Online shopping gains more currency in UAE.

Summary: DUBAI -- Driven by young and Internet-savvy consumers, on-line shopping trend is on the rise in the UAE, MasterCard said on Thursday.

DUBAI -- Driven by young and Internet-savvy consumers, on-line shopping trend is on the rise in the UAE, MasterCard said on Thursday.

Per centage of respondents who access Internet to do their shopping grew from 29 per cent in 2009 to 42 per cent, according the findings of a study on online shopping by MasterCard.

Consumers in the age group of 25-44 years are the driving force behind the surge in on-line shopping, the study reveals. Those in the 35-44 years age group also purchased more items and more frequently than others, the survey reveals.

Online shopping also gained increased currency among women in the UAE, with 40 per cent of respondents accessing the Internet for shopping in 2010, compared to 33 per cent in 2011.

The survey was conducted from 3 September to 1 October 2010 and reached 8,500 consumers from 15 markets in the region. Categories leading the growth in the UAE in 2010 include airline tickets (74 per cent) and hotel bookings (66 per cent), followed by home appliances and electronic products (32 per cent), clothing & accessories (34 per cent), restaurants/home delivery of food (32 per cent) and supermarkets/superstores (32 per cent). Eyad Al Kourdi, vice president and country manager, UAE, MasterCard Worldwide, said online and mobile shopping in the UAE shows the positive trends. "We are seeing more UAE consumers go online for lifestyle purchases as well as day-to-day household items. This trend in consumer behavior shows that today's tech savvy shoppers are diversifying not only what they buy, but how and where. A desire for convenience and value for money continue to be important to UAE consumers as they proactively seek better and more personal ways to shop online," said Al Kourdi. He said MasterCard is committed to contribute towards the development of the UAE as a leading global hub for retail and the latest MasterCard findings emphasise the market's growing retail sophistication.

In terms of attitudes towards online shopping, 64 per cent of respondents in the UAE stated that when they shop online, they would prefer to have a hotline number for enquiry versus 55 per cent in 2009. Additionally, 48 per cent of the respondents stated that most goods are much cheaper online than they are offline, versus 37 per cent in 2009. "The perception of online shopping as fun also continues to increase (46 per cent in 2010 versus 39 per cent in 2009). However, 45 per cent of UAE consumers still do not feel secure shopping online," MasterCard said in a statement.

Two thirds of the UAE consumers suggested that no requirement of additional service charges and enhancement of payment security would improve online shopping in future. In terms of mobile shopping trends, the survey indicates strong potential for growth in the UAE. Only about one in eight individuals made purchases through their mobile phones in the past three months; however, among those who did not purchase through their mobile phone recently, about one-fourth are likely to do so over the next six months.

Airline tickets (31 per cent), phone applications/software (24 per cent) and products/services in online games/virtual world (18 per cent) were the top three categories purchased by UAE consumers through their mobile phones.

According to the survey, online shopping is also gaining popularity in emerging markets across Asia/Pacific, Middle East and Africa (Ampea).

The survey revealed a narrowing gap between emerging and mature markets in Ampea with consumers turning to online shopping sites for event tickets, online gaming, downloading music, purchasing books, and for travel.
-- issacjohn@khaleejtimes.com

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