Region’s Shoppers Defy Subdued Global Trends as Electronics Sales Continue to Grow

In a report released on Monday, it was revealed that electronics sales in the Middle East and North Africa (Mena) region are still on the rise, despite a significant slowdown in global electronics sales. The slowdown can be attributed to inflation and rising component prices. The data, collected by the Admitad affiliate network, shows that Mena shoppers made 7% more orders in the electronics segment in 2023, spending 5% more on them. This growth rate is aligned with the global growth rate of 9%.

To conduct the study, Admitad analyzed over nine million global online orders from more than 360 brands. The report also examined over 600,000 Mena online orders from more than 144 local brands and local branches of global companies, including well-known brands like Canon, Dyson, Huawei, XP Pen, Alibaba, and many others.

The Global Electronics Industry Faces Challenges

The global consumer electronics market has faced numerous challenges in recent years. Rising production costs have forced manufacturers to increase prices, and inflation in many countries around the world has made consumers hesitant to invest in new gadgets. Another challenge comes from counterfeit devices that imitate leading brands’ products.

Despite these challenges, online sales in the electronics industry have surpassed the industry’s key growth rate, estimated by experts to be between 4% and 6% for 2023. Several positive factors have contributed to this growth, such as the development of e-commerce, increased digitalization, convenient and fast delivery methods, marketing efforts by online marketplaces, and the growing number of mobile orders.

It is important to note that while orders have grown by 9%, the amount shoppers are willing to spend on electronics has only increased by 5% in 2023. A spokesperson from Admitad stated, “With inflation factored in, it is clear that shoppers this year are opting for cheaper alternatives or postponing large purchases. They are also more likely to replace and repair individual components instead of buying new devices. The average purchase value has dropped from $85 to $68.”

Positive Trends in the Mena Region

Despite the challenging global environment, the Mena region has shown positive trends in electronics sales. In 2023, the number of online sales grew by 7%, and the amount spent increased by 5%. The average order value slightly decreased from $51 to $49. The high digital literacy of Mena users is evident in the significant increase of mobile orders from 34% to 41% this year.

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.

Competition for Customers

According to calculations by Admitad, the main channels through which Mena brands and marketplaces successfully attracted sales in 2023 were:

– Affiliate stores – 23% share in total number of sales
– Content platforms and online media – 21% share
– Groups and blogs in social media – 15.4% share
– Contextual and targeted ads – 10.5% share
– Cashback services – 10.2% share
– Coupon sites – 7.4% share
– External mobile apps – 3.2% share
– Other – 9.3% share

Sales through third-party mobile apps and affiliate stores showed significant growth in 2023, with the number of sales doubling. Mena buyers also paid more attention to recommendations from content platforms and media, resulting in a 12% increase in sales through this channel. As competition increases, brands are fighting for every click, leading to a rise in the price of attracting customers through traditional channels. Fixed-price marketing solutions, such as affiliate marketing, are gaining popularity, with a 34% increase in Mena electronics brands incorporating it into their strategies in 2023.

Admitad experts maintain moderately positive forecasts for the growth of online sales in the electronics industry in 2023. They believe that the Mena market will continue to grow. The upcoming sale season, including events like White Friday and Cyber Monday, will be crucial for brands to attract maximum sales. It is essential for brands to consider industry trends and adapt their strategies accordingly.