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MKW 3444International Marketing Group Assignment:International Market Entry Plan of dUCK GroupGroup Members: Lamees Ariefdien – 27179168Eirwan Merican – 29346460Mahle Yolisa Sijovu – 28077504Shannon Zo Ee Wong- 27918858Jan Yeremia – 28017765Tutor: Mr Dinesh SundaselomTutorial time and day: Thursday 14:00Table of Contents Executive Summary                                                                                                        21.Introduction                                                                                                                  32. Company Appraisal                                                                                                    43. Potential Country Market for First Time Entry                                                            4.Environmental Assessment of the Foreign Market                                                        4.1 Swot Analysis                                                                                                     64.2 Pestle analysis                                                                                                     74.3 Competitive Forces Analysis                                                                            105. Market entry strategy                                                                                                116. Marketing Strategic Plan                                                                                           126.1 Product                                                                                                              136.2 Distribution                                                                                                        147. Future Challenges and Contingency Plans                                                              157.1 Technological Challenge                                                                                  157.2 Economic Challenge (Shannon)                                                                       168. Conclusion                                                                                                                16Reference List                                                                                                               17Lists of Tables Table 1: SWOT analysisTable 2 : Market Entry Strategies Risks & ReturnsExecutive Summary Current Word Count = 42141.Introduction[1]324dUCK Group was founded in May 2014 in Malaysia by Vivy Yusof and is mostly based as a successful online fashion company(The dUCK Group, 2017). The company was successful enough online that it opened four physical stores in Malaysia mostly in the KL region and opened one store in Singapore(“dUCk | FashionValet”, 2019; “The Duck Cosmetics Store – dUCk”, 2019). Through its online platform dUCK was able to reach most Southeast Asian countries as well as MENA Regions additionally as providing global shipping to multiple countries(FashionValet, 2019). dUCK’s main product line is their scarves collections which can range from basic designs to extremely colourful and exotic  designs, additionally, their product line also includes cosmetics, stationeries, home & living products and lastly handbags(The dUCK Group, 2017). The company positioned itself as an affordable luxury lifestyle brand for the modern city girl who is classy, playful and fashionable(Abdul Aziz, 2016). However, as the success of the company grew the company repositioned itself to appeal as a high-end luxury fashion accessory(Adreena, 2017). Therefore the main customer market that dUCK would want to attract would mostly relate to career women who would purchase their scarves or other products as an investment to their wardrobe as well as view their purchase as rewarding(The dUCK Group, 2017). Due to The dUCK Company’s success, there is potential for the company to expand its market beyond online sales by opening a physical store in the United Arab Emirates (UAE).Thus, the essay will firstly discuss an appraisal of the company’s competitive advantages and challenges for intended expansion into the UAE. This is then followed by discussing the potential market entry strategies available to the company when expanding. Thirdly the essay will provide an assessment of the foreign market and will then address the market strategic plan that they would use and lastly the essay will address a number of future challenges the company might face since entering the UAE market.  