MENA B2C E-Commerce Report 2014_Standard_by yStats

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    About yStats.com

    About yStats.com

    MENA B2C E-COMMERCE REPORT 2014

    Publication Date: January 2014

    About yStats.com

    yStats.com provides secondary market research.

    Market reports by yStats.com inform top managers about recent market trends and assist with strategic company decisions.

    yStats.com has been committed to researching up-to-date, objective and demand-based data on markets and competitors from

    various industries since 2005.

    In addition to reports on markets and competitors, yStats.com also carries out client-specic research.

    Clients include leading global enterprises from various industries including B2C E-Commerce, electronic payment systems, mail

    order and direct marketing, logistics as well as banking and consulting.

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    MENA B2C E-Commerce Report 2014

    General Information

    Emerging B2C E-Commerce market in the MENA region

    According to the ndings of this report, B2C E-Commerce presently accounts for less than 1% of total retail sales in the

    region, as there are obstacles to overcome to prepare the way for the boom. These obstacles include the low adoption of the

    online retail channel by local businesses, the predominance of cash on delivery payments, and low consumer acceptance of

    online shopping, compared to international benchmarks.

    Local merchants serve the region

    Several fast growing local merchants have emerged in response to the developing interest in B2C E-Commerce in the Middle

    East. Among them are mass merchants JadoPado and Alshop, and online electronics store EmiratesAvenue. Three other

    regional merchants, online mass merchant Souq.com, online fashion store Namshi and ash sales site MarkaVIP together

    garnered over USD 70 million of investment in 2012. Nevertheless, International sites Amazon and eBay are among the most

    popular shopping destinations of online consumers in the Middle East, though behind regional player Souq.com in terms of

    annual spending per shopper. Due to relatively low adoption of the online channel by local merchants, cross-border Internet

    shopping is common. There are even special services that assist consumers in buying from International websites and getting

    their orders delivered.

    UAE leads in online sales

    E-Commerce is growing in the UAE at a rate of over 20% annually off increasing Internet and mobile coverage, while

    store-based retail is affected by high real estate prices. Over 80% of the population are Internet users, and of this number

    over 15% shop online; below 10% do so on mobile devices. The most important factors for online shoppers in the UAE

    were pricing, customer service and ease of use, though security concerns and inability to touch and test products before

    purchase keep some consumers away from online purchases. The most popular E-Commerce websites were online massmerchant Souq.com, coupon dealer Cobone, Amazon.com and online ash sales website MarkaVIP. Consumer electronics and

    appliances was the largest product category by B2C E-Commerce sales in UAE in 2012, excluding travel and tickets. The most

    used payment methods in the UAE last year were credit card and cash on delivery.

    B2C E-Commerce is burgeoning also in Saudi Arabia, though largely restricted to sales of clothing, electronics, appliances

    and travel booking. Annual growth reaching almost +40% between 2012 and 2015 is expected. Over half of the population

    are Internet users and of them about 10% shopped online. Mass merchants Souq.com and Sukar.com, followed by online

    fashion sites Namshi and MarkaVIP were the leading E-Commerce websites by Internet audience reach. Cash on delivery is

    the payment method used by most Saudi online shoppers.

    Meanwhile in Qatar rapid development of information and communication technology and an online payment infrastructure

    facilitate growth of E-Commerce there. Internet penetration on the total population reached almost 70% in 2012, with below

    5% of the Internet users shopping online. B2C E-Commerce sales are forecasted to grow with a CAGR of over +20% between

    2012 and 2015.

    Key Findings (1 of 2)

    Product Details

    Language: English

    Format: PDF & Power Point

    Number of Pages/Charts: 118

    Covered Country: UAE, Algeria, Bahrain, Egypt, Iran, Iraq,

    Israel, Jordan, Kuwait, Lebanon, Morocco,

    Oman, Qatar, Saudi Arabia, Tunisia

    Prices

    Single User License: 2,950 (excl. VAT)

    Site License: 5,900 (excl. VAT)

    Global Site License: 8,850 (excl. VAT)

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    Fax: +49 (0) 40 - 39 90 68 51

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    www.ystats.com

    3- -

    MENA B2C E-Commerce Report 2014

    Key Findings (2 of 2)

    Emerging B2C E-Commerce market in the MENA region

    Israel also has been a regional leader in Internet shopping, with a double digit share of Internet users making online

    purchases. Consumer electronics has been the product category with the highest B2C E-Commerce sales, but the fastest

    growing category in the next ve years is expected to be groceries.

