A new study by global management consulting firm Oliver Wyman has revealed a significant trend among GCC consumers: 87% of them prefer a mix of online and offline channels for their shopping needs. This blend of digital and physical shopping experiences reflects the evolving landscape of the retail industry in the Middle East and North Africa (MENA) region, particularly in the GCC, characterized by a young and affluent population and high digital consumption rates.
The retail sector in the GCC is undergoing rapid transformation, blurring the lines between various industries such as retail, entertainment, hospitality, food, banking, and payments. This integration is part of the broader trend of creating ‘service clusters’ that aim to meet a wide range of customer lifestyle needs and wants. Joe Abi Akl, Head of the India, Middle East, and Africa Retail and Consumer Goods practice at Oliver Wyman, highlights the emergence of ecosystem platform players in the retail sector. He notes that these clusters are expanding their offerings and suggests significant growth potential for companies adopting an ecosystem approach, which could generate a revenue pool of USD 1 trillion across the MENA region.
Abi Akl also points out that consumers in these regions have higher expectations for tailored experiences compared to their global counterparts, by more than 30%. This heightened expectation for personalization underscores the need for businesses to adapt and innovate continuously.
However, achieving consistent and sustainable growth in the retail sector is not without its challenges. Intense competition, the rise of disruptive, digitally-driven business models, complex regional regulatory environments, and a lack of economic integration across MENA markets are some of the hurdles that Retail and Consumer Goods (RCG) organizations must navigate. To succeed, these organizations need to develop effective growth strategies that resonate with the changing consumer landscape.
In response to these evolving market dynamics, Oliver Wyman has strengthened its Retail & Consumer Goods practice in the India, Middle East, and Africa region. The firm aims to combine its global expertise in transformation and retail solutions with extensive local experience to provide strategic guidance to retail and consumer businesses looking to transform and grow.
Pedro Oliveira, Managing Partner of Oliver Wyman in India, the Middle East, and Africa, emphasized the dynamic nature of the region and the opportunities for those willing to embrace change. “It is a dynamic time in the region, and those who embrace bold change will undoubtedly reap the rewards,” he said, expressing confidence in Joe Abi Akl’s expertise to guide clients through transformative and bold strategies.
This study reflects a pivotal moment in the retail sector of the GCC, highlighting the importance of hybrid shopping experiences and the need for businesses to adapt to the changing preferences of consumers. As the region continues to evolve, companies that can effectively merge online and offline shopping experiences while offering personalized services are likely to thrive in this competitive landscape.
