UAE is the pivotal region from a Marketing perspective projects and possesses everything that an E-Commerce retailer wishes for.
The E-Commerce boom is on the cards for UAE. Wherein the Europe and US have witnessed a slump in the E-commerce sector where it averages 15% per annum as per the latest observation from Statistica, and the UAE, witnessed better growth during 2019 at 23%.
The Ecommerce story typically engulfs two diverse narratives, viz of the marketing plan and as well as Supply chain infrastructural prospect for backing it. UAE’s other core strength is the backing received from a very young market as comparatively quite a challenge that is generally shown in the European and the US Markets.
Nature and significance of rapid growth for the UAE
UAE as the Middle East’s best Marketing region does possess everything from the perspective of E-commerce Retailers that they wish for.
The relatively young generation next, residents of UAE and large proportion of the population are either Generation Z or Millennials, who are tech-savvy and comfortable with latest technologies, and as well as have a better ownership on Smart Mobile Devices as well have what it takes on for clutching upon the optimum utilization of Mobile Wallets, that makes it far easier for E-Commerce retailers to execute business with customers.
These Generation Z or Millennial populations are also comfortable with technology and as well as the employment which supports them in the creation of a seamless, on-demand retail solution offered by E-Commerce platforms which also largely gets fitted on with surge in demand of convenience.
This market has attracted attention both globally and regionally. The merger between Amazon.com and Souq.com resulted within the launch of Amazon.ae in 2019. This latest E-Commerce platform currently offers thirty million products (25 million from Souq and five million from Amazon US) from native and global retailers.
From the native perspective, Noon.com launched in 2017, giving twenty million products to customers, recently came together with own-brand products to rival Amazon.ae. Locally, Dubai-Store, an E-Commerce retail platform operated by Digital Economy Solutions LLC, a venture between port Economy (DED) and Emaratech, offers a sure digital area for native Start-ups and SMEs.
This intense interest has resulted quickly in an exceedingly extremely competitive market, that’s surely benefiting the client. The market has reached its maturity in 2 years that took different regions 15 years to succeed. For the client this implies that costs are competitive, there are many alternatives, and retailers are urgently fighting for his or her custom by creating their proposition a lot of conveniences.
Amazon.ae launched Prime last year, with the advantages of the value of shipping enclosed within the subscription fee, still as access to the Prime Video platform. Non-Prime members get free next day delivery on orders on top of 100AED and might obtain same-day delivery in most regions.
The week when Amazon.ae launched Prime in June 2019, Noon created the move to supply free delivery on all purchases and might supply same-day delivery through their in-house transport fleet.
Dubai Store, as compared, is enticing to customers as a result of it permits them to have interaction with the sure native brands through multiple touchpoints, at their convenience, long whist having the profit to retailers of not solely reaching new customers however additionally increasing their basket pay.
The growth of e-commerce within the UAE and also the region is inevitable, then is that they want for a perfect business atmosphere wherever the arena will higher serve its customers, whereas addressing current and future challenges.
The 2019 launch of EZDubai, the purpose-made E-commerce zone at Dubai South’s supplying District came at the correct time, sound into Dubai South’s sturdy capabilities in supplying and provide chain through its more than supportive policy atmosphere, infrastructure, strategic location, and foremost facilities, so as to satisfy the wants of the market.
The free zone hub supports multi-modal shipments each inward and outgoing to the region, and places retailers in proximity to their market. Very often, operators are forced to trade-off inward necessities with client demand; however, this challenge is way too less current because of this infrastructure.
What is a true challenge, however, is the stress that such favorable market propositions to the client place on the final course way.
Not solely are such short lead times terribly pricey to deliver, the increased cargo delivery is related to increased congestion, increased emissions and increased road traffic accidents. Both Noon.com and Amazon.ae are attempting to deal with these challenges; high noon.com is exploring the employment of autonomous vehicles and Amazon.ae are exploring the feasibleness of drone deliveries.
Additionally, there are challenges related to product returns. Typically, the extent of returns on E-Commerce is a minimum of double those of offline purchases, but this is often abundant higher within the UAE as a result of failing deliveries because of the client preference of money on delivery payments.
Not solely do these returns bring the same old issues related to reverse supplying, because of the provision chains crossing geographical boundaries, there’s additionally the customs challenges related to obtaining product upstream back to suppliers.
The E-Commerce sector within the UAE represents an exciting market that’s actually distinctive. The selling proposition is mature and innovative solutions are being sought-after to form looking a lot of convenient.
The supply chain infrastructure is great. there’s the challenge globally at intervals E-Commerce that, at present, the best provides chain model to satisfy the selling proposition merely doesn’t exist. Best follow during this space tends to concentrate on cooperative solutions, each downstream and upstream, however, while there are challenges to beat, the UAE holds the potential to become the E-Commerce center of excellence.