May 23, 2006Dubai is a good place to pilot kiosk and vending technologyDUBAI — The Middle East might be in the early stage of deploying kiosks and vending machines, but the potential for transforming business in the region is enormous, according to speakers and delegates at the first Middle East Vending and Kiosk Expo held in Dubai this week. Khaleej Times Online - Dubai is a good place to pilot kiosk and vending technology Dubai is a good place to pilot kiosk and vending technology 23 May 2006
The worldwide market for this technology is now worth $30 billion, and this is expected to grow by 69 per cent between this year and 2007. For kiosks alone, the number of installations in North America is projected to rise from about 600,000 this year to nearly 1 million in 2008. This compares with only 150,000 projected installations in Europe this year, and a projected 220,000 in 2008. Projected installations for the rest of the world, which includes the Middle East, are also below that for Asia-Pacific. For 2006, projected installations are only about 20,000, maybe doubling by 2008. Statistics also show that the average number of users per day per kiosk in North America is 108, in Europe 59 and Asia-Pacific,177. This means the growth potential in the region is tremendous and is starting from an almost zero base. There are challenges to achieving this however. Among the most important is how to encourage customers to use this technology and to overcome any concerns they might have about security. This is of particular importance if customers are using a transactional kiosk for example, perhaps to download music. Although take up of new technology can be slow, as was the case in Europe, overtime these concerns seem to dissipate as they become accustomed to the technology. For this reason, CEO of Dubai-based Selftech, Babak Aziminejadi, believes the only way to increase take up is to install the technology so that customers can become familiar with it. In a relatively small market like Dubai, where it may take some time to meet return on investment (ROI) objectives, he suggested that vendors should consider using Dubai as a pilot market. "I would encourage Arab companies to move here to develop the market and then move to a larger market such as Saudi Arabia," he said. In Dubai he suggested that companies should aim to cover ROI, rather then to maximise it. He also emphasised the importance of defining the goal - what type of ROI is required? For example, if it is for a self-service kiosk the ROI is likely to be measured in terms of increased sales, he suggested. Aziminejadi has other concerns. "I believe that the region needs to know more about this revenue generation and the maximisation of ROI," he said. "People buy hardware and then look for results after this. They should start with ROI planning." He also said: "Kiosks can produce a powerful ROI for all types of organisations," adding that the gap between aligning customer needs with the technology needs to be worked on. "Kiosk functions should mirror customer expectations," he said which is one of 11 steps he laid down for maximising revenue generation and ROI. Another is to choose the location carefully. "The best kiosk in a bad place does the customer and company no good." |