Communicate linked with Premal Patel, Vice President and Managing Director Catalina UK and asked him about some of the most current trends in terms of shopping online, as well as current trends specifically related to the GCC consumer.
Communicate linked with Premal Patel, Vice President and Managing Director Catalina UK and asked him about some of the most current trends in terms of shopping online, as well as current trends specifically related to the GCC consumer.
Starting with the hot button topic of AI, how do you see this nascent technology driving consumers towards brands, and where do you see this going further into the future?
The "hot topics" in retail today are loyalty, unified commerce (where channels and offers are interconnected), and personalization. AI enables these three drivers to work in harmony: finding the right consumers, understanding their shopping needs, and delivering the right reward at the right time via the right channel. Brands can significantly improve their targeting models to avoid wasted marketing investment and boost ROI, which is critical in a world with tighter budgets and a high demand for performance. AI connects various datasets, creating test-and-learn programs that retailers and brands can measure, taking prompt action to enhance consumer loyalty. In summary, AI helps to: 1) connect data, 2) identify and activate the right consumers, and 3) accelerate delivery of insights and campaign performance.
It goes without saying that COVID pushed e-commerce into stratospheric rise but just as shopper habits changed, there is also a major tendency to go back to brick and mortar shops. Where do you see the GCC consumer heading when it comes to that direction?
From my experience, GCC consumers truly enjoy the physical shopping experience, as it is a social activity in the region. Currently, nearly 50% of consumers research products on their mobile devices before making a major purchase, while over 80% still use smartphones to buy online. Mobile apps continue to influence shopping behavior, but consumers expect savings and promotions from retailers and brands. There’s a growing expectation for faster and better service, including payment options, when visiting physical stores. The future will require brands and retailers to seamlessly connect offline and online services to gain a holistic view of their customers’ shopping journeys and offer personalized experiences. Brick-and-mortar stores will continue to play a crucial role in consumer engagement and sales.
In essence, shopping was for a long time, a social event. But it was also built around the one-on-one relation between buyers and sellers. The same cannot be replicated online, yet every other online store seeks to make any purchase personalized. How far deep is this in the Middle East market, considering haggling is an art and can only be done face to face?
“Haggling” is indeed an important part of the region’s shopping experience, everyone loves a deal! While traditionally done face-to-face, AI technology is now enhancing online shopping with live chats, offering a similar negotiation experience. Retailers can get creative by allowing consumers to "haggle" with a chatbot or live representative to negotiate better deals. Retailers should consider how they can bring the live shopping experience to life online through multiple channels.
Recently, luxury etailer MyTheresa purchased the YNAP chain, yet Mr Porter and Net-a-Porter who were under the YNAP umbrella were losing money, whereas MyTheresa was gaining momentum. What are the elements which would make a brand viable in the online world, and ergo be a money-maker?
One thing all online retailers quickly realize is that making a profit is challenging. Costs are rising in manufacturing, logistics, and returns, as consumers easily order multiple items to try at home, returning what they don’t want, often without paying for the returns. Online brands need thoughtful consumer engagement strategies and an immersive experience that encourage customers to buy at full price while minimizing returns. Luxury retailers must maintain a strong brand presence, building a community of brand advocates to reach new consumers. A data-driven, customer-centric approach that addresses specific customer pain points, combined with a mobile-optimized website and quality customer service, enables long-term success in luxury e-commerce.
Advertising on retailer websites, apps, and other digital touchpoints enables seamless integration of shopping and discovery, enhancing both brand visibility and conversions at the point of sale. When does a consumer go from being a target for an ad to being a shopper?
This depends on the product, service, and consumer. Advertising on social and retail media has become essential, and understanding real-time advertising impact is critical for making smart marketing investments and driving incremental sales. Converting shoppers into buyers and buyers into loyal fans requires understanding your target consumers and finding them across channels. The consumer becomes a true shopper when they start buying your product without additional advertising influence and begin recommending your brand to others—that’s a truly loyal shopper.
