bq | RETAIL l E-RETAIL
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GCC
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THINKING RETAIL
In a region where physical retail stores have dominated the scene for decades, e-retail is slowly beginning to reserve a seat at the table By Shereen D’Souza, Doha
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ibrant shopping malls, traditional souqs, international stores, a variety of boutiques, bargain markets and mega shopping festivals nicely sum up the GCC’s physical retail market. Constantly changing consumer demands and access to technology have led to a revolution in the retail industry with e-commerce and e-retail. Over the past few years, the MENA region has witnessed quite the storm with regard to internet penetration and usage. The penetration still differs widely, with over 86 percent in Qatar to as low as under 15 percent in countries like Algeria, Yemen and Iraq. Although, the GCC easily has the highest internet penetration with over 50 percent as compared to a mere 30 percent for the entire MENA region. Recent figures from Oorjit reveal that the current volume of B2C e-commerce sales in the MENA region is USD 9 bn and is expected to reach USD 15 bn by 2015. Online shopping in this region is ever-evolving. “Simply put, e-commerce is driven by convenience. The factors that have facilitated its growth however can be listed as rise in the number of devices connected to the internet, better and faster internet connectivity, wider availability and usage of credit cards and payment channels that are vital to online trade, and of course the resurgence in the economy,” says Pradeesh, general manager at ESET Middle East.
“The usage of e-commerce for purchasing goods and services is at the start of great expansion in the Middle East region as companies are now building more trustworthy and secure e-commerce websites” JUNE 2014