RIYADH, SAUDI ARABIA — Most Saudi Arabian consumers see digital money transfers as the future of international transfers. Many of them, however, would prefer to do trials electronically or transfer funds in person at designated locations.
About 60 percent of consumers who send money abroad prefer digital money transfer services, according to research made by Western Union.
In comparison, 22 percent would like to have a choice, and 17 percent want to send money through retail centers solely, according to exclusive statistics.
The responses were mixed when consumers were polled on their preferences for the future of international money transfers.
Although 47 percent of customers still think transfers should be digital-only, 44 percent want to offer digital and personal transfer choices, and 9 percent choose to send money in cash.
On the other hand, when it comes to receiving remittances, 57 percent of recipients prefer options, while 24 percent favor digital-only transfers, and 19 percent prefer cash.
To thrive in the next development cycle, brands need to be prepared for and resilient in the face of adversity, and the pandemic has provided both.
In addition, brands can justify new investments, value propositions, and operations thanks to the cost savings made possible by technology in retail. With the help of modern retail technology, companies may save a lot of money on purchases and make more informed decisions about where to put their money.
Enhancing GCC’s retail
As Atul Hegde, Founder of YAAP, put it, “I don’t see the need for local top-end retail brands to compete with global counterparts. Suppose you can identify your niche and dominate it; nothing like it. Local brands have an innate charm and avid customers”.
In an interview with TRENDS, Hegde added:” Those strengths must be fostered with new-age capabilities such as the metaverse, CRM, etc.”.
This notion holds across countries and markets. While focusing on core competencies, local brands should step up marketing efforts to further solidify their niche, according to Hegde . In 2023, he expects new entrants and consolidations across the GCC region.
Embracing technology
There has been a lot of digital innovation and flexibility among UAE retailers in recent years. As a result, the Dubai Chamber of Commerce and Industry predicts that by 2025, retail sales in the country will have increased annually by 6.6 percent to reach US$ 70.5 bn.
According to the study, those businesses that have invested money into technology and innovation to boost their operations will stand out from the competition. In addition, more than half of consumers (55 percent) said they prefer to shop at establishments that employ technological innovations to enhance the customer experience.
Seventy-two percent of UAE business owners anticipate a 20 percent increase in sales this year. Despite the global epidemic, 66 percent of UAE-based businesses have upgraded their operations by implementing digital technologies. Compared to the rest of the world, the United Arab Emirates has the highest rate of innovation at 20 percent. As a result, 99 percent of retailers anticipate making technology purchases in the next 12 months.
Hegde explained: “tech-enabled retail operations can reduce the cost of acquisitions significantly, empowering brands to rationalize new investments, value propositions, and expansion.
“Metaverse’s addition to the marketing mix has been a revelation for differentiation-led brands. Agile brands, especially luxury ones with sizeable marketing budgets, have readily tapped into the metaverse, creating exclusive NFTs and new revenue streams”, Hegde says.
They are creating exclusivity even in the metaverse. Their metaverse pursuits revolve around creating a presence and staying ahead of the curve. Subsequently, more marketing opportunities will emerge after more brands enter the fray creating an ecosystem. As a result, the metaverse mode of customer engagement, product showcasing, and commerce will manifest better in 2023, according to Hegde .
Retail in metaverse
As we get more immersed in the digital realm, GCC brands must develop engaging in-store environments that appeal to customers’ emotions. This involves using visual and auditory cues to create a convincing environment in the metaverse.
Doing so effectively requires incorporating the senses of taste, touch, and feel into online purchasing in the metaverse. Although this may appear to be a massive undertaking, it is widespread in the real world. Brands can learn a lot from Nike and Walmart, two of the pioneers in metaverse retail, about the need to pay attention to detail and focus on offering an immersive experience if they want to develop successful retail environments, even in the virtual world.