Dubai as a Leading Ecommerce Hub for Electronics & Home Appliances in GCC

25 Mar 2019

In coming years Dubai is going to become the leading hub of e-commerce for home appliances and electronics among all GCC countries in coming years. As UAE has its growing demand for home appliances and electronics especially on online shopping sites. Believe it or not, Dubai will become a leading hub. According to research, it is expected to get to 12.3 billion DH by 2021.

 

Things that will make Dubai a leading hub

Yes, there is a growth in e-commerce and online shopping hub but despite that shopping malls are likely to be the center of customer attraction. This is because there is a lot than just shopping for them like leisure and entertainment. As the malls of UAE are humongous it would be good if they were to provide technological solutions like indoor positioning. It could be just like GPS but one that works inside malls.

 

Population:

One of the reasons why Dubai has increased in shopping demand is population. Many tourists come and stay here and the number of people coming here for jobs and work is also increasing than ever. So they are consuming home appliances and electronics.

 

Rise in incomes:

There has been an increase in the number and prices of residential and estate markets along with the raise income growth. This coming 2020 Expo will bring forth many changes. So people are moving towards more consumption of electronics and appliances.

 

Shopping offers and festivals:

In UAE and especially in Dubai shopping festivals and promotions have increased. The number of shopping malls and home appliances brands has also increased here. You go just to visit the mall and then you like some home appliances there and end up buying it! Mostly that is how it is. Recently there has also a strong demand for energy-efficient appliances and that is also a reason. Read our blog about only Eco-friendly TV allowed in UAE, and know more about it. Online shopping is starting to make its place in the UAE market.

 

 

E-commerce:

It is expected that online shopping will become a big market in the next few years. As it is the fastest growing market there. UAE government has taken some initiatives to increase the digital life of people here. UAE is also working on artificial intelligence, digitalization, urbanization and this is causing the middle class to rise. Then the smart city project is likely to cause an increase in demand for electronics and appliances.

 

Trading Hub:

In the Gulf region, Dubai is established as a provider to the Middle East, Africa, CSI, and other Latin American countries. Back in 2016 Dubai and Saudi Arabia became the largest importer of machinery getting it all from China.

 

Best selling products:

In UAE the most selling electronic and product is mobile phones, not just smartphone but mobile phones. Then comes the number of imaging devices like cameras and DSLR. People still like portable players here and they are popular. These all make more than half of the electronics sold here in UAE. After this comes the number of Computers and its peripherals. This makes them the second largest category. Following it are the home appliances and electronics and last but not the least is car entertainment appliances.

Mobile phones, imaging devices, portable players and wearable electronics respectively are accounted for the largest share of sales in UAE. One of the reasons behind this is the UAE’s fastest internet services.  UAE has the highest Internet and mobile penetration rates in the world.

 

Large home appliances:

There is an increase in sale and purchase of appliances and electronics like cameras, mobile phones, tablets, and etc. but where does the larger home appliances stand. The major one's refrigerators, laundry appliances, cooking appliances, microwaves, and dishwashers etc. are sold on steady growth.

 

Raising industry standards:

Dubai is destined to become the leading hub because the way they are addressing the issues and increasing the industry standards is best. The future is to maintain and regulate best practices there. Organizing and arranging events like this will also help. Right now UAE has huge opportunities to offer for online and offline retailers. They can know their customers better and offer them the experience they are looking for during this period.