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MarkaVIP Claims Position as Fastest Growing E-Commerce Company in Middle EastAggressive Regional Expansion Reaps Dividends With Three Million Visits per Month and Quarter-Over-Quarter Revenues up 100 Percent (October 25, 2011)
NEW YORK, NY -- (Marketwire) -- 10/25/11 -- MarkaVIP, the leading private sales club in the Middle East, today staked its claim as the fastest growing e-commerce provider in the Middle East based on more than 3 million visits per month and Q3 revenues up more than 100 percent compared with the previous quarter. The results, which follow an aggressive regional expansion during 2011, have surpassed all growth targets for the company, signal market acceptance of the MarkaVIP e-commerce model, along with rapidly increasing consumer demand for locally-based e-commerce offerings in the Middle East.
MarkaVIP, which has adapted the proven flash sales model to suit the company's local consumers and retailers, sources excess or introductory inventory from premium brands worldwide to be sold to its private members over a limited time period. Since its launch in Jordan and Saudi Arabia in November 2010 and subsequent expansion to the rest of the GCC and Lebanon earlier in 2011, MarkaVIP has cultivated a private membership approaching 700,000 users.
Even more significant is the company's growth in online transactions. In the third quarter of 2011, MarkaVIP recorded a member-to-buyer conversion rate of three percent and a repeat purchase rate of 45 percent -- both higher than the global e-commerce average. MarkaVIP believes these results are an indication of consumer confidence in its model, the products that it offers, as well as the company's ability to deliver on its value proposition.
"Our recent business milestones and growth metrics demonstrate a very positive response from consumers and suppliers to MarkaVIP's offering, and confirms the strong e-commerce appetite that exists across the region," said Ahmed Alkhatib, founder and CEO, MarkaVIP. "While three months ago we were generating seven figure monthly revenues, this has now doubled and our growth trajectory shows no sign of abating. We believe these results position MarkaVIP as the fastest growing and best performing e-commerce company in the region."
MarkaVIP's strongest performing market during the third quarter was Saudi Arabia, accounting for 40 percent of the company's total sales. The rest of the GCC countries comprised 35 percent of sales, while Jordan and Lebanon represented the remaining 25 percent. More than half of total sales (60 percent) were made on MarkaVIP's Arabic language platform, highlighting its growing popularity among Arabic-speaking consumers.
The highest value transactions were made by consumers in the UAE with members spending an average of $140USD per purchase on MarkaVIP. Across the region, men's and women's apparel and accessories were among the most popular items sold, followed closely by homewares.
"The Arab Spring demonstrated how digitally-savvy the Middle East had become in leveraging social media and mobile platforms for protests and organized resistance. But far more profound is the long-term economic significance of this digital capability through e-commerce. The region's increasing Internet penetration combined with its considerable purchasing power has the potential to contribute greatly to global online spend. We anticipate exponential growth for MarkaVIP over the coming months," Alkhatib said.
MarkaVIP is an exclusive, invitation-only flash sales website focused on the Middle East. The company sources premium brands and lifestyle products to be offered to its members at deeply discounted prices for a limited period of time. MarkaVIP was established in November 2010 by Ahmed Alkhatib, an accomplished e-commerce engineer. He brought together experienced professionals from leading firms in the fashion and lifestyle products industry to deliver an online shopping experience like no other in the Middle East. The result is a highly interactive e-tail platform where members gain access to great brands at great value from the convenience of their own homes. MarkaVIP is currently available in the GCC, Jordan and Lebanon. MarkaVIP employs 120 people across six offices in Beirut, Dubai, Amman, Istanbul, Antwerp and San Francisco.
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