Perhaps the most significant of all recent developments in retail is the growth and progress of e-commerce. According to a joint study by Dubai Economy and Visa [1], the UAE is currently the most advanced e-commerce market in the Middle East and North Africa, revealing an estimated annual growth of 23% between 2018 and 2022. While customers continue to enjoy the ‘destination shopping’ aspect of visiting a physical store, COVID-19 has encouraged many people to try e-commerce for the first time. This jump in online users is not expected to reduce.

A recent study of ten markets in the region [2], including the United Arab Emirates and Saudi Arabia, revealed that up to 40% of respondents are now shopping online more than they were before the novel coronavirus outbreak.

Research commissioned by the global consultancy firm Kearney Middle East asked consumers if they would maintain their current shopping behaviours after the pandemic: 48% in the UAE and 69% in Saudi Arabia answered ‘yes’. This behaviour usually translates to shopping that is less frequent and more planned, with bigger online grocery purchases.

Moreover, the World Economic Forum [3] has estimated the UAE’s 2020 e-commerce market at $27.2bn, with similar growth across MENA.

As we monitor shifting consumer expectations during these times of crisis, we can witness new technologies and online platforms gaining prominence. Preliminary data suggests that these trends will remain as the new normal, even after the pandemic has subsided. The retail sector must prepare for the impact of technologies such as artificial intelligence (AI), robotics and the internet of things (IoT). These high-tech developments are at the core of the Fourth Industrial Revolution, and no sector will be immune to their advancements. In our opinion, this time will be looked back on as a watershed moment.

Supply Chain optimisation enabling a better e-commerce solution

Transitioning retail supply chains to support e-commerce is not a quick fix; it requires careful planning and a clear strategy for implementation. Many retailers do not have their physical operations set up to match the digital processes and service requirements for running an e-commerce business. A beautiful, glossy online store is all very well, but for this kind of transformation, it is essential to have supply chain leadership from people with both digital experience and hands-on supply chain expertise.

Traditional retailers need significant investment to ensure that warehousing facilities and workflows are suitable for managing e-commerce fulfillment and last mile logistics. Investments in technology will provide end-to-end visibility, while the use of AI and Robotic Process Automation will improve speed and efficiency in analysing data and managing administrative tasks. Investment in robotics and warehouse automation is a key requirement, and we are already seeing a marked increase in activity.

One of the key statistics shared in the Q1 2020 Supply Chain Tech analyst report from financial data and software company Pitchbook is that investment in warehouse robotics technology start-ups was $381 million in the first quarter of 2020, a 57% increase from the same quarter in 2019. 

When it comes to managing fulfillment and last mile deliveries and returns, creating an exceptional customer experience is critical to success from initial order to delivery. The ‘Amazon effect’ has created very high customer expectations; today’s consumers expect full visibility of their order, they expect it to be accurate and they want it fast. Moreover, they expect a level of customer service that is second to none.

An added challenge has been brought about by the COVID-19 crisis, where social distancing measures in warehouses and fulfillment centres are slowing workflows and negatively impacting turnaround speed, the solution is to be found in the smart use of technology alongside the human work force.

Will virtual shopping become the future?

Many consumers are now trying online shopping for the first time, either to avoid possible COVID-19 exposure, or to avoid the new reality of socially-distanced brick-and-mortar shopping altogether.

With the shift to e-commerce accelerating due to the COVID-19 lockdowns, it is time for retail brands to consider the next evolution of retail marketing, Augmented Reality (AR). Forward-looking companies are already developing these solutions and working with big-name retailers in different sectors while others are in deep discussions or working towards pilots. The implications of virtual reality for shopping are substantial; shoppers can put on a headset and enjoy the in-store experience from their own couch. We have seen an outstanding amount of innovation over the past few months, with retailers increasingly using technology to help online customers visualise themselves trying out luxury products.

According to a recent Deloitte report [4], the COVID-19 pandemic will force nearly all business to move towards virtual sales. This shift will not only safeguard short-term revenues and profits, but also move companies beyond the current anomalous situation, and enable long-term profitable growth. We have already seen AR try-on tools for make-up, sunglasses, clothing and even homewares.

Gucci has recently embraced AR virtual platforms in its collaboration with Snapchat, allowing consumers to use Snapchat filters to virtually try on Gucci shoes, and see how they look with an outfit. This Gucci/Snapchat campaign highlights the potential of AR for different e-commerce applications, and is available in the UAE, KSA, UK, US, France, Italy, Australia & Japan.

Diesel recently introduced its Hyper Room, a 360-degree digital platform which offers the ultimate virtual buying experience and exhibition space. Diesel CEO Massimo Piambini believes they have set a new industry benchmark for digital transformation.

The Middle East mall experience: here to stay

However, predicting the post-COVID retail landscape is not simple. We anticipate the emergence of a hybrid shopping experience combining online and physical stores, because technology has not yet reached the point where consumers can experience texture in a virtual environment; we cannot touch, feel, smell or interact with products online. It is also worth mentioning the important social role that malls play in the Middle East, especially during the hot summer months. Individuals, couples, families, and groups of friends will continue to visit the malls for shopping, dining, entertainment – a chance to stretch their legs and socialise whilst respecting social distancing in large air-conditioned environments.

