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It is confirmed here in The Brand Berries.com OPINIONS that Digital Transformation and its Implications on Brands and Consumers in The Middle East by Imad Sarrouf, Head of Publishers at DMS ( Member of the Choueiri Group) is as valid a statement as can be these days.

12 November 2020 

Digital Transformation And Its Implications On Brands And Consumers

The Middle East is showing the promise to scale to unprecedented levels apropos of its digital transformation market is no news. In 2016, along with Africa, this market was valued at USD 1,1 Billion and was estimated to achieve an implausible growth by 2024.

Major powers in the Middle East including UAE, Bahrain, and Saudi Arabia have shown impressive strides towards the goal, with their Governments setting precedents by integrating digital transformation in the public sector. The growth that these regions have achieved in terms of tech-savvy infrastructure has made some of the most powerful heads turn in the Gulf direction. 

Clearly, the private sector and the public in themselves have taken the cue and are leaving no stone unturned in embracing the digital revolution. As more and more middle eastern companies pave the way for digital, such transformation is going to shape up the future of brands and consumers in this region.

The State Of Digitization Of Brands and Companies In The Middle East

At large, a territory’s adoption and adaptation to the digital era are measured with reference to the population’s access to smartphones, engagement with social media platforms, and availability of high-end digital technologies. While the Middle East has been making headlines for rising up these ladders, the scope of the implementation of digital transformation goes far beyond just that.

The digital transformation market in the middle east is basically divided into 2 regions; the GCC countries and other Arab countries. According to a survey report by Strategy And, hardly about 7.5% of the brands and companies in the GCC region understand the potential of digital transformation as a means to realize efficiencies. 

Considering that building a digital strategy for future upscaling is the fundamental step for a company towards transformation, only about 37% of the major brands in the Middle East had teams working on one. The major employable channels across a vast range of sectors for brands include big data and analytics, IoT, Cloud Computing, Cyber physics, and technologies of similar likes. Popular frontrunners leading the race of transformation include Microsoft, Google Inc, SAP, Protiviti, Ixtel, Oracle among others.

Gulf Brands Go Smart: How The Middle East Is Accelerating The Digital Revolution

Closer technical analysis of the major Gulf countries like Saudi Arabia and UAE shows that digital initiatives have taken the front seat among leading brand growth agendas. These agendas have been presenting, and are expected to continuingly present themselves under three major brackets;

Adoption Of Smarter Projects And Initiatives

These comprise the entire smart market — right from smart homes, smart healthcare, smart hospitality, and tourism, to smart transportation, entertainment, business, and shopping. Some of the most successful digital initiatives include health monitoring wristwatches, virtual assistants as tour guides, IoT based interconnected home system, among others. While the scope of AR, VR, and advanced AI is still being explored and systematically implemented, work in progress projects in this area include AR/ VR enabled cars in the mobility segment, and some medical testing procedures in the healthcare sector.

Implementation Of Smarter Payment Gateways 

The world is always in the need of a better and safer way to pay, and we have all been a witness to this when people furiously shifted to digital mode of payments as soon as they were introduced. With cryptocurrency in the picture, the only challenge is the lack of exposure and education in this area. However, several middle eastern companies are coming forward to give this option to consumers. In fact, in 2017, Dubai’s residential real estate project, Aston Plaza was the first in the world to allow full payment in the form of bitcoins. 

Customization Of Production and Operational Convenience

The way the manufacturing sector has been catching up with digital opportunities is magnanimous. The drastic shift from mass production to customized production is one of the most obvious demonstrations of the same that runs alongside the heavy reliance on light mobile apps. These apps ensure higher accuracy, operational convenience, and shipment tracking; some of the features that have become manufacturing prerequisites in an ideal digital world.

For companies that can afford a drastic change, the digital initiatives in this sector also include transforming the entire ecosystem to be more optimized, increasingly sustainable, and minimally invasive. 

In a capsule, the digital transformation scene in the companies of the Middle East is seen tracing three major models — digital business model, digital consumer model, and the digital operations model — of which the consumer model is observed to be spearheading the growth. Let’s now understand how this consumer model is being implemented despite regional limitations including the slowdowns due to the recent pandemic instituted lockdowns.

Digital Transformation Driving Middle Eastern Consumer Experience

Middle eastern companies’ digital strategies are highly driven by keeping consumer experience enhancement at the forefront. This includes micro-target marketing to improve customer engagement and channelizing customer feedback. 

Some of the most dynamic and successful initiatives include:

O2O Commerce

Online to Offline Commerce is replacing traditional retail shopping hard and fast. Retail stores are being improvised to act as mere distribution centers while more and more investments are being concentrated towards online initiatives. The lucrative combination of browsing through hundreds of options on the screen, without having to move an inch, getting discount codes and coupons by shopping online, yet getting the look and feel of shopping by personally trying and collecting as per convenience has proved to be an instant hit in this region.

Chatbots and virtual assistants

This technology has proved to be such a huge success that it has become fairly common to find chatbots on every other website or app we use. What companies in the middle east are also empowering are pharma, healthcare, and hospitality sectors through this technology. You can know the right medicine to take for mild symptoms and problems, you can schedule and monitor your family’s health checkups and reports, and coordinate your entire stay with an expert assistant. These applications have particularly received widespread recognition because of its social-distancing friendly nature. 

Middle Eastern Challenges To A Rapid Digital Adaptation

For any company, digital transformation is a major shift, that more than anything else will require capital and man-power investment. The most natural challenges that companies in the middle east are facing is the broad skill gap in the existing organizations, change in operating model to an agile one, and starting off on the right footing to make the transformation a profitable success. 

Keeping skill-building, awareness, and education at the core, however, can be a unanimous way out of the hindrances posed by these challenges. As companies find access to greater resources; human and otherwise; proficient in the field, brands will gain more confidence to take the digital leap of faith.

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Imad Sarrouf (in feature picture above) is a digital expert with over 15 years of experience in the digital media industry working across a large portfolio of publishers and ad technology platforms in the middle east. In his position, he leads digital innovation and transformation – responsible for the ad tech solutions business and process automation to drive business growth.