New Perspective Media Group CEO Dr. Karen Remo will facilitate a session on top e-commerce barriers and opportunities in GCC at the Global Trade Review Middle East and North Africa (GTR MENA) 2021, the region’s biggest trade finance conference on 22 September 2021.
The special in-person event at Jumeirah Emirates Towers will touch upon informative insights on the factors fueling e-commerce growth, crucial tools/frameworks to advance across the highly competitive landscape, as well as Dubai’s key role in harnessing the lucrative African e-commerce market.
The discussion titled “Case study: The rapid rise of e-commerce”, will feature Hassan Mikail, Middle East CEO of Shipa E-commerce, on topics revolving around market size disparity amongst regions, barriers in e-commerce revolution, and cross-border logistic issues.
Dr. Remo said: “The e-commerce market in the GCC is, as per estimates, set to reach $50 billion by 2025. Businesses should step up and take advantage of this booming business, which has been growing on the back of COVID-spurred digitalisation. However, less than 4 out of 10 SMEs in the UAE have as yet adopted online sales channels, and any smaller players that lack a clear marketing strategy and communication model are at risk of being pushed to the end.”
“To fully view and seize the opportunities on the horizon, it’s vital for SMEs to speak to customers in an effective, targeted manner as well as identify and remove obstacles. New Perspective Media is delighted to help facilitate knowledge-based discussions on the forces that are reshaping the modern online marketplace,” Remo added.
Mikail stated: “We’re at a crucial turning point for e-commerce in the GCC region. At an unprecedented 25% CAGR per month, it’s now one of the world’s fastest-growing online sales markets and we’re still seeing more growth potential in the cross-border segment. A chain of links such as logistics, digital infrastructure, and delivery capabilities forms part of the e-commerce ecosystem. On one hand, any weak link here can break the chain or, at least, damage consumer trust. On the other hand, strengthening the chain can accelerate business, bring many new consumers on board, and increase the average basket size for each purchase of a service or goods. We at Shipa Ecommerce are glad to share our expertise to help unlock e-commerce’s full potential in the region.”
Peter Gubbins, CEO & Founder of Global Trade Review, highlighted: “Global Trade Review is delighted to return to Dubai for GTR MENA 2021, with the goal of uniting the trade and exports sector in the region to learn best practices and approaches to forge a strong path to recovery. This is the first-of-its-kind event in the region to be held in-person since February 2020, and offers an exclusive opportunity for participants to network potential clients and connect with experts and industry peers.”
Dr. Remo was also featured in the opening high-level roundtable in GTR MENA 2021, held virtually in February 2021, where she offered invaluable insights on combating extreme market challenges and future ‘black swan’ events, and protecting supply chains through government support.
NPM Group, a leading digital media, PR and marketing agency with offices in Abu Dhabi and Dubai, has been championing the global trade industry by building confidence in the sector through various bespoke communications services.
Overview of e-commerce in MENA and GCC
With seismic changes in consumer behaviour and buying patterns, combined with very high Internet penetration in the GCC, digital shopping is poised to become the main driver of the retail sector in the next four years.
According to a report by Kearney Middle East in October 2020, the e-commerce sector of this region is forecast to reach $50 billion by 2025, a 177% increase from 2019.
In the larger Middle East and Africa (MENA) region, a substantial 20% growth in the online sales market in the next 5 years is projected to outperform the global average growth of 13%, said the report.
At present, the UAE has one of the biggest shares in this COVID-19-induced online shopping shift in the region. The value of its e-commerce market is poised to achieve a CAGR of $8 billion by 2025, as per a recent report by Dubai Chamber of Commerce and Industry, based on Euromonitor data. In 2020, the UAE retail e-commerce market posted a record $3.9 billion, a 53% year-on-year increase.
However, only 36% of SMEs in the UAE have created their online store, with only another 4% intending to venture into online sales channels, according to the Kearney report.
Why digital marketing matters
E-commerce has not only refashioned the way people shop, but also provided equal market access for major and small players. As of July 2021 data of Statista, over 2.14 billion people worldwide are expected to purchase goods and services online, up from 1.66 billion global digital buyers in 2016.
However, the competition is also getting stiff due to the large number of businesses going digital. On this front, digital marketing and communication, which is an indispensable component of e-commerce, comes to the rescue of businesses aiming to stand out from the highly competitive market.
A survey of 500 digital marketers in the United States in 2018 by B2B ratings and reviews platform Clutch showed that 83% of businesses said their digital marketing efforts helped them achieve their target ROI. Of this group, they utilised three main digital marketing channels such as social media (81%), websites (78%), and email marketing (69%) “to tell a story about their products or brand”.
This report was echoed by a study, published by Journal of Critical Review in October 2020, that showed 88% digital shoppers said digital advertisements attracted them to purchase a particular product online.
Given the number of SMEs in the UAE that have already set up/shifted to online selling channels, the use of digital marketing and communication can help 4 in every 10 small players gain a new lease on life.
