The onset of COVID-19 has made UAE residents shop online more cost-effectively.
While a majority of them earlier shopped online for clothes, watches, bags and shoes, now their preference has evolved into ordering groceries, workout wear, home appliances, beauty and personal care products, board games and diapers as they are forced to spend more time indoors.
Grocery, pharma and personal care products have seen the biggest spike in e-commerce sales in the UAE in the wake of COVID-19. The UAE fashion industry has seen e-commerce demand shrink by 25 per cent during COVID-19 while the local electronics industry has seen online sales spike by 10 per cent during the lockdown, according to RedSeer, a consultancy.
ONLINE GROCERY PRICES UP BY 15 TO 20 PER CENT DURING COVID-19
The UAE’s online grocery industry saw price increases of 15 to 20 per cent on some fresh categories such as fruits where supply disruptions meant increased freight costs, which was passed on to customers.
“Our research showed that speed of delivery (not price) was the most important criteria for e-grocery customers while shopping online during the COVID-19 period,” said Sandeep Ganediwalla, Managing Partner, RedSeer MEA, a consultancy.
Online fashion as a category did not see significant price changes during COVID-19 in the UAE. “Specialty categories like semi-essentials (baby and sports) saw a marginal increase in sales and prices,” added Ganediwalla.
Premium smartphone and gaming products saw a price increase of as much as 20 per cent during COVID-19, according to RedSeer. “Premium laptops was another category that saw marginal price increases (less than 10 percent). Price continued to be the top criteria for customers when they bought electronics during the COVID period,” he said.