GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>

 
  Share

July 17, 2019 - Dubai, UAE

 

The global e-commerce sector has seen several changes in the past five years, especially in the MENA region. According to research, it is estimated that the Middle East e-commerce market could experience an exponential growth of US$69 billion by the year 2020. Though that sounds impressive, it is to be noted that only 15% of regular businesses in the Gulf have an online presence while the majority of online shopping is done from foreign brands. Despite the disheartening fact, there is no doubt that the e-commerce in the MENA (the Middle East and North African) region does have potential to grow. Let us explore the reasons for its expansion, the major challenges, the key competitors and the general consumer behaviour in the Middle East region?

Why does the e-commerce sector have potential in the MENA region?

One of the major reasons for the e-commerce sector's rise in the Gulf is due to its extravagant shopping potential. Due to its oil production and export business, the region has a high capita per income in general. Contrary to popular belief, the internet influence is actually quite high in the Middle Eastern countries. As with the other parts of the world, smartphone penetration and cellular connectivity have seen quite a steady rise in these regions as well. Not just that, the UAE government is active in enabling tech companies to operate overseas. These countries are widely adapting to e-governance as well, which makes it evident that both the government and citizens are comfortable with the online sector. Though Dubai leads the initiative as of now, similar projects are under construction in its neighbouring countries as well.

What are the major challenges to the growth of the e-commerce industry in the Middle East?

Though the Middle Eastern region is working hard to realise the true potential of the e-commerce industry, they're not quite there yet. So, what are the issues that need to be addressed in order to make the e-commerce sector a success in the MENA region?

•    The absence of pin codes in the Middle Eastern countries make it difficult for prompt last-mile deliveries. As of now, logistics and e-commerce organisations are working together on this to reduce costs and money.

•    Though common in other parts of the world, digital payments remain an unexplored area in the MENA region. Apart from the UAE, the other countries rely on cash-on-delivery payments (COD) for their purchases.

•    As of now, Saudi Arabia and the UAE comprise the key market in the e-commerce sector. However, the lack of population contributes to the scarcity of e-commerce industries in the Middle East. For example, countries such as Oman, Kuwait and Bahrain have a strong online presence but fall flat due to their smaller population. Though hasn't tapped the e-commerce industry to its full potential, it is home to the highest internet-using population in the Arab region. The country's Ministry of Communications and Information Technology (MCIT) actively participates in the expansion of e-commerce, which could be good news for the competitors.

What is the general consumer behaviour in the Middle East?

Despite the statistics, you'll still find several Middle Eastern businesses with their online stores. The biggest name on the list is Souq.com, closely rivalled by Noon.com, Namshi, eBay, Mumzworld and AliExpress. You can use the Noon coupon codes and Mumzworld coupon codes in order to avail attractive discounts on your purchases.

According to research, it was discovered that the younger generation preferred to buy products online as compared to their older counterparts. Moreover, women make up the majority of online buyers, with some purchasing something every week. The lower prices were one of the most common reasons given by the buyers, after which comes convenience. More than half of the Middle Eastern buyers use smartphones, while many of them would buy products based on social media ratings. Though most pay using the COD system, there are some people who use credit cards. Many were apprehensive of having their confidential information leaked out, while many more would buy from the brands they knew and trusted. Some of the buyers would engage in repeat purchases, thanks to the offers that would be offered on social media.

Using these statistics, it can be assumed that a mobile-friendly and well-secured e-commerce platform will attract online buyers. Moreover, they must use social media and other engagement campaigns for a strong online presence.

What's in it for the future?

Coming to the future, the Middle Eastern markets would be using hi-tech trends such as artificial intelligence, big data and mobile payment to attract customers. Retailers need to focus on excellent customer experience across multiple channels to keep up with the tech-savvy younger generation. Some of the common solutions include –

•    Promise a smooth user experience with a responsive brand website and mobile application. Make sure to have several payments and checkout options for the customer's convenience.

•    Incorporate multi-country, multi-language, go-to-market time and currency support systems to your website and application.

•    Reach out to your customers by using search engine optimisation, digital and social media marketing and conversion rate optimisation.

•    Have a simple, neat but sophisticated user interface in order to impress your potential buyers.

