e-commerce intelligence

Middle East eCommerce

Middle East eCommerce: The Expanding Market with Massive Purchase Potential

The digital transformation of the region is nothing less than an Arabian knight tale. The expanding landscape and diverse eCommerce ecosystem are all set to lead the global eCommerce world. Countries like Saudi Arabia, United Arab Emirates, Kuwait, Qatar, and Bahrain are the key markets that make up the core of the region.   But what does it take to be a hero in this expanding e-commerce landscape?   In simple terms – Know your competitor, stay on top of the market dynamics & trends, and tap the pulse of Middle Eastern shoppers.   As the story unfolds it requires a deeper understanding of the Middle East e-commerce landscape. So, let’s dive deeper to understand how business can drive brands in this digital ecosystem.   Middle East eCommerce – Explore, Identify and Don’t miss out on opportunities The Middle East region holds a special position in the global eCommerce ecosystem with rapid advancement in technology, the adoption rate of eCommerce, evolving and maturing consumer behavior, and internet penetration beyond tier-1 cities in the region leading market expansion and economic growth.   Digital Expansion Post-pandemic the global eCommerce market has experienced growth beyond traditional retail channels driven by an expanding number of digital shoppers. The global market is expected to touch USD 6.35 trillion by 2027*. The proliferation of smartphones, high-speed internet connectivity, and the convenience of online shopping are the key contributors to the global eCommerce upswing.   The region has risen above the challenges like the limited payment options with the adoption of swift payment options like direct carrier billing. The lack of trust in online retailers, and a preference for in-store shopping were also key challenges but the rise of online purchases and quality services by global brands has built brand trust across platforms in the Middle East digital ecosystem. Such improvement in infrastructure propels digital expansion.   According to the Mordor Intelligence report, the size of the MENA region’s ecommerce market will almost double by 2028 compared to 2023. The expected CAGR is 11.5%, and with the MENA countries’ combined GDP of US$3.9 trillion, the region shows potential for fast growth in the ecommerce market. Evolving Consumer Behavior   The Middle East has taken center stage in the global eCommerce market with massive room for expansion as several countries in the region and tier-2 cities of the most active countries are exploring the prospects of online shopping with higher access to technology and internet penetration. The support from the governments is helping the region overcome major challenges like lack of trust in online retailers, preference for in-store shopping, and limited payment options.   A notable shift in consumer has triggered post-pandemic as shoppers turned to e-commerce platforms for daily needs, electronics, and other essential goods. Convenience, product choices, and competitive marketplaces have opened new opportunities for shoppers. The market presents exciting opportunities for international brands venturing into the market along with opportunities to target expatriate populations with brands they are familiar with. The Middle Eastern young and tech-savvy population presents a vast consumer base for e-commerce expansion.  The young and tech-savvy shopping population with rising disposable income is making up a large consumer base and the market is expected to touch base with USD 50 billion by 2025. *  *Source: Deloitte | A Middle East Point of View – Summer 2023 Not just the Middle East but the entire MENA region is experiencing a massive surge in e-commerce across categories. The key drivers of this growth are rising internet penetration, rising consumer demand for value and convenience, and extensive reach of e-commerce and quick commerce intelligence platforms.  The region under the Gulf Cooperation Council (GCC) and MENA countries like the UAE, Saudi Arabia, Egypt, and African countries has grown exponentially post-pandemic.   Platform Revenue Amazon.ae US$520.1m  Trendyol US$3,215.7m Ounass.ae US$15.3m  Noon US$251.7m  Amazon.sa US$126.1m  Souq.com US$82.4m  Basharacare.com US$6.6m Mumzworld US$67.5m  Fig 01: The top revenue-generating eCommerce platforms in the Middle East region |Source: Vitro Commerce (This will be illustrated as a chart)   Middle East eCommerce Trends Growth Across Categories The shopping patterns across eCommerce platforms are different across digital ecosystems same stands for the Middle East but the core difference is the purchase potential and inclination towards online shopping.   A Blend of local brands and global names Even the biggest name in the retail market sells their product with local packaging using local language and push variants that cater to the local Flavors and cultural preferences.   Adoption of Digital Payments Digital payments are one of the core challenges in the Middle East region. The rise of Direct Carrier Billing (DCB) for swift transactions along with mobile wallets is building a payment ecosystem that encourages online hopping with integration on various marketplaces.   Focus on enhancing customer experience The need for convenience is the utmost need of the shoppers. With the rise of value-first shoppers across digital ecosystems, brands focus on providing seamless customer journeys.   Rise of Quick Commerce The expansion of the digital ecosystem demands swift delivery. The same-day delivery need has led to the rise of Quick commerce intelligence platforms in the Middle East region.   eCommerce Future in Middle East The future of e-commerce heavily relies on well-connected, digitally savvy audiences. And the MENA region has it all! Retail penetration in the region is now around 11–12% and keeps growing. Over 80% of buyers use mobile devices, and 70% of them use social media to reach the seller.   eCommerce in the Middle East statistics and trends show that Internet penetration is close to 100%, and 80% of users already buy through the internet. This is a great target audience of potential buyers for new sellers. In general, 85% of all buyers are tech-savvy and accept paying digitally.   The population’s growing buying capabilities and the building of new e-commerce initiatives by governments suggest the MENA region has a promising and thriving e-commerce future ahead of it. This makes it perfect for those who are looking for a place to start their e-commerce business.   Final thoughts The opportunities in the MENA region are unmatched. The wide variation in product categories and high purchase

