1、The United Arab Emirates (UAE) eCommerce Landscape 2020 Accelerated growth during turbulent times 2 The UAE eCommerce Landscape: November 20203 Foreword4 Strong growth fueled by increasingly digital demand Report Objectives and Methodology 5 Visa data and the latest research highlight opportunities

2、for further expansion Global eCommerce 7 Continuous innovation is driving global uptake UAE in the Middle East and North Africa (MENA) Region 11 Leader in one of the fastest growing regions for eCommerce UAE vs. Benchmark Markets: Trends and Insights 15 How does the UAE compare? Drivers of UAE eComm

3、erce 21 Strengths and opportunities The Impact of COVID-19 33 Acceleration of eCommerce adoption across categories and shift in consumer behavior Optimizing Future Market Growth 43 Addressing challenges will unlock further potential Conclusion 49 Single-minded focus on customer experience is the key

4、 to success Contents DISCLAIMERS AS IS Case studies, comparisons, statistics, research, and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial, or other advice. Visa Inc. neither

5、 makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The Information contained herein is not intended as investment or legal advice, and readers

6、 are encouraged to seek the advice of a competent professional where such advice is required. FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of U.S. Private Securities Litigation Reform Act of 1995 that relate to, among other things, our future op

7、erations, prospects, developments, strategies, business growth. Forward-looking statements generally are identified by words such as “believes”, “estimates”, “expects”, “intends”, “may”, “projects”, “could”, “should”, “will”, “continue” and other similar expressions. All statements other than statem

8、ents of historical fact could be forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond our control and are difficult to predict. We describe risks

9、 and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, any of these forward-looking statements in our filings with the SEC. Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new infor

10、mation, future events or otherwise. THIRD-PARTY LOGOS All brand names, logos and/or trademarks are the property of their respective owners, are used for identification purposes only, and do not necessarily imply product endorsement or affiliation with Visa. 4 The UAE eCommerce Landscape: November 20

11、205 The first UAE eCommerce Landscape report in June 2019 highlighted the key drivers, opportunities, and challenges in the UAE eCommerce market, ascertained through the analysis of Visa data and relevant research. This 2020 report provides an update to reflect on the activities of the last 12 month

12、s and, in particular, the impact of the COVID-19 pandemic and the opportunities that this unprecedented crisis creates. The UAE eCommerce market is on an upward trajectory, driven by the demand for online purchasing by a young tech-savvy population. With the country comprising a high percentage of d

13、igital native millennials who are at ease with technology, the expectation is for seamless and convenient online purchasing. Merchants have striven hard throughout the 2010s to meet the ever-increasing consumer demand for eCommerce and have recognized the need for online presence to ensure business

14、continuity and longevity. While traditional bricks and mortar retail is still very strong in the UAE, these retailers have acknowledged the need for a dual face to face and online strategy with the focus on customer experience. These are complemented by eCommerce “pure play” retailers who have been

15、increasing consumer product choice, both organically and through partnerships, and smaller retailers coming online facilitated by online commerce platforms and payment gateway capability. Both demand and supply sides are supported by logistics infrastructure that is on a-par with some of the most de

16、veloped eCommerce markets in the world. In addition, eCommerce start-ups continue to attract significant investment, supported by government policies promoting innovation and a cashless economy, all resulting in enhanced consumer trust and a thriving eCommerce market in the UAE poised for significan

17、t growth. The COVID-19 pandemic has further accelerated retailers innovation and digital transformation plans, in response to the sudden consumer demand to shop online. The step change in demand across the first half of 2020 is sure to have a lasting effect over the next few years, as many consumers

18、 and merchants have shifted consumer behavior and gained confidence in online purchasing during this time. In this fast-growing market, when eCommerce is becoming the norm, there is still significant opportunity to grow and shape consumers path to purchase. This report captures the trends and insigh

19、ts based on Visas experience via a deep dive into transaction data, supplemented by the synthesis of relevant research. By understanding how and where consumers are spending and analyzing the impact of the unforeseen events which have occurred during the last twelve months, opportunities for all sta

