Product/service desirability
To understand how relevant the demand for indoor farming services is, it is necessary to analyze relevant information about this area. It was found that there are nearly 1000 indoor farms in the UAE today (HortiDaily, 2022). Thus, data on the popularity of this type of business, as well as the degree of potential development, were considered.
Demographics (age, gender, geographical location, and income)
For any business, it is essential to be sure of the readiness of customers to buy the product. Thus, it was defined that the age of customers ranges from 18 to 60, however, adults are more likely to purchase indoor farming production (Howson, 2019). There is no prevalence in gender and geographical location, however, individuals with middle or high income are expected to buy chosen production.
Likelihood to buy the service
The likelihood of buying the service may be defined by the data, indicating the popularity of the business. Thus, the number of indoor farms in the UAE has been increased by nearly 500 % in the last 20 years (Takeshima et al. 2019). Besides, nearly 85 % of UAE residents heard about vertical farms production (Reddy et al. 2021). Thereby, the product is popular in the chosen country, which constitutes a likelihood to buy the service.
Willingness to pay for the service
There are many people in the UAE with high incomes and demand for farming production. Thereby, almost 70% of residents would pay for the production (FastCompany, 2022). It is formulated by the moderate prices and the understanding of the product’s quality.
Type of Distribution Channel
Talking about the distribution channel, most of the customers are expected the production to be sold in shops. However, some part of the clients claimed that they are ready to receive production via delivery.
References
FastCompany. (2022). Abu Dhabi is investing $100 million in indoor farming as it tries to become more resilient. Web.
HortiDaily. (2022). How the UAE grew from 50 to 1000 hydroponic farms. Web.
Howson, P. (2019). The business year: Sharjah 2020. The Business Year.
Reddy, A. N. (2021). Intelligent manufacturing and energy sustainability. Springer Nature.
Takeshima, H., Joshi, & Kumar, P. (2019). Protected agriculture, precision agriculture, and vertical farming: Brief reviews of issues in the literature focusing on the developing region in Asia. Intl Food Policy Res Inst.