Dubai: Middle Eastern consumers are amongst the most loyal in the world to their favourite brands, but research by PwC shows that brand loyalty is even more pronounced when retailers have a ‘multichannel’ offering.
In its report, Achieving Total Retail 2014: Online shopping habits of Middle East shoppers, PwC urges the region’s retailers to embrace global digital advancements citing significant opportunities available for fast movers to attract and retain customers through the launch of innovative multichannel offerings.
“Middle Eastern consumers are creatures of habit, and the physical store continues to be the preferred channel for Middle Eastern Shoppers,” Norma Taki, Retail and Consumer Partner at PwC, said.
“However, online channels enhance the shopping experience, and consumers in the Middle East are becoming more nuanced. Our research has shown that brand loyalty is even more pronounced when retailers have a multichannel offering. Retailers should make this their number one New Year’s Resolution in 2015.”
Consumers around the world have become increasingly loyal to their favorite brands, and nowhere is this more evident than in the Middle East; 74% of Middle East consumers say that they shop with five retailers or less, compared to 58% of global respondents.
“Perhaps surprisingly, a large proportion of consumers (70%) have either never shopped online or only do so a few times a year. This signals a huge opportunity for the region’s retailers who can create a compelling, robust and distinctive online shopping experience. “Many of the world’s retailers have seen online sales become a significant factor in driving growth,” Ms Taki, added.
“There is also great opportunity to create a distinctive brand experience, and strengthen loyalty – the majority of multichannel consumers in the region currently only shop at one retailer.”
The research also revealed that consumers in the Middle East mainly shopped online for convenience and better prices, therefore retailers in the region should be encouraged to start engaging with their consumers across multiple platforms. An ‘easy win’ for retailers would be the ease for shoppers to retrieve stock information as Middle East shoppers say this is one way stores could improve the shopping experience.
However, Middle Eastern respondents were also worried about security and capability, 53% stated that they were worried about the cyber security risks that came with online shopping; significantly higher than the global figure of 43%. “Retailers need to upgrade their cyber risk capabilities, while offering a seamless digital experience to their consumers, in order to retain their trust,” she said.
“This is the challenge retailers now face. Customer expectations are high, and consistency, convenience and multi-faceted options are the keys to success in this new ‘Total Retail’ reality.”
PwC’s annual global survey results come from over 15,000 interviews conducted with online shoppers across 5 continents, in 15 countries, including 3,000 people across Egypt, the UAE and Saudi Arabia. This survey was originally conducted during September 2013 and published in Summer 2014.