Mobile commerce poised to grow this Ramadan

Sunaina Rana / Emirates Business

E-commerce has become one of the biggest business trends in the UAE, of which mobile commerce is an integral part. According to a recent study conducted by Criteo, mobile was the most preferred device for business during the Ramadan season, with a 44% rise in spending two weeks prior to Ramadan, to 49% by the last week, and 57% during Eid al-Fitr. However, the share of desktop engagement was seen to recover post Eid al-Fitr when regular working hours resumed.
Internet sales in the UAE accounted for 3.9 per cent of the total sales in 2015. It is forecast to reach 4.6 per cent in 2016, driven by a larger variety of products, according to research firm Euromonitor International Middle East.
Dirk Henke, Managing Director Emerging Markets, Criteo, told Emirates Business, “e-Commerce in the region witnessed a 15% growth in the retail sector, and a significant 35% growth in the travel sector during Ramadan last year. This rise in activity highlighted the increasing interest in products and online shopping, and brands can respond to greater demand by working alongside their marketing departments to capitalise on this interest and generate further sales. As purchase intent surges, the competition among brands intensifies in correspondence —and increased digital marketing budgets are a key driver.”
It has been seen that by each passing year, the UAE pays US$230 billion in payments at 170 government entities and more than 350,000 merchants. It has been a very strong indication the development of the region’s e-commerce.
Speaking on the digital advertising segment, he said, “It is crucial for advertisers to understand how consumer shopping behaviour evolves during different time periods in the year in order to understand when to adjust marketing activities and budgets to reap maximum benefits.”
Further, giving a broader picture to the region, e-commerce market is valued at US$4.9 billion in 2015, according to Web Design Company Go-Gulf. Meanwhile, local retail website Awok.com stated earlier this year that the UAE is currently leading e-commerce sales growth in the GCC.
Other key findings in the study include an increase in online purchases during Ramadan evenings.
Twice as much traffic than usual was recorded including a significant increase in sales transactions with 16% more transactions taking place at night in comparison to a usual week.
Regardless of the device, retail sales increased by 15% and travel bookings soared by 35% as consumers made plans to spend their Eid holidays with friends and family. Additionally, retail sales decreased by 37% from the third week to Eid al-Fitr, but slowly rose after Eid with a 17% increase. Online travel bookings continued to witness an increase by 3% from the third week to Eid al-Fitr, and 6% after Ramadan.
“Leading sales events, such as Black Friday in the US, are a common catalyst of sales, however, Ramadan is a special season as well, and can be leveraged by brands with special offers. According to recent report by Ovum and Criteo, offline sales can be pushed through digital commerce as well, as consumers are more likely to buy a product or service when they have a better understanding of a brand’s offering through their digital channels,” Henke said.