DUBAI, UAE — The UAE shoppers are the world’s most reliant on mobile and omnichannel shopping, according to a latest survey.
The survey by PYMNTS and Visa Cybersource revealed that the UAE consumers’ inclination towards digital shopping is not just a trend but a reality. Recognizing this, local merchants have tailored their offerings to provide digital shopping benefits that surpass consumer expectations.
The ‘Global Shopping Index 2023: UAE Edition’ delved into consumer behavior and payment preferences, offering retailers valuable insights to thrive in the UAE market.
Of all countries surveyed, the UAE topped the Global Digital Shopping Index. With a score of 134, the nation’s e-commerce merchants outperformed the global average of 125.
Year-on-year, the UAE’s index scores have risen, with 2022’s score being 11 percent higher than 2021. This growth is credited to consumers becoming more aware of digital features like online purchasing and price matching.
Global Digital Shopping Index: Key Numbers 134: UAE's score on the Global Digital Shopping Index, surpassing the global average of 125. 11%: Increase in the UAE's index scores from 2021 to 2022. 13,349: Number of consumers surveyed across Brazil, India, Mexico, UAE, UK, and the USA. 3,124: Number of merchants included in the survey. 94%: Percentage of adult shoppers in the UAE who used at least one digital feature during their last shopping experience. 50%: UAE consumers prefer online shopping due to free shipping. 44%: Consumers attracted to online shopping in the UAE because of competitive pricing. 43%: Percentage of consumers who value the convenience of ordering online in the UAE. 40%: In-store shoppers in the UAE who consider immediate product availability essential, lower than the 54% in the USA and 53% in the UK. 11.4%: UAE shoppers who prioritize preferred payment methods when choosing a merchant. 6.9%: Shoppers who prioritize rewards. 6.6%: Shoppers who prioritize free shipping. 28%: Consumers in the UAE who made their last purchase via smartphones. 33%: Percentage of women in the UAE who shop exclusively on their phones. 27%: Percentage of men in the UAE who shop exclusively on their phones. 55%: Men who use smartphones to enhance their in-store shopping experience. 45%: Women who use smartphones for the same purpose. 94%: Percentage of UAE consumers who used at least one digital shopping feature during their last purchase.
The comprehensive survey encompassed 13,349 consumers and 3,124 merchants from countries including Brazil, India, Mexico, UAE, UK, and the USA. Its findings underscore the UAE market’s distinctiveness.
“The UAE’s highest Global Digital Shopping Index score indicates that local merchants have successfully provided their customers with seamless shopping and payment experiences. The fact that 94 percent of adult shoppers in the UAE used at least one digital feature during their last shopping experience reflects the strong adoption of digitization,” said Salima Guteva, UAE General Manager, Visa.
Why Online Shopping in the UAE?
The survey pinpointed key reasons UAE consumers prefer online shopping: free shipping (50 percent), competitive pricing (44 percent), and the convenience of ordering (43 percent).
Interestingly, immediate product availability, a significant draw for in-store shoppers in countries like the USA and UK, isn’t as crucial in the UAE. Only 40 percent of in-store shoppers in the UAE deemed it essential, compared to 54 percent in the USA and 53 percent in the UK.
Payment options also stood out in the UAE. Shoppers here prioritize payment methods over perks like rewards or free shipping. Specifically, 11.4 percent of respondents ranked preferred payment methods as their top priority, followed by rewards (6.9 percent) and free shipping (6.6 percent).
Mobile Shopping: A UAE Favorite
Mobile shopping is gaining momentum in the UAE. A notable 28 percent of consumers made their last purchase via smartphones, a trend only surpassed by India. Both genders are active mobile shoppers, with 33 percent of women and 27 percent of men shopping exclusively on their phones. Additionally, many use their smartphones to augment their in-store experience, especially men (55 percent) compared to women (45 percent).
UAE merchants, recognizing the digital shift, are offering unparalleled shopping experiences. A staggering 94 percent of UAE consumers used at least one digital shopping feature during their last purchase. The synergy between merchant offerings and consumer preferences in the UAE is evident.
Merchants’ commitment to enhancing digital shopping experiences, combined with consumers’ awareness of its benefits, creates a harmonious digital shopping ecosystem. The plethora of digital features available in the UAE ensures a seamless shopping journey, setting a benchmark for other countries.