Booming UAE e-commerce market spurs changes in distribution business
Revenue in the UAE's e-commerce market is projected to grow at 8.39 per cent from $33.97 billion (Dh125 billion) in 2025 to $46.88 billion (Dh172 billion) by 2029, according to a report by Statista.com, a global online market intelligence provider, as consumers in the UAE are enjoying the benefits of e-commerce and digital payment.
Sale and distribution of goods – both wholesale and retail – are fast shifting to the online space due to a change in consumer behaviour in digital payments that is expected to grow at a compound annual growth rate (CAGR) of 13.80 per cent from $80.37 billion (Dh295 billion) this year to $134.80 billion (Dh495 billion) in 2029, according to a research report.
To cash in on this trend, Blue Ocean Global Group, a Dubai-based distributor of electronics, household appliances and consumer goods, has shifted its business model to completely cater to online distribution and e-commerce.
More than 80 per cent of the company's topline revenue now comes from online distribution and e-commerce. It has its presence in Saudi Arabia, which has higher consumer spend caused by the country's massive economic diversification and development plan.
'More than 6.5 million, or 65 per cent of the UAE population shop online in 2023 as suppliers and distributors shift to e-commerce space in the UAE and GCC. Blue Ocean Global Group has sharpened its focus to online distribution channels due to high market demand,' Shahzad Ahmed, Chairman of Blue Ocean Global Group, says. 'Driven by the convenience of fast delivery, ease in payments, transparency and customer convenience, the UAE consumers are increasingly using online purchase for their regular needs.'
Founded in 2013, Blue Ocean Global is a leading e-commerce distributor in the Middle East, with headquarters in Dubai. It has offices in Saudi Arabia.
'Our shift to online distribution is a natural move in line with the market dynamics and we are currently expanding the online distribution to the rest of the GCC region, especially Saudi Arabia where we see a massive growth opportunity,' says. Rohit Savara CEO of Blue Ocean Global Group
The online distribution and e-commerce business took off in the UAE and the GCC region during the Covid-19 pandemic and have been growing at a faster pace since then. 'The UAE is the region's leader in e-commerce business. Due to this, we have also shifted our focus on the online space. Our distribution of household appliances, telecom, electronic and electrical products and accessories, has grown over the last few years. The growth in online distribution has jumped quite a lot,' Ahmed said.
As one of the largest online distributors of electronics, household appliances, and consumer products, Blue Ocean Global holds brand sales and distribution rights for globally renowned brands such as NEC, Mitel, Gigaset, Black + Decker, Double AA, Kodak, Toshiba, Godrej, Rasasi, Philips, and many more.
It operates through sales channels, E-commerce, business-to-business, and regional distribution. It services consumers of premium quality brands in over 40 countries across Middle East, Africa, South Asia, United Kingdom, and European Union.
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