Dubai: More consumers in the UAE are buying holiday gifts from the comfort of their sofas this year, according to analysts.
Nikola Kosutic, research manager at consultancy Euromonitor International, expects online sales in the UAE for the holiday season to be higher compared to 2014.
“Internet retailing is booming in the region,” he said, mainly driven by the growth of existing ecommerce sites and the entry of more brick and mortar retailers into the online space.
Online retailers offer consumers the advantage of viewing different products and comparing prices in a shorter period of time, Kosutic said.
eCommerce chugs along nicely in the UAE
“Consumers have become price sensitive. There’s less impulsive buying,” he said, which he attributes to lower consumer confidence as economic growth slows.
Other advantages of online shopping include avoiding the shopping mall crowds and getting deals that are not offered by brick and mortar retailers, according to Colin Beaton, managing director of consultancy Limelight Creative Services.
Iyad Kamal, chief operating officer at Aramex, a local shipping company that operates internationally, said in a recent interview that the UAE’s online shopping appetite in 2015 has grown faster than other countries in the region.
“[This is] due to its diverse professional population base, advanced technology infrastructure and high credit card penetration,” he said.
The UAE internet retailing market is anticipated to be valued at $653.4 million in 2015 and is forecast to grow to $1.4 billion by 2019, according to data from Euromonitor International.
Official numbers are expected in January. Online sales this holiday season are expected to reach $83 billion in the United States, up 11 per cent compared to 2014, as per a report by software firm Adobe Systems.
According to First Data, a global payment technology solutions company, store sales in the United States between October 31 and December 14, grew 2 per cent, while the online sales increased 4.6 per cent. Total spending has climbed up to 2.4 per cent, a 1.8 per cent growth from the same period last year.
First Data said that clothing and accessories stores have seen a 2.9 per cent decline in retail sales and a 3.7 per cent increase in online sales this holiday season. Furniture and home furnishings sales have decreased 0.5 per cent in retail stores, and grew 8.1 per cent online.
The National Retail Federation, the US’s largest retail trade group, expects sales for November and December to rise 3.7 per cent to $630.5 billion.
- With inputs from Bilal Khan, special to Gulf News
