Why online shopping is now a habit for consumers in UAE?

The onset and adoption of online shopping, coupled with its widespread acceptance amongst individuals all across the globe, was primarily field by the COVID-19 pandemic. While ecommerce was already progressing at a rapid pace, before the onset of COVID-19, the adoption of online shopping was still in question, as a considerable number of individuals were still skeptical about shopping online.

If we talk about UAE, alone, then this case was highly prevalent in the region. UAE, a country known for its surreal shopping experiences, characterized by popular shopping festivals, coupled with widespread shopping malls, people weren’t accustomed to online shopping at all. Their main purpose was to stroll through shopping malls, and shop in stores. However, all of this changed when the COVID-19 pandemic struck.

Today, UAE is becoming a hub for ecommerce platforms, giants like Amazon becoming mainstream in the country. Online shopping is actually becoming a habit for consumers in UAE, and is going to pick up its pace even more.

Consumers in UAE, like all other, were forced to remain inside of their homes, amidst the lockdown restrictions laid out by the Government, in light of the COVID-19 pandemic. This meant that the people of UAE were forced to do the exact opposite of what they were accustomed to, which was physical in-store shopping. The forced shift towards online shopping grew on to the consumers of UAE so much, that the recorded increase of online shopping in 2020, alone, was 73 per cent, as opposed to when the coronavirus spread, while saying that, many brands which were not digitally available, moved their focus and launch their independent ecommerce websites or started selling their products on Noon and Amazon. And further started incredible marketing promotion i.e. brand coupon codes, buy one get one free (BOGOF), flash sale etc. to attract more customers which went quite successfully. Mastercard’s study revealed that 54 per cent of the individuals were spending more money on virtual experiences, and 70 per cent have started to bank online. Even activities like dance are now preferred to be learnt online, amounting to an increase of 26 per cent. Online cooking is also on the verge, with 67 per cent of the individuals learning how to cook online. All of these figures indicate that the COVID-19 was the root cause of consumers in UAE being accustomed and habitual towards online shopping.

One of the other main reasons as to why online shopping is becoming a habit for consumers in UAE, is because of the onset and adaption with digital payment mechanisms. The rise of digital wallets and digital payments have significantly increased in 2021, with a notable increase in the Fintech sector and its related activities in the UAE. As we mentioned in our previous point that consumers in UAE have started to bank online, accounting to a 70 per cent increase, since the COVID-19 pandemic started off. Consumers in UAE now prefer to execute their transactions through digital methods, so much that every 3 out of 4 consumers today, prefer to pay through digital payment methods, making consumers becoming more and more comfortable with online shopping.

Online shopping is directly connected with social media, and the fact that social media platforms are leading the way, in terms of advertising online shopping and promoting online activities. Social media usage is at its peak today, and is the prime reasons why consumers in UAE are becoming habitual to online shopping. If we talk about facts alone, nearly 72 per cent of consumers in UAE found new sellers through Facebook, while 56 per cent found new online platforms through Instagram, showing exactly how social media is, in terms of reshaping attitudes. As consumers get more and more comfortable with social media, online shopping is becoming a more prominent habit for consumers in UAE.

You cannot shy away from the fact that online shopping is going to reign supreme in 2022, and the years to come. However, the impact of online shopping in UAE is significant, and is climbing on an upward trajectory, despite the lockdown restrictions being lifted in the region. Consumers in UAE are now habitual of online shopping, and they claim to continue with this habit, in the years to come. We believe that this habit will continue to be amplified to the point that it will become mainstream in the entire UAE.

Given how technology is expanding, it is only a matter of time, until online shopping becomes completely mainstream across the globe, and in the UAE.