Alshaya to expand customer base with Noon acquisition
Alshaya, one of the largest franchise operators in MENA, has acquired a stake in Noon for the value of $1 billion.
The acquisition will enable Alshaya to become a seller on Noon’s marketplace platform with a list of international brands covering fashion, health, home&lifestyle and beauty in addition to others.
“We see great value in our partnership with Noon, which complements our existing online channels,” said Mohammed Alshaya, the executive chairman of Alshaya.
“Our partnership with Noon will allow us to expand our customer base, reach new market segments, and participate in the next level of growth in regional e-commerce.”
AMEinfo has reached out to the communications department of Alshaya and it’s awaiting their comment.
Noon had issued a statement earlier this year saying that the site will launch in January but then it decided to postpone launching its operations until later this year.
Noon is expected to launch with over 20 million products.
“Noon brings a new business model for e-commerce, developing a strong supply chain that benefits regional businesses. We will work with the region’s leading brands and retailers to help them grow their business through Noon,” Mohamed Alabbar, founder of Noon.
Middle East Retail statistics
Less than 3 months ago, Amazon has completed its acquisition of e-commerce firm Souq.com, which was first announced at the end of March and sees the U.S. retail giant enter the Middle Eastern market.
According to a survey by pwc, the leading professional services networks in the world, 51 per cent of this year’s respondents said they had never shopped with Amazon which paints a picture of an investable Middle Eastern market ripe with opportunities.
The study by Pwc noticed a gradual trend increase ‘year-on-year’ in shoppers who are frequently shopping online. The increase in monthly online customers has risen 6 per cent from 23 per cent in 2013 to 29 per cent in 2016.
When Pwc asked respondents about their motivation for buying online, 40 per cent stated that it was due to lower pricing and 31 per cent said it was due to the product selection, while only 17 per cent cited convenience compared to buying instore.
“In contrast, 36 per cent of respondents globally stated lower price and convenience as their motivation, which suggests that there is a significant opportunity for Middle Eastern e-retailers to further develop and enhance the convenience of their service,” according to the study.
The study said most of those surveyed preferred to buy books, music, movies and video games online, followed by consumer electronics and sports and outdoor equipment. Fashion and cosmetics did not show among the top five products purchased online in this region.
Interest in shopping TV channels
Online and other retailers have also showed great interest in shopping TV channels and not online platforms solely.
Less than a week ago, one of China’s largest full-media retail platforms, Global Home Shopping Co, announced it has signed a strategic agreement to acquire a 51 percent stake in citruss TV, the Arab world’s first dedicated home shopping TV channel and the premier full-media retail destination in the Middle East and North Africa (MENA).
“citrussTV has been the pioneer of the TV home shopping industry in the Middle East and North Africa, offering the ultimate shopping experience in products and services to customers from the comfort of their home. The investment by GHS is the first Chinese investment in the TV home shopping sector in this region and reflects the enormous growth potential for the industry.” said Sammi Chen, the new CEO of citrussTV, in a statement issued on the occasion.
citrussTV offers a wide range of quality products including home & kitchen, beauty, fashion and jewelry.