2. Company Appraisal 428One of the key strengths of dUCK as a company operating in a business-to-consumer product market is its success especially with its luxury scarf product line (Adreena, 2018). dUCK scarves is not only one of the leading brands for premium Muslim headscarves in Malaysia but has attracted a global following among Muslim women in other countries through the e-commerce platform site in which the brand is exclusively sold in known as FashionValet (The dUCK Group, 2017). For example,sixty percent of dUCk scarves market share comes from within Malaysia and the remainder from buyers abroad in Singapore, Brunei and the United Kingdom that is with more than a million scarves sold worldwide in total since its inception four years ago (Ihsan, 2019). The company has also seen revenue growing by more than hundred percent each year and has attracted significant capital funding with the latest being an undisclosed amount of funding from Khazanah nasional Berhad which is the Malaysian arm for investment (Salikha, 2018). In addition, despite negative growth in retail in recent years, the company has also seen double digit growth annually which makes it one of the fastest growing Malaysian companies (Ihsan, 2019). Thus, with its domestic success, growing global following and new sources for capital funding, the brand is looking at expansion into other Muslim markets such as the UAE which Basaruddin (2018) asserts is a move to protect itself against growing competition from rising domestic brands for headscarves and to take advantage of the growing global demand for Muslimah fashion to increase its revenue streams which the Global Islamic Economic Report 2017-2018 predicts that by 2020, the industry for Muslimah fashion would be worth US $373 billion (Badarudin, 2018).That being said however, possible challenges that the brand could face in expanding into the UAE is the lack of an understanding of how to manage offices in different regions and a tendency to move too quickly without the right connections to establish in a foreign market which ultimately, led to the failure of the brand’s expansion into Jakarta in 2015 (Salikha, 2018). However, this failure can also be a useful learning experience as the brand moves forward in its long-term strategic plan to expand into the Middle East with carefully planned mitigation strategies which will be explained in the sections below and as shown by their recent successful expansion into Singapore (“Singapore Got dUCk-ed – Lifestyle Muslim Magazine”, 2018), its past failure in managing its international marketing activities can serve to be a reminder of a threat and an opportunity to grow if managed carefully.3. Potential Country Market for First Time Entry[2]645 Words International Marketing is the execution of business tasks that are drafted to plan, promote, and direct the smooth flow of a company’s product to the consumers or the customers in more than one country.  This is a strategy that is used by the company and regardless the marketing plans; their objective remains the same. The FashionValet’s dUCk Groupis seeking to enter a new market identified market which is the UAE, more specifically Dubai. Dubai is a nation that compromises almost entirely of   Muslimsculture. This was one of the factors that made the FashionValetdUCk Group to expand its branches to Dubai (Thean, 2015). dUCK entry to the Dubai market is crucial in that they anticipate high-profit margins from the sales of their quality scarves that are significant to the local womenladiesof Dubai. Additionally, in Dubai and the Muslim community in general, it is fundamental for the ladies to cover their heads which is also another factor encouraging dUCk entry to the market.Also there are justifications that led to the decision of dUCK to seek the Dubai market. For example, there are theories of internalization that are to be discussed which has impacted to the entry of the FashionValetdUCk into the Dubai market. These theories of internationalization include the Kruger’s First Mover Advantage and Vernon’s Product Lifecycle Theory. Unlike dUCk, other companies are against the business internationalization as it is expensive and drains a lot of  resources. Kruger’s First Mover Advantage Theory describes the ability of a business company to enter a new market the first one by outplaying their competitors (Suarez & Lanzolla, 2007).  Additionally, this theory of internationalization describes the specific advantages of a business to be a first mover in the market industry. Therefore, due to the unique quality brands of scarves that are being offered by the FashionValet dUCk into the Dubai market, there has not been another company that has since produced such quality scarves to the Dubai people. Additionally, the scarves sold by dUCk are not only limited to adult womenladiesonly, but also small girls. Due to their unique quality brand of scarves, the FashionValet dUCk will be the first foreign company to be established in Dubai dealing with quality women scarves. There are several advantages with this move in that; dUCk can be able to utilize the available free zones in the Dubai market since being the first in dealing with the type merchandise they sell. With the utilization of the free zones, dUCKthe FashionValet can maintain 100% foreign ownership of their business in Dubai. Additionally, being a first mover in the Dubai market, dUCK will find it easy to do business in Dubai since they can wave off competition from other companies dealing with the same merchandise. Vernon’s Product Lifecycle Theory of internalization was developed by Raymond Vernon in 1996 which explain the various scopes of the product that influences the development of the foreign market (Hines, Francis, & Found, 2006). Moreover, according to this theory, several factors should be considered which are the