•    Ensure that your platform can handle high amounts of customer traffic and order volume. Moreover, maintaining the security and confidentiality of customer data and payment information should be on top of your priority list.

Therefore, the e-commerce industry in the Middle Eastern has great potential to make history. With the right use of social media and product advertisement, the Saudi & UAE online shopping industry is certain to create a lasting impact on its audience.



Posted by : GoDubai Editorial Team
Viewed 5618 times
Posted on : Wednesday, July 17, 2019  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Ras Al Khaimah Chamber and Ghana to Discuss the Cooperation Opportunities
Next Story : Management Change at Grohe AG
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Drops of Youth
Go Neutral with Palladio Beauty
Eberhard & Co. Traversetolo Vitre in blue dial makes stunning impact
Modern Classics: Michael Kors Unveils Spring 2020 Michael Kors Collection Ad Campaign
Parmigiani Fleurier welcomes Amanda Lui to its Friends of the Brand family
Valentine's Gifts to Fall in Love With
Reveal Your Cosmic Beauty With These Gift Sets From Wet n Wild
Start the Year with Gorgeous Glowing Skin with a Little Help from DERMAdoctor
The Tag Heuer Autavia
Corum Admiral's Cup Legend 47 Worldtimer'
Regulator at pole position
Parmigiani Fleurier creates horological history with world's first wristwatch wi...
5 super reasons why the HUAWEI Mate 30 Pro is the king of 5G smartphones we've a...
UAE Team Emirates Unveil New 2020 Team Jersey
SUBWAY® commemorates 2020 with enhanced customer experiences
Dubai Jewellers Expect a Steady Sale During the 25th Dubai Shopping Festival Pro...
Malabar Gold & Diamonds - New Store opened in Kanpur, UP, India
The Winter Youth Olympic Games Lausanne 2020
OMEGA Ready to Time The Winter Youth Olympic Games Lausanne 2020
Kanz Jewels proves to be a lucky destination for jewellery shoppers during DSF 2020.
The Largest LEGO® Festival the Middle East Has Ever Seen Kicks OFF at Dubai Fest...
Diabetes Friends Association Trains Schools Nurses on Innovative Methods to Prot...
Karl Lagerfeld - S/S 2020 Urban Cycle
Huawei brings the king of 5G smartphones- HUAWEI Mate 30 Pro 5G to the UAE
Eberhard & Co. Gilda timepiece makes an extraordinary Valentine's Day gift
Show your Support for Australia alongside THT – That Hair Tho
Former United Nations Secretary-General Ban Ki-moon delivers keynote speech at i...
Danube Properties completes Dh300 million ‘Royal Magical' Resortz project
Go Bold with Blue from 2XL Furniture & Home Décor'
Corum And Joachim Horsley Light Up The Folies Bergère
Valentine's Day Fashion and Gifting - Steve Madden
Kia Motors Corporation MEA appoints Memac Ogilvy for PR partnership in MEA region
Seha Leads Discussions in Pediatric Medicine
Celebration in Bahrain for Aga Khan Award Laureate “Revitalisation of Muharraq”
It's a new dawn, it's a new day, it's a new life, and I'm FELINE good
Fashion and Gifting for Valentine's Day - ECCO
ADNEC to Host the World Future Energy Summit 2020
Drive home more than just a car: Juma Al Majid offers value deals on new Hyundai...
OSN; The Only Place to Watch Golden Globe Winning and Nominated Content in the M...
Spice It Up With Szechuan! Shake Shack is Celebrating the Chinese New Year With ...
The Data Center Market in 2020: What to Expect
Schools from across the UAE to battle it out at Credence High School's annual Qu...
EEC Engie Deploys Schneider Electric's New Medium Voltage SF6-Free Switchgear Te...
Why Video Surveillance Is Great for Retailers & Consumers
Marks & Spencer Welcomes Spring with its Midi Dress Edit
C Central Resort The Palm Welcomes 2020 with its Grand Opening in Dubai
Etihad Airways and Easyjet Enter Into New Partnership
Stage set for 16th SteelFab 2020 at Expo Centre Sharjah
UAE Falconers League Kick Starts Competition with 10 teams in Al Ruwayyah
In Giant Leap Forward, Virgin Hyperloop One Announces Technology Can Be Powered ...