In the last 4 years, we have noticed a trend in the inquiries we have been receiving. Companies in Oman are looking to diversify from their original businesses and into new market segments and with new products and services. Of course, many business houses have done this in the past but the new trend seems more to do with concerns over the slowdown in their traditional sectors and are now looking at new areas of growth.
This phenomenon is not in Oman only. Another similar trend we have observed is that companies in the GCC looking at Oman more closely as a geographical diversification option: they are looking at it as being a possible new export market or even a place to set up a more fully fledge operations for the next few years.
Luckily there have been good initiatives for foreign companies, whether from the GCC or beyond, to set up in Oman with new foreign investment laws and the one-stop-shop concept like the ‘easy invest’ portal to be found in at www.business.gov.om
When we come across such companies and investors, it is natural for us to tell them that setting up in Oman may be relatively easy and we can also certainly help with advice from our associates who are experienced in all such formalities, like dealings with Ministry of Commerce and industry for licensing, the Ministry of Manpower to receive approvals to register local and foreign workers, and the Royal Oman Police to issue the residents visas.
While our partners can assist with all the red tape, what about the demand for your product and service in Oman? Almost all successful exporters and companies planning to come to Oman tend to be not only optimistic which is good, but they also tend to think the market may be very similar to their own home markets or other neighbouring GCC markets – this could be a mistake! Oman must be looked at in isolation: the demographics and spending levels here are different for a starter than many other markets, and there are certain unique traits in the market which differ for each product or service to be sold here. Only with well-designed marketing research methods can these be discovered, if there is a modification that needs to be made in the product or service itself; the packaging; the pricing structure; the communication messages, or all the above.
Not everyone wants to go through this route as it may seem costly at first but is it better to ‘launch’ then find out one or more of the above is not, right? This would certainly be a costlier way of finding out and by then time would have been wasted and everyone involved is disappointed and discouraged. Marketing research always makes sense and can save a considerable amount of money and future pain for the businesses if it is done properly and professionally.
We normally recommend to new clients or older clients with new ambitions to at least to consider the following:
Stage 1: Marketing research – based on our recommended sample size and methodology considering their budgets.
Stage 2: Feasibility study – Post stage 1 if the market seems promising. This feasibility will also include more extensive and detailed market study and particularly useful for companies looking at full office set up or say local manufacturing.
Doing Stage 1 is most crucial and it may mean a ‘Stop or Go’ decision but it could also mean ‘adapt and succeed’ in Oman.
