Recruitment Fraud Warning: Click here for Information

Retail & Manufacturing

  • The impact of millennials on UAE's Fashion Industry
    The impact of millennials on UAE's Fashion Industry

    The Impact of Millennials on UAE’s Fashion Industry

    The revenue from the United Arab Emirate’s (UAE) fashion industry was estimated at AED 4.3 billion (USD 1.2 billion) in 2019. The values were expected to reach  AED 5.3 billion (USD1.45 billion) in 2020. However, the COVID-19 pandemic has led to a decline in sales of most in-store retailers by nearly 50%. Consequently, e-Commerce has taken the center stage in UAE with the most significant consumers that contributed towards the growth of the fashion industry were millennials (29.2%).

    As a result, many fashion retailers in the UAE are becoming digitalized due to the increased demand from the millennial consumers. According to estimates, UAE millennials on average spend between 4.5-6.5 hours browsing social media and over 51% of them make their purchases online. NAMSHI, AWOK, NOON, Brands For Less and 6th Street are some of the most popular fashion e-Commerce retailers in the country. 

    In an increasingly emerging trend, it has been witnessed that millennials prefer online shopping as it is convenient, easy and affordable compared to in-store shopping. Also, due to access to smartphones and WiFi, over 60% of millennials in the UAE research, read reviews, compare prices before purchasing a product.

    Moreover, businesses also understand the importance of social media influencers and their role in influencing purchase decisions of millennials. For instance, 63% of millennial consumers are more likely to buy a product which has been recommended by a social media influencer. Huda Kattan, Joelle Mardinian and Ola Alfares are some of the popular social media influencers in the UAE. 

    In addition to technological advancements, millennials also expect a personalized experience from fashion brands. Recently, luxury fashion marketers have evolved their marketing strategy as they understand that millennials are no longer interested in the brand name alone but also consider the consumer experience provided by brands. 

    Furthermore, due to the rising awareness of the environment, many millennials expect brands to be sustainable. Therefore, there is a spurt in the growth of sustainable brands in the UAE such as ATTUALE, The Luxury Closet but also fast-fashion retailers like H&M and Zara have become more sustainable. Overall, the millennial consumers are shaping the UAE’s fashion industry to become digitized, sustainable and also leverage e-Commerce platforms to effectively reach out to the target audience in UAE as they realize that online presence is key for success and growth in UAE.


    Research Konnection is a market research company in Dubai that assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market ResearchFeasibility Studies and Business Plan Developments. Feel free to reach out to us on hello@researchkonnection.com

  • Dubai to build Commercity to promote e-Commerce Industry
    Dubai to build Commercity to promote e-Commerce Industry  

    Dubai to build Commercity to promote e-Commerce Industry  

    Dubai – The government of Dubai has announced to build the first of its kind free trade zone dedicated for the e-Commerce industry in the region ‘Dubai Commercity’, located close to Dubai International Airport. The estimated value for the project is around AED 3.2 billion ($870 million) and covers an area of 2.1 million Sq.ft. The ‘Dubai Commercity’ aims to promote investment in the e-Commerce Industry by providing numerous benefits and exemptions to the e-Commerce players.

    e-Commerce Industry – UAE

    Driven by the strong growth in online shoppers, the UAE’s e-Commerce Industry leads the Gulf region with an estimated value of Dh 59 billion ($16 billion) in 2019 and CAGR of 13 per cent between the next few years. However, due to the COVID-19 pandemic which has influenced the online shopping behavior, the e-Commerce growth rate is likely to increase significantly as more number of consumers opt to buy products and services online. 

    e-Commerce Industry Growth – UAE

    The young Internet-savvy population with high social media usage, high disposable income and the growth in Dubai’s mobile wallet market are among the key contributing factors towards the growth of the e-Commerce marketplace in the country. As of 2019 and before the COVID-19 pandemic, 62 per cent of UAE residents were actively engaged in online shopping while e-Commerce sales constituted 10 per cent of total sales in UAE. 

    Furthermore, the Dubai government has introduced several strategies to attract foreign investors in the e-Commerce Industry. One of such Strategies is the announcement of Dubai Commercity, a dedicated free-zone for the e-commerce Industry.

    Dubai Commercity

    The Dubai Commercity is considered to be the first of its kind in the region. The site is a joint venture between Dubai Airport Freezone Authority (DAFZA) and Al Wasl Properties. The Dubai Commercity will have three major clusters namely; Business, Logistics and Social Cluster. 

    The Business cluster will accommodate 12 office buildings that promise modern facilities and sustainable design for companies of varying size while the Logistics cluster will consist of heavily automated AI (Artificial Intelligence) warehouses and storage facilities. The Social cluster will consist of restaurants and cafes. The e-Commerce businesses that will be registered with the free-zone will benefit from “one-stop shop” services inclusive of immigration, administration, banking and healthcare. The facilities are expected to be operational in November 2020, while the project will be fully functional by the end of 2023.

    Dubai Commercity – Future Potential

    The developers mentioned that the situation arising from the COVID-19 has been one of the major factors that has led to the conceptualization of Commercity in Dubai. The on-going Coronavirus pandemic is expected to further fuel the growth of the industry and the investment in the e-Commerce industry will pay off as the Dubai and UAE market is set for explosive growth amid rapidly changing online consumer buying landscape. 

    Read: UAE Economic Strategy & Response Plan 2020 (COVID-19)


    Research Konnection is one of the leading market research companies in Dubai that assists local and international companies to set up or expand businesses in Dubai, Abu Dhabi and UAE. At Research Konnection, we specialize in Market Research, Feasibility Studies and Business Plan Development. Feel free to reach out to us on hello@researchkonnection.com

  • UNION COOP ANNOUNCES DH 94M COMMERCIAL CENTER IN DUBAI SILICON OASIS
    UNION COOP ANNOUNCES DH 94M COMMERCIAL CENTER IN DUBAI SILICON OASIS

    UNION COOP ANNOUNCES DH 94M COMMERCIAL CENTER IN DUBAI SILICON OASIS

  • The Fastest Growing Sector in UAE – e-Commerce
    The Fastest Growing Sector in UAE – e-Commerce

  • Emaar to build Dh10 bn ‘tech-embedded’ Dubai Square Mall
    Emaar to build Dh10 bn ‘tech-embedded’ Dubai Square Mall

  • Dubai to Focus on Seamless Transactions
    Dubai to Focus on Seamless Transactions

    Dubai to Focus on Seamless Transactions

  • The Restaurant Show Middle East - F&B Event Concludes in Dubai
    The Restaurant Show Middle East - F&B Event Concludes in Dubai

    The Restaurant Show Middle East – F&B Event Concludes in Dubai

  • Dubai Food Festival 2018 Promotes Dubai As An Emerging Culinary Destination Globally

    Dubai Food Festival 2018 Promotes Dubai As An Emerging Culinary Destination Globally

  • Nakheel’s Dh 6 Billion Deira Mall to be the biggest in Middle East

    Nakheel’s Dh 6 Billion Deira Mall to be the biggest in Middle East

  • Gulfood 2018 Underlines Dubai’s Lead Role in Global Food Industry
    Gulfood 2018 Underlines Dubai’s Lead Role in Global Food Industry

    Gulfood 2018 Underlines Dubai’s Lead Role in Global Food Industry

Contact Us

X