Digitalisation sweeps Mideast retail sector

Sunaina Rana / Emirates Business

As digitalisation penetrates into almost every sector around the globe, companies in the MENA region are leaving no stone unturned to grab their space in the online world.
Google Analytic estimates that MENA consumers are now relying more on their brands’ digital messages than before, to guide them through a purchase journey. It points out that as much as 91 percent of online consumers in the UAE and 88 percent in KSA have responded to an online ad, video, or website content, and taken action.
Ronaldo Mouchawar, CEO & Co-Founder, Souq.com , told Emirates Business, “The Middle East has the highest smartphone penetration rates in the world and the UAE is leading this growth in the region with a penetration rate of 78%. This highlights a huge opportunity for the digital markets in the region and for SOUQ.com particularly with our mobile app which generates more than 60% of our sales.”
“With the rise of technology and internet penetration, the influence of various social media platforms, there has also been an emergence of new digital trends including social shopping. More and more businesses are realising the influence these social platforms can have on consumer buying behaviours and are integrating them in their development plans,” he added.
“As the market is evolving and each and every sector seems to be getting digitalized, it is very crucial for any business to have a digital presence. This digital revolution is a transformation into a new era. This digitalisation provides the marketers a broader platform to establish more engaged communication channels with its customers for a reduced budget,” points out Julie Wurtz, Marketing manager, Daxium Middle East.
The rising demand of the digitalisation in the world today has also increased the usage of internet in the region. However, internet no longer remains just a mode of entertainment but it has become one of the biggest retail markets worldwide, owing to which the platform serves as an exponential opportunity for the marketers to present their products.
“These emerging trends are a clear indicator of great opportunities that are present in the region with reference to the thriving e-commerce industry. High gross domestic product per capita, robust mobile penetration rates, a younger population and ease of buying are some of the key factors powering a boom in online sales in the UAE. Souq.com is fuelling this growth further by providing consumers access to over 1.5 million products across categories such as consumer electronics, fashion, household goods, watches or perfumes,” Mouchawar elaborated on the trends of the market.
It has witnessed that a large number of MENA companies have been getting involved in the digitalisation and participating in the digital campaigns as it provides the marketers a significant range of audience. For instance, realizing the importance of the platform the UAE based airline Etihad Airways incorporated the latest digital technology and used VR technology for its latest campaign.
Talking about the revenue generated by the software company that develops innovative mobile application, Daxium has grown by 300 percent during the last 3 years. Wurtz stated, “Being an international software company Daxium has witnessed an exponential growth in the UAE. The Emirates market has been one of the fastest growing markets in the digital world. However there is always room for improvement and I believe that the strong digital presence can be further emphasized on and more focus is laid on the B2B field.”
The e-commerce has become one of the most potential platforms, “With over 60 percent of our sales being driven by mobile shopping and for the Middle East’s online market as a whole. The global mobile payment market is expected to reach $507bn in the next year, a rise of 40 percent, which highlights the huge opportunity in m-commerce which is why we are constantly evolving and innovating across our mobile platform and app,” pointed out Mouchawar.