[ad_1]
The UAE e-commerce market is expected to be worth $9.2 billion by 2026, while the industry’s share of total retail sales in the UAE is expected to reach 12.6% in the same year, according to a new analysis.
The study by the Dubai Chamber of Commerce, based on data from Euromonitor and published ahead of Gitex Global 2022, highlights several factors driving e-commerce activity in the UAE, as well as high-potential growth opportunities.
Total e-commerce sales in the UAE recorded significant growth in 2021, reaching US$4.8 billion during the year, compared to US$2.6 billion in 2019.
market trend
Mobile devices such as smartphones and tablets accounted for the majority of e-commerce transactions last year, with the mobile retail market reaching $2.6 billion, or 44% of the overall e-commerce market value. Mobile retail sales are expected to grow at a CAGR of 15.6% during 2022-2026 to reach $4.6 billion.
Research shows that more than a third of UAE consumers use their smartphones at least once a week to buy products or services, which is higher than the global average for weekly online purchases.
One of the key trends underpinning the strong growth in mobile e-commerce transactions is the availability of apps, which increases pricing transparency, the study said, adding that the increasing number of loyalty rewards programs offered by online retailers is also driving interest in online shopping. demand in the UAE.
Shoppers in the UAE prefer local retail sites to overseas retailers, the report said. In 2021, domestic e-commerce sites will account for an average of 73% of total sales, while foreign sites will only account for 27%.
The report noted that competition from foreign e-tailers is expected to intensify in the future, despite the clear preference among buyers to use domestic websites. From 2022 to 2026, foreign e-commerce platforms are expected to grow by 19.2% and market share by 34%.
changing landscape
The UAE’s e-commerce landscape has changed and developed dramatically in recent years through major investments, acquisitions and partnerships with global companies.
Investments in this industry have significantly changed the dynamics of the UAE e-commerce market, with the main impact being downward pressure on prices due to increased competition and supply.
Improvements and modernizations of payment systems and services are considered another key factor in boosting demand and business activities in the e-commerce sector in the UAE.
Consumer electronics in the UAE will be the top-selling online product in 2021 with a 34% share, mainly including smartphones, phone accessories, computer accessories, tablets, computers and TVs. Apparel and footwear accounted for 31 percent, food and beverages 12 percent, media products 8 percent, personal accessories 5.8 percent, and consumer appliances 3.3 percent.
The higher share of products purchased online indicates increased competition between online channels and traditional channels for electronics, clothing, accessories, cosmetics, and food and beverages.
The main product categories with the greatest potential in the e-commerce market in 2022 include: Apparel & Footwear, Personal Accessories, Beauty & Personal Care, and Home & Garden.
continued momentum
The growth momentum of the UAE e-commerce industry is expected to continue, supported by rising demand for online shopping and steady investment in infrastructure in the sector.
The growing momentum of e-commerce activity in the country is expected to provide more business opportunities in payment systems, financial technology, e-logistics and distribution centers. arab trade news agency
[ad_2]
Source link
