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Are malls still the retail kings and home for entertainment?

What about the role of the metaverse?
Are malls still the retail kings and home for entertainment?
Malls vs metaverse

When the weather is too hot, shopping inside malls in moderate to cool temperatures is not only an option but almost a necessity.

Saudi and UAE officials in the retail sector, especially in malls, thus work to develop the sector and add attractions, especially during the summer.

The attractions we are talking about are not only shopping festivals and the accompanying huge discounts, and so on, but entertaining and educational activities that address all families from parents to the youngest child in the family.

Recreational activities include water-based ones and amusement parks for all ages, even skiing in the dead of summer is possible in Gulf malls, especially in the UAE and Saudi.

“Dubai Summer Surprises”, one of the main events in Dubai’s annual calendar for the retail sector, returns for its 25th session, starting from July 1 to September 4, 2022.

This year’s edition will present a rich and distinguished program of family entertainment events in major shopping centers, in addition to many customized dining experiences and great offers.

In Saudi, the “Jeddah Season 2022” is the most prominent this summer, with its many and varied recreational and educational activities and programs aimed at all family members. 

E-Commerce

 

Meanwhile, others prefer to shop online, especially after COVID imposed a different system of living over a period of two years.

In this context, the UAE e-commerce retail market is expected to be worth $8 billion by 2025, registering a compound annual growth rate of 15.4 percent over the period 2020-2025.

The most important drivers of sector growth include: high salaries, high internet access (99 percent), advanced logistics network, modern digital payment systems, a high percentage of technology-savvy youth, in addition to strong government support.

As for Saudi, it ranks 25th in terms of the largest e-commerce markets, according to the World Bank, and the number of users is expected to reach 34.5 million by 2025.

The largest age group for e-commerce users is the 45-54 age group representing 31 percent, followed by the 35-44 age group with 28 percent.

The fashion sector represents a market share of $2.28 billion, while electronics and media are the second largest product category, generating $2.24 billion.

By 2025, electronics and media will be the leading product category with a value of $2.8 billion, and fashion will be the second leading product category and should reach $2.7 billion.

A parallel world

 

This year in particular will be different in the entertainment and retail sector in malls.

Here we mean the parallel world “Metaverse” that has been penetrated by commercial centers recently in the context of the evolution of their role with the development of consumers’ needs and expectations.

“See you in the metaverse” is a phrase that has become familiar lately, as we are expected to spend an hour a day in the virtual world by 2026.

But what are we going to do there? Among the most anticipated possibilities is shopping or digital fashion, now that most brands including Adidas, Gucci and Vans are present in this world.

This shift to digital consumption has been accelerated by the pandemic, altering customers’ moods and expectations. At the same time, the metaverse helped reinforce the need for human interaction and a sense of community.

Therefore, it is now possible to spend time playing virtually instead of doing this activity in the mall, as there are also plentiful areas for entertainment in the Metaverse.

Mall of the Emirates entered this sector looking for existing stores of the future to benefit from the technology and data this brings which can provide insights into consumer behavior.

Visitor numbers, demographics, streaming heat maps, sleep times, and sentiment analysis can be tracked and analyzed to develop and personalize product offerings and improve customer experience.

These malls will be visited by people from outside the UAE and will experience the unique atmosphere and services the country’s metaverse can offer.

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