Always-on shopping: Mixing bricks and clicks

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Always-on shopping: Mixing bricks and clicks

Dubai - Middle East, including GCC, ranked among top 10 global omnichannel growth markets

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Rohma Sadaqat

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Published: Thu 13 Apr 2017, 9:48 PM

Last updated: Fri 14 Apr 2017, 10:54 PM

No matter how popular your brand and store are with consumers, there's always going to be a competitor that is able to get a similar product to a consumer faster and more conveniently.
The only way you can prevent this is by making sure that you have all your bases covered, retail experts say. Omnichannel has proven to be a key term for retailers across the UAE, and one that separates businesses that are flourishing, from those that are on a downward spiral. The future of retail lies with an omnichannel approach.
The Middle East, including the GCC, has been ranked by Strategy& amongst the top 10 global omnichannel growth markets.
The arrival of Amazon.com and the growth in online retail has also proven to be a jarring wake-up call for retailers in the UAE, with many traditional brick and mortar businesses scrambling to retain their once loyal customers. Convenience is proving to be a bigger draw to shoppers than what many had previously believed.
"Today's consumer no longer goes shopping, but is shopping, all the time and everywhere. They can now buy from any retailer or manufacturer from anywhere in the world - even from retailers with no physical presence," says Anurag Bajpai, a partner with KPMG and the head of retail in the UAE and Oman. "Hence, creating an online shopping experience is becoming more vital - and more complex - every day."
Bajpai also pointed out that 58 per cent of the products purchased online by UAE consumers were sourced from outside the region, far higher than the global average. This would indicate that there could be considerable online opportunities for local retailers.
While UAE consumers tend to take longer to make purchases, purchases using smartphones are quickly becoming a preferred option. KPMG data showed that UAE online consumers tend to be more brand aware, while price is paramount in other global markets. In addition over 45 per cent of UAE consumers were more likely to share their feedback online after buying something, against a global average of 31 per cent. Lastly, cash on delivery is one of the more popular modes of payment for UAE consumers.
Rajiv Suri, chief executive officer of Majid Al Futtaim Fashion, also shared his insight on how retailers in the UAE can stay ahead of the curve saying: "We have always been a very consumer friendly brand and we can definitely say that there are a lot of opportunities for growth for both consumers that want a completely immersive retail experience at a store as well as a consumer that prefers to shop from home."
Suri also noted that "a merging of the two spheres" is happening in retail right now in the UAE. "It is very important for companies to provide consumers with the choice to shop from where they are most comfortable, and at whatever time that they need to through an omnichannel approach."
When asked about the e-commerce space in the UAE he replied: "Right now, the e-commerce space is very nascent in the UAE. It's a growing segment and we are going to be launching some of our home brands on the e-commerce scene very soon. In terms of outlook, we can predict a 4.8 to five per cent growth in the e-commerce scene in the next two to three years. This will provide plenty of room for both online and offline retailer scenes."
However, he noted that the mall culture will continue to play a vital role among consumers in the UAE, since it is a part of the social fabric of society. Malls, he pointed out, will continue to be an important segment, but they would need to evolve their offerings to attract consumers.
"Companies should prepare for the coming years by putting millennials at the heart of their plans and strategy," he stressed.
Majid Saif Al Ghurair, chairman of the Dubai Chamber of Commerce and Industry, also pointed out that Amazon.com recently purchasing Souq.com shows just how strong the online retail sphere is in the region.
"Amazon will provide many retailers in the UAE with a big opportunity and platform to market their products to a wider audience," he said. "This will also have a spillover effect into the logistics industry which will soon boom in the region to keep up with the demand in the segment for such services."
Al Ghurair also revealed that the move will open up the market for other big players in the region such as Noon.com and Alibaba.com.
"The only thing that we will have to focus on in the coming years is how the government and regulators will work together to safeguard the consumers," he said. "Retailers provide a massive contribution to the society through job creating so governments will now focus on how e-commerce retailers are going to contribute in a meaningful way to both the market and the society."
- rohma@khaleejtimes.com
 
 


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