characteristic of the product, the outcome in foreign production, and the consequences of the establishment of foreign investments. Therefore, it is of importance to note that foreign investments are majorly contributed by the urge to market the various products and maximize profits. Hence, dUCk, a company dealing in the female scarf merchandise was majorly influenced by the Muslim community of the Dubai people. Since it a  norm of the Muslim community to encourage women to always cover their heads with a piece of cloth or scarf, dUCk took up the opportunity to expand its branches to the Dubai market. Being one of the few international companies to enter the Dubai market, dUCk will be able to experience an increase in their products since most of the Dubai citizens who live a lavish lifestyle always demand quality of products they purchase. 4.Environmental Assessment of the Foreign Market237 Words = 1 583An environmental analysis provides a firm with an understanding of the activities occurring both within and outside of the controlling capacity of the firm in order to ensure progressive growth when choosing to expand the organisation in an international market and maintain success through profitable gain (Sharma, 2017). Conducting an environmental analysis internally, can help an organisation identify its strengths and weaknesses while the opportunities and threats describe the external influences as per the SWOT  analysis. An external analysis can be conducted using the PESTLE tool and Porter’s five forces (Mariadoss, 2017). Lau, Liao, Wong and Chiu (2012) explain that one reason that leads to the failure of an organisation in the international market is the lack of attention paid to the aspects other than the financial which provide further insight into the market and its functions. The coordination and performance of an environmental analysis is a fundamental process that organisations need to consider before participating in international marketing (Friesner, 2017). The environment in which organisations operate in consists of controllable and uncontrollable forces and elements which can offer the organisation beneficial attributes that lead to success and the rise of opportunities or unfavourable conditions that introduce threats and challenges for the organisation (Jaideep, 2015).  The degree of a firm’s international success is largely dependent on the overall influence the market factors have in the industry and on its ability to respond effectively to the marketing environment. 4.1 Swot Analysis 42 Words The SWOT analysis assesses the internal strength and weakness and the external opportunity and threats in order to possibly evaluate the advantages of the organisation and shortcomings to assess the probability of success and possibilities of development (Ma, Zhang, Hu & Dong, 2013). INTERNAL Factors of the company STRENGTHS Strengths are resources that contribute to an organisation’s competitive advantage (Kavanaugh, 2018). One of dUCK’s strengths lies within their reputation, it is well known for its premium quality. Their strength is also their association with FashionValet which furthers the organisation’s proprietary knowledge and consumer base. The organisation’s product line and portfolio ranges from scarf accessories to handbags giving the organisation depth. The quality of the products provided by dUCK contribute to its strengths as it ensures value is delivered to customers. WEAKNESSES dUCK is an e-commerce organisation, this is a weakness as their products are only accessible online. Their lack of a presence in the international market equates to a lack of the brand’s name recognition. Continuous change is required in the organisation. It functions within the fashion industry which is notorious for its fast-changing trends and consumer preferences. EXTERNAL Factors of the environment in which the company operates OPPORTUNITIES Emerging markets much like United Arab Emirates provide the dUCK company with the opportunity to expand into international activities which contributes to the growth and increases consumer consumption of the premium brand. Lifestyle trends are evolving, this is an opportunity for dUCK as they are a premium brand that would rely on lifestyle trends becoming more high-end. Niche target market for dUCK is applicable as it targets a subset of a market – it focuses its marketing to appeal to certain demographic which increases brand loyalty lessens competition as the market has been minimised. Partnerships with FashionValet and any potential organisations as a subsidiary is an opportunity. THREATS Much like most organisations, a major threat is competition. Another threat is the easily accessible product substitutes of the products offered by the organisation, these substitutes could be cheaper alternatives to the premium quality offered by dUCK or more well-known brands such as Guess or Versace which also specialise in accessories. Within an organisation which is a fairly new company in the industry such as dUCK, the question of their ability to sustain internal capabilities is a threat.   