“Consistent focus on discounts erodes brand equity,” writes Terry Mo, Head of Digital, OMD UAE.
The MENA ecommerce landscape has matured rapidly, with Euromonitor reporting a staggering 25 per cent compound annual growth rate (CAGR) over the past five years. However, this growth is not without challenges.
One of the age-old issues in retail is the challenge of acquisition, and particularly the prevalence of discounting. Many brands on e-commerce now find that significant discounts – often exceeding 20 per cent and sometimes reaching 50 per cent – are necessary to achieve sales spikes.
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