Introduction of Noon.com
The
launch of Noon.com has generated a race in tough competition for e-commerce
dominance in Saudi Arabia, in which online sales are anticipated to grasp billion in the year 2021. Noon.com was
established as the toughest competitor and has created a race for the
well-known Souq.com e-commerce company in the Saudi market. To
take part in this competition, Noon has got back up from big investors such as
a billionaire from Dubai Mohamed Alabbar, along with the independent Public
Investment Fund or PIF in Saudi Arabia which invested $1 billion to support
this e-commerce company.
Following
its launch, Noon has started to extend its business range to Egypt as well.
This e-commerce business has been reportedly targeting to attract about unique online shoppers from its official
website. Right after only one year from its first business
operation, Noon has acquired distribution centers to
support its e-commerce business. The company aims to expand its online sales
activities in the UAE region from of the accumulate market which is , up to or around in a decade (Fabre, et al., 2019).
Noon
has been providing roughly million online products which comprising of
fashion, electronics, books, home & garden, health & beauty, kids&
baby products, personal care, home & garden, and also toys as well. A
challenge faced by Noon in providing its e-commerce service in the region of
Saudi Arabia was placed in the logistic systems. For this reason, Noon has been
featuring mass-market megabrands, providing giant discounts, and also dedicated
to have ‘the fastest delivery times’ to serve its customers via in-house
delivery infrastructure. For this reason, Noon has also been constructing up
its last-mile delivery system. In order to support this, this e-commerce
business has also employed above than official drivers to serve
cities in Saudi Arabia.
Throughout
its business partnership with the famous e-commerce eBay, Noon pledges to shape
up millions of innovative products to meet the requirements of online shoppers
in the region of MENA. Furthermore, along with its business expansion intended
for manufacturing and logistics proficiencies in China, Noon has been paving
its own way for a wider product assortment, and at the same time, also leveling
itself with the China-based e-commerce players as well.
Another
main area that has been the core focus of Noon is that, this e-commerce company
has a purpose to perform excellent customer care which supported by its last-mile
business operations to reproduce the home-grown nature of the company itself. As
its Director of customer experience and market place operations, Kaushik
Mukerjee has stated that, “An e-commerce company is built on becoming a trusted
shopping destination that delivers great experience. When you have customers coming to you
again and again, that’s how you achieve consistent growth. So this is at the
core of our business. We want to provide a reliable, predictable and efficient
experience.” (Logisticsmiddleeast.com, 2018 ) To compete, Noon has hit
the market with its forceful expansion plan on its supply chain systems, and
for this, Noon has coverage 85% of the market of UAE and KSA.
References for business analysis of Noon.com
Fabre, C., Malauzat, A.-L., Charbel Sarkis, T. D.
& Ghorra, J., 2019. E-commerce in MENA: Opportunity Beyond the Hype. [Online]
Available at: https://www.bain.com/insights/ecommerce-in-MENA-opportunity-beyond-the-hype/
[Accessed November 2019].
Logisticsmiddleeast.com, 2018 . How noon.com is doing it
differently. [Online]
Available at: https://www.logisticsmiddleeast.com/business/31355-how-nooncom-is-doing-it-differently
[Accessed November 2019].