Table 1: SWOT analysis 4.2 Pestle analysis 843 WordsA PESTLE analysis technique provides organisations with an overview of the macro-environmental factors that could have an impact on the international marketing activities of their operations. With a critical analysis through the PESTLE tool the organisation can determine the macro-environmental factors which can become barriers for firms or provide the organisations with an advantage and better their chances of succeeding in the market (Mamdouh, 2016). This analysis would be conducted by in order to better understand United Arab Emirates and its environmental factors. 4.2.1 Political The political factors consider the United Arab Emirates’ current political situation. There is a focus on how the political conditions of the country would affect the organisation as well as the global political situation effect on United Arab Emirates and Duck (PESTLE analysis Contributor, 2015).  In the United Arab Emirates, there are occasional political conflicts concerning ownership of oil reserves or land with neighbouring countries (Bush, 2016a), this may affect dUCK as the periodic instability caused by the conflict could mean fluctuation in the economic status of the country. The United Arab Emirates has lucrative trade relations with many countries across the globe (Bush, 2016a), an opportunity could arise through this factor as dUCK further explores their international expansion options through their joint ventures in Dubai.4.2.2 Economic Economic factors include the determinants of the economy and the economic state. These are factors that can conclude the direction in which the economy might move. So, businesses analyse this factor based on the environment. It helps to set up strategies in line with changes. The United Arab Emirates has an exceptionally high GDP per capita (Trading Economics, 2018) a testament to the standard of living in the country which can translate into meaning that the organisation would be targeting the appropriate market to export the premium dUCK products into. The country also boasts a very low unemployment rate (Bush, 2016a). This could be a challenge for dUCK as it means they will be dealing with a smaller labour force with skilled employees to select from while operating in the country. United Arab Emirates also has one of the highest amounts of Foreign Direct Investment in the region  as the steady development of the country attracts investments from foreign nationals (Bush, 2016a). 4.2.3 SocialThe varying attitudes and distinctive mindsets of a country would have an impact on the organisation as the social factors might alter consumer perceptions of the product and as a result, affect sales of the product (PESTLE analysis Contributor, 2015). Due to the high GDP per capita in the country, the nationals and inhabitants of the country are accustomed to a comfortable lifestyle which translates to a typically upper class social standing in the country. In terms of the cultural occupation, there is a continuously growing variation of cultures as a result of globalisation in  the United Arab Emirates (Bush, 2016a). Religion has a great influence in the country and impacts the behaviours and preferences of society immensely, this is an advantage for dUCK as it specialises in producing accessories suitable for Muslim women – the predominant religion in the country. 4.2.4 TechnologicalTechnology is a continuously advancing factor which greatly influences organisations (PESTLE analysis Contributor, 2015). dUCK is an online performing organisation, meaning that they rely on technological advancements which is constantly updated. Apart from the online store platform, organisations need technology n order to gauge consumer trends and preferences. In the United Arab Emirates, the younger population which forms as a part of the target market are described as being technologically inclined (Rashed, 2013) making it easier for organisations such as dUCK to leverage that factor to their advantage. The wealth of the country enables them to purchase new equipment and technology that further their technological advancements, providing organisations with the necessary infrastructure to utilise the best technology. 4.2.5 LegalPeriodic legislative alterations of a country could affect the business environment. If, for instance, a country’s regulatory body enforces a regulation for a specific industry, that law would impact industries and business in that economy (PESTLE analysis Contributor, 2015). In the United Arab Emirates, the legal environment is made up of the Federal Law, the Judicial Branch, Immigration Law, the Reserve Bank and  the Economic Law (Rashed, 2013). In this circumstance, economic law would govern dUCK the most as it concerns the business fundamentals in the country, including the United Arab Emirates Commercial Companies Law that stipulates that every organisation set up in the country should have one or more UAE national partner who is accountable for no less than 51% of the organisation’s capital (Rashed, 2013).4.2.6 Environmental The location of the business will influence the international marketing operations of export. For instance, changes in climatic changes could have an effect while consumer reactions to the organisation’s offerings could be a challenge (PESTLE analysis Contributor, 