Expected boom in Mideast online shopping within two years: report

The world would have to prepare for a more sophisticated way of shopping as the number of international retailers will increase online in two years’ time, especially in Asia Pacific, Central and Eastern Europe and the Middle East, a research published by CBRE, a property consultant based in the U.S., revealed.

The study showed that multichannel shopping, a term used in the research to group-in types of shopping (in-stores, online using the internet or via mobile applications), will support physical shopping, not compete with it, UAE’s The National reported on Friday.

A number of 50 leading international companies offering retailing services in a combined count of 32,000 stores were surveyed that helped complete the research.

These companies acknowledged that only 5% of their total sales often come from online transactions, but believe that in a span of two years, online sales will double to 10%.

Although only 70% of these retailers still want their business stocked in concrete-built stores, 63% will make a move towards the innovation of fully integrating business transactions online and through mobile applications by 2014.

80% see themselves establishing online booths in their stores, according to the study.

Another 77% said they will create smartphone-enabled websites within the next two years, a move that will greatly help shoppers shop at ease wherever they go.

However, in the Middle East, online shopping is still a work in process.

Despite postal services hindering the fast growth of online shopping in the Middle East and the mall-environment set in the daily activities of the Middle East residents, two-thirds of international retailers see their customers making orders online and picking up the items in stores, over the next two years.

“In the Middle East, participation in multi-channel retailing is still in its infancy with consumers immersed in an established mall culture that has become a focal point for everyday life and an avenue for social interaction among the region's growing youth population,” said Matthew Green, the head of research and consultancy for CBRE Middle East, as quoted by The National.

“However, there has been notable growth in participation levels for Web-based auction sites, group discount sites and flight and hotel bookings engines,” added Green. “To be successful, online retailers will have to become more creative in their offer in order to entice shoppers away from organized formats.”