Online shoppers behavior in Middle East, Total retail in UAE, Egypt & KSA

Digital Marketing Researches & Reports

2017 Total Retail in the Middle East (UAE, Egypt and KSA) | PWC

| Egypt

There is an increase in monthly online customers – from 23% in 2013 to 29% in 2016. It seems that 2017 seeing game-changing developments not only in the sector but also with the industry players coming into the Middle Eastern retail market which is a ripe market full of opportunities.

Take a deep look at the online shoppers’ behaviors and expectations in UAE, Egypt and KSA:

An Overview of Online Shoppers’ Behaviors:

  • Younger shoppers (aged 18-24 years) in the Middle East – across the selected countries surveyed – are more likely to shop online monthly than elder ones (aged 55+) – 36% vs. 13%.
  • Lower pricing, product selection and online buying convenience are the top 3 motivations for buying online with rates 40%, 31% & 17% respectively.
  • The vast majority of online shoppers in UAE, Egypt and KSA (82%) reported that they prefer to shop from a multi-branded website (EX: Souq.com) to get the best price, while three-quarters prefer to do so from a single-branded website (EX: Nike) to get the best customer service.

The 5 Key Investment Areas for Retailers:

  1. Mobile
    – 41% of online shoppers said that they’ve used their smartphone to pay for purchases, while 56% cited that smartphones will become their main tool to purchase items online.
    – 43% said they like to use it to compare product prices with competitors, while 33% do so to read product reviews.
    – Online shoppers in UAE are more likely to use their smartphones to pay for purchases with a rate of 44%, while most of the online shoppers in Egypt use it to compare prices with competitors with also a rate of 44%.
  2. Social Customer Engagement
    – 48% of all shoppers in the 3 countries surveyed said they use the promotional offers they receive on social media.
    – The majority of shoppers in Egypt (77%) are finding inspiration for purchases on Facebook and Twitter, compared with 60% in UAE and 56% in KSA.
  3. Secure platforms
    – 62% of shoppers are concerned about having their personal information hacked when shopping online via their smartphones.
    – 60% of them use only companies that they trust to reduce the risk of online security issues/fraud.
  4. Loyalty
    – Providing good prices is the key driver of preference specific retailer than other ones with rates 50% in UAE, 48% in Egypt and 47% in KSA.
  5. Showroom experience
    – 76% prefer to find sales associates with a deep knowledge of the in-store products. 73% like to have the ability to check other stores or online stock quickly and 67% like finding WiFi services that have quick and simple login features in-stores.
Total Retail in the Middle East, 2017 | PWC

Graph Shows the Top Drives Used for Purchasing From Single or Multi-Branded Websites in the Middle East, 2017

Methodology:

Data were driven from 1,007 online shoppers who were geographically spread across the UAE, Egypt and Saudi Arabia with rates of 34%, 33% & 33% respectively. 59% of the surveyed sample were males and 41% were females.

PwC

Market Research

PwC is one of the leading professional services networks in the world with offices in 158 countries and more than 250,000 people. PwC helps organizations and individuals create the value they’re looking for and achieve the goals they're seeking, by delivering quality in assurance, tax and advisory services.At the end of 2018, PwC firms provided services to more than 429 of the Global Fortune 500 companies besides more than 100,000 entrepreneurial and private businesses achieving gross revenue by US$41.3 billion, up 7% on the previous year.
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