Amazon's UAE launch pushes rivals to think outside the box

Retailers and e-commerce businesses in the UAE are understandably apprehensive about the entry of global giant, Amazon, into the marketplace, however there are various steps that can be taken to prepare themselves for when the big day arrives.
Experts at a panel discussion at the 2017 ArabNet Digital Summit shared their insights on how they can remain at the top of their game and retain their loyal customers in the months following the launch.
Rizwan Rajpoot, managing director of digital retailing at Al Futtaim Group, was quick to note that the entry of Amazon into the Middle East market was great news.
Speaking on how Al Futtaim plans to differentiate itself from the global giant, he disclosed that there were two ways in which a retailer could maintain its edge in the business.
"You can differentiate yourself by the exclusivity of your brands and products," he said, adding that shoppers were less likely to deviate to sites such as Amazon if they knew that their favourite brands were not featured on the website. Secondly, you have to focus on in-store experience that turns your customers into regular customers."
As an example, he listed Ikea, which is a shopper favourite and has a wealth of loyal shoppers across various demographics. Shoppers that visit Ikea know that they are guaranteed a good time and many make a whole outing out of the experience with their families.
Mona Ataya, founder and CEO of Mumzworld, noted that online retail in the UAE and GCC region is still very limited compared to the rest of the world, where online retail makes up a good percentage of shopping purchases. Like Rajpoot, she pointed to the exclusivity of products and a deep understanding of the needs of her customers to retain their market share.
Specialised retailers that focus on building breadth and depth of catalogue will have an easier time in retaining their customers, she pointed out.
"An extremely deep catalogue will help you survive because it tells your customers that you will have everything that they might be looking for in a specialised segment."
In addition, it also helps to be known as a brand that caters to the need of a community rather than just another retailer in the market, she said. "Customers are much more loyal to you if they feel that they are part of a community that has all its needs met," she said.
Ulugbek Yuldashev, founder and CEO of awok.com, said that catering to the needs of a niche segment will also prove to be a winning formula.
"Often properly identifying a product or several products and then offering them on your site is what will draw customers to you," he informed.
- rohma@khaleejtimes.com