the shopfront of the future
As brand engagement and sales move online, retailers must look to mobile to drive store traffic, says Facebook’s Shant Oknayan.
In the Middle East, technology has witnessed massive adoption and, with e-commerce expected to grow to $20bn by 2020, consumer trust in offline retail and malls is being challenged.
The MENA region has undergone a rampant digital transformation where people have a mobile device in at least one hand, if not both. Today, mobile usage has gone beyond calls, and has redefined consumer behaviour. New trends are discovered in news feeds and these are discussed on services like Messenger and WhatsApp. The mobile screen has, as a result, become a window to the world and today connects users to the people and things that matter most to them. For brands and those in the retail industry, this means they can directly engage with consumers, leveraging new moments created by mobile to reach people. (For example, 69 per cent of people access their mobile while shopping in-store). With 84 per cent smartphone penetration across the region (which is among the highest in the world), coupled with the vast amounts of time and attention spent on mobile (close to five hours a day in the UAE) the possibilities for the retail economy in the mobile age are immense.
In the Middle East, technology has witnessed massive adoption and, with e-commerce expected to grow to $20bn by 2020, consumer trust in offline retail and malls is being challenged. At a time when brand engagement and increasing sales happens primarily online, it is critical for retailers to consider ways to drive people to stores.
With the news feed becoming a haven for window shoppers, brands need to rethink how they present product details in a visually impactful way that’s clear yet small-screen friendly. In this, mobile has a large and growing influence on purchase decisions, including in-store sales. In the US, 90 per cent of retail sales still happen in-store and about half of in-store purchases are influenced by digital interactions, most of which are on mobile.
However, there are still challenges in driving online-to-offline retail, in terms of targeting, content and measuring store footfall and sales. Today retailers can not only leverage online platforms to offer discounts and drive store traffic, but also track actual conversions to physical stores. Experiences built for mobile will allow brands to link their retail sites, or allow purchases directly from mobile devices for collection at physical locations.
That is why brands needs to leverage technologies that are hyperlocal in nature, to create relevant engagement at scale, while mapping the entire customer journey between store discovery, store visits and offline conversions.
Why is mobile an inspiring channel for storytelling? The immersive nature of content on mobile, whether through Facebook or Instagram, means brands can create personalised touchpoints that resonate with audiences. Visual content, whether static or video, creates talkabil- ity and builds trust, driving consumers’ interest. In countries such the UAE where communities are built around malls, receiving updates in your news feed allows consumers to discover the best of their favourite brands and latest products. Fashion, beauty and technology remain the most desired retail verticals, and with the rise of influencers on social media channels, brands are able to create dialogue with consumers leading to engagement and purchase.
As technology infiltrates traditional retail, we’ll see a larger play for e-commerce growth. The recent acquisition of Souq.com by Amazon and Emaar Mall’s majority buy-out of Namshi are indicators of the potential of online retail in the MENA region. However, in a region like ours, where population growth isn’t burgeoning and businesses can peak relatively fast, marketers need to engage people with content made for mobile first. Today, content preferences have shifted to newer formats, enabling rich storytelling with sight, sound, and motion.
With the right content, and a strong platform in the mix, retailers have a robust foundation to drive result-oriented digital campaigns for both online and offline sales. Unlike the western world – where retail moments are built around holidays – shopping in MENA has become a year-round activity, given its tourist appeal. This makes it all the more important for retailers to engage with consumers.
With online marketplace consolidation, the MENA retail landscape is set to grow to $544 billion by 2020, and mobile experiences will play a central role in transforming the region’s shopping experiences.