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PROJECT SYNOPSIS

UNIVERSITY NAME

LOGO

Name of the Student:


Roll No:
Specialization: MBA (Marketing)

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Project Title:

Consumer buying behavior towards online Fashion Retail (with


reference to Dubai City).

I. INTRODUCTION:
Internet retail sales are expected to grow by 95 percent in the UAE over the next
five years, according to new research from Euro monitor International. It said
the rocketing sales online would be driven by consumers in the UAE becoming
more sophisticated and confident that online orders offer quality products,
prompt home delivery and card security. Internet retailing in the UAE will
benefit from a "surge in consumer enthusiasm and confidence" to 2018. The
internet, despite its comparatively low usage penetration, has already played a
significant part in the Arab Spring and as a result the Middle East is expected to
see massive growth. This trend will be encouraged by the growing usage of
credit cards as consumers become more comfortable with buying online. With
internet users in the Arab World tipped to reach over 200 million by 2020,
internet retailing in the region is clearly set for staggering growth.

In the four years since 2013, online general retail sales in the UAE have jumped
from $490m to $1.6bn in 2017, marking a 108 percent growth rate, according to
data from global market researcher’s Euro monitor.

During the same period, fashion purchases made online in the UAE jumped
from $85m in 2013 to $272m in 2017, and are expected to grow to $354m by
2018. Online fashion sales in Saudi Arabia also jumped from $86m in 2013 to
$249m in 2017, and are expected to climb to $293m by 2018.

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Online electronics retail has traditionally been a big market in the UAE, while
fashion e-commerce has been less developed, with luxury fashion online retail
faring better in the UAE and GCC compared to other markets, simply because
the region has traditionally veered more to the luxury fashion side.

The physical presence of those brands in the region will allow for same-day
deliveries, further cementing growth for Net-A-Porter in what is already one of
its fastest growing markets.

To give some context, e-commerce has been a long way behind the curve in this
region. Online fashion sales in the UAE stood at just three percent of total retail
last year, compared to 40 percent in the UK. The reason why the growth could
be so dramatic is that online shopping requires time-honoured, old-fashioned
infrastructure. The explosion of big e-commerce players onto the scene such as
Noon, coupled with Amazon’s acquisition of a stake in Souq.com this year,
translates into millions of dollars’ worth of investment in the region’s physical
infrastructure, such as warehousing, delivery systems, payment systems and
marketing. All this will ensure the ease of transactions and rapid delivery that
help bring shoppers online for the first time.

More and more fashion icons of Arab World become worldwide known
influencers: Queen Rania of Jordan, Sheika Mozah Bint Nasser Al-Missned
(Qatar), Charbel el-Khoury (Lebanon), Elie Saab (Lebanon), Tahir Sultan
(Kuwait), Zhor Rai (Morocco) Lamya Abedin (the UAE), Dana Wolley
(Lebanon), Roula Ghalayini’s brand (Poupee Couture, UAE).

The essential role in the Middle East design industry (worth around $2.3 billion
in 2014) is played by D3 (Dubai Design District), which is a tight community
that provides space, collaboration and opportunities for the regions designers
and exceptional talent from across the globe. It accumulates creative resources

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that are going to become next generation of the world fashion stars. Overall,
Dubai is not only the attraction to the world known brands, but also it offers its
own fashion stars to the world, meanwhile their popularity is rising over the
years.

II. NEED OF THE STUDY:

The present study will be undertaken to understand the online buying behaviour
of the consumers purchasing latest fashion brands from the online fashion
portals in UAE. The study involves understanding the influence of factors
behind the purchase behaviour.

III. OBJECTIVES OF THE STUDY:

1. To study the growth of online Fashion retail in UAE.

2. To identify the factors that influencing in purchasing of online fashion


products.

3. To know the potential challenges faced by buyers of online fashion


stores.

4. To come out with suitable suggestions to improve the purchase


experience of the buyers of online fashion stores

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IV. SCOPE OF THE STUDY:

The scope of the study in limited to the buying behaviour of consumers of


online fashion stores. The study is restricted to Dubai city by surveying 100
respondents. The Main reason of the present study is to find out the online
retailing experience of the urban consumers and their attitude and satisfaction
levels. The study also focuses on factors that influence in buying from online
fashion retail portals and the problems faced by them during placing the order
and receiving the product.

