Market Trends of MEA E-Commerce Footwear Industry
Social Media Influence and Aggressive Marketing Fueling Market Demand
- Social media has become one of the most strategic marketing channels, and prominent companies are implementing social media strategies to boost their brand awareness, enhance exposure, and, thus, sales through online channels. Social media allows brands to reach a growing number of social network users and reach the potential target audience.
- The strong Internet penetration had majorly contributed to driving awareness about socialists among consumers. The rising number of active social media users across the region on various social media platforms, including Instagram, Facebook, Snapchat, Twitter, etc., is supporting the demand for footwear via online mediums. Brands across the footwear industry are tapping into social media potential. Social media networks are transforming the digital marketing landscape and are driving user engagement globally.
- In addition, brands and companies are making use of Instagram and Facebook to appeal to younger audiences through their visual content, thus supporting brand advocacy through impressive, powerful channels. Along with a strong online presence, the continued development of mobile applications and the rise of e-commerce have helped to extend the studied market by making footwear purchasing simpler due to factors such as the online availability of a wide range of items, time-saving viewpoint, easy-to-navigate online shopping portals, hassle-free online payments, and in-home delivery.
- For instance, as per Data Reportal Organization, there were 29.30 million social media users in Saudi Arabia in January 2022. The number of social media users in Saudi Arabia at the start of 2022 was equivalent to 82.3 percent of the total population.
- Thus, the growing social media influence on younger audiences is supporting demand for footwear products through online mediums across the region. Furthermore, according to World Bank data, consumer expenditure has increased by 19.4% from 2015 to 2021 in Saudi Arabia, creating a propelling opportunity among the player's manufacturers to launch more innovative and premium footwear.
- For instance, in May 2021, Adidas Originals and Saudi Arabia's Arwa Al Banawi launched a newly designed sneaker virtually in Alula, Saudi Arabia.
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United Arab Emirates Registers the Fastest Growth Rate
- Government initiatives supporting the growth of the sports sector and increasing internet users, significant investments in retail space, and the growth of fashion e-commerce are some of the factors that make the country a favorable market for e-commerce footwear producers. Also, the sports footwear industry is expected to experience significant growth in sales through online channels throughout the projection period as the country's e-commerce grows.
- According to a report from the International Trade Administration (ITA) published in July 2022, the United Arab Emirates leads the Gulf Cooperation Council (GCC) states in eCommerce sales and the Dubai Chamber of Commerce and Industry projects that online sales will reach USD 8 billion by 2025 in the United Arab Emirates since nearly all of the population has access to the internet and mobile devices.
- Additionally, the government strategies and investments aimed at the growth of the sports industry in the country are leading to the robust demand for athletic footwear. For instance, in July 2022, The Dubai Sports Council, alongside the United Arab Emirates Football Association (UAEFA), announced the organization of the first edition of the Dubai Open for Football Academies as part of joint efforts between the two parties for the aim of football development, especially the youth sector in Dubai clubs and the private sector.
- Furthermore, the growing number of Internet users coupled with social media penetration seems to have changed the advertisement spending strategy of key players. For instance, in June 2022, Adidas AG launched a limited-edition shoe dedicated to iconic Pakistani eatery Ravi to celebrate community-focused restaurants in cities around the world. As per the company, the shoes are available with selected retailers in Dubai and on the online platform.
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