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Pandemic tailwinds: E-commerce sales set to double in 2020

“AOV (average order value) has increased from ₹1,300 in February to ₹1,500 and will go up further by ₹50-100 during the festival sales. While our customers buy groceries 3.1 times a month, our BBStar loyalty customers buy four times a month on BigBasket. Since we have already achieved so much of growth, we upped our growth targets for FY21 by 40-50 per cent and are well on track to achieve it,” he added.

Ready-to-cook category sees a spike in demand

The RTC market in India, RedSeer says, stood at Rs 2,100 crore in 2019, and is expected to grow at a CAGR of 18% to reach Rs 4,800 crore by 2024. Analysts predict that the Rs 8,000 crore organised RTE category is set to double in the next five years.

The on-demand grocery delivery market heats up

The e-grocery segment has been one of the fastest to recover from the impact of the Covid-19 pandemic, with sales numbers reaching the pre-Covid level in June itself. Meanwhile, in the same month, non-essential categories on e-commerce (such as fashion and electronics) saw sales amounting to 40% of pre-Covid times, according to RedSeer Benchmarks.

Retailers will have learnt their lessons from COVID-19 phase

The online retail sector was already growing at a fast pace in 2019. However, this year witnessed an unprecedented increase, and we estimate it crossed $15 billion on annualised GMV (gross merchandise value) during this period. This is $5 billion higher than what the online market was at the end of 2019.

Meet the Indian startup that seers

RedSeer has evolved from a one-man show in 2009 to a 200-odd member team in 2020, from a nondescript office in Koramangla to occupying three floors, replete with chic decor, in Bengaluru’s startup corridor HSR Layout, from working for free to commanding a price.

Demand for fashion could be in for an Eid boost

Integration of experiences across online and offline will be another critical element for retailers. Our research shows the “stickiness” of online fashion customers is highest at greater than 60 per cent. We have already seen luxury players working with online marketplaces and launching mono-brand online experiences to reach out to customers in this new environment.

Not the time for UAE F&B to fight it out

This symbiotic relationship resulted in the food delivery sector growing by more than 20 per cent in the UAE representing almost 7 per cent of total UAE food services market in 2019. Our discussions with restaurants indicate online restaurants saw an average of 30 per cent incremental sales as a result of food delivery platforms, with customers adopting this convenient model and ordering more than they normally would.

Non-essential e-commerce in the red even in Green & Orange zones

In some cases, etailers said they have not been able to open up fulfillment and sorting centres that fall in the Red zones, where infections continue to rise. “Ministry of Home Affairs (MHA) guidelines didn’t clarify the operations side of ecommerce… And, hence, confusion among local authorities for non-essential warehouses in Red zones is still there,” said a top executive at an e-commerce firm on condition of anonymity.

Covid reality check for India’s unicorns

The Covid-19 crisis has both accelerated that reckoning and transformed it by another order of magnitude. According to estimates by RedSeer Management Consulting, India’s internet economy is set to decline by as much as 90% this month compared with April 2019. The fall is driven by travel bookings, online retail and food delivery. In calendar 2019, the overall internet market stood at $70 billion, according to RedSeer.

‘It will be business as usual during festive season 2020’

We expect GMV of $6.6 billion (₹47,000 crore) in the October 2020 festive period, compared to $5 billion (₹35,500 crore) in the 2019 October festive period, indicating a massive explosion of pent up consumer demand. Both high-ticket items and fashion/home categories will do well.

Audio streaming apps posts surge in usage as more listeners tune in

According to a recent report by RedSeer Consulting, only 1% of the total user base of the top five music streaming apps in India are paid subscribers, contributing 40% to the revenue. The report adds that the apps will have to turn at least 6% of their users into paid subscribers, in order to become profitable.

How the gig economy hurts the small guy

Many online marketplaces that are facing the spectre of slowing growth and crashing valuations are sure to do what Sequoia advised—cut expenses and conserve cash.