20、keholders across the UAE eCommerce ecosystem are highlighted. Objectives To assess the recent eCommerce developments in the UAE, including the impact of the COVID-19 pandemic, with a view to identifying opportunities for further expansion. The report identifies ways that these could be addressed to

21、accelerate the pace of change. Through understanding the current status of the eCommerce ecosystem, it enables government, investors, banks, retailers, and other stakeholders to identify how they can support the markets evolution. The final aim is to understand the key drivers and challenges of eCom

22、merce, with the purpose of creating an action plan to support the objective of The Department of Economic Development in Dubai to expand the eCommerce sector in Dubai and the UAE. Methodology Proprietary data from Visa provides a deep understanding of the key commerce, eCommerce drivers and trends i

23、n each of the markets across the globe. This contributes valuable insights into market penetration rates, transaction sizes and category growth rates. Using this data, the UAE performance can be benchmarked against other markets and seen in context. For the purpose of this report, “Mature” and “Emer

24、ging” benchmarks based on the following markets will be compared to the UAE. Mature Australia, Canada, Singapore, Sweden, UK, and the U.S. Emerging Brazil, Malaysia, and South Africa Measured against these two benchmarks, the UAEs unique strengths and opportunities become much clearer. This data has

25、 been augmented through the summary, collation and synthesis of the latest existing research undertaken by various reputable stakeholders in the UAE and around the world. This includes the latest thoughts and insights regarding the impact of COVID-19 on the eCommerce sector. ForewordReport Objective

26、s and Methodology Strong growth fueled by increasingly digital demand Visa data and the latest research highlight opportunities for further expansion 6 The UAE eCommerce Landscape: November 20207 Global eCommerce Continuous innovation is driving global uptake Shopping via mobile devices, personal co

27、mputers, tablets, and connected devices is now part of the everyday lives of consumers globally. 1 8 The UAE eCommerce Landscape: November 20209 Global retail eCommerce sales growth has been strong and is expected to remain so. eCommerce sales are forecast to reach $4.2 trillion in 2020, up from $2.

28、4 trillion in 2017, growing at a CAGR (Compound Annual Growth Rate)1 of 20.9%. By 2023, the eCommerce market is forecast to account for 22% of all global retail sales, up from 10.4% in 20172. Retail eCommerce sales worldwide, 2017-20232 trillions, % change and % of total retail sales Retail eCommerc

29、e sales% change% of total retail sales Asia Pacific, and particularly China, has historically been at the forefront of the global eCommerce growth charge in recent years, with an increase of 25% in 2019. But growth rates in the Middle East and Africa as well as Latin America are not far behind, both

30、 exhibiting solid growth rates in excess of 21%, which are above the global average. While North America (up 14.5%) and Western Europe (up 10.2%), which house some of the more mature eCommerce markets, are not surprisingly showing a flattening of the eCommerce growth curve2. This relentless transiti

31、on to online may be driven by the effective transformation of technological capabilities into quicker, safer, more intuitive, and personalized experiences. The advent of voice-activated shopping, contextual, social commerce, and virtual instant reordering, combined with the convenience of same day d

32、elivery and the lure of more attractive pricing, are key trends impacting eCommerce globally. Augmented reality: Creating immersive shopping experiences where consumers can “test and try” products before purchase, enhances the consumer shopping experience, improving buyer confidence, and increasing

33、sales conversion. Social commerce and in-app purchases: Social media platforms such as Instagram are integrating the eCommerce experience in their platform, with in-app checkout, allowing users to make purchases without leaving the app. Personalization: Merchants are increasingly analyzing customers

34、 previous actions, shopping behaviors, demographic profile, and other personal data to reveal patterns, trends, and associations, that inform individualized offers and product recommendations. Integrated omni-channel experiences: In the US, for example, Amazon Go stores allow consumers to buy produc

35、ts in store but check out digitally. A combination of computer vision, machine learning and artificial intelligence allows the customer to scan their Amazon app on entering the store, pick up what they want, and simply leave. The items are added to a virtual cart and billed on the customers Amazon a

