How Mobile is Influencing Online Shopping in the Middle East and North Africa

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Wael Nabbout
Oct 15 2014
E-Commerce
How Mobile is Influencing Online Shopping in the Middle East and North Africa
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On Device Research,, a mobile market research company, recently released a report on how mobile influences in-store shopping behavior for shoppers in the Middle East. The survey was conducted in September 2014 with a representative sample of 1500 mobile users in Egypt, Saudi Arabia and United Arab Emirates. In Egypt, 70% of the respondents were using feature phones. Egypt also has lower smartphone adoption rates, data speeds and income levels than the other two countries, but its smartphone users share similar behavior to those in Saudi Arabia and the UAE.

Brick-and-Mortar Shopping in KSA, UAE, and Egypt

The report describes Saudi Arabia and UAE “as places where shopping is a national sport.” In fact, some of the world’s largest shopping malls are found there. The Dubai Mall for instance, the world’s largest shopping mall at 1.12 million square meters and housing 1200 stores, attracted over 65 million shoppers in 2012—that’s more than visited New York that same year. Egypt in particular has been catching up to the other two countries. Traditionally associated with market stalls and small local shops, it has attracted lately big brands such as Marks & Spencer, Ikea, and Zara and houses shopping centers including the 882 thousand square foot Mall of Arabia.

Phones versus Tablets

40% of the respondents went online on their phone in the last 12 months. Cheaper handsets and data plans combined with growing network coverage are influencing mobile internet penetration, with almost 60% of respondents reporting that they started using mobile internet during the last 2 years.


Meanwhile, tablet ownership is on the rise. While all respondents said that they have an internet connected phone, a high ownership of tablets, particularly in Egypt, “was a real surprise!”


Seeking Assurance Is the Most Popular Shopping-Related Mobile Activity

Almost 90% of mobile internet users in Saudi Arabia and the UAE have used their phone in stores to check prices and product reviews or ask friends for advice. That rate drops to 60% in Egypt. This drop is due to the high rate of feature phones in the country. Among the smartphone users in Egypt, this figure rises to 86%, bringing it in line with the numbers in the other two countries.

According to the study, using the phone to ask friends or family for advice by sending them a photo of the product or calling them is the most popular shopping-related activity at 35%. In Egypt, only 20% of feature phone owners do this. Among the smartphone users, the figure increases to 43%, which is again in line with the figures from Saudi Arabia (36%) and UAE (44%).

Other activities include checking prices and reviews, as well as non-shopping related activities, like entertainment (57%), which is broken down into playing games (28%), taking photos (24%), and visiting social networks (22%). These numbers show people use mobile for entertainment purposes more than for direct shopping-related activities.

Mobile Prevents and Shifts Purchases

Using mobile for shopping-related activities has a significant impact on purchase decision: 90% of shoppers in Saudi Arabia, 88% in UAE, and 74% in Egypt have stopped a purchase as a result of using their phone to assess their shopping decision. 33% said they found a better price online, 18% found a better product and 16% followed a trusted friend’s opinion and stopped the purchase.


This has huge implications for retailers and advertisers. Price comparison and product reviews are right in the consumers’ pockets, which makes it impossible for brands to hide product flaws or price unfairly. On the other hand, this presents new opportunities for advertisers who can reach out to people in real time while they are in the store.

Where Can Brands Reach Shoppers on Mobile?

Non-shopping activities done while in shopping centers present a great opportunity for retailers. Nearly one-third of respondents plays a game while in store. This means that advertising in the right games could be a winning formula using various technologies such as like beacons, geo-fencing and real-time bidding platforms. The report recommends App Annie for such purposes. It provides app ranking data and high quality mobile analytics, and “tracks the movers and shakers (and money makers) in the app ecosystem” according to the report.

Chat apps are exceptionally popular on mobile. One obvious hindrance is that most chat apps do not offer traditional advertising solutions. This doesn’t mean that brands shouldn’t use them to engage fans and offer deals and discounts. The most popular apps are WhatsApp and Facebook Messenger, followed by Skype and Viber.

“Anyone playing games, using social networks, reading news or watching video clips while in the store can be targeted with timely and relevant offers through mobile ad networks,” says Nader Kobeissi, MD MENA at On Device Research.

The two most significant platforms that brans should consider for reaching shoppers is Facebook and YouTube. Retailers and brands should also look for advertising opportunities with local players like Souq.com and Dubizzle in UAE.