Boom of the "E" Industry

With the boom of the internet usage in the UAE, many consumers are turning to buying and selling their goods online. The competition between portal website is intensifying and now consumers have plenty of options to choose from.

One of the most popular website in the UAE is souq.com. Souq.com is a UAE based website that acts like an auction, where buyers and sellers bid for products. With a username and password, you are ready to go and start your shopping experience online with anything listed on this portal such as mobile phones, jewelry, cars, tickets, and many other products, new and used. Kristy Melia, the sales and marketing manager of souq.com, confirms the "great growth" they are experiencing in the market and how they have a customer base of more than 400,000 members.

Competition is present in this industry with another portal in the market. Dubizzle is considered a market leader in classifieds in the UAE, with items ranging from property for sale or lease, jobs, to community services such as car lifts. JC Butler, the managing partner of Dubizzle, states that they had a healthy growth in terms of revenues and customer subscription and that they play at the top of the game in the e-commerce competition.

The latest entrant in the Dubai market is the Lebanese portal Elmazad.com. Elmazad.com has its headquarters in Lebanon and has operations in Dubai with plans to expand to other nearby countries. The website invites users "buy and sell anything free on the largest online market in Lebanon and UAE". "Anything" can be items like mobile phones, clothes, cars, accessories, and even real estate properties. The COO of elmazad.com in Lebanon, Hisham Al Ashkar, sees Dubai as a great potential for the business to grow as it is still focusing on brand awareness with its marketing campaign through SMS, Facebook and other magazines.

According to company spokespersons, all of the above websites have experienced a huge growth in their customer base. Nowadays, consumers are shifting their buying behavior to online websites or auction sites for many reasons.

One reason is the cheap prices that one can get through such websites. The exact products found in the market are being sold for a discount in dubizzle and souq.com. Unwanted gifts from jewelry to business pens are sold online for less than their original prices in store, and trust us, there are a lot!

In addition, these websites have done a lot to develop their offerings to attract more customers. Souq.com for example introduced a free shipping promotion to encourage more customers to spend online.

The recent economic downturn has also affected much of the regular shopping that is going on in the marketplace. Many people are moving in and out of the country, requiring to sell or to buy their household goods. During financial distress, consumers would turn to buying used products at a cheap price or selling their unwanted stuff to get some extra cash.

Last but not least, while the prospects of online shopping are definitely better during hard times, it is the quality of experience that is more important. Just like window shopping is fun for some of us, so is shopping online. With just a few clicks of a mouse and some searches for the item that you're looking for, the product becomes yours! You don't have to worry about getting stuck in a traffic jam, finding a parking space for your car, or not finding what you’re looking for in the mall. One of the many ways the internet continues to make life simpler.