The epidemic has promoted the development of e-commerce in the UAE. What are the new changes in consumption habits?

Due to the restrictions imposed by the COVID-19 pandemic, many consumers have been spending significantly more time at home, which has led them to purchase food, daily necessities, clothing, cosmetics, gardening supplies, etc. online.

A research report called "Recovery Insights" by Mastercard shows that during the epidemic, UAE consumers purchased 21% more goods from online stores than countries such as the United States and Canada.

A previous report by Mastercard showed that more than 73% of UAE consumers buy more groceries online, 66% buy clothing, and 60% buy medicines. About 70% of banks have also opened online banking services.

A report by Dubai Economy and Visa shows that consumers in the UAE spend the most on the internet in the Middle East and North Africa region, with an average of $1,648 spent per online shopper, while in Saudi Arabia, more consumers are also turning to online shopping.

The report said that consumers around the world are shopping online more frequently than before. For example, the proportion of online shopping by residents in countries such as Italy and Saudi Arabia has increased by an average of 33%, and Russia and the United Kingdom are also on par.

The Mastercard study focuses on how consumer habits have changed and how digital transactions in the retail industry have grown since the outbreak of the epidemic last year. It is estimated that by the end of 2020, global consumers had spent $900 billion on online shopping.

According to Mastercard, about $1 in every $5 spent on retail sales in 2020 came from e-commerce, compared to just $1 in every $7 spent on retail sales in 2019.

As online shopping spending increases, the proportion of digital payments is also increasing. The epidemic has accelerated the process of digital transformation. Even when shopping in offline physical stores, consumers will choose contactless consumption or digital payment. The proportion of digital payments has increased by 2.5 percentage points.

This change in consumer habits is likely to last longer. The report points out that 20% to 30% of the global digital trends related to the COVID-19 pandemic are expected to be permanent.

“Countries and companies that prioritize digitalization will continue to gain,” said Bricklin Dwyer, Mastercard’s chief economist and director of Mastercard Economics. “Mastercard’s analysis shows that even the smallest businesses can benefit from a digital transformation.”

In general, retailers such as supermarkets and grocery stores that sell daily necessities have seen the biggest increase in their move to online. Mastercard estimates that 70% to 80% of grocery e-commerce will remain in online channels forever.

middle East

United Arab Emirates