Connect with us

Business Insights

MENA Electronics Sales Continue to Thrive Despite Global Slowdown

Shoppers in the MENA region placed 7% more orders in the electronics category and paid 5% more on these transactions.

The Middle East and North Africa (MENA) region is experiencing significant growth in electronics sales, contrasting with the global trend of slowing electronics sales due to inflation and rising component prices, as revealed in a report.

Data from Admitad Affiliate Network:

Data from the Admitad affiliate network shows that in 2023, shoppers in the MENA region placed seven percent more orders in the electronics segment and spent five percent more on these purchases. 

This growth rate aligns with the global growth rate of nine percent.

Admitad’s study analyzed over nine million global online orders across 360 brands. 

The report also examined over 600,000 online orders in the MENA region involving more than 144 local brands and local branches of global companies, including well-known brands such as Canon, Dyson, Huawei, XP Pen, and Alibaba.

Challenges in the Global Electronics Market:

The global consumer electronics market has faced numerous challenges in recent years, including rising production costs leading to price increases, global inflation affecting consumer spending, and counterfeit devices posing competition to leading brands.

Positive Factors for Online Sales Growth:

Despite the challenges, online sales in the electronics industry have outpaced the industry’s key growth rate, which global experts estimate to be four to six percent for 2023. Factors contributing to this include:

  • The overall development of e-commerce.
  • Increasing digitalization.
  • Convenient and fast delivery methods.
  • Marketing efforts by online marketplaces.
  • The growing number of mobile orders.

Impact of Inflation:

While online electronics orders have grown by nine percent, the amount shoppers are willing to spend on electronics has only increased by five percent in 2023. 

In light of inflation, which inflates the average order value, shoppers are opting for cheaper alternatives, delaying purchases, or opting for component replacement and repair instead of buying new devices. 

The average purchase value has dropped from $85 to $68.

Positive Trends in MENA:

Despite the challenging global environment, the MENA region is exhibiting positive trends. Online electronics sales 2023 grew by seven percent, and spending increased by five percent. 

The average order value marginally decreased from $51 to $49. The high digital literacy of MENA users is evidenced by the significant share of mobile orders, which rose from 34 percent to 41 percent this year.

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

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending