Now let’s face it, e-commerce is gaining immense popularity in recent times in the Gulf countries in general and UAE in particular. The retail sector is also witnessing a steady shift from brick-and-mortar to online shopping. Shopping online has come a long way from being just another new trend. It has now become a preferred medium of purchasing for a growing number of consumers in the region.
The future of retail is here for keeps, as more and more people are leading busier lives, and the pursuit of growing demand for convenience and e-commerce caters to this requirement perfectly well. Just driven by sheer convenience, people would prefer online shopping, as e-commerce players are able to gain consumer trust and people will prefer shopping online.
A study conducted by Google states that the UAE leads in global smartphone usage at a whopping 73.9 per cent. Internet usage statistics also show that 92.1 per cent of the population has internet access. Strong internet and mobile penetration across the Gulf region has played an active role in the growth of e-commerce in this region. A report on online shopping trends in the United Arab Emirates last year was released. It indicates that 80 per cent of the online retailer’s customers shopped using mobile devices.
The total number of people accessing the internet exclusively through mobile devices is estimated to grow by more than 25 per cent globally. This growth is expected to occur over the next five years, according to a report by the International Data Corporation.
As people spend more time on their devices, more daily activities are likely to be conducted online. Online retailers, both domestic and international, will have to concentrate on offering efficiency and convenience. This will help them be more mobile-friendly and allow customers to enjoy great shopping experiences.
However, the online purchasing trend is becoming the popular shopping culture, but the percentage of online shopping here is comparatively lower than what is seen in developed markets like the US or the developing Indian markets.
Frost & Sullivan foresee that by the year 2018, the ecommerce market will be a mega-trend for businesses across the Emirates. The market is pegged at $10bn (Dhs36.7bn). E-commerce is one of the fastest-growing businesses in Dubai and the region. It will continue to expand as consumer behaviour evolves with the advancement of technology.
One of the key factors that helps encourage online shopping beliefs is customer trust. Only recently have consumers in the region started to buy and pay online. This trend is slowly catching up, but absence of trust has been the fundamental reason for the sluggish growth of e-commerce. However, this trend is changing. It is observed that a lot of people in the region have started trusting and conducting online transactions.
In the meanwhile, online shopping sites are becoming more innovative by keeping in mind trending habits of consumers. One example from recent times is cash on delivery. In Dubai, over 85 per cent of shoppers prefer paying by cash on delivery. The remaining 15 per cent prefer using online payment systems.
As the e-commerce sector grows, many new players will enter the market, and some old players will exit. This is customary of every industry’s life cycle. In a dynamic country like the UAE, new companies are constantly emerging. This creates fresh demands and healthy competition, which is ideal for a growing industry.
In the emergent online retail trade, online retailers are compelled to offer discounts & freebies to attract and retain loyal customers. Companies will have to be invested in making the shopping experience for each individual as customised as possible. The offer for same-day delivery and virtual stores are emerging trends for digital retailers in the region. They will need to adopt these quickly in order to retain customers.
The global ecommerce market has an active interest in the UAE and nearby potential markets in the neighbouring regions. These companies are well equipped to offer customers the comfort and convenience of an international shopping experience, such as same-day delivery and other perks, which local players must gear up to match.
It is going to be a significant year for e-commerce developments and improvements in the UAE and spreading across the wider GCC expanse. In order to achieve a result-orientated online business, customer convenience and their satisfaction will have to be kept as a priority.