potential loss in value of an investment due to fluctuations in
the value of one currency compared to another. The risk of coping with wildly shifting currency
rates goes by many different labels. Businesses who generate money overseas will see a lesser
part of their revenues when converting foreign currency back into their native currency when the
value of one country's currency increases compared to another. Due to the inherent volatility of
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the currency rate, protection against this risk, which may have a negative impact on sales and
revenues, may be difficult.
Imposing additional fees or taxes on exporters before allowing products enter the country is very
unusual. Tariffs and quotas are put in place to prevent foreign imports from undercutting
domestic producers. The effect on a company's bottom line from the potential loss of export tax
revenue might be substantial.(Beers, 2021).
Product Adaptation Strategy
Product Development and Adaptation: Akemi Glow should modify its product to cater to the
requirements and preferences of the Dubai market.
This might include the addition of components that are well-known in the area, such as camel
milk, saffron, and honey. In addition, the packaging and labeling of the goods need to be in
accordance with the legislation and standards that are in place in the area.
Market Entry Techniques
Many avenues exist for exporters to enter the UAE market, given the country has a liberal
market economy. Have a look at these highlights of market entrance discussions. More details on
market entrance strategy may be found in the chapters devoted to Selling U.S. Goods and
Services.
Trade Events is one of the methods. U.S. businesses may network with potential clients from the
UAE, the Middle East, Africa, and South Asia at the many prestigious trade shows and
conferences held in the United Arab Emirates. The U.S. Commercial Service's Abu Dhabi and
Dubai offices host a variety of trade shows and promotional events for American businesses
interested in expanding into the United Arab Emirates (UAE) and the surrounding area.
The utilization of Distributors and Agents is Akemi's Plan B. The United Arab Emirates (UAE)
market may be broken up in a number of ways. Success often hinges on locating a reliable local
agent or distributor. Careful preparation is essential. The U.S. Commercial Service provides
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business matching services to help companies find distributors and agents who fulfill their needs
and get assistance with due diligence processes.
In addition, Akemi should take part in the Free Trade Zones (FTZs). Foreign investors may hold
a hundred percent of a company in a Free Trade Zone, and the zone will provide expedited
registration and cutting-edge logistics services. Often, they are segmented by industry.
Competitive positioning is the alternative tactic. In the United Arab Emirates, a market where
U.S. corporations should anticipate to encounter intense global competition due to the country's
status as a regional trade center supporting major international commercial activity. To compete
with international firms that may offer cheaper prices, successful U.S. businesses frequently
depend on technology and quality advantages, customer service, and after-sales support.
Using PEOs in the Entrance Strategy into the UAE Market
Professional employer organizations (PEOs) are legal businesses that advise you on market
entrance and HR matters. If you're looking to expand internationally but don't want to deal with
the administrative burden of recruiting, paying employees, and staying in compliance, a
professional employer organization (PEO) may be the way to go. Rather of having to establish a
legal organization in the UAE, you may instead work with a PEO, which streamlines the
entrance requirements and procedures. With the help of a PEO, you may effectively manage a
remote office in the nation by staffing it with qualified locals. In this approach, you may cut
down on growth expenditures by as much as 90% without sacrificing efficiency.
The key advantage of teaming up with a PEO like Horizons is that we can assist you in
developing a strategic plan for entering the UAE market and in finding and recruiting the most
qualified employees in the UAE. Akemi's plan for entering the UAE and establishing the brand
there may be carried out with the aid of a local network of professionals. In addition, we can
handle all aspects of managing and ensuring local compliance for the top personnel you recruit in
the United Arab Emirates. Horizons will handle your company's entrance into new markets and
hiring requirements so that you may keep running your business as usual (Donnelly, 2023).
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References
Beers, B. (2021, December 11). Top Risks for International Businesses. Investopedia.
https://www.investopedia.com/ask/answers/06/internationalfinancerisks.asp
Donnelly, D., PhD. (2023, March 28). UAE Market Entry Strategy: Entry Channels and
Alternative Solutions. Horizons. https://nhglobalpartners.com/uae-market-entry-strategy/
MyDermaDream. (2022). BioLux 3-in-1 Light Therapy Mask.
https://shop.mydermadream.com/products/biolux-by-mdd?
gclid=Cj0KCQjw8qmhBhClARIsANAtbocn0wNHu35kDJj3bY2yHLQU-
0oz1RX6zKig_JVNKy9Up3FUCZxIosEaAk_vEALw_wcB
Roy, E. (2021, December 13). 7 examples of how product liability laws change from country to
country - Trade Ready. Trade Ready. https://www.tradeready.ca/2018/topics/import-
export-trade-management/7-examples-product-liability-laws-change-country/
Rud, M. (2022, November 28). The 12 Best LED Light Therapy Masks of 2023. Byrdie.
https://www.byrdie.com/best-light-therapy-masks-4784031
Statista. (2022). Beauty & Personal Care - UAE | Statista Market Forecast.
https://www.statista.com/outlook/cmo/beauty-personal-care/united-arab-emirates