Digital shopping will never replace the experience of physically interacting with a product, but with more people looking to buy online more often, providing additional context through digital means is a smart way to go. Provided that the supply chain is properly set up to support both online and physical stores, it’s a winning strategy.

March 16, 2020 – Vienna, Austria – Pedersen & Partners, a leading international Executive Search firm with 54 wholly owned offices in 50 countries, is pleased to announce that Katharina Kaiser has been promoted to the position of Country Manager for Austria. Josef Buttinger, who has led the Vienna office since he joined the firm in 2015, will move on to global Industrial Practice and will focus on developing the client network and business in addition to supporting clients headquartered in Austria with their global expansion plans through our consolidated Industrial Practice Group.

Katharina Kaiser has over fifteen years of expertise acquired in international Executive Search companies, having successfully completed over 200 senior-level and executive-level regional search assignments during her career. Ms. Kaiser has a wealth of experience in C-level assessment and recruitment of senior professionals in Austria and throughout Europe, with a focus on the Industrial, Consumer Goods and Retail sectors.

“Katharina joined Pedersen & Partners in February 2012, and has been a valuable team member and colleague throughout these years – partnering and collaborating with teams across the firm and embodying our values every step of the way. She constantly cooperates with many of our consultants across the globe, supporting clients mainly in the areas of FMCG, Retail and Industrial. Katharina’s mandate will be to take our current Vienna team and business to the next level, building the local business further and enhancing cross-border collaboration, while expanding the team and adding new capabilities,” stated Petra Grabmayer, Partner and Country Manager for the Czech Republic at Pedersen & Partners.  

“I’m excited to start a new chapter of my journey with Pedersen & Partners, in the year that marks our sixteenth anniversary on the Austrian market. We have built a solid reputation with an excellent team and a track record of successul assignments for regional and global clients. As a Country Manager, my goal will be to adapt our transformation efforts and continue to advance the established direction of growth. I look forward to ensuring seamless collaboration between my team and our global offices for the benefit of our clients,” added Katharina Kaiser, Country Manager for Austria at Pedersen & Partners.

If you would like to conduct an interview with a representative of Pedersen & Partners, or have other media-related requests, please contact: Diana Danu, Marketing and Communications Manager at: diana.danu@pedersenandpartners.com

September 20, 2019 – Kuala Lumpur, Malaysia – Pedersen & Partners, a leading international Executive Search firm with 57 wholly owned offices in 53 countries has added Jenny Wong as a Client Partner in Kuala Lumpur, Malaysia.

Jenny Wong is an accomplished Executive Search and management consulting expert with over 28 years’ worth of work in serving large multinational clients and regional conglomerates covering the Technology, Telecommunications, Financial Services, Professional Services, Property, Oil & Gas, Manufacturing, FMCG, and Retail industries across Asia Pacific. Over the years, Ms. Wong has built a strong reputation and a deep network of relationships with clients and has expanded her repertoire of skills to Board Services, Leadership Assessment, and Succession Planning. Prior to joining Pedersen & Partners, she was a key member of the Global Technology & Global Financial Services Practice Groups and was also the Lead for the Executive Search business in Malaysia for a top-tier global Executive Search company. Ms. Wong also worked at such globally renowned firms as Accenture, KPMG, and Euro Group International, and founded her own consulting practice with core business in Executive Search, Outplacement, and Psychometric Assessment.

“Asia Pacific is constantly increasing its demand for global executives who are attuned to the business, social, economic, and performance requirements imposed by the market realities. At Pedersen & Partners, we are ideally placed to meet this need by bringing together a top-performing team of experienced consultants who have a deep understanding of the markets and industry sectors. We place great emphasis on convening the “Best Team Forward” for each of our clients, and Jenny Wong has the perfect balance of market knowledge, industry expertise, and executive search experience to be a great fit for our firm. Jenny will help steward the expansion of Pedersen & Partners’ presence in Malaysia and across the entire APAC region,” stated Gary Williams, Chief Executive Officer at Pedersen & Partners.

“I’m enthusiastic about joining Pedersen & Partners and adding a new milestone to my Executive Search and Board consulting experience portfolio. The firm’s Technology, Financial, and Professional Services practices have assembled strong teams of search professionals with experience in different countries, providing a multicultural and diverse vision about the needs of these sectors. I look forward to joining forces with them and supporting clients across the Asia Pacific region,” added Jenny Wong, Client Partner at Pedersen & Partners.

Pedersen & Partners is a leading international Executive Search firm. We operate 57 wholly owned offices in 53 countries across Europe, the Middle East, Africa, Asia & the Americas. Our values Trust, Relationship and Professionalism apply to our interaction with clients as well as executives. More information about Pedersen & Partners is available at www.pedersenandpartners.com.

If you would like to conduct an interview with a representative of Pedersen & Partners, or have other media-related requests, please contact: Diana Danu, Marketing and Communications Manager at: diana.danu@pedersenandpartners.com

Consumer & Retail Practice Group

The unprecedented technological disruption of the Consumer & Retail industry has sharpened the realisation of consumer-driven companies that their true competitive edge is built through people. More than ever before, consumer product companies need to make the right executive appointments: visionary leaders who are strategic, adaptive, innovative, disciplined, collaborative, and with a keen awareness of the paramount importance of technology in driving the business forward.