In recent events, it has been revealed that the UAE’s online shopping portals can have a chance at gaining a high-profit margin during the upcoming Eid sales promotions. Almost every retail outlet operating through an e-commerce website is expected to offer a discount worth 20 – 40 percent on almost all kinds of products that they are selling through their digital stores.
You can already see that happening in the tech gadget market where most of the products are now available at a 30-40 percent discount. You will find all the latest gadgets, televisions, home entertainment systems that you can fill your man cave with. But the story doesn’t end here.
Huge price cuts are expected to show up on other product categories such as fashion apparel, accessories, footwear and so on. With such discounts on the horizon, we believe that there’s no better time than now for most of Dubai’s retail operators to empty up their existing stock and get a hold on new ones.
In fact, many brands who were planning to launch new product lines in Dubai are now switching to strengthening their web presence instead of brick-and-mortar stores to showcase their products and sell them to emiratis.
With Eid around the corner and malls witnessing significantly few customers due to social distancing protocols, hosting sales promotion is a bit complicated. At times as such, the online portals selling products in UAE have seen a definite win-win situation. Many retailers in the UAE were expecting that business will be as usual in the latter part of Ramadan. However, to date, restrictions are still in effect and that’s creating hurdles for holding sale promotions in physical stores.
So at a time when most emiratis businesses have financial concerns escalating, retailers are expected to offer a 20 – 40 percent price cuts through their online stores. As to why online retailers are expected to settle at selling products at these nominal price rates, it’s because Ramadan offers the biggest opportunity to both retailers and customers to enjoy inflated revenues and significant discounts, respectively.
According to Vijay Samyani, the managing director at the Concept Brands Group,
“There are spikes in online shopping even in categories that were primarily store-based, it is challenging to pull customers into brick-and-mortar stores, especially for fashion retailers, as they are spending less on this category unless there are promotions. Online portals have the field all to themselves. If any retailer is carrying stocks, he wants to dispose of, online is the best way forward.”
On one of the occasions, Sandeep also stated that there are spikes in the purchasing of products that were completely store-based and once they were put up online, people in the UAE started purchasing them.
There’s no doubt that people who want to purchase new products/services during this Eid season are waiting for some amazing discount offers to appear. The online portals in UAE are already doing it.
Followed by another statement issued by Sandeep Gandiewalla who is currently serving as a partner at RedSeer Consulting,
“Given that offline would have fewer discounts, we expect to see increased activity online. However, players should be mindful of their delivery and fulfilment capability while offering these discounts – they wouldn’t want to overwhelm online channels and create a poor customer experience.”
For now, the malls in Dubai have finally opened but with strict restrictions. The malls are now open from 12 PM to 10 PM, with a visitor traffic limit of only 30% for all individual and compound stores.
According to a source in UAE, it was expressed that:
“We are hopeful the authorities will soon indicate when malls and stores can get back to normal operating hours (from 10 am-10 pm weekdays and 10 am to midnight on weekends/holidays), retailers need the promotions to clear older stock – right now, we are pushing as much of this stock to online portals.”
Once the lockdown was in effect, the notebook was one of the fastest-selling product categories. After a notebook, groceries and daily consumer goods were sold abundantly. However, with time, the demand for laptops has now come to a decline, but at the same time, the requirements for other gadgets and technology products have become quite common. Many others send out inquiries for 85-inch 4k television sets and alongside tablets, smartphones were one of the many products that gained significant traction. Lastly, it was home and kitchen appliances.
As the Internet becomes a massive marketplace for people to purchase stuff online, the need for creating your very own e-commerce website has become more of a necessity than just a need. If you’re running a business in the UAE and you desire to create your very own web presence to sell your products, Branex is a web design company in Dubai that can help you build a thriving e-commerce experience.
We build corporate websites, e-commerce platforms, online portals, mobile apps and whatnot.