Will Augmented Reality Revolutionise Your E-Commerce Strategy?
The e-commerce scene in the Middle East is evolving quickly, with projections suggesting it will hit US$50 billion by 2025. This growth is driven by technology adoption, a young and tech-savvy population, and supportive government policies aimed at boosting digital economies. If you're a business owner or entrepreneur looking to make the most of this booming market, it's crucial to understand the key trends shaping e-commerce in the region.
Embracing Artificial Intelligence
AI is a game-changer for e-commerce, offering a big advantage. By 2030, AI could potentially add US$320 billion to the MENA economy. AI helps businesses analyse massive amounts of data to understand customer behaviour and offer personalised experiences. For instance, 75 percent of customers are more likely to make repeat purchases from brands that personalise their interactions. Sephora's use of personalised recommendations led to a 25 percent increase in their add-to-basket rate and a 35 percent boost in conversions. Similarly, Amazon’s success is partly due to its smart recommendation system, which is integrated throughout the shopping experience.
Mobile Commerce Takes the Lead
Mobile commerce is on the rise, with sales expected to surpass US$3 trillion by 2027, making up 62 percent of all retail sales. The Middle East, in particular, has a strong preference for mobile shopping. For example, people in the UAE, Saudi Arabia, and Egypt engage with apps 1.6 times more than in Europe and North America. In the UAE, 68 percent of online purchases are made on mobile devices. To cater to this trend, businesses should ensure their websites and online stores are mobile-friendly, offering responsive design, easy navigation, and a smooth user experience. Developing dedicated mobile apps can also boost customer engagement.
The Rise of Social Commerce
Social commerce is becoming a powerful tool. According to TikTok, 41 percent of users in the GCC have made purchases directly through the platform. In 2022, people worldwide spent US$992 billion on social media purchases, and this number is expected to soar to US$8.5 trillion by 2030. Social media platforms like TikTok, Instagram, and Pinterest are blending with e-commerce, creating opportunities for businesses to drive sales through social interactions. Engaging with users through content like influencer marketing and user-generated content can significantly increase trust and sales. For example, using user-generated photos can boost social media engagement by 4-5 times compared to stock images.
Augmented Reality Enhances Shopping
One major challenge with online shopping is not being able to physically experience products. Augmented Reality (AR) addresses this by allowing customers to visualise products in their own space. For instance, AR can show how a piece of furniture fits in a room or how clothing looks on a person. A survey found that nearly 49 percent of people would buy more clothing online if they had access to virtual try-on tools. Incorporating AR can improve the shopping experience and increase conversion rates. Shopify stores with AR content see a 94 percent boost in conversion rates, and AR try-on experiences can make purchases up to 200 percent more likely.
Wrapping It Up
As the Middle East continues its digital transformation, e-commerce technologies are crucial for driving growth and shaping the future of business. By adopting AI, optimising for mobile, leveraging social commerce, and integrating AR, businesses can enhance customer experiences, streamline operations, and seize the opportunities in this rapidly expanding digital market.
About the Author -
Vera Modenova, COO at Flowwow.
