Competing with the web giants
Despite the rise of online shopping, UAE retail websites charge up to 50 percent more than their US counterparts. A strong ‘mall culture’ and poor postal service are also holding back the fledgling industry.
January 14, 2010 2:16 by Ben Flanagan
However, Dokakis says that as the market matures and consolidates, the consumer could benefit from more competitive prices. “I think the niche sites will be [as competitive as Amazon]. At the moment there are so many small gift sites, and I think in the next few years they’re going to be bought up, and there will be one or two doing really well.”
Dokakis claims that QuickDubai’s margins have doubled since it launched in 2006. And so, given the convenience of internet shopping, it could be that online retail sites start to combat the entrenched ‘mall culture’ in the years to come.
Online retail: the UAE Vs US – see how the sites compare on the next page.