Billionaire Amazon founder Jeff Bezos is not having it easy in India

Dubai: Jeff Bezos met top film stars, Shahrukh Khan being among them, and made promises of spending $1 billion in India to take the Amazon story forward. But it is who he did not meet during his high-wattage visit to India that could have far-reaching consequences for Amazon — in what has become an exceptionally […]

Venture studios offer lifeline to startups

These entities free up entrepreneurs to focus on their core roles Successful start-ups solve pressing problems for which consumers are willing to pay. In the process, they more often than not improve the life of customers and generate exponential returns for investors. Google, Facebook and Amazon – all ended up solving customer problems and generating […]

A breakthrough year for UAE online shopping

Mattress Market

Ecommerce has been the buzz in the UAE business community for some time now. After all, there is the high smartphone penetration, relatively high disposable incomes, and a significant expat population. Ecommerce has worked across multiple categories such as online retail (e-tail), cab aggregation, foodtech, fintech and travel tech. But let’s focus on the bellwether […]

UAE food delivery sees a chance with web-TV

By Sandeep Ganediwalla and Anuj Kumar, Special to Gulf News The internet has led to hyper-growth across industries — watching movies or TV series on web streaming is no exception. Over-the-top (OTT) players such as Netflix, Amazon Prime, Shahid and Hotstar have disrupted the market, and our study shows almost 90 per cent of viewers […]

UAE online seeks out category winners

Dubai: The UAE’s online shopping universe is far from being a two-horse race between Amazon and noon. The two dominate when it comes to marketplaces, but in individual categories such as electronics and fashion, there is still much that is up for grabs. Take Sharaf DG, for instance. Independent observers reckon it is the third-biggest […]

Still lots at stake in Mideast’s eCommerce logistics

Online retail in the Middle East and North Africa is expected to cross $10 billion in the coming year. A key enabler to online retail is the strength of the logistics sector, as the merchandise needs to be sourced/picked from multiple locations, stored in warehouses, and orders delivered to customers’ doorsteps. Given the high occurrence […]

Omnichannel set to strengthen retail sector

A true omnichannel approach that puts power into the hands of shoppers is what is going to strengthen the UAE and GCC region’s retail sector, experts at the 2019 Middle East Retail Forum said. Officials at the event spoke about the evolution of omnichannel retail and how it is creating a shopping experience that is […]

With Prime, Amazon wants to get a lock on UAE shopper loyalty

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Dubai: With the roll-out of its Prime subscription services in the UAE, Amazon is finally ready to take on the competition on two fronts — in e-retailing, where it dominates, and Web-based TV services, where it will take on the entrenched Netflix and StarzPlay. The launch of Prime — which allows members preferential rates and […]

UAE becomes Amazon marketplace: Will Saudi Arabia be next?

Myntra Gmv

Souq has turned into Amazon in the UAE, but no timeline has been set on whether the same would happen in Saudi Arabia or for the other individual Middle East markets, but it will happen eventually, according to a top Amazon official. “The UAE becomes the first to transition to the Amazon marketplace in the […]

Gulf News : Drake & Scull International pins blame for Dh5b losses on previous management

The entire blame for the financial mess at Drake & Scull International, whereby it reported losses of Dh5 billion for 2018, has been placed on the previous management and Board of Directors, by the company’s current management. In particular, the “deliberate” decision to defer the announcement of losses incurred between the years 2009 and 2016. […]

Gulf News : Fast-track access to funds for a thriving startup ecosystem

Gulf News : The start-up ecosystem is buzzing in the Mena territory, with the most encouraging aspect being the ability to secure an exit as seen with Careem, Souq and Namshi, and even smaller companies such as Glambox and Almosafeer. The Mena start-up ecosystem received $1bn funding over the last year. However, the availability of […]

GULF NEWS: Saudi Arabia’s small grocery stores will have trouble keeping up

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GULF NEWS: The grocery market in Saudi Arabia is undergoing transformation with the $20 billion (Dh73.4 billion) unorganized market serviced by convenience stores and baqalas up for grabs. Nearly 20 percent of the baqalas have already closed down in Saudi Arabia on the back of Saudization moves. This has resulted in an organized sector gaining […]

The rise of e-commerce in MENA

Myntra Gmv

The Middle East e-commerce market is heating up with increasing competition, driven primarily by the UAE and Saudi Arabia. According to estimates, from 2015-17, the MENA online retail market went from $4 to $6 billion. By 2020, the MENA e-commerce market is estimated to surpass $15 billion at 35% CAGR. The UAE and Saudi Arabia […]