$25tr global retail industry likely to become e-tailers
Most retailers will soon become e-tailers engaged in storage and door-to-door deliveries to consumers, experts told more than 250 delegates at the 9th Middle East Retail Forum
While the whole world is suffering from the COVID-19 fall-out, the technology companies are flourishing and they are also disrupting the $25 trillion global retail industry by transforming them to become tech-driven e-tailers delivering consumer goods door-to-door, experts at the 9th Middle East Retail Forum that took place in Dubai, told more than 250 delegates while thousands of others viewed the live broadcast of the full-day proceedings.
COVID-19 is changing the global economy forever. While vaccines might bring back normalcy in life, the retail sector might not be the same again, due to the technology-led disruption where data analytics, artificial intelligence, machine learning, perceptive analytics, changing consumer behaviour will reshape the retail industry landscape to strengthen customer experience.
“The year 2020 has been a roller coaster year full of new learnings, quick pivoting and unprecedented challenges, as the pandemic has created a new set of rules for the survival and success of retail industry,” Renuka Jagtiani, Chairwoman and CEO of Landmark Group, told the delegates.
“But we as a team take COVID-19 as an opportunity to prove ourselves in tough times. It is only possible if we do proper teamwork, as the customer expectations have been changed, and the way we have to approach them should be far more creative and personalised so that we can easily develop the trust and interest in our customer.”
The GCC’S e-commerce sector is expected to more than double to $50 billion in the next five years, up from $24 billion this year, as pandemic-related movement restrictions lead to a shit in shopping habits in the region, according to a new report by global consultancy firm Kearney.
Amazon, a relatively new player in the region, saw its sales in the GCC grow by 26 per cent to $76 billion (Dhs278.92 billion) in the first quarter of 2020.
Patrick Chalhoub, CEO Chalhoub Group, said, “As the term “new” gives way to “next” normal, the very definition of normalcy has changed. It has changed as retailers are rewiring business models, rethinking revenue centres and readjusting plans to adopt in a changed business environment. I hope the industry will soon get normal.”
The mobile phone industry in the Middle East and North Africa (MENA) has largely risen to the challenge of sustaining social and economic activities in the region during the pandemic, despite the unprecedented growth in data traffic. According to GSMA, by the end of 2020, nearly 280 million people in the region (45% of the population) will be connected to mobile internet. However, COVID-19 has highlighted the impact of the digital divide for the nearly 350 million people in the region still unable to connect to mobile internet.
GSMA expects US$70 billion to be spent on mobile telephony in the MENA region between 2019 and 2025, which will spearhead the Internet of Things (IOT), Artificial Intelligence, Big Data and the 4th Industrial Revolution – which will eventually change the retail industry – among all other economic sectors.
Hozefa Saylawala, Director of Sales at Zebra Technologies, said, “COVID-19 has changed the retail industry forever and in a way it has created history for the retail industry. The year 2020 will go down in history for transforming and digitising the global retail industry, among other things. Retailers have started to change and are witnessing the evolution of a new retail experience where flawless and seamless customer experience will determine their success.”
The year 2020 will go down in history as the most remarkable year in the history of the retail industry due to the transformation and the opportunities it brings.
Justina Eitzinger, Chief Operating Officer of Images Group Middle East, organiser of the Middle East Retail Forum and Retailme Awards, said, “The 9th Middle East Retail Forum, the only such industry conference in the Middle East, takes place at an unprecedented time, when we are witnessing the biggest transformation in this industry taking place at such a fast pace like no other!
“The success of retailers will rely on technology adaptation, embedding data analytics, artificial intelligence and analysing consumer behaviour. Retailers will have to analyse the consumer behaviour through data analytics that will tell them what type of food to store, what brands customer prefers and the preferred price point – in order to remain ahead of the competition.
“These interesting insights make the Middle East Retail Forum more significant to educate and enlighten the industry stakeholders and help them to make informed decisions.”