V. RESEARCH METHODOLOGY:

a) RESEARCH DESIGN:

Both Descriptive and exploratory research will be used for this project study.
The research of this study involves in both field survey & literature survey, to
identify the scope & potential marketing challenges of online fashion stores in
UAE.

Nature of the Data:

Primary & secondary data will be used in this project study

Primary data:

 The descriptive research will be conducted by using primary data which


will be collected through the personal interviews using questionnaire as a
data collection tool, to identify the scope of retail ecommerce business in
UAE. The primary data is accurate & highly reliable in nature.

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Field Study: Field study will be used to collect the primary data from the
sample trough the interviews by using questionnaire as data collection tool.

Secondary data:

The exploratory research will be conducted by using secondary data which will
be collected from various published sources such as online retail Journals,
magazines, text books and websites on E-commerce and retailing.

b) SAMPLING DESIGN:

Sampling Frame: The Sampling frame will be taken from among the online
shoppers in Dubai city.

Sample Size: The study will be conducted on a sample of 100 respondents who
are frequent buyers from online retailers from Dubai city.

Sample units: The sample units will be taken from among the 100 online
buyers in Dubai. The Consumers who are making their online purchases from
retailing websites which are selling Consumer durables such as online fashion
websites may be considered for the study.

Consumers purchasing from the Top 5 fashion retail portals will be interviewed.

1. Namshi

https://en-ae.namshi.com/about/

Namshi is the Middle East's online destination for fashion and lifestyle. The
Company's vast product mix includes exclusive in-house collections, sports &
active wear, and globally-recognised brands, carefully curated for a style-
obsessed following. Namshi's finer points lie in the convenience and ease which

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allows the Company to provide its consumers with free delivery across the
GCC, a 14-day return policy and the option of cash on delivery.

2. Souq Fashion

https://fashion.souq.com/ae-en/

Souq.com is a one stop shop for anyone looking to update their wardrobe with
the latest fashion trends for men and women. Souq Fashion currently offers
more than 80 designers, and caters to both men and women.

3. Sivvi.com

Sivvi.com is an online retailer selling on-trend clothing, footwear and


accessories for both men & women based in Dubai, United Arab Emirates. In
September 2014, Sivvi.com launched American Apparel. The online retailer
carries the American brand's range of clothes for men and women. They are the
exclusive stockist of this brand in the Middle East and GCC region.

4. 6thStreet.com

6thStreet.com offers a large selection of shoes, bags and accessories from the
world’s most coveted fashion brands including Aldo, New Balance, Nine West,
Dune London, Skechers. This online fashion portal provides customers the
experience of shopping from the comfort of their own home with ease and
convenience. Returns and delivery across the UAE are free on all orders (no
minimum spend).

5. https://www.noon.com/uae-en/

Noon is the Middle East's home-grown online market place. Noon is a joint
venture project between Saudi Arabia's Public Investment Fund and a number of
prominent Gulf investors. Through partnerships with local retailers, Noon aims
to provide the region’s customers with an assortment of products including

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electronics, fashion, beauty, baby, home & kitchen and grocery. Noon offers a
selection of fashion brands and an extensive selection of baby products and
home ware. It also has a collection of modern gadgets and electronic goods
targeted specifically at millennials.

Sampling Method:

This study will be undertaken by using random and Area sampling.

Data Analysis: Charts, tables and percentage analysis will be used for the study.

VI. LIMITATIONS OF THE STUDY:

 The primary data will be collected only from urban Consumers in Dubai.

 The survey will be conducted in only in Dubai city only.

 The data will be collected only from the purchasers from online fashion
stores.

 The views and opinions of the respondents may change over the period.

VII. SCOPE FOR FURTHER RESEARCH:

Dubai represented 60 per cent of the UAE’s luxury market, with The Dubai
Mall accounting for half of all luxury goods purchased in the city. This, in turn,
attracts international retailers to Dubai. The city is the second most important
destination globally, after London, for global retailers. At present there is a lot
of demand for online purchasing. The present study will focus on the purchasing
behaviour towards online fashion stores and finding out suitable solutions to
make purchasing more interesting and will be a torch bearer for future
researchers and online fashion retail stores can benefit from such survey. Even

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with the growth and prominence of fashion retail industry, consumers continue
to frequent brick and mortar storefronts, and this doesn't appear to be changing
anytime soon.

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