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Over 55pc international brands set up shop in Mideast

DUBAI, December 4, 2016

The Middle East is becoming the global retail growth hotspot and shaping up the future of online retail with over 55 per cent international fashion brands setting up shop here for a customer base that is increasingly online, according to a recent study.

The region has turned a star attraction for leading retail brands, thanks to an increasing population that is ready to spend in a lavish manner.

It is projected that the expenditure of UAE consumers is set to grow over Dh750 billion ($204.1 billion) by 2017, said a study by Dubai Chamber of Commerce and Industry, a private non-profit organisation.

Earlier this year, JLL’s Destination Retail report identified five cities including Dubai (UAE), Kuwait City (Kuwait), Abu Dhabi (UAE), Jeddah and Riyadh (Saudi Arabia), as global ‘growth cities’.

A growing flow of tourists and dedicated shopping events across the region, as well as increasing urbanisation, have contributed to the unprecedented growth of retail in these cities, said the report.

Maqdoom Mohammed, director sales – Middle East and Africa (MEA), TSC Auto ID Technology ME, pointed out that the overall retail sector, both online and in-store, in the Middle East was projected to hit $1.05 trillion in 2017.

"This means the retail industry is looking at a bright future in the region. Existing retailers are expanding, while new local and international players are entering the market. Although there is a lot of online retail platforms, in-store experience is improving all the time, thanks to technology,” he said.

“Innovations like smart shelves, mobile pay and interactive apps are closing the gap between in-store and online, making shopping more enjoyable for today's customer,” he added.

With e-commerce transactions in the region reaching over $15 billion in 2015, the region is also seeing tremendous growth in online shopping.

According to reports, over 75 per cent of the population in the region is using the internet on their mobile devices.

Retail brands are now strategising their businesses around consumer preferences with innovative solutions like omnichannel retail, same day delivery, self-service, and mobile pay etc. Shoppers are also keen to buy straight from social media, and these networks are starting to provide them with ways to do this with ‘buy’ button feature on social media posts.

According to Rolly Martins, IT head and product development manager at I Solve IT, there are huge changes in the retail environment in the region due to major changes in the customer’s buying habits.

Martins said: “Retailers are now designing their businesses around customer experience rather than by channel, and enabling the customer to choose not only what they buy, but also how they would pay for a service or product.”

“Some of the trends we see include innovation in delivery solutions and social influence, perhaps, brand building side of social channels is now one of the biggest sales influencers for web-savvy consumers,” he added.

Smart Stores Expo 2017, to be held next month, is designed to showcase developments in the retail industry under four broad categories - smart store design, smart store technologies, smart store services and smart virtual stores.

The event will take place from January 23 to 25, at the Abu Dhabi National Exhibitions Company (Adnec).

Jayaraman Nair, chairman, VIS Exhibitions and Conferences, the event organiser, said: “Retail sector was never so vivid, today shopping has become a convenient affair, and the in-store and online innovations have allowed the customer to leave a clear digital footprint for retailers to follow and engage with.”

“Retailers investing in understanding and engaging customers through innovative technologies will win in the coming years,” he said.

“With the expo, we aim to bring together retailers, suppliers, as well as technology, design and equipment providers to discuss latest trends and address future requirements of the regional retail market,” he added. – TradeArabia News Service




Tags: | Online | brands | international | Mideast | Shop |

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