Dubai - Mubasher: Despite the increase of online shops owing to the meteoric rise of e-commerce, physical stores still has the lion’s shares of the market, Niranjan Gidwani, Eros Group’s CEO, stated.
He added that e-commerce makes up only 5% of the UAE’s consumer electronics retail business because customers prefer physical shops when buying certain products.
“Consumers find online shops ideal channels when shopping for smartphones or accessories, but look to traditional channels for appliances and televisions,” the top official remarked.
Logistics costs, returns, and other charges raise the online stores’ products, while several traditional retailers shut down their shops, online players as Amazon are working on opening physical stores, Gidwani explained.
Online retails are not the only challenge affect physical stores, but they are accompanied by many factors, including market saturation and price schmes, the CEO noted.
“Each retailer will have to find the right path to reach customers. We try to blend the two channels, as we already have a traditional set-up with a well-structured logistics format,” Gidwani revealed.
