Online sales of electronics in Mena grew by 7% in 2023 – News

Region’s shoppers defy subdued global trends

Electronics sales in the Middle East and North Africa (Mena) region continue to grow, despite the fact that global electronics sales have slowed down significantly due to inflation and rising component prices, a report showed on Monday.

According to data from the Admitad affiliate network, in 2023 Mena shoppers made seven per cent more orders in this segment and spent five per cent more on them. This growth rate is aligned with the pace of global growth at 9 per cent.

As part of the study, Admitad analysed more than nine million global online orders across more than 360 brands. The report also examined more than 600,000 Mena online orders of more than 144 local brands and local branches of global companies, including such well-known brands as Canon, Dyson, Huawei, XP Pen, Alibaba and many others.

Challenges of the global electronics industry

The global consumer electronics market has faced many challenges in the last couple of years. Rising production costs have forced many manufacturers to increase prices, and rampant inflation in dozens of countries around the world has made consumers even more hesitant to buy the next smartphone, laptop or graphics card. In addition to that, the industry is under pressure from a growing sector of counterfeit devices imitating the products of leading brands.

There are also positive factors that have enabled online sales of the electronics industry to outpace the industry’s key growth rate, which global experts estimate at four to six per cent for 2023. The more favourable state of affairs online has been influenced by the overall development of ecommerce, growing digitalisation, convenient and fast delivery methods, marketing efforts of online marketplaces and the growing number of mobile orders.

It is important to note that with orders growing at 9 per cent, the amount shoppers are willing to spend on electronics has only grown by 5 per cent in 2023. “When you factor in inflation, which inflates average order value, it’s clear that shoppers this year are opting for cheaper counterparts or forgoing large purchases altogether, putting them off or replacing and repairing individual components instead of buying a new device. The average purchase cheque this year has dropped from $85 to $68,” a spokesperson said.

Mena trends

Despite the challenging global environment, Mena trends are positive. The number of online electronics sales in 2023 grew by 7 per cent and the amount spent by 5 per cent. The average order value marginally decreased from $51 to $49. The high digital literacy of Mena users is evidenced by the high share of mobile orders, which rose from 34 per cent to 41 per cent this year.

The cities with the highest share of online electronics orders in 2023 are Dubai, Tel Aviv, Riyadh, Abu Dhabi, Jeddah, Ramat Gan, Petaẖ Tiqwa, Istanbul, Sharjah and Kuwait City.

Fighting for clients

According to Admitad’s calculations, the main channels through which Mena brands and marketplaces successfully attracted sales in 2023 were:

(by share in total number of sales)

Affiliate stores – 23 per cent

Content platforms and online media – 21 per cent

Groups and blogs in social media – 15.4 per cent

Contextual and targeted ads – 10.5 per cent

Cashback services – 10.2 per cent

Coupon sites – 7.4 per cent

External mobile apps – 3.2 per cent

Other – 9.3 per cent

Sales through third-party mobile apps showed significant growth in 2023 — the number of electronics sales through them doubled. Sales through affiliate stores jumped by 62 per cent — it is an especially significant increase considering their dominance in the share of sales.

Mena buyers also paid more attention to recommendations of content platforms and media this year – the number of sales through this channel increased by 12 per cent.

The price of attracting customers through all traditional channels continues to grow – amid the excitement, brands are fighting for every click. Against the backdrop of such fierce competition, fixed-price marketing solutions for customer acquisition – for example, partner marketing – are growing in popularity. In 2023, the number of Mena electronics brands using affiliate marketing in their strategy increased by 34 per cent.

Admitad experts maintain moderately positive forecasts for the growth of online sales of the electronics industry in 2023 and believe that the Mena market will continue to grow. Of key importance for the industry is the upcoming sale season – it is important for brands to take into account the trends in the industry to attract maximum sales during White Friday and Cyber Monday.

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