By Staff writer
New online shopping platform will put high-street fashion at centre of its strategy when it launches later this month
Noon, the Middle East’s largest online shopping platform founded by Mohamed Alabbar, will use the high-street fashion segment as a central plank in its strategy to dominate the region’s fast-growing e-commerce sector.
The retail firm said in a statement that it will offer hundreds of exclusive fashion brands, five times more than its nearest competitor when it launches later this month.
Buyers will also be able to choose from more than three million products, in what will be a game-changing online retail experience for the region, it added.
The company will also provide same-day delivery through Noon Transportation, an in-house express delivery service. Payment will be conducted via NoonPay, a secure and innovative online gateway.
With an initial investment of $1 billion, Noon will launch in the UAE and Saudi markets and will soon cover the entire Middle East region.
Noon said it aims to grow online sales in the region from 2 percent of the total market ($3 billion), to 15 percent ($70 billion) within a decade.
The founder of Noon, Emaar Properties chairman Mohamed Alabbar, said: “For too long, consumers who want to buy fashion online in the Middle East have suffered from a lack of variety. The launch of Noon will change the regional online shopping experience for fashion forever.
“Fashion will be at the very heart of the Noon experience. We will offer more brands and more products than any of our competitors. We will also launch with a large private label collection that will offer unmatched value to the customer. Noon’s fashion platform will be offered with a level of customer service that has not been seen in the region before. The sheer scale of our offering will also allow us to provide our customers with prices that will be impossible to beat.”
From mass-market megabrands to discount giants, Noon said it will offer its consumers access to a "truly unique array of brands and products".
Noon was founded last year by Alabbar, who is leading the company in a joint venture with Saudi Arabia’s Public Investment Fund and prominent GCC investors.
In total, Noon will offer 20 million products covering fashion, books, home & garden, electronics, sports & outdoor, health & beauty, personal care, toys, kids and baby products, and more.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Another blow to the already overstressed and overbuilt UAE malls which obviously, although getting "footfall" in terms of sightseeing walkers, are getting nowhere near enough actual buyers.
Some sort of beautiful irony that MA is leading the charge in the online retail space in direct competition to many of the operators whom pay very high rents in his glossy shopping malls.
Product pricing is going to be the really interesting factor here. I am assuming that with the huge catalogue of products on offer, they will also offer the best prices to consumers.
This story is going to run and run!
there is no way on earth that sales will reach 70bn USD on this website. ever.
Amazon has less than 2% of the US retail after massive spending for more than 20 years, he is claiming 15% in 10.
Either he is truly a business genius or he doesn't not know what he is talking about. You can draw your own conclusions.
After helping a direct sales startup in Dubai I know what will be mine.
"For too long, consumers who want to buy fashion online in the Middle East have suffered from a lack of variety." I disagree. Even with additional shipping costs and any import duties I can already access every major designer's output either via their own sites or aggregators and buy their clothes 25-40% cheaper than is available either online or in-store in the UAE and I can choose which currency I pay in. This is as true for small simple items as it is for more expensive items such as jewelry. Delivery is within 2-3 days, returns are easy and the customer service is exceptional. It doesn't matter to me or most people where the server sits or the products are warehoused and dispatched from. Cost, value and service matter alone and whether the vendor is based in UAE, China, UK, US or Outer Mongolia is virtually irrelevant. Noon is not going to be competing in the Middle East market it will be competing in a global market and such an insular attitude will not serve it well.
I suspect what this actually means is that total online retail sales (not just Noon's) in the region will grow to 15% of overall sales in 10 years, and that Noon will help drive this growth. Seems to be a mix up in communication. The 70bn figure simply does not make sense.
@Telcoguy yep the latter.......
@MT3 indeed but retailers in this region are in denial. At a retail event organized by my alma mater in Dubai the retailers were truly shocked to hear that most of us (higher income) were shopping overseas for most of out stuff.
There is a huge gap in the perception of they quality they provide and what customers think they are getting.
He is not claiming to have 15% market share. His claim is that online sales will represent 15% of all retail in the region.