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Jun, 2022     

E-tailing: What has 2022 taught us thus far?

The creator economy rose to even greater feats in 2022 and will account for a much larger slice of the marketing pie by end of 2022.


1. Retain the Consumer- Spend increase will be key

UAE is one of the more mature markets in the region and an apt example to illustrate the importance of retention and spend increase. As we have seen adoption soar throughout the UAE in the past years, the market has reached a critical checkpoint of evolution such that the majority of the anticipated growth in the coming period will originate from existing users maturing and increasing their purchasing frequency.

This paints a sharp contrast to prior years when new consumers adopting online retail thrusted the market forward.

2. Get closer to the Consumer – D2C is rapidly on the rise

D2C is among the fastest-growing channels in the digital economy. This is fueled by brands’ growing desire to bypass the intermediaries, improve margins, and acquire valuable consumer data to understand their own shoppers. The D2C channel also enable brands to be extremely nimble to consumer feedback and come out with updated offerings much quicker, which can prove to be a strong winning lever.

3. Engage the consumer – Social Commerce continues to grow

After getting closer to the consumer, retailers have well and truly understood that getting the shopper on the landing page wouldn’t suffice. It is important to engage consumers while on the platform and wherever active, digitally. It is here where the value proposition of social commerce shines through. Furthermore, social commerce provides the important human touch to interactions which is a key friction point that results in a lot of missed sales in the online channel.

4. Relate to the Consumer – Democratization of Digital Advertising

 

For the past 2 years, the retail world witnessed social media content creators rise to the consumer expectation of trustworthiness as a reliable source for product discovery and reviews. The content posted by creators is much more relatable. It is also not intrusive, like normal digital/traditional ads. This creates a very seamless viewing experience and a more positive brand recall. Consequently, the creator economy rose to even greater feats in 2022 and will account for a much larger slice of the marketing pie by end of 2022.