Economic and Demographic Environment of Smart Watch
Smart Watch
Name
Affiliation
Demographic Environment
It is noted that demographic environment as the name states is related to issues of population mix and the general population. This is the way that the demographic contribute to the demand of smart watches and also play that role of manpower that contributes to the supply and manufacture of the watches (Abdeldayem, 2010). Thus, as a marketer, it is worth to understand the demographic of UAE as this affects the decision. For example, due to the increasing population growth of United Arab Emirates; the country has a population of 9.2 million people with a growth rate of 3% per year. This offers an extra ordinary opportunity for business and attracts fast consumer goods such as electronic products. On the other hand, the country is noted to be pro-youth nation (Al Tenaiji & Cader, 2010). Therefore the smart watch company should ensure that is takes into consideration this population as it covers more than 40% of the population. This means that its sales are lined to the youth. This is also to note that the population of UAE is made is covered to 56% of educated individuals; 70% of this population is made up of men and 30% is made up of women. However, the less women educated population has a higher purchasing power to electronic products as compared to men. Thus, the marketer to the smart watch must consider this in mind as it affects the sales. The per-capita income of UAE is at USD 5,000 this means that the general population has both the purchasing will and power to buy the smart watch (Christiansen, 2014).
Economic Environment
This environment affects how much the consumer is able and willing to pay for the product. The demand for the smart watch is higher in UAE, this means that the desire for the smart watch is also backed with the ability to pay (Itani & Mason, 2014). This is vital to the market for the smart watch. UAE being an emerging population with a GDP of USD 383 billion in 2014 and its projected to grow by at least 5% in 2015. This means that the UAE market has many potentials for the sale of smart watch (Kaba, 2011). Credit availability is high in UAE, this is a clear indication that the market is in access of money hence increases the purchasing power hence a better place to invest in the smart watch. In addition, it is noted that due to economic potentials of the country, it is clear that the country is in favor of technology as it is supported by a stronger National Domestic Product (Kotler & Armstrong, 2010). This makes UAE a better place and market for the smart watch.
References
Abdeldayem, M. M. (2010). A study of customer satisfaction with online shopping: evidence from the UAE. International Journal of Advanced Media and Communication, 4(3), 235-257.
Al Tenaiji, A. A., & Cader, Y. (2010). Social media marketing in the UAE. InEuropean, Mediterranean & Middle Eastern Conference on Information Systems 2010 (EMCIS2010).
Christiansen, B. (Ed.). (2014). Handbook of Research on Effective Marketing in Contemporary Globalism. IGI Global.
Itani, N., & Mason, K. (2014). A macro-environment approach to civil aviation strategic planning. Transport Policy, 33, 125-135.
Kaba, A. (2011). Marketing information resources and services on the web: current status of academic libraries in the United Arab Emirates. Information Development, 27(1), 58-65.
Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson Education.
Kracheel, M., & Bronzi, W. (2014). A Wearable Revolution: Is the smartwatch the next small big thing?. IT ONE Magazine 2014, 7(December), 52.
Landry, E., Ude, C., & Vollmer, C. (2009). HD marketing 2010: sharpening the conversation.
Persaud, A., & Azhar, I. (2012). Innovative mobile marketing via smartphones: are consumers ready?. Marketing Intelligence & Planning, 30(4), 418-443.
Vel, K. P., & Sharma, R. (2010). Megamarketing an event using integrated marketing communications: the success story of TMH. Business strategy series, 11(6), 371-382.
