MEA retailers eye online sales boost

Regional consumer electronics retailers are waking up to the enormous potential of e-commerce facilities.

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By  Administrator Published  September 7, 2007

The internet's emergence as a formidable sales channel for consumer electronics products continues unabated in international markets.

The latest research from trend analyst GfK Marketing suggests that online sales growth of consumer electronics goods in Western European markets continues to outstrip that of its high street retail counterparts.

The firm suggests that this growth is largely tied to the provision of affordable broadband internet services in these countries.

Middle East consumer electronics retailers, such as Jacky's, Plug-Ins and Jumbo Electronics in the UAE, and eXtra in Saudi Arabia, have fast realised the commercial benefits of establishing comprehensive e-commerce facilities.

However, with access to broadband internet services proving prohibitively expensive for consumers in markets across the GCC, the full potential of these e-commerce facilities have hitherto remained largely untapped.

Still, the Middle East has proven itself far from immune to international retail trends, which is why the long-term projection for revenue generated by e-commerce facilities in the region remains on an upward curve.

This situation will also be aided by the fact that the Middle East's consumer electronics retail sector continues to shift towards market consolidation, which is leaving a smaller number of major players to fight it out over diminishing margins.

Ultimately, major consumer electronics retailers operating in the region will fast recognise the cost-efficiencies that can be gained by promoting the internet as a major sales tool, and push consumers to embrace their online stores.

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