Online platforms can impact retail spending in the Mena region by up to 40% and serve over 20 million micro, small and medium enterprises
Most people in Mena use social and chat apps frequently every day, and cCommerce is a natural evolution to shopping in the same way we chat with friends. — File photo
The trillion-dollar retail market in the Middle East and North Africa is going through a transformation as e-commerce and connected commerce (cCommerce) grow in popularity and can account for up to 40% of retail spend and serve over 20 million micro, small and medium enterprises. small businesses in the region, according to a report.
Zbooni, Mena’s e-commerce platform, launched the region’s first white paper on the growing industry and said businesses can drive more sales by bringing the payment experience to the channels customers prefer and use on a daily basis.
Sharing insights from top brands such as Chalhoub Group, checkout.com and TikTok, the research indicates that cCommerce is happening through social, chat and messaging apps like WhatsApp, giving brick-and-mortar stores and online brands a way to turn real-time conversations into converted sales. .
Take advantage of cCommerce
Ramy Assaf, CEO and co-founder of Zbooni, said Mena missed the first wave of e-commerce and caught up, but the region is poised to take full advantage of cCommerce.
“We are on the cusp of an exciting retail transformation based on personalized selling. cCommerce has the potential to serve businesses in a wide variety of industries, whether physical, online-only or omnichannel. Wherever there is interaction before a transaction, cCommerce can help,” he said.
He said most people in Mena use social and chat apps frequently every day, and cCommerce is a natural evolution to shopping in the same way we chat with friends.
“For businesses, this opens up a whole new avenue to engage customers and maximize sales. This way, cCommerce could quickly overtake e-commerce, as the region’s preferred mode of retail,” he said. -he declares.
The report focuses on the opportunity for cCommerce to connect businesses to customers, both online and offline. Zbooni has gathered proprietary data that suggests cCommerce has a sales conversion rate of over 80%, which is significantly higher than e-commerce marketplaces that tend to convert less than 3% of potential sales.
Sales-enhancing digital media
Kamal Vachani, Group Director and Partner of Al Maya Group, said digital media is one of the best tools to boost retail in the region.
“We live in the digital age and people feel more comfortable placing orders online. E-commerce or cCommerce has grown in popularity during the pandemic and the similar trend is expected to continue in the future,” Vachani said. Khaleej times Wednesday.
“In this digital world, people are getting used to e-commerce and experimenting with different online platforms to get the most benefit from their purchase,” he said.
E-commerce spending is growing
Network International said e-commerce spending in the UAE grew at double the rate of point-of-sale (POS) transactions in the first quarter of 2022 compared to the same quarter last year.
In its recent report, the leading enabler of digital commerce in the Middle East and Africa said the increase in online spending – which includes both debit and credit card transactions – was driven by payments in the government sector, followed by restaurants, supermarkets and convenience
“As e-commerce sales continue to grow, it’s clear that spending growth isn’t just coming from shoppers switching from physical outlets to shopping online, but rather shoppers shifting more of their their spending from cash to digital,” said Ian Jiggens. , Group Head, Advisory and Information Services, Network International.
What is e-commerce?
cCommerce connects a merchant directly to the customer, and through human-to-human conversation, an enhanced sales experience can be delivered and customer expectations met. This in turn helps to reduce sales friction, increase conversion and customer lifetime value, while reducing potential returns and refunds.