Market Trends of UAE E-Commerce Industry
Food Industry to Witness Significant Growth
- The food industry is expected to witness major growth during the forecast period, with confectionery items holding a major share.\
- Confectionery items are products made of sugar or chocolate, such as candies, chocolates, gums, and pastries. They are widely consumed as snacks, desserts, or gifts. The demand for confectionery items has increased in the UAE due to several factors. Ramadan's gifting season is a significant factor that drives confectionery e-commerce sales in the UAE.
- For instance, SugarMoo is an online dessert and sweets shop that offers a variety of cakes, cupcakes, ice cream, brownies, cookies, jars, and truffles. Users can order online and get their desserts delivered within 45 minutes. Moreover, Talabat is an online food delivery platform that allows to order food from various restaurants and cuisines in the UAE. Users can also order confectionery desserts from different shops and brands through Talabat.
- UAE's organizations should coordinate the Ramadan culture, use the online business shift, and use social media platforms to utilize consumer demand efficiently. Entrepreneurs' market position is also boosted by analyzing and applying Ramadan-related purchases made by buyers into business plans.
- The market is rising due to increasing investments and strategic actions like mergers and acquisitions in adolescent companies. For instance, in February 2023, Etisalat UAE, branded as Etisalat by e&, completed the acquisition of Service Souk DMCC "ServiceMarket. This acquisition is consistent with the Group's aim of empowering consumers, strengthening Smiles' online marketplace presence, and driving company diversification.
- Moreover, ServiceMarket is an online marketplace for home services. It presently provides over 40 services across many segments in the UAE. It has an established market position and will complement Etisalat by e&'s existing marketplace offerings under the name 'Smiles,' which include online food and grocery delivery, lifestyle deals, and the ability to earn and redeem points at over 10,000 outlets across the UAE. Although traditional confectionery retail accounts for a sizable portion of the market, e-commerce penetration through startups and strategic advancements is anticipated to drive the industry's growth throughout the forecast period.
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Consumer Electronics to Hold Major Share in the Market
- The e-commerce market for the consumer electronics segment aims to provide consumers with a simple and easy way to buy various products, such as smartphones, laptops, tablets, TVs, cameras, and audio equipment. Furthermore, the market covers the online sale of such products at competitive rates and the added convenience of home delivery. It also allows businesses and merchants to access clients in other areas and demographics, expanding their customer base and sales potential.
- The segment has grown significantly in recent years, owing to the increasing popularity of online shopping, the expansion of direct-to-consumer businesses, and the constant innovation and updates of electronic products. For example, Apple, an international brand that sells a wide choice of high-end equipment and best buy, focusing on consumer electronics and appliances, is a successful e-commerce consumer electronics firm. Furthermore, internet marketplaces like Amazon and eBay have extended their electronic offerings, giving consumers more options for acquiring their favourite electronic goods online.
- Moreover, according to GN Media, a publisher of Gulf News and an English newspaper in the UAE, compared to other offline channels, growth in consumer electronics supplied through distribution channels or online platforms is the fastest in the past year, at 31%.
- UAE has witnessed a remarkable surge in the consumer electronics segment, revolutionizing the way people shop for electronic devices. This exponential growth can be attributed to the government's proactive initiatives and substantial investments in the digital sector. By fostering a conducive environment for e-commerce and encouraging digital transformation, the UAE government has played a pivotal role in expanding online consumer electronics platforms in the e-commerce market.
- The UAE government has been at the forefront of digital transformation efforts, realizing the potential of e-commerce and its impact on the consumer electronics sector. Initiatives such as the National Digital Transformation Strategy and the Smart Dubai Initiative have set the foundation for a robust digital ecosystem. These initiatives focus on enhancing government services, promoting innovation, and improving digital infrastructure, providing a solid framework for developing consumer electronics in e-commerce platforms.
