Going online to buy a tablet computer, air ticket or sun tan is increasingly becoming the norm for shoppers. istockphoto.com
Going online to buy a tablet computer, air ticket or sun tan is increasingly becoming the norm for shoppers. istockphoto.com

Online retailers say sales and consumer confidence on rise



Going online to buy a tablet computer, air ticket or sun tan is increasingly becoming the norm for shoppers, as internet retailers report strong growth in sales this year.

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"It's really started to boom," said Julien Pascual, the chief executive and founder of EmiratesAvenue.com, which sells a range of electronic goods and home appliances.

"In the last six months we have doubled the number of orders compared to last year."

Online retailers say an increasing awareness among consumers about websites and the availability of products, particularly electronics, has spurred shoppers to start clicking.

"Over the last few months, and for most of the year, e-commerce has definitely been growing," said Ronaldo Mouchawar, the chief executive of souq.com.

He believes that while sales growth among physical retailers is robust, the increase is now being outstripped by that of online players.

Consumers' confidence in shopping online has been growing as daily-deal websites have burst on to the UAE retail scene this year.

There are now about 20 websites offering discounted retail products and services such as restaurant meals, holiday breaks and spa tanning treatments.

Dan Stuart, the founder and chief executive of GoNabit, part of US-based LivingSocial, believes e-commerce has had to improve its offerings by focusing on three key areas: convenience, price and choice.

"You need to be giving customers at least two of these things," he said. "Historically, UAE shoppers have bought confidently from overseas websites but have not had compelling reasons or opportunities to buy from local or regional websites."

About 75 per cent of internet users now have the confidence to shop online, according to research conducted by GoNabit and YouGov Siraj, an increase of 18 percentage points compared with six months ago.

"People's mentality about going online is changing," said Mr Pascual. "Most of them were already buying online back in their home countries, but they were not thinking of checking online here."

Online retailers often offer goods at reduced prices because they can work on a lower cost base than a traditional retailer, which has to own or rent a fleet of stores.

Despite this advantage, e-commerce has struggled to take off on a huge scale in the UAE as consumers have been wary of using credit cards online and deliveries have been expensive.

But this is changing as websites now offer free delivery and still manage to sell products at a lower price than physical retailers.

JadoPado.com launched five months ago and has sold more than Dh1.5 million (US$408,000) of electronic goods and perfumes.

"E-commerce is still very nascent, but people are going online and purchasing [daily-deal] coupons and they might then move on to other products," said Omar Kassim, the founder of JadoPado.com.

According to the YouGov Siraj research, consumers are optimistic about shopping online in the future as 45 per cent say they will branch out and buy different kinds of products online.

YouGov Siraj asked a total 2,500 internet users on GoNabit's email database a broad range of e-commerce questions.

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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Match info

Liverpool 3
Hoedt (10' og), Matip (21'), Salah (45 3')

Southampton 0

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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