eGrocery in UAE – Q3 Update
Latest perspective on the changes in the UAE online Grocery market
Post the onset of COVID-19, we conducted a deep-dive into the various e-tail verticals in UAE & KSA. Our findings were astounding. In the first quarter post-lockdown, the eGrocery market had grown at a groundbreaking 500%. Our research found that customer adoption of online channels was very high, coupled with high stickiness to the new channel. The digital consumer was maturing, and his decision criteria was increasingly moving towards experiential factors and away from value proposition factors.
Fast forward to the next quarter and it seems like that momentum has not been lost. The lockdown was extended and social distancing continued. Correspondingly, people stuck to ordering essential groceries online as the online offerings for the consumers increased – both in product offerings online and with hyperlocals players entering the markets.
Our revised estimates for UAE’s Q3 2020 bring out the intricacies of the changing landscape by providing a 360-degree view of stakeholders.
Consumers displayed enhanced stickiness to ordering groceries online due to the added convenience, availability of better deals and the limited exposure to crowded supermarkets. As consumers shell out a bit more in delivery fees compared to physical purchasing, their expectations around the ordering experience as well as delivery experience also increased.
Suppliers, on the other hand, are capacity constrained and striving to expand capacity through partnerships and improve on the customer experience. New players are entering the market as big players are being merged or acquired.
Consumers will be the biggest beneficiaries of the market growth as eGrocery players eye their share of wallet. As the industry becomes crowded, each physical & eGrocery player will need to take a hard look at their business model to stay ahead of competition whilst being profitable.
This report will help the reader answer the following questions –
- What is the current size of the eGrocery market? What would it be by the end of the year?
- What is the current market structure by type of player (Omnichannel, Horizontal, Vertical, HyperLocal)?
- What is the current market share of top eGrocery players by type – value and volume
- How is eGrocery the future of grocery purchase in MENA? How will the market grow in the coming years, on the backdrop of COVID-19?
- Which player and player type has been the biggest gainer & loser from a consumer top of mind awareness (TOMA) perspective?
- What are the top consumer pain points on eGrocery ordering? What does the consumer want from his eGrocery supplier?
- How can eGrocery players maximize their performance with innovations in last mile delivery, customer experience and operations capabilities?
Key players covered –
UAE – Carrefour, Lulu, Spinneys, Choithrams, Amazon, Noon, Instashop, Kibsons, el Grocer, Kitopi, Talabat, Zomato, Careem
See: Inside the Report1. Grocery Market Overview
1.1. 2020 Expected Market size Pre-COVID
1.2. 2020 Revised Market size – Q1, Q2, Q3
1.3. UAE 2020 eGrocery Market Size – Month-wise Projections
1.4. Reasons for changes in market size
1.5. New Business Models and changing player landscape
2. Player View
2.1 UAE TOMA Split by Player Type
2.2 UAE Market Share Split by Player Type and Top Players
2.3 UAE eGrocery Product Offerings
2.4 UAE eGrocery App/web Analysis
3. Voice of Customer
3.1 Evolution of eGrocery purchases
3.2 Payment mode preference
3.3 Online Purchase Channel preference
3.4 Changing Customer Decision Criteria
3.5 Satisfaction with current eGrocery provider
3.6 Want for improvement
3.7 Pain points
3.8 Excitement for White Friday & Top Products during White Friday
3.9 Impact of VAT on purchase decisions