2015). The United Arab Emirates’ is situated in a location close to a few coastal areas, allowing for easier cargo transportation and trade by sea (Bush, 2016a).4.3 Competitive Forces Analysis 461 WordsMichael Porter’s Competitive Forces Model is a tool necessary in analysing the environment in which an organisation operates (Laudon, & Laudon, 2018). It provides an organisation with an overview of what their competitive advantages are, and what factors influence it. dUCK is an organisation operating in the constantly changing fashion industry that faces various competitive forces as a result. Competitors describe the the number of competitors in an industry and their advantage over a company. It can be concluded that the more competitors exist paired with the similarity of their offerings to those of a company, the lesser their power (Chappelow, 2019). dUCK’s competitors are vast as they operate in the fashion industry that is rather saturated, however their unique product offerings set them apart and function as their core competency, and in this instance they have a greater power to charge higher prices for their quality and competency. New market entrants also have an effect on the power of a company. The threat of new entrants is a weaker force in the fashion industry as its saturation and dense population require great differentiation if an organisation seeks to penetrate the industry (Pratap, 2018). dUCK has an advantage as it is a brand with a unique offering and acquires success through this still, brands can find unique ways to grow popular and acquire success.The threat of product substitutes and services pose a threat for organisations internally within the industry. For organisations such as dUCK which focus on luxury and premium offerings, there are substitutes which can duplicate the high-end style for a lower price. Ultimately there is no substitute for the accessories and clothing items in general, there is however a substitute for the brand (Pratap, 2018). The bargaining power of customers concerns the ability that customers have lower prices. In the case of the industry in which dUCK operates, the power of buyers is a powerful force as they are becoming progressively well informed in terms of their product alternatives and with the multitude of competitors and brand substitutes to choose from, customers power is greater (Bush, 2016b). The bargaining power of customers becomes evident through higher quality of products offered, price decreases and a differentiation in product offerings (Varga, 2010). Bargaining power of suppliers addresses how easily suppliers can drive up the cost of inputs (Chappelow, 2019). In the fashion industry, the power of suppliers is relatively weak as the suppliers are usually low cost labourers and manufacturers who follow the specifications set by the organisation (Pratap, 2018). This means that suppliers are dispensable to organisations such as dUCK, making them replaceable, Bush (2016b) further states “as a result, input prices for this industry are relatively low and will stay there until the global development gap closes up significantly.”5. Market entry strategy[3](78 Words) = (262)The dilemma of choosing the suitable market entry strategy has been a great interest to marketers and academics (Ekeledo & Sivakumar, 1998). The chosen market entry strategies will then shape the marketing programs of the firm in the country, ultimately determining their success (Chen et al., 2006). Direct exporting, franchising, and joint ventures are some of market entry strategies a firm may adopt. These methods will definitely differ in terms of commitment, risk, profit, and control (Kwon & Konopa, 1993). Direct Exporting Franchising Joint Venture Commitment Low Moderate High Risk Low Moderate High Profit Low Moderate High Control Low Moderate High Table 2 : Market Entry Strategies Risks & Returns(184 Words)Apart from abiding Article 10 of the UAE Commercial Companies Law which obligates 51% of shares to be possessed by UAE national (Clyde & Co., n.d.), it is more sensible for dUCK to enter UAE by joint venture with an UAE company. A high degree of control with desirable profit returns (Chung & Enderwick, 2001) alongside with knowledge offering by local partner about customers in the country (Jin et al., 2016) are some of the factors dUCK needs to consider in selecting joint venture as their method of entry.Since dUCK requires to choose a partner who complements them in terms of resources and skills (Choi & Beamish, 2013), it will be preferred for the firm to partner with Al Tayer Group. As the largest luxury retailer in the Middle East, Al Tayer group had partnered with some of the world’s most luxurious fashion brands like Coach, Moschino, and Alexander Mcqueen (Al Tayer, n.d.). With Al Tayer’s position as luxury retailer that complements dUCK’s upcoming positioning in the UAE market, the market knowledge and expertise Al Tayer offer will undeniably be beneficial to dUCK’s group.6. Marketing Strategic Plan[4](138 words) A marketing strategic plan discusses the continued efforts and the particular approach that will be employed in trying to execute a marketing plan (Mangram, 2012). The strategic plan