Market trend analysis helps you, as a company manager or investor, to identify the next big trend before it peaks. However, the quality of your market trend analysis strategy affects the quality of the data you generate for your UAE business.

Which is why, in this article, we will explain what an effective market trend analysis strategy is, including how to source and implement the trends insights for your UAE firm.

What is a Market Trend Analysis?

Executives, investors, entrepreneurs, and other business experts in the UAE market use market trend analysis as a strategy to identify and evaluate the market pattern so they can make strategic decisions for their businesses.

Similarly, businesses use market trend analysis to gather necessary marketing insights and make a strategic decision on which features, products, and marketing campaigns to introduce into their firm.

Also, investors and entrepreneurs use market trend analysis to find insights that most profitable market and companies to invest in.

Year	Total consumer spending (billion AED)	Online Shopping preference (%)	Spending on luxury goods (%)	Spending on essentials (%)	Spending on Experiences (%)
2018	780	28	20	50	30
2019	810	32	22	48	30
2020	830	45	18	55	27
2021	850	48	15	53	32
2022	880	52	17	50	33
2023	900	55	19	48	33

UAE Consumer Behavior Trends (2018-2023)

Here is a dot scatter plot representing UAE Consumer Behavior Trends (2018-2023).

Why is Market Trend Analysis Important for UAE Businesses?

Here are the best four ways market trend analysis can help other firm owners, entrepreneurs, and investors with their business in the UAE market:

• It helps them to get trending information before it comes out.

In the UAE market, it is very important for investors to get trending data early because early investment brings out higher ROI. This is also useful for UAE business owners and entrepreneurs because it helps them to develop new products or services to meet their target first before their competitors.

• It also reduces the risk of investment.

The market trend analysis gives you an idea of the market volatility as a UAE business owner. And it allows you to calculate roughly whether the target will increase, decrease, or remain constant.

• It also improves your forecast accuracy.

When you launch a new product or service in your UAE firm, an accurate estimate is required for the product’s target in the future.

So, market trend analysis helps to calculate the target of these products. It will do this by giving out past customer interest, which can be used to predict the future target of that product.

• It also maintains a competitive advantage. This is done for companies by recognizing the new competitors in the UAE market so that they can be ahead of them in all their steps.

How to Analyze Market Trends in Business?

If you are new in the UAE market and your question is: What are market trends in business? Or you’re trying to research market trends to start a new business or you want to invest in a startup, then here is a guide on how to analyze a market trend and integrate it into your business strategy.

Step 1: Find trending competitors and products.

Finding trending data is the key component in studying market trends. Although this phase takes time and there is always a risk you will overlook the following trending insights.

Every trending item, nonetheless, has long-term potential and is based on accurate facts; so, they are not something you should choose at random.

Step 2: Analyze the quantitative data for each trend you find.

It’s easy to brief through the market report you got and learn nothing meaningful about the trending data you found. So, to avoid this, here are the key quantitative metrics that you can use to get hold of the market trend:

The Market size, i.e., whether the UAE market contains a lot of firm owners, investors, or entrepreneurs.

The Traffic Trends: Are the people in the market getting traction? 

The Funding Trends: Is the fund attracting entrepreneurs in the UAE market?

The Hiring Trends: Are your competitors in the UAE market hiring workers to work for them?

Step 3: Get qualitative data in trend.

In the UAE market, qualitative data helps businesses to understand the reason behind the trend and the problems it solves.

There are three ways to get qualitative data on trends which are:

Read customer feedback on products: It will help you understand better the specific problems that a particular trend solves and the customer’s happiness with new products or services. It will also help you know your target audience and your ideal customer.

Read the market discussion on forums: Forum platforms such as Quora and Reddit can provide detailed discussions of customer pain points around any niche out there.

Listen To customers on Social media: Qualitative data and competitor insights can also be collected by listening to customers on social media.

Step 4: Do your research and engage with your target customer.

It is very important to do primary research before you introduce new products or services to your customers.

However, to conduct  primary research, there are two ways: research prospecting and customer surveys.

Let’s talk about research prospecting. This is a situation whereby if you already have an audience online, you can ask them questions. This will enable you to find out what they think about certain things. And you will get what’s trending from there.

However, if you don’t have an audience in the UAE market, you can use a research tool like SurveyMonkey. This will help you conduct research on your target audience.

On the other hand, customer surveys, which is the second way of primary research, are the best way to explore the UAE target market. A live interview is done for this, and it will enable you to find out what your customers want best.

Step 5: Use the trend to create a better offer.

Since you have analyzed the UAE market trend from a data perspective, you need to check whether it’s worth venturing into. To do this, ensure you create a better offer.

When your customers start buying the product, invest more in it and build it up. But if they don’t, you will cut costs and prevent yourself from spending a lot on the UAE market trend that doesn’t resonate with your customers.

The UAE Industry-Specific Market Trends (2020–2025) for three main sectors—Real Estate, Retail, and Technology—showcase in the chart above. It displays, for every industry throughout this period, the expected increase (in billions of AED).

X-Axis: Years (2020-2025)

Y-Axis: Growth in billions (AED)

Industries:

• Real Estate: Steady growth from AED 5.2 billion in 2020 to AED 8.0 billion in 2025.
• Retail: Growth from AED 3.5 billion in 2020 to AED 6.0 billion by 2025.
• Technology: Significant growth from AED 4.8 billion in 2020 to AED 9.0 billion in 2025.

 To Sum Up

Market Trend Analysis is a popular strategy used by different companies in the UAE market.

For example, a retail company in the UAE relies strongly on trend analysis to forecast its target. Meanwhile, a real estate firm follows property trends to recognize its growth opportunity.

For companies to encode trends, they often rely on marketing consulting by hiring a professional firm like Researchers.me. These consultants guide businesses to have a proper understanding of what they are dealing with.