1. Smartphone Users Aged 25-54 is the Target Audience for Service Providers
OTHER CHALLENGES IN ONLINE GROCERY DELIVERY MARKET
• UAE has the highest online grocery penetration across MENA. Country has high Smartphone penetration and internet penetration valued at 78% and 91% respectively.
• Offering convenience by delivering groceries at the door step within 2 hours-2 days.
• Strong supply infrastructure as more than 25 companies offering grocery delivery services in the country.
Providing product assortment of more than 5,000 items across multiple segments namely fruits & vegetables, milk & dairy, food & beverages, household supplies, baby food & others.
2. Companies following Marketplace, Pureplay and Omnichannel Model are Generating revenue from multiple sources.
Marketplace
Commission - Charges commission 2-9%.Commission charged from partnered grocery store depends on their scale of operations, delivery fleet, SKUs.
Service Fees- Companies charge a service fee ranging between 2-10 AED on every order. Bawiq is not charging any service fee or delivery fee from the customer
Brand Listings & Advertising - Companies earn a fee through promoting another organization’s product or service, charge an advertising fee for their same.
Pureplay
Commission - Companies have control over entire supply chain including the prices charged from the customers. Gross margin: 10-20%2
Delivery Fees- Average delivery fees charged by the companies is ~AED 10, below order value of AED 100. Orders are generally delivered within 1-2 days.
Advertising & Brand Listings- Companies earn a fee through promoting another organization’s product or service, charge an advertising fee for their same.
Omnichannel
Offline
• Lending space to brands for setting up canopy tent or other promotional activities.
• Brand Promotion Activities at Checkout is the highest revenue generation stream for a retailer.
Online
• Brands pay commission to be among the top five products, post a product search.
• Companies earn a fee through promoting another organization’s product or service, charge an advertising fee for their same.
3. Use of technology and Introduction of Private Labels can lead to Enhanced Customer Experience and Increase in Margins
All these three are the future trends followed by some companies which will lead the e-grocery market in future.
1. Personalized Consumer Experience
2. Introduce Private Labels to Increase Margins
3. Wallet Based Automated System
• BulkWhiz built its own proprietary AI that learns consumer behaviour and personalize the experience to their needs.
• It developed a Quantifier that asks 1-2 simple questions related to the category of the item needed, and then advises on the product configuration and frequency that best suits the customer’s needs.
• Bigbasket Cocaine Model: Achieved 35% overall retention by using this strategy.
• The customers are classified under trial one, two and three, and silver, gold and platinum. Trial one refers to the first order and so on. On the fourth order, the customer moves to silver.
• Highest churn at one, two, three trail and 95% retention of platinum customer. It focuses on getting the customer to move higher up the chain by incentivising them.
Key Segments Covered: -
By Region
· Dubai
· Abu Dhabi
· Other Emirates
By Age Group
· 18-24 years
· 25-34 years
· 35-44 years
· 45+ years
By Product Category
· Food & Beverages
· Household Supplies
· Beauty and Health
· Baby and Kids
· Fresh Food
By Gender
· Male
· Gender
By Mode of Payment
· Pre-Delivery Online Payment
· Card on Delivery
· Cash on Delivery
Companies Covered
· Carrefour
· Lulu Hypermarket
· Instashop
· Kibsons
· El Grocer
· Trolley.ae
· Bawiq
· Amazon
· Noon
· Farmbox
· Bulkwhiz
Key Target Audience
· Online Grocery Delivery Companies
· Supermarkets & Hypermarkets
· E-commerce Companies
· Food Delivery Companies
· Investors
Time Period Captured in the Report:-
· Historical Period: 2016–2019
· Forecast Period: 2020-2025
Contact Ken Research:
Ankur Gupta
Head Marketing and Communications
+91-9015378249
According to our estimates, UAE grocery e-commerce - specifically online grocery, food and beverage sales - will grow highest and will rank as the fastest-growing product category online.
They expect the category to grow at an above-average charge for the next few years, but it will remain one of the least-penetrated e-commerce categories for the foreseeable future.With over great products and over verities of brands in the souqarena catalog you will find everything you are looking for.
Right from fresh Fruits and Vegetables, Rice and Dals, Spices and Seasonings to Packaged products, Beverages, Personal care products, Meat – They have it all.
Select from a wide range of options in every category, exclusively handpicked to help you find the best quality available at the lowest prices.Choose a time slot for delivery and your order will be delivered right to your doorstep.
Souqarena is known for providing the best quality products, same-day delivery, and signature packing, and on-the-dot time delivery services.Why UAE Online Grocery Race is heating up?Consumers are slowly walking away from traditional grocery shops.
Some are drawn to specialty stores, but many are buying from online stores in UAE and frequently from suppliers selling unique products not available through major outlets.Ways of life are changing.
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