articulates the actions an organisation would take in ensuring the goals are met while ensuring that the plan remains aligned with the objectives of the organisation. The strategic plan is an indication of how the organisation plans on entering the market – it combines the marketing goals into a comprehensive plan (Nykiel, 2011). dUCK’s marketing strategic plan will focus on the marketing mix, namely: product, price, distribution and promotion. This tool will ensure that the organisation enters into the market with the intention of producing the appropriate response from the target market as it influences the demand for the products offered by dUCK.6.1 Product(264 Words)Product adaptation, defined as the company’s ability to adapt their products to the foreign market eccentricity (Cavusgil & Zhou, 1994), must be taken into account upon entering the country. Hollender et al. (2017) construes that product adaptation will then mitigate the firm’s lack of knowledge in foreign markets. dUCK, known for their premium headscarves, positions themselves in premium segment in Malaysia (The Edge, 2017). The discussion now is whether dUCK opt to standardized or to alter their products in UAE. The fact that Islam comprises 76% of the religion in UAE (Indexmundi.com, n.d.) matches the target market of dUCK, it is practical for the firm to not alter their product significantly. However, ethnocentrism, which is described as the biased preference to purchase local products at the expense of foreign products (Balabanis & Siamagka) may affect sales adversely. In order to maximize sales, dUCK must seek to satisfy potential customers based on what they want in terms of design based on their tastes and cultures. Nevertheless, the core product itself and the firm’s originality must not be altered in order to differentiate themselves from their competitors.Furthermore, UAE’s GDP per capita is significantly higher than Malaysia’s (World Bank, n.d).  Deemed as a measure of social welfare (Dipietro & Anoruo, 2006), high GDP per capita in UAE indicates that purchasing power in UAE is higher compared to Malaysia. Hence, dUCK should maintain its position as a luxurious Islamic fashion brand. The brand name “dUCK” will not be altered as well as the name is already in English and the name is not offensive to UAE market.6.2 Distribution(233 Words)Companies has the choice to distribute their products in various ways to complement their company’s objectives, philosophies, and products (Zabik, 2003). Nevertheless, cultural differences between markets and discrepancy in critical dimensions of infrastructure present additional challenges in foreign market compared to domestic market (Levy, 1997). While seeking the best deal in the market in terms of price and quality may be a favorable option, information asymmetry in global markets will be a major obstacle in matching sellers and customers (Samiee, 2006). By partnering with Al Tayer Group, these risks may be reduced as this partnership will enhance the distribution efficiency of dUCK in UAE (Cavusgil, 1998).dUCK, partnering with Al Tayer Group, will open its first retail store in The Dubai Mall, particularly in the Fashion Avenue. As the largest retail destination, The Dubai Mall received over 80 million visitors each year (Emmar Malls Group, n.d.). Moreover, the Fashion Avenue are designated for luxury shopping. This is preferred by dUCK group as The Dubai Mall will provide high reach and exposure to the brand and Fashion Avenue’s high-end shopping outlet matches dUCK’s positioning. Al Tayer’s experience of opening retail stores in The Dubai Mall is also palpable, with Coach, Moschino, and more has now operated there. dUCK will then expand gradually with the support of Al Tayer Group to other shopping centres such as Mall of The Emirates and other shopping destinations.7. Future Challenges and Contingency Plans 7.1 Technological Challenge (457 words)A challenge that dUCK Group might face in the next three to five years is a technological challenge. The UAE has an abundance of world-class malls, which continue to dominate several international retail hotspot rankings as well as attract a generous amount of local and international visitors to the country’s retail sector(Sadaqat, 2018). The UAE retail sector is currently worth $55 billion is expected to grow to 6.3 billion in the years of  2018-2023 with store-based retailing dominating the market, accounting for $52.7 billion(Sadaqat, 2018). However, the UAE retail sectors are expecting that the growth of e-commerce in the sector to increase by 78% from the year 2018-2023(Sadaqat, 2018). Thus the main challenge is introduced through the UAE growing retail e-commerce sector. dUCK Group primarily started off as a purely online company, therefore the company has an advantage over its retail competitors who are only starting to introduce e-commerce options to its consumers. The dUCK Group already adopted e-commerce initiatives and is furthering their customer reach through opening a physical store in the UAE region that mostly appeals to those customers who prefer a “touch and feel” shopping experience(Anwar, 2017). Additionally through opening a physical store, can give consumers more