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  3. In Focus: Why Omnichannel is Key for Retailers in the Middle East

Retail & CPG

In Focus: Why Omnichannel is Key for Retailers in the Middle East

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Prateek Shetty

Nov 29, 2022

4 mins read

Omnichannel retail in middle east

Key Takeaways

  • The Middle East e-retail industry is experiencing significant growth, with GCC penetration rates projected to reach 16.3% of offline retail by 2025, driven primarily by younger consumers.
  • Modern consumers, particularly Millennials and Gen-Z, demand sophisticated delivery experiences including low shipping costs, precise delivery times, and flexible scheduling options.
  • Strategic placement of fulfillment centers and optimal management of delivery staff are critical challenges for Middle Eastern retailers adapting to omnichannel operations.
  • Locus’ dispatch management platform helps retailers optimize last-mile delivery operations through data-driven routing and scheduling, enabling efficient omnichannel fulfillment across the Middle East.

Even before the pandemic, online shopping trends had grown significantly across the globe, and since the pandemic, the growth of online shipping continues to maintain an upward trajectory. One such example is the Middle East.

According to a study, the e-retail industry in the Gulf Cooperation Council (GCC) region was expected to have a penetration rate of 12.2 percent of offline retail in 2025 before the COVID-19 pandemic. The forecasted penetration rate grew to about 16.3 percent after the pandemic. This is primarily fueled by the younger demographic.

To understand how omnichannel is going to help retailers improve customer satisfaction, our panelists, Sugandha Rajput, VP Customer Success at Locus and Shinas Majeed, Group GM – E-commerce at Lulu Group International, are featured in this In Focus webinar episode, ‘Why Omnichannel is the future of Retail in the Middle East.’

Key takeaways from this webinar:

  • Customer expectation from online retailers: 

Many customers, especially the younger demographic, would expect their delivery experience to be top-notch, which includes low shipping costs, accurate time of delivery, convenient time slots, and more. 

  • Global impact of e-retail:

Due to increased demand for online shopping from customers across the globe, there will be a 36% increase in delivery vehicles across the top 100 global cities.

To gain access to all the insights, watch our entire webinar

Watch our webinar

  • Emerging omnichannel fulfillment trends in the Middle East: 

Shopping trends, much like the climate, have changed over time. As generations go by, so does the buying behavior of consumers. Baby boomers prefer retail stores to online platforms. However, Millennials and Gen-z are tech-savvy and prefer online shopping. Genre expects their orders to be shipped rapidly, giving birth to Quick Commerce. 

  • Unique last-mile challenges in the Middle East for omnichannel retailers: 

When you’re running an e-retail business, fulfillment centers are key. These warehouses need to be set in strategic locations so that the orders reach customers on time, especially perishable goods. Another challenge is keeping delivery staff working at optimal levels to match customers’ ever-changing delivery slot time preferences. Watch our web session to understand more challenges e-retailers like Lulu Group face.

  • Technology’s role in e-retail: 

Data and insights are crucial for retailers to boost sales and bring about customer satisfaction. Operating in a vast region like the Middle East makes it hard for companies like Lulu to keep track of customer behavior without investing in robust data and analytic solutions.

  • Best practices for omnichannel retailers to achieve customer delight: 

E-retailers can hit that delight button by providing excellent user experience on their website and mobile apps, on-time deliveries, and a widespread presence in high-order density locations. Watch our recording for more best practices. 

Locus’ state-of-the-art dispatch management software can help omnichannel retailers like Lulu Group to make last-mile delivery a walk in the park.

Locus has enabled over 650m+ deliveries, saved $200 million in logistics costs and serviced over 400 cities across the globe.

If you are looking to ramp up your last-mile delivery efficacy and improve your bottom line, reach out to our experts today.

Schedule Demo

Sources

  1. https://www.morganstanley.com/ideas/global-ecommerce-growth-forecast-2022
  2. https://www.statista.com/statistics/1201969/gcc-e-retail-share-of-retail/
MEET THE AUTHOR
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Prateek Shetty

B2B content writer with a keen interest in educating industry leaders on how leveraging technology can solve many business problems.

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