LNME
E-COMMERCE
A BITE OF THE ECOMMERCE MARKET Dubai’s food producers see a lucrative appeal is taking their business online as more and more consumers head to the digital space to purchase goods and services
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paradigm shift in food manufacturing is under way, as local producers bolt-on eCommerce platforms to capitalise on a booming market to offer consumers everything from dates to baked goods at wholesale prices. It comes against the backdrop of an invisible virus that caused havoc to global supply chains and sent online sales skyrocketing as shoppers moved online to make daily purchases. For many companies that experienced forced closure of customer-facing branches, such as nonessential shops and restaurants, eCommerce was the only way to ensure their survival during the pandemic. 18 | LOGISTICS NEWS ME | AUGUST 2021
Last year, over two billion people across the globe purchased goods or services online, and the total value of eRetail sales surpassed USD4.2 trillion. Moreover, a third of UAE consumers have been shopping online more frequently following the outbreak of COVID-19. Product categories that reported the greatest surge in purchases initially included health supplies, especially personal protective equipment, as well as electronics required for remote working and home entertainment. As the pandemic wore on, food and beverages, alongside home improvement goods and personal care products saw boosted online sales.
BENEFITS OF GOING ONLINE In a bid to strengthen their offerings and expand their reach in the UAE market, local food producers based in Dubai Industrial City, one of the largest industrial hubs in the region, have realised the benefits of going digital. Dofreeze, a packaged bakery snack company that exports products to over 50 countries, rolled out its eCommerce site in April 2020. But it was not until September that the brand saw an increase in sales. Following healthy demand, the company plans to expand its offering with a wider product selection and greater visibility. It does, however, admit to facing “a challenge” in finding a third-party logistics delivery service that covers all areas. “We have always tried to set a high standard when it comes to innovation in the baked snack market and introducing an easier way for customers to buy our products seemed like an obvious way to do that,” says Aamer Fayyaz, CEO at Dofreeze. “Whether it is cookies, brownies, or everything in-between, providing a wide range of delicious bakery goods at competitive prices with more convenience is extremely important to us. We’re delighted to have made many of our delicious treats available online and look forward to expanding our range in the coming months as more regional consumers embrace eCommerce.” INCREASING BOTTOM LINE Meanwhile, Barakat, a local market leader in fresh juices and pre-packaged fruits and vegetables, whose newly redesigned packaging is a staple on the shelves of every reputable supermarket in the UAE, witnessed a much more pronounced impact on its bottom line. A stalwart of the regional market since its inception in 1976, the company launched its e-commerce platform www. barakatfresh.ae in April 2018 and added an app on iOS and Android in August 2020 to enhance convenience for mobile users. In 2020, after the pandemic struck, the brand saw its business quadruple compared to the previous year, and the momentum continues to date. Under the tagline ‘Best of Fresh’, Barakat stocks more than 800 varieties of fruits and vegetables from around the world, WWW.CBNME.COM
