S07 CAF 3 2021 PMR_Layout 1 17/08/2021 06:45 Page 23
MOROCCO
E-commerce
A catalyst for change Photo: Adobe Stock
There’s been significant growth in e-commerce in Morocco in the past year according to a new report from market research company Euromonitor International. Vaughan O’Grady asked Jacob Adib, analyst at Euromonitor International, why this growth happened – and whether the trend will last.
A bazaar in Rabat, Morocco. The pandemic has changed buying habits.
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ITH PHYSICAL STORES closed for an extended period during lockdown and consumers fearing shortages of essential products, in 2020 Moroccans began to shop online in growing numbers. The E-Commerce in Morocco report from Euromonitor International discusses these changes and looks at what the future may bring for this market. However, was e-commerce already on the rise in Morocco before Covid-19? Jacob Adib, analyst at Euromonitor International, said, “Not as much – and growth was seen to be stable.” It seems that the pandemic became the catalyst for accelerated growth in e-commerce retail, notably because purchasers of fast-moving consumer goods (FMCG) remained at home. That said, only two thirds of households in electrified areas have access to the internet (24 million Moroccans are connected). There is still a large handful of consumers who do not; the remaining one third rely on traditional purchasing habits. However, as Adib explained, “Historically, pre-pandemic e-commerce in North Africa has been weak and the use of ecommerce platforms was low due to strong reliance on traditional stores, but a combination of the pandemic and growth of technology in the region has been a catalyst for change. The pandemic has significantly increased this growth.”
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And it’s not a small rise. “Morocco saw dynamic growth in online sales in 2020. Growth in 2021 will be slower but is still strong and represents a major opportunity.” He added, “Major e-commerce platforms such as Jumia have invested in regional infrastructure and developed partnerships.” There’s been a windfall for government too. “The Moroccan tax authorities have benefited from the rise of e-commerce due to the tax benefit. This has benefitted the Moroccan government in terms of revenue.”
Most if not all households use Facebook, Instagram and WhatsApp on a daily basis. As for which retail categories dominate, ecommerce, as we have seen, is growing, but grocery retailing and pharmacies are the other main sectors that performed positively during the pandemic. All the others declined in growth in 2020. Of course, Covid-19 restrictions (such as the closure of informal markets during the lockdown) have decreased competition coming from such informal markets as Kria’a in Casablanca.
Customers were no longer able to buy cheap products from such places; therefore, they have switched to e-commerce platforms. This has eventually, led to the growth of e-commerce start-ups (such as Animal Souk) in large cities such as Casablanca and Rabat. Oddly enough, this activity extends to pets. As Adib discovered, “The pet industry has shown us that most pet stores have an online presence and started engaging with customers via social media.” The leading pet care stores – AlloCroquettes is one – have adapted the WhatsApp ordering service purposefully, to increase their customers’ interaction and reach them anytime and anywhere. Again lockdown encouraged this. “Ecommerce has recorded high growth as most physical pet stores were closed or have restricted working hours.” But modern retailing stores such as Marjane and Carrefour have also revised their e-strategies. “Customers are now able to order online most food products – including pet ones – and have their items delivered to their doorstep.” Phones and computers are used to do this sort of business. Banks too have played a vital role in changing consumer behaviour. Adib said, “They are constantly encouraging payments by card to give some reward credit
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