Online versus Offline Shopping in the UAE

A pertinent question asked in the United Arab Emirates, just like in any other part of the world is, will online retail render brick-and-mortar or offline stores obsolete? In the UAE, industry commentators have debated over this question repeatedly in recent years.

However, online shopping is expected to grow exponentially in the Middle East with the recent launch of many online stores and the acquisition of Souq.com by the online shopping giant Amazon.com. These online players are predicted to cause massive disruption to conventional stores in the region because it is anticipated that purchasers will shift loyalties from the former to the latter.

However, market observers in the UAE suggest that the emergence of e-commerce in the region will not challenge brick-and-mortar retailers. Instead, it will complement the traditional practice, which will be beneficial to buyers ultimately (Gidwani). The argument is valid because people experience issues regarding trust, delivery mechanisms, and payment modes when they order commodities over the internet (The Middle East Consumer Trends Report). Thus, outdoor destinations and malls still attract consumers, enticing them to visit physical stores.

Moreover, offline outlets in the UAE have several advantages. The main factor is the attractiveness of the location. Physical stores are sited in unique places that witness regular human traffic and are characterized by convenience of use. Secondly, as evidenced by past studies, which argued that close to 65% of shoppers prefer actual shops even if the same item is available online, people wish to contrast real items side-by-side compared to virtual products (Total Business). Finally, most buyers enjoy the whole “shopping experience” that cannot be matched by armchair purchasing despite the fact that brick-and-mortar venues have some disadvantages.

Physical stores possess a few inherent drawbacks that may redirect sales to online stores. People are slowly getting acclimated to a huge range of products with different price tags due to their internet experiences. Thus, the limited choices available in offline retail discourage consumers from one-time or repeat purchases. Additionally, from the point of view of the storeowner, setting up a business requires sufficient capital and a good physical retail location. Therefore, most buyers and entrepreneurs prefer ecommerce because of its convenience and reduced costs.

Moreover, online stores offer 24-hour service where shoppers benefit from this factor during the busy days. Additionally, more women are entering the workforce and have less time at their disposal, thus making online shopping a necessary practice.

Despite the above-mentioned aspects, the UAE is unlikely to witness moribund malls and stores like the US for several reasons. First, in the UAE, most buyers prefer handling commodities before purchasing them. Second, Middle Eastern shoppers are still wary of web purchases and online payment options. Both online and offline shopping in the UAE have benefits and negative aspects as discussed above. Moreover, most brick-and-mortar shops may adopt online mechanisms to satisfy clients who enjoy browsing these platforms. In addition, online stores cater to the needs of a specific population, which prefers not to visit physical outlets. Either way, the future of the two shopping options seems bright based on the projection of the demographic composition of the UAE.