My Startup World speaks to Ayaz Maqbool, the Managing Director at Tejuri.com, about the ecommerce landscape, the security issues related to online shopping, the opportunities present and the challenges faced by entrepreneurs trying to set up their online business.
How has the e-commerce market shaped up in the Middle East and Africa region?
E-commerce has certainly changed the way consumers shop and spend in the Middle East. Residents in the region spent over $3.2 billion on online shopping in 2011 alone and recent studies reveal this figure is expected to grow to $15 billion by 2015 in the Middle East .
With the e-commerce industry in the region evolving at a rapid pace, Tejuri.com has witnessed 30% monthly growth in users and our data analysis shows that online shoppers tend to shop during the weekend, especially on Saturdays when traditional malls are at their busiest.
We have also noticed the average customer age is between 22 – 28 years old, and 70% of them browse the site through their smartphones, indicating a strong change in consumer shopping behaviour, as well as the increasing appetite for online shopping in the region.
How safe is offering e-commerce services in this region?
Traditionally, consumers in the region were wary of online shopping and hesitant towards the lack of supervision on payment gateways. This misconception is changing, and we are supporting the shift in regional consumer purchasing patterns by offering a secure and trusted online payment method to our shoppers.
To accomplish this, we’ve enabled the added level of 3-D secure technology for Visa and MasterCard payments, which protects the consumer from the unauthorized use of their credit card. Also, Tejuri.com is the only online mall endorsed by the Department of Economic Development – Dubai (DED), giving further assurance that all products sold through the website come from a reliable and government approved store.
Shoppers can therefore enjoy a convenient and safe virtual shopping mall experience, safe in the knowledge that all products are authentic and our services are in line with consumer rights.
How long has Tejuri been on the Middle East market? How has the company grown over these years?
Approaching its one year anniversary in March this year, Tejuri.com has fast become the region’s biggest online mall and currently operates more than 130 stores, with 350 brands and 15,000 products and delivery reach to nearly 180 countries.
As Tejuri.com is an extension of the offline retail world, it has managed to bring many retailers online. Instead of competing with these retailers, Tejuri is complementing them by following a mall calendar which provides latest season products online and follows UAE retail events such as DSF and Gitex.
In just one year we also launched the site in Arabic to offer all our consumers an accomplished and convenient online shopping experience.
In line with our vision to lead e-commerce in the region, Tejuri.com has also partnered with innovative industry leaders including, Visa, SMITH, Microsoft and IORMA – whilst also continuously introducing new brands to the site, including our recent agreement with P&G, the world’s largest FMCG Company, to bring a host of the region’s favourite brands online and major retail groups and brands such as Nike, Sharaf DG, and Apparel – Nine West.
What about fraud checks and so on?
Before joining Tejuri.com, retailers undergo a thorough inspection to guarantee all products sold through the website come from authorized dealers and retailers which have obtained a trade license from the DED. We have also developed strong security measures, eliminating the chance of fraudulent activity.
All our retailers have to comply with the Consumer Code of Rights issued by the Ministry of Economy to make sure that the rights of our shoppers are upheld.
What are the building blocks to getting e-commerce right?
Setting up an online platform requires wide-spread market research to check the viability of the venture and competitors in your market.
Prior to launching Tejuri.com, we conducted an extensive research study with Nielson in order to observe consumer behaviour in the region. We noticed over $2 billion worth of online shopping is annually funneled from the UAE to websites outside of the UAE, resulting in revenue leakage.
Consequently, we realized that there was huge appetite for online shopping here and our venture was in demand. Analysing consumer, retailer and purchasing patterns is vital in order to succeed, and companies looking to penetrate the e-commerce market will be doing the same, which is why we always strive to stay on the pulse of the e-commerce landscape.
It is also vital to ensure the best service is provided to customers as their experience is what encourages them to continuously visit our platform. We have a dedicated first-class customer care team seven days a week from 8am to 10pm.
What sort of hurdles can companies face when building up their e-commerce solution?
With consumer hesitation towards online payment, companies need to offer the same level of security and a personalised level of service that international sites offer. This can be achieved by partnering with trusted industry leaders as we have done.
To overcome this hurdle at Tejuri.com, we have partnered with CyberSource, a Visa company (NYSE:V) and one of the world’s leading providers of e-commerce payment management services to provide secure online payment acceptance capability to our retailers in UAE.
CyberSource has global experience and local market knowledge and this has helped us to efficiently start trading. Having its system on board also means that the Decision Manager – the world’s largest fraud detection radar – is also incorporated into our system and we have access to the expertise of the CyberSource managed risk analysts.
Do you have any pearls of wisdom for budding entrepreneurs? What should they look out for before jumping onto the startup bandwagon?
Before jumping onto the e-commerce bandwagon, thoroughly research the market you are aiming to penetrate. It is essential to remain one step ahead of your competitors by offering your consumers something other e-commerce platforms aren’t providing, and wide spread research is your first starting point.
Once you have an understanding of your position within the market, you can tailor your e-commerce business model to meet the needs of your target consumers. Always seek support where possible. If it is a viable option for your business to join an independent e-commerce platform like Tejuri.com, then explore every avenue available.
Remember shoppers are looking for a trusted, secure and safe online shopping experience they can always rely on, so ensure you establish user-friendly e-commerce platform which offers secure payment channels, reliable delivery and flexible exchange policies.
As the landscape evolves, startups should also be ready to improve and innovate themselves. Throughout the Tejuri.com journey, we’ve always looked to take feedback and improve the experience and offering based on our customers.
