Slightly under half (46 per cent) of UAE consumers expect the Covid-19 pandemic to affect retail behaviour well into next year as people focus on essential purchases, a survey by Kearney has found.
The study on consumer shopping habits said widespread vaccinations would be critical to encouraging consumers to shop in public retail spaces once more.
Another 28 per cent said protective and social distancing measures were crucial to restoring the confidence of shoppers.
Seventy-three per cent of consumers said they had altered their shopping habits during the Covid-19 pandemic, with the changes being more pronounced among women (81 per cent) than men (67 per cent).
Eight in 10 respondents between the ages of 30 and 45 reported that their shopping habits had changed, the highest of any age group. They were closely followed by those under 30 years (73 per cent).
“The pandemic has fundamentally changed the way consumers view health and safety measures and efforts,” said Debashish Mukherjee, partner and head of Kearney's consumer industry and retail practice in the Middle East.
“As residents adapt to the new normal, hygiene and hygiene transparency have become vital. Spending is being driven by the easing of restrictions, higher awareness of health and wellbeing and expectations of a return to the office.”
The value of the UAE's retail e-commerce market rose 53 per cent to a record $3.9 billion in 2020, largely driven by the digital shift in consumer shopping habits amid the Covid-19 pandemic, according to a report by Dubai Chamber of Commerce and Industry.
The study, based on data from Euromonitor, said e-commerce’s retail share will grow to $8bn by 2025. This will be supported by rising income, high internet penetration, well-developed logistics, modern digital payment systems, a tech-savvy youth and strong government support, according to Dubai Chamber.
However, consumers remain cautious about shopping, with their spending preference limited to essential items such as food and beverages.
Spending on non-essential items such as clothes, bags and accessories continues to decline, the survey found.
Discretionary spending dropped by 41 per cent while 34 per cent of respondents said spending on essentials was up more than 25 per cent.
Consumers were also shown to have a marked preference for high-quality essentials. About 16 per cent of respondents upgraded to more expensive products when it comes to vegetables, fruits and meat.
However, spending on non-essentials will probably recover, with 21 per cent of respondents saying that they expect to spend more on activewear (31 per cent), workwear (30 per cent), casual wear (20 per cent), footwear (20 per cent), evening wear (17 per cent) and accessories (8 per cent) in the coming months.
“For UAE consumers, convenience is driving online purchases, with Covid-19 concerns becoming a secondary factor, indicating the sustenance of the online shift,” said Mr Mukherjee.
“However, the physical shop still plays a strong role across all categories which require the customer to touch, feel and try the product.”
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Take them home with you if there is no litter bin
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KYLIAN MBAPPE 2016/17 STATS
Ligue 1: Appearances - 29, Goals - 15, Assists - 8
UCL: Appearances - 9, Goals - 6
French Cup: Appearances - 3, Goals - 3
France U19: Appearances - 5, Goals - 5, Assists - 1
UAE currency: the story behind the money in your pockets
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
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MATCH INFO
Scotland 59 (Tries: Hastings (2), G Horne (3), Turner, Seymour, Barclay, Kinghorn, McInally; Cons: Hastings 8)
Russia 0
The bio
Favourite book: The Alchemist by Paulo Coelho
Favourite travel destination: Maldives and south of France
Favourite pastime: Family and friends, meditation, discovering new cuisines
Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.
Favourite Author: My father for sure
Favourite Artist: Damien Hurst
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Sinopharm vaccine explained
The Sinopharm vaccine was created using techniques that have been around for decades.
“This is an inactivated vaccine. Simply what it means is that the virus is taken, cultured and inactivated," said Dr Nawal Al Kaabi, chair of the UAE's National Covid-19 Clinical Management Committee.
"What is left is a skeleton of the virus so it looks like a virus, but it is not live."
This is then injected into the body.
"The body will recognise it and form antibodies but because it is inactive, we will need more than one dose. The body will not develop immunity with one dose," she said.
"You have to be exposed more than one time to what we call the antigen."
The vaccine should offer protection for at least months, but no one knows how long beyond that.
Dr Al Kaabi said early vaccine volunteers in China were given shots last spring and still have antibodies today.
“Since it is inactivated, it will not last forever," she said.
Score
Third Test, Day 2
New Zealand 274
Pakistan 139-3 (61 ov)
Pakistan trail by 135 runs with 7 wickets remaining in the innings
UAE currency: the story behind the money in your pockets
Strait of Hormuz
Fujairah is a crucial hub for fuel storage and is just outside the Strait of Hormuz, a vital shipping route linking Middle East oil producers to markets in Asia, Europe, North America and beyond.
The strait is 33 km wide at its narrowest point, but the shipping lane is just three km wide in either direction. Almost a fifth of oil consumed across the world passes through the strait.
Iran has repeatedly threatened to close the strait, a move that would risk inviting geopolitical and economic turmoil.
Last month, Iran issued a new warning that it would block the strait, if it was prevented from using the waterway following a US decision to end exemptions from sanctions for major Iranian oil importers.
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Donate towards food and a flight by transferring money to this registered charity's account.
Account name: Dar Al Ber Society
Account Number: 11 530 734
IBAN: AE 9805 000 000 000 11 530 734
Bank Name: Abu Dhabi Islamic Bank
To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae
UAE currency: the story behind the money in your pockets
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Leap of Faith
Michael J Mazarr
Public Affairs
Dh67
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