touch points with the company’s product offering which could increase awareness and revenue for the brand(Anwar, 2017). The advantage to this is that dUCK would be able to provide value to their customers experiences which would still be considered unique. However, if the growth of e-commerce grows more brick and mortar stores will start to adopt an omnichannel retailing initiative, therefore, reducing the uniqueness of dUCK retail services. An omnichannel retailing is defined as an integrated sales experience that involves the advantages of physical stores with the information-rich experience of online shopping and is mostly used to cope with customer preferences and brand loyalty(Lazaris & Vrechopoulos, 2019). Therefore stating that dUCK would need to find new innovative ways to attract consumers to their store, in order to stay ahead of the UAE technological retail trends. The proposed contingency plan is to provide an added value for customers in their physical store, as dUCK offers a premium product and as such through providing exceptional and unique customer experiences could draw more attention to the company’s physical store. The type of added value that dUCK could introduce to its customers include: in-store exclusives, invites to exclusive dUCK engaging events (Wertz, 2018).In addition, if the retail technological trend rapidly develops in the UAE, the company can start to develop an online website purely catered for middle eastern countries like the UAE, this could give consumers a unique experience with the brand as it would provide the region with their local information essentials. 7.2 Competition Challenge(515 words)The UAE is ranked as one of the most popular countries for international retail expansion with Dubai often chosen as the most preferred entry point into the region (Al Khaja, 2018). The retail sector in Dubai is projected to experience an annual growth rate of approximately five percent annually over the 2018-2023 period due to strong spending by tourists, robust demand from shopping festivals and mega-sales along with growing e-commerce activities (“Dubai Chamber analysis forecasts 5% growth for Dubai retail sector over next 5 years | Dubai Chamber”, 2019). Consequently, the retail sector remains to be one of the most significant contributors to the UAE economy and one of the most attractive sectors for investment as strong household consumption and a flourishing tourism industry continues to support the growth of the retail industry in the UAE (Al Khaja, 2018). Thus, approximately a million square metres of retail gross leasable area (GLA) would be delivered by 2020 thereby increasing the total stock to be about 5.1 square metres in Dubai alone (“Dubai Chamber analysis forecasts 5% growth for Dubai retail sector over next 5 years | Dubai Chamber”, 2019). For example, upcoming projects include, Deira Islands, Nakheel Mall on The Palm and Dubai Hills Mall (Hadfield, 2007). This surge in retail development would lead to an increase in retail competition for both domestic and international retailers operating in the UAE (Madichie, Nnamdi & Blythe, 2011). Thus, in the context of dUCk’s planned expansion into the UAE, dUCk would be subjected to growing competition as new entrants entering the UAE’s retail industry could potentially pose a threat to its position as an international retailer for premium headscarves and thus, to remain competitive, dUCk would need a strategy to overcome this foreseeable challenge.The proposed contingency plan is for dUCk to introduce other product lines under the brand in carefully planned stages in order to diversify its product offerings and to explore different profit retail opportunities aside from the planned introduction of dUCk scarves alone.The reason being that although personal accessories make up one of the largest retail markets in Dubai, beauty and personal care as well as the home and garden market falls closely behind and is projected to continue growing into billion dollar markets and especially in the beauty and personal care sector that is expected to rise by ten percent annually with growing focus on lifestyle and beauty bloggers (Sadaqat, 2018) . Hence, dUCk would benefit from not only introducing its product line of dUCk scarves at the early stages of expansion into the UAE but also its halal cosmetics, handbags and their home and living products progressively to meet the new demands and preferences of customers in the UAE (The dUCK Group, 2017). By diversifying their offerings, dUCk would not only be able to stay ahead of its competitors by leveraging on variety but would also be able to access new customer pools that will help to mitigate the possible adverse effects of a shrinking core market from increased competition and to widen its profit making opportunities as an international retailer in the UAE (Madar, 2018).8.Conclusion Reference List [5]Abdul Aziz, N. (2016). 7 reasons why the dUCkscarves are a hit. Retrieved from https://zaahara.com/blogs/writers-corner/7-reasons-why-the-duckscarves-are-a-hitAdreena, I. (2017). This RM800 dUCk Scarf Sold Out in Just FIVE Minutes. Here’s Why | Lifestyle | Rojak Daily. 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