    Other regional markets are adopting online shopping

    Though total sales are not at the level of the regional leaders, Internet penetration and ICT development contribute to

    burgeoning B2C E-Commerce in a few countries. In Bahrain, B2C E-Commerce accounts for over 5% of total retail sales, as

    almost 90% of the population is Internet connected and 5% of users shop online. Similarly, nearly 80% of the population in

    Kuwait uses the Internet, and the presence of online payment gateways there favors B2C E-Commerce. In Jordan, Internetpenetration is over 70%, with just under 10% of Internet user shopping online, and B2C E-Commerce is expected to increase

    as trust in online shopping and payment emerges.

    Currently, only a small percentage of roughly half of the Egyptian population that has access to the Internet shops online.

    As Internet and mobile penetration increase in Egypt, the potential of B2C E-Commerce will be enhanced. Mass merchants

    Souq.com and Jumia.com were the leading E-Commerce websites in Egypt by audience reach, followed by international

    players Alibaba and Amazon. In Morocco, B2C sales in the rst three quarters of 2013 have already passed the transaction

    total for 2012. The number of online shoppers reached over 300,000 last year.

    While showing growth potential, other markets in the region have lagged behind the leaders. Retail remains

    largely traditional in Iran, though the spreading Internet connectivity will facilitate E-Commerce. Just over a quarter of the

    Iranian population used the Internet in 2012. Development of B2C E-Commerce in Iraq has been held back by war, though

    payment and delivery infrastructure is emerging slowly. Internet users in Iraq accounted for less that 10% of the population

    last year. In Lebanon, B2C E-Commerce is in early stages of development, with most of the emerged players specializing

    by product categories. Internet penetration reached over 60% of the total population in 2012, but only a small one-digit

    share of Lebonese Internet users make purchases online. Finally, despite relatively high internet penetration rates in Oman,

    B2C E-Commerce is at a very early state of development, with overseas websites as the destination of most online shopping

    there.

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    1. MANAGEMENT SUMMARY

    2. MENA (REGIONAL)

    B2C E-Commerce Trends, 2013

    Internet User Penetration, in % of Total Population,

    by Selected Countries, 2012

    3. UAE (TOP COUNTRY)

    B2C E-Commerce Trends, 2013

    B2C E-Commerce Sales, in USD billion,

    2012 & 2015f

    B2C E-Commerce Sales, in USD billion,2012 & 2015f

    Number of Internet Subscribers, in millions, andin % Internet Penetration on Total Population,2009-2012

    Online Shopper Penetration, in % of Consumers,2012

    Online Activities of Internet Users, Incl.Purchasing or Ordering Goods or Services,

    in % of Internet Users, 2012

    Most Common Online Activities on a Mobile Phone,Incl. Online Shopping, in % of Mobile InternetUsers, 2012

    Breakdown of Perception of the Most ImportantFactors in Online Shopping,

    in % of Online Shoppers, 2012

    Breakdown of the Main Reasons to Not Shop

    Online, in % Consumers Who Do Not Shop Online,2012

    Breakdown of Annual Online ShoppingExpenditure, in % of Online Shoppers, 2012

    Breakdown of B2C E-Commerce Salesby Product Categories, 2012

    Breakdown of B2C E-Commerce Transactions

    by Product Categories, in %, 2012

    Breakdown of the Most PurchasedProduct Categories in B2C E-Commerce,in % of Online Shoppers, 2012

    4. ALGERIA

    B2C E-Commerce Trends, 2013

    Internet Penetration on Individuals, in %,

    2011 & 2012

    5. BAHRAIN