Dubaiuncovered

Title: Electronics Sales in MENA Region Continue to Thrive Despite Global Slowdown

Published: Mon 30 Oct 2023, 6:23 PM

Middle East and North Africa (MENA) region has witnessed significant growth in electronics sales, even as the global electronics market has slowed down due to inflation and rising component prices, according to a report released on Monday.

Data from the Admitad affiliate network shows that in 2023, MENA shoppers made seven percent more orders in the electronics segment and spent five percent more on them. This growth rate aligns with the global growth rate of nine percent.

The report, which analyzed over nine million global online orders across 360 brands, also examined more than 600,000 MENA online orders of over 144 local brands and branches of global companies. Notable brands included Canon, Dyson, Huawei, XP Pen, Alibaba, and others.

The global electronics industry has faced several challenges in recent years. Rising production costs have compelled manufacturers to increase prices, while rampant inflation in many countries has made consumers hesitant to make expensive purchases. Moreover, counterfeit devices imitating leading brands have also posed a threat to the industry.

However, positive factors have enabled online sales in the electronics industry to outpace the industry’s estimated growth rate of four to six percent for 2023. These factors include the overall development of e-commerce, growing digitalization, convenient delivery methods, marketing efforts, and the increasing number of mobile orders.

Although orders grew by nine percent, the amount shoppers are willing to spend on electronics only increased by five percent in 2023. Inflation has played a role in inflating average order value, resulting in shoppers opting for cheaper alternatives or repairing individual components instead of buying new devices. The average purchase value has dropped from $85 to $68, taking into account inflation.

The MENA region has shown positive trends despite the challenges faced by the global electronics industry. The number of online electronics sales grew by seven percent in 2023, with a five percent increase in spending. Moreover, mobile orders rose from 34 percent to 41 percent, highlighting the high digital literacy of MENA users.

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

To attract sales, Mena brands and marketplaces primarily utilized affiliate stores (23 percent), content platforms, and online media (21 percent), and groups and blogs on social media (15.4 percent). Other channels included contextual and targeted ads, cashback services, coupon sites, external mobile apps, and other avenues.

Sales through third-party mobile apps witnessed significant growth in 2023, with the number of electronics sales doubling. Additionally, sales through affiliate stores jumped by 62 percent.

Admitad’s experts predict continued growth in the online sales of the electronics industry in 2023, with a positive outlook for the MENA market. Brands should consider industry trends while strategizing for the upcoming sale season, including events like White Friday and Cyber Monday, to maximize sales opportunities.

As brands compete fiercely for customer attention, fixed-price marketing solutions like partner marketing are gaining popularity, with a 34 percent increase in Mena electronics brands utilizing affiliate marketing in their strategies. Admitad experts believe that focusing on these strategies will result in further growth for the industry in the coming year.