The present study critically analyses the online shopping experience of consumers and suggests the firm change the operations to adopt the virtual retail world of metaverse and the contribution of e-commerce towards economic growth. All the sectors, including transportation, education, and infrastructure, as well as employment and government, have potential impact on e-commerce. The obstacles to electronic commerce that influence sellers and shoppers will be diminished due to the transformation to the virtual world of metaverse. As UAE is the place for successful implementation of business innovations, a case study of Souq.com acquired by Amazon has been discussed in this study. This case study focuses on fruitful contribution of e-commerce market towards UAE's economic growth and the elements that drive e-commerce development. The study concludes with the identification of e-commerce factors, which has an impact on online shopping experience of metaverse consumers, and addressing the issues that stimulate economic growth through virtual world of metaverse.
TopIntroduction
Innovations in everyday life has significant impact on social relationships, communication, and human interaction. Three significant technological innovation waves have been identified from individual customer’s perspective, and they were successively centered on the emergence of personal computers, the Internet, and mobile devices. Virtual reality (VR) and augmented reality (AR) are two spatial immersive technologies that are core of fourth wave of computing innovation. This wave is anticipated to create the subsequent paradigm for ubiquitous computing, which has the power to revolutionize (online) business, education, remote work, and entertainment. The Metaverse is this new paradigm. The Greek prefix meta, which means post, after, or beyond, and universe combined to form the closed compound word “metaverse.” The Metaverse is, in other words, a post-reality universe that combines the physical world with digital virtual world in a continuous and enduring multiuser environment. Consumer ‘browse the internet’ but ‘live in Metaverse’.
Due to rapid technological advancement, most nations have been urged to take advantage of the possibilities offered by the digital economy. E-commerce has a significant influence on United Arab Emirates (UAE) economy. The link between e-commerce and economic growth plays a vital role. The e-commerce business in UAE has undergone a huge transformation accomplished through developing innovative consumer experiences, changes in shopping trends, challenging company models, and leveraging the emergence of small online businesses and e-commerce companies.
The Dubai Metaverse Strategy intends to build advanced ecosystems through accelerators and incubators that draw businesses and projects to Dubai by promoting innovation, and increase the economic contributions of the Metaverse through R&D collaborations. By giving the required support to developers, content creators, and users of digital platforms in the Metaverse community, Metaverse education can fosters talent and attracts investment in future capacities. In addition, it develops Web3 technology and its applications to build new governmental work models and advance key industries including tourism, education, retail, remote work, healthcare, and the legal industry. (Dubai Metaverse Strategy, 2022)
UAE has become a global leader in e-commerce over the past decade. The GCC's e-commerce industry was valued at $5.3 billion in 2015 with UAE's e-commerce sector accounting for about half of all regional sales. UAE's success in e-commerce could be attributed in part to its early adoption of technological advancements compared to other Middle East countries. During the mid 2000, the UAE government took steps to open up new opportunities to boom the e-commerce. Many companies were able to take benefit of the UAE's customer base familiar to local e-commerce sites as well as the concept of online payment. (Emara, 2019)
UAE’s e-commerce market has grown significantly over the years. Customers have gained trust and comfortable using credit cards and other payment methods to do online shopping. A strong commitment by government agencies is also responsible for the UAE's growth in e-commerce. It outlines several policies initiated by the government to encourage the growth of the e-commerce sector. Dubai Electricity and Water Authority (DEWA), for example, established an e-commerce portal for consumers to pay for their services. (Emara, 2019)
The UAE's e-commerce industry has seen a significant increase in internet and mobile penetration. UAE is the leader in smartphone penetration and internet usage in the GCC and MENA regions. According to 2017 government economic report, 91.9 percent of the country's population had access to the internet. The smartphone penetration rate was 73.8 percent. The higher volume of online shopping of goods is due to penetration of smartphone and high internet access. Gulf Today, 2019, shows that at least 80 percent of internet users in the country visit e-commerce websites to buy goods. It is predicted that the UAE's e-commerce market, which includes digital retail platforms like Namshi, Souq, Ounass and Noon, will grow tremendously with the rise of digital retailers such as Namshi, Souq and Ounass. Computers, electronics, and jewelry are the most popular products that generate the most revenue through e-commerce sites. In the last few years, clothing has seen the greatest popularity. (Abu Bakar, Ahmad & Ahmad, 2019)