Ahmed Al Khaja, CEO of Dubai Festivals & Retail Establishment (DFRE)
Dubai’s retail sector is evolving as shifting consumer trends, a global pandemic and the proliferation of online shopping has encouraged it to expand, grow and reach customers in new ways.
Retail generates AED105.1 billion each year, or 26.4 percent of GDP and is a major attraction for residents and visitors alike in the UAE. As malls have spread around the city, the reach of virtual disruptors such as Amazon, noon and NAMSHI has also grown.
In 2019, the Dubai Department for Economic Development’s Economic Bulletin valued the UAE’s e-commerce market at $12.3 million with yearly growth of 23 percent predicted up to 2022.
Regionally, the UAE enjoys the highest rates of online penetration at 99.15 percent, which is reflected in its usage. The PwC 2020 Global Consumer Insights Survey found 48 percent of Dubai shoppers use apps to place shopping orders for collection and 31 percent regularly buy products on their smartphone while the 2018 Dubai Competitiveness Report placed internet purchases in the UAE at $150,000 per 1,000 people, three times more than Saudi Arabia at $43,116. It also ranked the UAE 13th globally for the frequency of goods purchased from the internet.
Dubai’s central role in the regional e-commerce world has seen heavyweights Souk, now part of Amazon, NAMSHI and noon launch in the city while incubators continue to bring fresh ideas to the digital marketplace.
As customers opt to shop on their phones, Dubai’s retailers have used online trends as a catalyst for change – the retail experience is paramount, with malls mirroring their virtual counterparts and value, convenience, availability and accessibility driving sales along with customer interaction.
E-commerce hasn’t overtaken retail. Rather, retailers have learned to bridge the gap between physical and digital while strengthening the connection customers feel with their favourite venues. Fifty-five percent of Dubai consumers still prefer to shop in person for many products.
Dubai’s stores are market-leading multi-experience and multi-platform destinations where on- and offline come together. Shoppers complement their visit with digital tools that enhance their experience and increase purchasing options. The city’s retailers are bringing the benefits of online technology into the physical space with iPads, apps and Augmented Reality (AR) technology.
Customers explore the racks as they scroll through store-branded tablets showing items not available on the shop floor, and apps let them try on outfits without entering a changing room. Shoppers can order out of stock items for delivery at the store or to their home, with this tech used to great effect during the Shoetopia event and American Rag Cie in-store activation at the Dubai Shopping Festival (DSF).
Digital and physical shopping come together in numerous ways, including click & collect services and in-store returns for online purchases. Click & collect, offered to shoppers at Bloomingdale’s department store year-round, is a popular feature at stores including IKEA, ACE Hardware, Carrefour, and Zara plus retailers across a range of categories including health, beauty and jewellery outlets.
Click & collect allows items to be ordered from home and picked up at the customer’s nearest outlet during a pre-planned visit, with items bought during a shopping trip also delivered to the buyer’s residence.
Almost half (42 percent) of shoppers enjoy receiving personalised offers on their smartphone when they enter a store with 32 percent in favour of more virtual experiences. Nearly the same figure (41 percent) still visit stores to test products and 32 percent enjoying shopping socially.
PwC’s May 2020 Covid-19 Pulse survey found that the pandemic strengthened online shopping habits of consumers, particularly semi-digital options such as click & collect, with 51 percent of the 501 respondents stating they were shopping online either to pick up in-store (18 percent) or to be delivered to their homes (33 percent).
Easy in-store returns for web purchases also benefit shoppers and outlets. Not only does it remove the need for retailers to pay for collection by couriers, but customers can explore new products and be tempted to buy more.
Retail websites, such as Dragonmart.ae, offer deals and promotions to rival online-only outlets, complete with alerts that encourage customers to explore items exclusively in stores, while on- and offline partnerships now mean The Dubai Mall’s online store is available on noon.ae.
All of these services operate on the principle of putting consumers first, building a connection and keeping their attention. By linking physical and digital services, Dubai’s retail is providing consumers with a fulfilling, convenient and customised experience; retail is interactive, on demand and packed with deals and savings – the fundamentals of modern shopping.
Souk Al Marfa on Deira Islands
Among all the tech trying to catch shoppers’ attention, it’s important to also remember what makes Dubai’s retail landscape so special is its traditional offerings that still hold significant popularity and cultural importance. Souks and markets offer nostalgia and community, which allows projects such as the recently announced Souk Al Marfa on Deira Islands to take shape.
The fact the waterfront marketplace, which will be home to 2,500 stores when it opens in April 2021, is set to find a place in today’s online-driven world shows the strength and diversity of the sector. Dubai was built on trade and commerce, whether that takes place in a souk, a mall or on a smartphone, the city’s retailers will find a way to thrive and succeed.
Ahmed Al Khaja, CEO of Dubai Festivals & Retail Establishment (DFRE).
