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E-Commerce in the UAE: Facts and perspectives


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E-Commerce in the UAE: Facts and perspectives (15 photos)
A joint conference co-organised by the French Business Council and the French Digital in Dubai.

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E-Commerce in the UAE: Facts and perspectives

  1. 1. eCommercein the UAE Facts and Perspectives
  2. 2. SocialMedia/SocialCommerce HyperLocalMobileAdvertising Audience&trafficAdvertising Retail Stores Analytics Mobile Ordering / Couponing / Loyalty MobileWallet&PaymentSolution Theconnectedconsumer Iconictionis an omnichannelmarketing company addressing the connected consumer Omnichannel
  3. 3. We are surrounded with ecommerce…
  4. 4. Internet: Inseparable from the act of purchase
  5. 5. UAE leading in the MENA e-commerce field •By 2015, 1/3rdof MENA’s e-commerce will take place in the UAE alone •Dubai is well positioned to become a regional hub for e- commerce •Market Size •Modern infrastructure (ports, airports, advanced telecom network) •UAE named fiber capital of the world •Existing trade and investment ties with GCC and MENA •The easiest place for doing business in the region (world bank) •A recent study from Accenture ranked UAE as the 3rdcountryin its use of digital government •UAE lead with its smartphone penetration (above 82%) overall mobile phones penetration and broadband internet penetration
  6. 6. Regional eCommerceis set for substantial growth Middle East & North Africa online commerce market (USD Bn) Source: 2013 PayPal Insights: e-commerce in the Middle East
  7. 7. Cash on Delivery is a killer! COD makes up ~80% of MENA E-commerce Market, but 20-30% of transactions fail at the door. Courier charges for COD services are high & a hassle. Merchants incur high costs of failed transactions (Shipping, last mile delivery, inventory storage…etc.) Messes up eCommerceplayers Cash flow -You always need a credit line
  8. 8. eCommerceis done in any place via any device Where are Middle Easternsmaking their purchases (in %) Source: 2013 PayPal Insights: e-commerce in the Middle East
  9. 9. © 2014 PayPal Inc. All rights reserved. Confidential and proprietary. 9 North America Western Europe Nordics Central, Eastern Europe Middle East Latin America Asia Pacific 2 8 4 3 7 6 7 4 8 5 6 9 9 5 6 10 6 11 4 7 15 3 28 66 38 37 43 57 56 40 62 77 51 63 53 31 52 72 31 49 46 55 61 23 69 26 58 60 50 38 37 56 29 17 43 27 38 64 42 18 64 40 50 38 25 74 US CA UK DE FR IT ES NL CH AT SE NO DK PL RU IL TR UA BR MX AU CN Domestic only Cross border and domestic Cross border only 56% A significant proportion of online shoppers claim to make cross border purchases, and almost all cross border shoppers also shop domestically. Base: Online shoppers. N=12,349. Q. Thinking about shopping online, from which of the following country or geographies’ websites have you purchased in the past 12 months? Please include your home country if applicable. % Multi- country average* for CB * Multi-country average not weighted by market sizeSelf-stated domestic and cross border purchasing in past 12 months Cross border commerce is also a driving force in the UAE like in many markets
  10. 10. Mobile commerce is a major trend in UAE
  11. 11. Commerce! Already a HUGE trend in Kuwait! Instagram commerce will become bigger in other countries across the Middle East in 2014
  12. 12. Mobile is a prime channel for both online and offline commerce •65% of Namshitransactions are happening now on mobile! •Over 50% of traffic of Cobonetraffic is on mobile in UAE and it reach even 60% in KSA
  13. 13. eCommerceis revolutionizing retail ! Buy online, return in-store Buy online, pick-up in store Buy online, fulfill through any store Buy in-store, fulfill through online Buy via mobile Buy via social commerce site Buy via call-center Buy
  14. 14. Middle East overall e-commerce usage is still not mainstream.. The majority of people in MENA have not yet shop online. •54% of respondents have never purchased airline tickets online •64% of respondents have never purchased books online •76% of respondents have never purchased movie/theater tickets online •55% of respondents don’t purchase other items online MBRSG’s Governance and Innovation Program in collaboration with, targeting residents of 22 Arab countries. The survey fielding was conducted between March and April 2014 with respondents numbered at almost 3000. Responses were received from all countries in the Arab region (Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, UAE and Yemen). The sample consisted primarily of internet users as it was administered via an online survey. 75% of the sample was male and 14% of the sample was between the ages of 15-24 and 44% were between the ages of 25-34. Countries most represented in the sample size are Egypt, Saudi Arabia, Jordan, Algeria, the UAE and Morocco.
  15. 15. Thank You! SébastienMarteau CEO +971 55 239 1609