Despite the economic downturn in the region in general, and in the United Arab Emirates in particular, with the implementation of VAT and other regulations, home and garden continued to record positive growth in current value terms in 2018. The negative macroeconomic conditions in the country hit the least essential categories within the home and garden hardest.
There has been increasing price sensitivity among local residents with the introduction of VAT and uncertainty among consumers. Major manufacturers and retailers shifted towards in-store promotions and bundle packages to encourage consumers to purchase home and garden products.
Augmented reality tops the innovation offering chart for customers in the United Arab Emirates. IKEA offers customisable furniture to its customers, with the option of digitally placing the furniture in their home via measurements, designing the colour scheme and look, which has increased customer confidence and satisfaction when making purchases.
Major home and garden specialist retailers are putting a great deal of focus on developing their omnichannel strategies, as well as in-store digital solutions that can serve as a convenient platform for consumers, encouraging easy click-and-go services. Home and garden online sales (internet retailing) showed very strong growth in 2018, with online sales having the biggest share in homewares.
Over the forecast period, home and garden is expected to witness steady value growth. This will be supported by the upcoming World Expo 2020 Dubai, where the majority of investments are expected to happen within the Emirates.
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This industry report originates from Passport, our DIY and Gardening market research database.