GEC NEWS WIREThe retail sector in the Middle East and Africa region is on the edge of a pivotal shift. E-commerce is becoming a reality, generating new customer experiences, disrupting business models, and creating growth opportunities for retailers.
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“The retail sector is consumer driven – they are the reason brands exist and the retail sector is thriving”
Nitin Kaushal,
Vice President – Sales, META,
Capillary Technologies
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Although UAE’s retail market has been challenging due to the ongoing increased supply and low customer spending, the retailers are finding new ways to increase sales. Recently it was announced that malls in Dubai that are digitally enabled are been expected to run the market in on coming months. The retail play ground is booming and becoming more competitive and innovative, bringing in new products and solutions for those who are normal customers and business firms.
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Top upcoming trends in retail 2019
- Brands and Glass Box as a culture
- E-commerce shipping getting faster
- Experimental Retail rising
- Normalization of Multi-Channel
eCommerce Growth in Retail
Undoubtedly, e-commerce has completely transformed the retail landscape. Most recently, two years after spending US$500m to acquire Souq, American e-commerce company Amazon has rolled out its platform for customers in the UAE. The region’s e-commerce sector is growing at the fastest pace globally, with online sales expected to double to $48.8bn by 2021, according to a report by Fitch Solutions Macro Research. E-commerce spending in the UAE is expected to increase by 170% to $27.1bn in 2022, from $9.7bn in 2017.
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“It’s no secret that e-commerce has completely transformed the retail landscape”
Alain Kaddoum,
General Manager,
Swisslog Middle East
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But businesses still struggling to keep up may be wondering what they can do to encourage customers to come into their retail stores, instead of shopping from their internet-enabled devices.
The convenience of online shopping is difficult to compete with, so many retailers opt for offering their customers a completely different experience than they could find online. A recent study by SOTI showed that 92% of customers prefer stores that offer a mobile technology experience, for example.
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“Retail sector is undergoing a technological transformation that is driving retailers to automate redundant tasks and revamp their strategies”
Jake Callaway,
Managing Director,
MENA at 4C
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“Augmented reality apps can allow customers to virtually try on clothes, see what a paint colour would look like on their walls, or even how furniture would look in their homes. It is technological innovations like these that will bring the excitement back to shopping in a store. And with the right in-store technologies, retailers can get a better understanding of what their customers want out of the shopping process. Using technology to track the movements of customers is another way to harness technology in a brick-and-mortar store. Analysing this data and using it to make valuable changes to aspects such as the store layout could go a long way to improving the customer experience, and in turn, boosting in-store sales. Putting mobile technology at the heart of the logistics process is an option with Swisslog’s CarryPick solution. Coupled with SynQ software, there are even opportunities to share each step of order fulfilment with customers via a tracking page” added Alain Kaddoum, General Manager, Swisslog Middle East
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“Technology has been a key enabler for the retail sector in driving a customer-centric business model.”
Fadi Kanafani,
Middle East Managing Director & General Manager,
NetApp
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“As a leading CRM consultancy firm, 4C strives to ensure its customers reap the full benefits of their investments commented Jake Callaway, Managing Director, MENA at 4C“ In addition to expertly implementing the various Salesforce modules that effectively empower retailers, we work to truly understand each aspect of our customers’ businesses. This enables us to ensure that the tools they deploy can be seamless integrated so that everything can work together, contributing toward the end result of turning shoppers in to lifelong brand advocates.”
Influence of AI in Retail
When it comes implementing AI and understanding its power which comes with a big advantage of gaining profit and huge customer attraction. Artificial Intelligence in retail landscape is the most promising implementation for those who use it. The companies will be able to save and receive customer data much more efficiently. And with that much data the retailers can create personalized for the shoppers.
As indicated by Worldwide Market Experiences, interests in computer based intelligence by retail section will surpass USD 8 billion by 2024. As more applications for AI, prescient investigation and profound learning advances are explored different avenues regarding achievement, computerized disturbance in retail portion will undoubtedly occur at a much quick pace.
“An AI-driven strategy helps make sense of this data by creating an algorithm to understand individual consumer preferences. It deep dives into their buying patterns and history, product preferences and characteristics. It analyzes customer behavior and other parameters to create and send personalized campaigns to each customer – akin to giving someone a tailored suit. This helps brands achieve a true 1:1 personalization and continues to optimize campaigns through machine learning. Artificial Intelligence is a real game changer here. The future of personalization is a true 1:1 engagement, which AI is enabling. The RoI on AI-driven campaigns are immense. Personalizing campaigns with the help if technology benefits brands immensely; it reduces acquisition costs by as much as 50 percent, enhances revenue by 5 – 15 percent and increases efficiency of marketing spend by 10 percent to 30 percent, while providing costumers a truly personal experience”. Nitin Kaushal, Vice President – Sales, META at Capillary Technologies.
Finally
It is really impressive how the retail market is evolving this fast with the implementations and innovations of new technology which is amazing. The retail market is booming along with the economy of UAE. Computer based intelligence specialists accept that the innovation offers a wide scope of utilizations for the retail portion. In the coming year, retail will see more noteworthy imbuement of computer based intelligence based arrangements in everyday tasks. Computer based intelligence will change the client support cycle in retail and the two retailers just as the purchasers will undoubtedly profit by the man-made intelligence Retail syndicate. Innovations and more innovations, how much will the retail market grow and what new things we will witness, that only future will tell.
By : Shavez Askari
