The region's first-ever Consumer-Friendliness Index initiative, launched by the Department of Economic Development (DED) in Dubai, is contributing to a qualitative change and service excellence drive in the emirate's retail sector as seen in a quarterly analysis of the outcomes conducted from April to June 2013.
The Consumer-Friendly Rating Outcome' covering Automobile Dealerships, Hypermarkets, Electronics, Coffee Shops, Home Furnishing and Commercial sectors show that the leading players in these sectors are now competing among themselves to win over customers and offer significant added value in terms of prices as well as service quality.
The rating was made on the basis of consumer feedback of their experiences with retailers in Dubai and after considering consumer complaints received by DED as well as the retailer's commitment to fair pricing. Consumer feedback accounts for 60%, complaints resolution for 20% and price analysis for the remaining 20% in an aggregate score of 100 in the rating.
The quarterly ratings will eventually be collated into the annual Consumer-Friendliness Index, the second of which will be announced in December 2013.
"Recent initiatives from the Department of Economic Development have brought about a palpable change in terms of service quality, transparency and accountability in Dubai's retail sector. Initiatives like the Consumer-Friendliness Index provides a reliable benchmark for consumers to ensure that their rights are protected and for businesses to work towards raising the bar on their competitiveness and customer loyalty" said Omar Bushahab, CEO of CCCP (the Commercial Compliance and Consumer Protection Division in DED).
The average aggregate score in the Automobiles Dealership sector was 61.39 and five of the leading dealers scored higher than the average. The leader in this segment has an aggregate of 70.77 thanks to competitive pricing and quick resolution of complaints.
The top aggregate score among Hypermarkets is 70.62 but tough competition was also evident in this sector with another hypermarket scoring higher in terms of complaints resolution and staying above the average aggregate of 67.13.
Excellence in pricing and a high consumer rating appeared to be the deciders in the Commercial category (which included clothing, shoes and perfumes) where the highest aggregate score was 73.63 and the average aggregate was 65.56. Meanwhile, some retailers fared better than the top scorer in complaints resolution.