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 >> Banking

 
  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 5264 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
Your Holiday Gift Guide for Her
New year, New You with Lunette
Uncovering the Beauty of Mechanics'
Weather-proof your hair with HASK
Free gold coins at Malabar Gold & Diamonds Festival.
The Real Secret to 10 Years Younger: Argan Face Oil
Eberhard & Co. and the new “Quadrifoglio Verde” chronograph, dedicated to the p...
OMEGA Celebrates The New James Bond Watch in New York
Mouawad and the Miss Universe Organization Unveil the Miss Universe Power of Uni...
Retrograde Fusion'
Love Your Skin Better with Sukin® Skincare
Foreo Cements Its Position as One of the 10 Most Popular Beauty Brands on the Planet
Cole Haan Makes Its Debut at Sole Dxb 2019 Showcasing Footwear Collaborations
Pure Gold Jewellers opens new store in Nakheel Mall
NYU Abu Dhabi Class of 2017 graduate Alioune Fall named as 2021 Schwarzman Scholar
Shine On with Flormar's Festive Coffrets
DP World joins forces with Dubai Cares in giving a new facelift to Umm Al Qura S...
Reuben Kipyego and Vivian Kiplagat Win 2019 Adnoc Abu Dhabi Marathon
Hyundai's all-new 2020 Sonata now available in the UAE
Team Abu Dhabi's F2 world champion rounds off brilliant campaign with historic w...
Al Qemzi Claims Abu Dhabi Grand Prix Pole With Brilliant Surge
Liu Jo Eyewear Introduces a Trend-forward, New Sunglass Style With an Ultraligh...
Truesteam™ Technology by Lg is Setting A New Standard for Hygiene
Botb - Short Film Fest is Back on Popular Demand
Set Up Stylish Outdoor Spaces with 2XL Furniture & Home Décor
Information City concludes "Al Saada" initiative
World Muslim Communities Council hosts first International Youth Forum in Abu Dhabi
EASA extends Part 145 certification of SriLankan Engineering
Aquadate Chrono Eberhard & Co. presents the chronograph version of its classic t...
Pre-school launches initiative encouraging children to stay hydrated
Dubai Chamber-led advisory council outlines plans to boost economic competitiveness
'Herman Miller and DIDI announce the winners of the ‘Ergo Chair - Student Design...
The Chronographs Have Arrived!
It's time to cover up - Knee high boots from Steve Madden
Dubai Health Authority signs MoU with Apollo Hospitals Group India
Two New Looks for the Legendary Diver
Etisalat Misr tests 5G on commercial network with Ericsson
New Jaguar Lifestyle Collection Inspired by Classic Mark 2 Saloon
Dubai International Rhythmic Gymnastics Cup is a hit with 500 participants from ...
Dr Azad Moopen, Founder Chairman & MD, Aster DM Healthcare meets the Governor of...
Global Youth Forum in Abu Dhabi sets twelve recommendations for positive socio-e...
Boot Trends from ECCO
The Trench Coat and Mac Edit'
Arabian Automobiles INFINITI pledges the highest-quality certified pre-owned vehicles
MSC Cruises Signs Long-term Agreement With DP World for Preferential Berthing Ri...
Amana Healthcare First in UAE to Earn U.S. Accreditation as Stroke Specialty Center
Listen to the youth facing different challenges, calls HE Dr Ali Rashid Al Nuaimi
Etihad Becomes the First Airline to Raise Funds Tied to United Nations Sustainab...
Samsung Galaxy Note10+ Star Wars™ Special Edition is now available for pre-order...
Pottery Barn Kids Launches the Holiday Season Collection