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Dubai combines online and offline retail for customised shopping experience
As customers opt to shop on their phones, Dubai’s retailers have used online trends as a catalyst for change
Dubai’s retail sector is evolving as shifting consumer trends, a global pandemic and the proliferation of online shopping has encouraged it to expand, grow and reach customers in new ways.
Retail generates AED105.1 billion each year, or 26.4 percent of GDP and is a major attraction for residents and visitors alike in the UAE. As malls have spread around the city, the reach of virtual disruptors such as Amazon, noon and NAMSHI has also grown.
In 2019, the Dubai Department for Economic Development’s Economic Bulletin valued the UAE’s e-commerce market at $12.3 million with yearly growth of 23 percent predicted up to 2022.
Regionally, the UAE enjoys the highest rates of online penetration at 99.15 percent, which is reflected in its usage. The PwC 2020 Global Consumer Insights Survey found 48 percent of Dubai shoppers use apps to place shopping orders for collection and 31 percent regularly buy products on their smartphone while the 2018 Dubai Competitiveness Report placed internet purchases in the UAE at $150,000 per 1,000 people, three times more than Saudi Arabia at $43,116. It also ranked the UAE 13th globally for the frequency of goods purchased from the internet.
Dubai’s central role in the regional e-commerce world has seen heavyweights Souk, now part of Amazon, NAMSHI and noon launch in the city while incubators continue to bring fresh ideas to the digital marketplace.
As customers opt to shop on their phones, Dubai’s retailers have used online trends as a catalyst for change – the retail experience is paramount, with malls mirroring their virtual counterparts and value, convenience, availability and accessibility driving sales along with customer interaction.
E-commerce hasn’t overtaken retail. Rather, retailers have learned to bridge the gap between physical and digital while strengthening the connection customers feel with their favourite venues. Fifty-five percent of Dubai consumers still prefer to shop in person for many products.
Dubai’s stores are market-leading multi-experience and multi-platform destinations where on- and offline come together. Shoppers complement their visit with digital tools that enhance their experience and increase purchasing options. The city’s retailers are bringing the benefits of online technology into the physical space with iPads, apps and Augmented Reality (AR) technology.
Customers explore the racks as they scroll through store-branded tablets showing items not available on the shop floor, and apps let them try on outfits without entering a changing room. Shoppers can order out of stock items for delivery at the store or to their home, with this tech used to great effect during the Shoetopia event and American Rag Cie in-store activation at the Dubai Shopping Festival (DSF).
Digital and physical shopping come together in numerous ways, including click & collect services and in-store returns for online purchases. Click & collect, offered to shoppers at Bloomingdale’s department store year-round, is a popular feature at stores including IKEA, ACE Hardware, Carrefour, and Zara plus retailers across a range of categories including health, beauty and jewellery outlets.
Click & collect allows items to be ordered from home and picked up at the customer’s nearest outlet during a pre-planned visit, with items bought during a shopping trip also delivered to the buyer’s residence.
Almost half (42 percent) of shoppers enjoy receiving personalised offers on their smartphone when they enter a store with 32 percent in favour of more virtual experiences. Nearly the same figure (41 percent) still visit stores to test products and 32 percent enjoying shopping socially.
PwC’s May 2020 Covid-19 Pulse survey found that the pandemic strengthened online shopping habits of consumers, particularly semi-digital options such as click & collect, with 51 percent of the 501 respondents stating they were shopping online either to pick up in-store (18 percent) or to be delivered to their homes (33 percent).
Easy in-store returns for web purchases also benefit shoppers and outlets. Not only does it remove the need for retailers to pay for collection by couriers, but customers can explore new products and be tempted to buy more.
Retail websites, such as Dragonmart.ae, offer deals and promotions to rival online-only outlets, complete with alerts that encourage customers to explore items exclusively in stores, while on- and offline partnerships now mean The Dubai Mall’s online store is available on noon.ae.
All of these services operate on the principle of putting consumers first, building a connection and keeping their attention. By linking physical and digital services, Dubai’s retail is providing consumers with a fulfilling, convenient and customised experience; retail is interactive, on demand and packed with deals and savings – the fundamentals of modern shopping.
Among all the tech trying to catch shoppers’ attention, it’s important to also remember what makes Dubai’s retail landscape so special is its traditional offerings that still hold significant popularity and cultural importance. Souks and markets offer nostalgia and community, which allows projects such as the recently announced Souk Al Marfa on Deira Islands to take shape.
The fact the waterfront marketplace, which will be home to 2,500 stores when it opens in April 2021, is set to find a place in today’s online-driven world shows the strength and diversity of the sector. Dubai was built on trade and commerce, whether that takes place in a souk, a mall or on a smartphone, the city’s retailers will find a way to thrive and succeed.
Ahmed Al Khaja, CEO of Dubai Festivals & Retail Establishment (DFRE).
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