ise will be sourced principally from the US and Europe, direct from the concerned brands or through specialist wholesalers there. Prices will be suitably marked down depending on how far off-season they are.

“None of it will be locally sourced, which means we will not necessarily be required to subscribe to the UAE agency law,” said Ali Haji, who heads digital operations at GCP Group, which also operates “thedubaibazaar.com” site offering value-for-money products. (Traditionally, the UAE agency law requires that products sold within the UAE should be sourced through their officially appointed distributor.)

“Our research shows that shoppers who patronise outlet malls here will be open to sourcing the same branded product and categories online as well ... provided the price is right. The biggest action in terms of online retail should take place at either end of the pricing spectrum.”

As it is, the UAE’s eCommerce space is in a state of extreme flux. Some are taking on niche roles — opting for super-luxury in certain cases or going for a complete value proposition — in a marketplace that is all set for the imminent entry of Noon.com and its 20 million product inventory.

The impression is that at some point in the next two three years, the broader market will consolidate around a handful of generic eCommerce vendors while others specialise in pushing niche products or services.

“Sourcing of off-season inventory will be the biggest challenge and opportunity for DXBClearance,” said Haji. “If we can do so at a certain percentage to a dollar and then offer these in the local/regional market, we do have a good chance of creating an “outlet sale” experience in the virtual space.

“It will also give us an opportunity to test out brands that are getting big in the US or elsewhere, but are yet to have an official representation here. In fashion and accessories, there’s no knowing when the next label can take off.”

At some point in the near future, new regulations will also come into effect or existing ones updated to take in all of the changes happening in the virtual retail space. Before that happens, the players are busy fine-tuning their business models to ensure they retain a compelling presence for their shoppers

 

source : gulfnews