Why Mena shoppers are ready for digital
dubai — Consumers across the Middle East and North Africa region are ready to embrace the digital experience when it comes to shopping, says Charbel Sarkis, head of retail, travel and hospitality at Google Mena.
Speaking at the inaugural edition of the recent Think with Google Breakfast series, Sarkis highlighted the growth in the region’s e-commerce industry, and the various dynamics that are disrupting firms.
“Our data clearly shows that consumers in the region are among those with the highest rates of Internet and mobile penetration, as well as digital engagement, in the world. In addition, consumers, especially those in the UAE and Saudi Arabia, are digitally savvy and embracing new technologies at a very fast pace,” he said.
This is evident especially when one looks at the smartphone penetration rate in the UAE, and how consumers have embraced trends such as online food ordering and delivery and cab sharing, he added. “This year has been a milestone year for e-commerce; globally this year, e-commerce as an industry surpassed the 10 per cent mark in terms of share of total retail sales. So, the e-commerce industry is starting to become significant — it’s valued at around $2.2 trillion globally.”
According to research conducted by Google and Bain & Company, the Mena e-commerce market reached $8.3 billion in 2017. With an average annual growth rate of 25 per cent, e-commerce in the region has been growing slightly ahead of the global average. The UAE’s e-commerce market size stood at $2.3 billion in 2017, growing at a CAGR of 30 per cent between 2014-17.
“The has been an increase in competition in the market, which brought with it broader product selection, more localised customer experiences, and faster deliveries. This has all created a big momentum in the industry,” said Sarkis. “Decisions on what to purchase have moved online over the last few years; and we are seeing this not only when consumers shop from home, but also when they are inside brick-and-mortar stores. Shoppers are also shopping online more frequently in the region.”