Nothing under the sun is indeed new. However, as technology advances, so do our approaches to timeless ideas. E-commerce stores replaced physical stores, and virtual try-ons with augmented reality are helping customers decide on product purchases across categories like fashion, appeals, home decor, beauty & personal care, etc. Among these categories, the beauty and personal care segment is blossoming in the Middle East region with high demand for luxury skincare and beauty products with stiff competition between local brands and global giants.
The segment is no longer an exclusive segment but a regular need. The Middle East region which covers the dynamic market of the UAE, and the Kindom of Saudi Arabia, are highly profitable digital landscapes. However, to stay ahead must use eCommerce analytics to stay ahead of the competition and satisfy changing customer needs.
The Rise of Beauty and Personal Segment And Need for E-Commerce Analytics
According to Statista the revenue generated in the Beauty & Personal Care Market in UAE is projected to reach US$1,218.00m in 2024. Furthermore, in the beauty & Personal Care market, it is estimated that 24.1% of the total revenue will come from online sales by 2024.
Middle East Region E-com Analysis
Local and foreign visitors make up a sizable portion of the consumer base in the major urban cities like Dubai and Abu Dhabi account for most of the UAE’s cosmetics product market.
The region’s beauty and personal care products market is forecasted to grow from $23.30 billion this year to USD$28.40 billion by 2028.
The market can be segmented based on product type, distribution channel, and price range. The product types include skincare, haircare, makeup, fragrances, and other personal care items.
Fig. 1.0: Beauty and Personal Care Segment
The beauty and personal care market in the Middle East is expected to grow significantly by 2030, with a steady annual growth rate of 7.2%.
Market Restraints
Competition from Counterfeit Products: The market is confronted with the problem of counterfeit cosmetics, which puts consumers’ health at risk. The presence of counterfeit products damages legitimate brands’ reputations and erodes customers’ confidence in brands.
As the digital e Commerce market restraints its best practices, how do you stay ahead of the curve?
As beauty brands focus on launching new products, they should also incorporate fundamental changes in such a competitive market to ensure their e-commerce brand stands out.
The Role of eCommerce Intelligence in the Market
Data is the new currency in the world of e-commerce. You can gain valuable insights into customer behavior, preferences, and trends by using analytics. eCommerce analytics helps brands adapt to market trends, target the right consumers, and stay ahead of the competition.
Understanding the customer’s journey and preferences is crucial for effective marketing. It enables brands to segment their audience based on share of voice, purchase history, and sentiment analysis allowing for personalized marketing campaigns.
This targeted approach increases the likelihood of converting potential customers into loyal ones.
What is the Future of e-commerce in the Middle East?
The future of eCommerce greatly depends on well-connected, digitally savvy audiences. And the Middle East has it all!
The statistics and trends show that Internet penetration is close to 90%, and 70% of users already purchase products through the internet. This is a great target audience of potential buyers for brands. In general, approximately 85% of all buyers are tech-savvy.
Tracking trends and competition with e-commerce intelligence
To navigate the complexities of the eCommerce landscape with e-commerce intelligence mScanIt, a comprehensive solution adaptive to market trends covering the awareness phase, consideration, and purchase phase
mScanIt optimizes the entire eCommerce customer journey covering a wide range of metrics, including keyword share, availability, pricing & content optimization, e-com ad banner analysis, delivery TAT, sentiment analysis, seller analysis, etc.
The Path Forward
The beauty and personal care market in the Middle East presents immense opportunities for brands. However, to take advantage of this profitable market, companies must use eCommerce analytics to satisfy changing customer needs. Solutions like mFilterIt’s mScanIt provide the strategic approach needed to navigate this dynamic market, ensuring brands can adapt, compete, and thrive.
Get in touch to learn more about eCommerce Analytics in the Middle East.
