Data is key to Dubai’s retail ambitions
Progressive retailers in dubai have recognised how vital omnichannel communications is to their success
Dubai is leading the world in smart city projects and smart cities present the ideal backdrop for the next level of retail — smart shopping, state-of-theart technology-enabled malls and more. What comes next in the world of retail as Dubai seeks to lead the world when it comes to shopping?
The UAE is already highly urbanised and an international retail destination for global luxury brands and travellers. According to the UN, 85 per cent of the UAE’s population already lives in cities and this is expected to increase to 91 per cent by 2050 — making it a perfect landscape for innovative malls and retail to serve the growing local population and number of tourists visiting the country.
Where is our retail today?
In the GCC, retail has embraced and integrated technology and is using it to lead retail offerings, with the UAE and Dubai in the vanguard as globally recognised shopping destinations developing retail on an unprecedented scale. Dubai is now the world’s leading city for international retailer presence ahead of Shanghai, London and New York. The Mall of the World in Dubai is slated to become the world’s largest mall, an air-conditioned city covering more than 4.5 million square metres. In Abu Dhabi, Reem Mall is a typically ambitious venture which will provide a state-of-the-art retail experience, a $1 billion flagship project that will showcase the latest technologies such as iBeacons, connected Point of Sale technology, facial recognition technology and more, to deliver personalised offers direct to customers’ mobile devices.
Furthermore, Dubai today is well-positioned to plan and deliver a state-of-the-art digital retail logistics overhaul, which also aligns with the smart city ambitions. Technologies like mapping software can be used to transform local government and smart city planning and help manage urban transportation more effectively than ever. Similarly, smart logistics in retail can help reduce carbon emissions, congestion, air and noise pollution in our smart cities.
Importance of omnichannel
Progressive retailers in Dubai have also recognised how vital omnichannel communications is to their success. Research by the Economist Intelligence Unit has revealed that 81 per cent of millennials today use their mobile devices as their main purchasing channel. Further to that, 51 per cent of consumers who said they do not currently use mobile devices for shopping plan to use them in the future. Mobile shopping is very clearly here to stay.
That said, there is still demand from consumers for physical, brick-and-mortar stores. So even in the digital, mobile-powered era, Dubai’s retailers need to acknowledge this and tailor an offering that communicates the value of in-person shopping experiences using digital data and technology to their advantage.
Therefore, the smart way forward is a strategy that embraces and addresses both online and offline shopping. A good example is International, whose franchise in the UAE is owned by Majid Al Futtaim. Progressive retail operators like MAF are aware that it is still important to bring the shopper to the physical shop as well as engage them online and continuously — all part of what they are calling the “shopper journey”.
Retailers like MAF recognise the importance of the whole shopping experience, so online ordering via the app is in place and customers are already using it, but they are also trying to see what other smart services can increasingly bring the shopper to the outlet to enjoy other personalised offerings. It is an intelligent way forward.
Data central to the future
In our view, data is key to delivering Dubai’s vision as a global retail destination. The collection and analysis of data is the way for retailers to create a next generation shopping experience from the bottom up. Proactive use of data to personalise shopping and to also actively encourage consumers to not only shop on the Internet but also to come into stores and enjoy a tailored personal experience that delivers on their aspirations and keeps them coming back. The personalised experience and ongoing shopper journey helps drive satisfaction and loyalty.
What comes next?
The entire shopping experience in Dubai will be a connected one, powered by data and driven by digital technologies that help us maximise the value of that data. For example, Orange is currently working on a point of sale (POS) system with a partner designed to help us connect up every single POS in the UAE and provide that data to Dubai smart government. The solution is software that easily plugs in to existing systems and gathers all the data that shoppers generate with their credit cards, such as name, shopping experience, location, age, nationality and so on. The data can then be analysed and provided to malls and retailers as information so they can tailor customer offers and propositions.
This is the key to Dubai’s retail success — data is the new gold, the new oil. And something I also consider central to Dubai’s retail is the way we are approaching the measurement of success. Some smart services have very tangible RoI and KPIs, but when it comes to retail, if Dubai looks at customer satisfaction and happiness levels, we can drive a shopper journey based on continuous improvement. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has stated that well-being and happiness are top priorities for the UAE — a next-generation retail experience can play a big part.