36、ccount3. Digital payments expansion: From securing the transaction, to enabling new form factors, to driving value through loyalty and trust, digital payments facilitate secure, frictionless, and easy eCommerce experiences. Payment options such as cards and “pay” buttons such as PayPal, Apple Pay an

37、d Visa Click to Pay remove the hassle of entering payment details for each transaction. Payment technologies such as Tokenization and Secure Remote Commerce that increase security and reduce friction will evolve to be part of the default checkout flow of ecommerce merchants, replacing traditional ch

38、eckout forms. Risk Based Authentication (eg 3DS 2.0) will reduce step-up friction. Biometrics will increasingly be leveraged for Customer Verification online. Ease of payment removes a key friction point in the customer shopping experience, with faster checkout continuing to drive eCommerce sales. T

39、he consumer experience is continually evolving and a combination of the latest technology and behavioral insights are driving the future of eCommerce. Consumers are being offered greater convenience, customized experiences, flexible payment options and instant fulfillment, which all add up to a bett

40、er user experience. 20020202120222023 28.0% 10.4% $2.38220.7% 14.1% $3.535 18.1% 17.1% $4.927 22.9% 12.2% $2.928 19.0% 16.1% $4.206 20.0% 15.6% $5.695 22.0% 14.9% $6.542 1. The CAGR quoted reflects the average year-on-year growth rate of the UAE eCommerce market. 2. Source: eMarketer, May

41、 2019. Retail eCommerce sales include products or services ordered using the internet via any device, regardless of the method of payment or fulfillment.3. Source: www.A 10 The UAE eCommerce Landscape: November 202011 UAE in the Middle East and North Africa (MENA) Region Leader in one of the fastest

42、 growing regions for eCommerce In the Gulf Cooperation Council (GCC), mass internet adoption has resulted from a combination of digital infrastructure and eager consumer adoption of technology-driven solutions, such as social media and smartphones. The wider MENA region has taken its own route to di

43、gital adoption, leap-frogging traditional channels of evolution. 2 12 The UAE eCommerce Landscape: November 202013 Today, the GCC region contains some of the highest mobile and internet penetration rates globally. High digital and social penetration has meant that GCC consumers have jumped straight

44、to mobile commerce, or mCommerce, and operate across digital platforms with ease. Within this context, Dubai and the UAE remain a hub for eCommerce growth, whether in attracting start-ups or in creating multiple channels to ensure safe and secure payments. The total MENA market size, including all c

45、ategories, has been forecasted to be worth $48.6 billion in 2022, up from $26.9 billion in 20184. Even excluding the crucial B2B and P2P eCommerce, food delivery, travel, entertainment, services, and automobiles categories, MENA eCommerce closed 2019 with an estimated total volume of c. $16bn5. The

46、UAEs eCommerce sales were projected to hit $16 billion in 2019, followed by KSA, where eCommerce sales are projected to reach $7.7 billion. Currently, the UAE is considered the most advanced eCommerce market in MENA, with a penetration rate of 4.2%, compared to advanced western markets such as the U

47、K (15.6%), U.S. (12.3%) and France (10%)6. Its consumer demographic includes a young internet-savvy population, with high social media usage. These people are more likely than some of their cohorts globally to spend time online. eCommerce companies, whether they are online marketplaces, domestic ret

48、ailers, or cross-border merchants, are tapping into this high latent demand, disposable incomes, and digital penetration that is favorable for the sector. UAE consumers are among the most connected in the world, with some of the highest levels of internet, smartphone, and social media penetrations g

49、lobally; much higher than most of the mature eCommerce markets7. The internet plays a critical role in their path to purchase discovery, research, and actual purchase. Regardless of whether they shop online or in-store, UAE consumers are heavily influenced by their online activities. The UAE enjoys many advantages that make it ideal for eCommerce growth Internet, Smartphone and Social Media Benchmarks7. UAE eCommerce Sales UAE Saudi Arabia Egypt US China 91% 73% 43% 85% 59% 66% 62% 28% 69% 49% 99% 75% 40% 71% 65% 7 hours, 49 minutes 6 hours, 45 minutes 8 hours, 10