According to a recent study, fashion brands are taking over in the UAE, especially in the e-commerce market segment, both in terms of awareness and product. The expanding number of fast-fashion platforms catering to immediate trends and style-hungry buyers is fueling the increase in online fashion shoppers’ share of wallets. This also indicates a positive trend for entrepreneurs who want to start an eCommerce business in the UAE.
The UAE’s fashion industry revenue is expected to reach a whopping $3.7 billion by 2025, up from an estimated $2.3 billion in 2021, according to Statista Market Forecast. Due to these rising numbers, Dubai – specifically, has gained popularity as the world’s fastest-growing fashion hub. This also makes Dubai the perfect spot for a new company formation – especially for fashion and eCommerce.
What The Future Holds For the UAE Fashion Industry
A poll by the e-commerce platform, Pattern, revealed that 74 percent of online shoppers said they would spend more on online shopping in 2022, which means more opportunities for entrepreneurs to open an eCommerce business in the UAE. These statistics also encourage young entrepreneurs, especially fashion enthusiasts, business setup in Dubai or anywhere in the UAE because of the whopping market growth. Pattern’s MENA General Manager, David Quaife, said: “Online marketplaces are proving to be crucial channels for consumer brands to be visible in the UAE.”
Kearney, a leading management consultancy predicted that the UAE’s eCommerce market will reach a new height by 2025. Predictions indicate that it will increase to $17 billion from $10 billion in 2021. In addition, only a mere 6% of people stated they would reduce their spending in the coming years. On the other hand, 19% of people stated that they will spend the same amount as they did in 2021. The results align with Kearney’s projected forecast.
Further research revealed that the respondents are expected to purchase more this year from online platforms than from other physical retailers for every major product category, including fashion apparel, electronics, home and kitchenware, and beauty and makeup. Online marketplaces have played a contributing part in the rapid growth of the market. This has created an opportunity for entrepreneurs to make their products available to a larger audience. We recommend entrepreneurs have their own website as a marketplace. Instead of selling their products on a separate marketplace. If an entrepreneur can build an eCommerce website along with this platform, it will give them an extra edge in acquiring more sales online.
Build Your Own Website (Or Marketplace), Here’s Why:
Let’s discuss some added benefits for entrepreneurs in creating a professional website and selling their products on their own website, alongside existing marketplaces:
- Firstly, creating your own website can help cut down costs. You can directly buy and sell to your consumers without having to pay to other marketplaces.
- It builds credibility – in today’s digital age, everyone is online. You should be, too. Having a website will help customers find you online easily.
- Market expansion is a big advantage, as your website will be accessible globally – anyone can access it anywhere – driving your sales from around the globe.
What UAE Buyers Are Looking For:
- UAE shoppers expect fast delivery services — 39 percent of online shoppers want products delivered the next day or sooner, while 20% of the respondents want products delivered the same day they purchase them.
- Customers are starting to make cross-border purchases – 89 of those surveyed said they had purchased an item online that was delivered from overseas. This demonstrates that local businesses and marketplace sellers may increase their sales by diversifying their product offerings to include locally unavailable items.
However, to keep up with the increasing competition, online retail platforms must continue to innovate to keep up with the current market trends to retain customers. Industry experts said the growing trend of online shopping for fashion goods would further consolidate the UAE’s – especially Dubai’s – position as the world’s luxury fashion hub.
If this article convinced you to set up your own online marketplace or if you want to dip your hands into the online fashion world of buying and selling, feel free to reach out to us. We at Business Link can help you set up a business in Dubai at your earliest convenience. We also provide a free consultation session, in case you want to simply discuss a few potential business ideas.