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ecommerce-intelligence

eCommerce Intelligence – Precision Targeting To Extend Brand Reach

Digital Commerce Intelligence also enables brands to provide a personalized shopping experience Data is turning out to be the driving force behind optimizing the customer experience. Brands guided by digital commerce intelligence move swiftly ahead of their competition and gain the competitive edge that drives sales and enriches the shopper’s experience. Let’s dive deep into how precision targeting helps extend the reach of the brand and enables enriched customer experience across multiple touchpoints in the customer journey. The Ball Is In Your Court! It’s up to the brands to explore new possibilities in the eCommerce arena and beyond. The sales channel is not limited to eCommerce platforms the omnichannel expansion across the digital commerce ecosystem has opened up new opportunities to expand and enhance customer experience. All brands need to do is identify these white spaces in business at the right moment and act quickly to score new customers. What do they need? The answer is quite obvious. Insights! Yes, Insights. The actionable insights on competition, marketplaces, changes trends, own SKUs performance, and a lot more. The rule of the game is simple – know every move of your opponent to take your game a notch ahead with a precise data-driven strategy. Leverage eCommerce intelligence for Precision Targeting Precision targeting involves focusing marketing efforts on specific customer segments that are most likely to be interested in a brand’s products. By identifying and understanding the unique characteristics, preferences, and behaviors of these target segments, businesses can tailor their marketing messages and experiences to resonate more effectively. Data-driven strategies: Businesses can utilize customer feedback analysis, market analytics, and competitive analytics to make strategies driven by action insights. By analyzing data, businesses can identify patterns, trends, and customer preferences, enabling them to make informed decisions regarding product offerings, pricing, promotions, and marketing campaigns. Personalization and Customization: eCommerce intelligence enables businesses to deliver personalized experiences to their customers. By understanding individual customer preferences and purchase history, businesses can tailor product recommendations, discounts, and promotions to enhance customer satisfaction and increase conversion rates. Customization goes beyond personalization by allowing customers to customize products according to their preferences. This level of personalization and customization fosters a stronger connection between the brand and its customers. Competitive Advantage: eCommerce intelligence provides businesses with a competitive edge by helping them stay ahead of market trends and competitor strategies. By monitoring competitor pricing, promotions, and customer reviews, businesses can identify areas for improvement and develop strategies to differentiate themselves in the market. eCommerce intelligence allows businesses to identify emerging market trends and consumer preferences, enabling them to adapt their offerings and stay relevant in a rapidly evolving landscape. Strike Hard – Strike First! Make a move, based on the insights you have against your opponents. Identify the weak spots of your opponents across platforms, geographies, and product categories in terms of discoverability, availability, pricing, etc. And strike to acquire new customers. Also, identify your weak areas and plug them in before they get exploited by the competition. Cater Your Products for Your Peeps Understand the dynamics of customer behavior with sentiment analysis to make your shopper feel valued across eCommerce platforms. Brands need to understand what their customers are looking for. Precisely fill up the gap to build an effective product detail page that answers all shoppers’ needs in its title, description, Q&A, etc. Find out what they say about your product: The Brands should be well aware of what & where are saying. We your customer make an effort to post good or bad reviews. Brands must promptly acknowledge their response and make sure the customers feel valued. Track ratings and reviews to enhance product performance. Brands must be aware of the sentiment expressed by customers about the product and how many customers are saying similar things. This information is vital for product quality management and measuring customer sentiment across platforms at brand, sub-brand, product categories, sub-categories, and variant levels. Make Your Products Discoverable for Your Consumers: Identifying if the customer of the segment can discover your products is the first and foremost thing for an eCommerce business. Brands need to make sure that they target the right set of keywords to reach the desired segment of shoppers. Insights on the share of search, discoverability trends, keyword performance, and bidding can help the brand cater to the right audience. Identify Patterns in the consideration process: Once shoppers discover your product, the next target is to identify what the segment of shoppers are looking for. In the consideration phase brands must set pricing and discounts to suit market trends and customer preferences. The brand must also be aware of stock availability to build customer brand trust cause one bad experience is bad enough to lose a customer. Optimize Delivery Turn Around Time (TAT): Same-day delivery or 1 day delivery is key to acquiring new shoppers. Delivery time plays a crucial role in purchase decisions it gives a substantial competitive edge to the brands in the eCommerce marketplace. The target customer precisely requires brands to deliver on time. This helps a brand to expand to an extensive new segment of shoppers who are looking for products that can be delivered quicker than the competition. Final Thoughts The core solution to brand problems is insights into customers, markets, and competition. They set up brands to target new shoppers by identifying data patterns that guide more effective business decisions. To achieve precision in targeting, brands need to be aware of customer needs and formulate strategies based on such insights. mScanIt, E-commerce Intelligence lets brands track brand sentiment and guide brands to identify gaps in the market. The geographies they could target and demographics they could extend their product reach. Get in Touch to learn more about e-commerce intelligence. 

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