Showing posts with label Apparel. Show all posts
Showing posts with label Apparel. Show all posts

Egypt’s Online Shopping Sector Set for Explosive Growth Amid Government Digital Push

The Egypt e‑commerce market reached USD 9.1 billion in 2024 and is projected to grow at a robust 10.2 % CAGR, reaching USD 19.6 billionby 2032. Key drivers behind this surge include rising internet and smartphone penetration—nearly 70 million online shoppers—as well as a growing middle class and increased disposable incomes. Major cities like Cairo and Alexandria remain e‑commerce hotspots, but expanding smartphone access and improved logistics are bridging the gap to less-served regions. Government initiatives under Egypt Vision 2030, particularly focused on ICT infrastructure and digital payments, are accelerating the country’s online retail transformation. Technological advancements—including enhanced cybersecurity frameworks and widespread adoption of digital payment systems—are strengthening consumer trust and fuelling further transition from traditional retail to online channels.

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Key Insights

  • Electronics dominate the market, accounting for 30 % of total e‑commerce revenue in 2024, driven by strong demand for computers and phones; nearly 29 % of consumers purchased electronics online.
  • Grocery and essentials represent the fastest-growing segment, with a projected CAGR of 10.6 %, as 34 % of consumers now purchase these items online for convenience.
  • Apparel & footwear, home appliances & furniture, health & beauty, books, toys, automotive parts, and baby products round out the remaining product categories, underscoring the breadth of online retail offerings.
  • In terms of platform formats, B2C channels dominate, capturing 85 % share in 2024, and this segment is expected to sustain the highest growth rate, driven by ease of access for consumers using smart devices.
  • Payment preferences are shifting: Cash-on‑Delivery (CoD) leads with 45 % market share in 2024—attributed to limited banking access and consumer hesitancy—while 55–70 % of shoppers favor CoD.
  • Meanwhile, Buy Now, Pay Later (BNPL) is emerging as the fastest-growing payment method, filling the demand for flexible, interest-free installment options, especially for high-value purchases.
  • Market models reflect this trend: Marketplaces dominate, with 70 % share in 2024, offering consumers a wide variety of products and competitive pricing, and are expected to grow fastest under this model.
  • Inventory-led and hybrid business models complement the marketplace model, supporting supply chain diversification.
  • Delivery methods are evolving: Standard delivery (via Egypt Post’s 4,300+ offices) accounts for 60 % share in 2024, but same-day/next-day delivery is the fastest-growing segment, increasing 10.8 % CAGR, driven by technology investments and consumer demand for speed.
  • The rise of social commerce through platforms like Instagram, Facebook, and TikTok is a major trend. With 48.7 %, 16.8 %, and 46.7 % of the population on these platforms respectively, live streams, DMs, and direct content engagement are transforming how businesses sell.
  • Improved cybersecurity and data protection are also key, boosting consumer confidence in online transactions. Under the National Cybersecurity Strategy, approximately 50.1 % of internet users now shop online—highlighting the importance of fraud prevention and compliance efforts.
  • Regionally, Cairo and Alexandria lead share, but smartphone expansion and logistics improvements are enabling penetration into suburban and rural areas.
  • Regulatory initiatives under Egypt Vision 2030—especially ICT strategy and digital payment promotion—are creating a favorable environment for sustained digital commerce growth.
  • The market’s competitive landscape remains fragmented, with Amazon Egypt, Jumia, Elaraby, Carrefour, and numerous SMEs active across various segments. Fragmentation fosters competition and creates openings for new entrants.
  • Strategic partnerships—such as Elaraby–Sharp’s joint refrigerator plant and Fawry–LA Market’s collaboration to empower women and digitize SMEs—underscore investment and collaboration opportunities within the sector.
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Indonesia’s E-Commerce Sector Set for 15.2% CAGR Through 2032 Amid Tech and Payment Innovations

According to the latest market research study published by P&S Intelligence, the Indonesia e-commerce market is set to expand from a robust USD 75.1 billion in 2024 to an impressive USD 85.8 billion by 2025, ultimately reaching USD 230.5 billion by 2032, driven by a powerful 15.2% CAGR during 2025–2032. Key growth catalysts include the dramatic rise in smartphone adoption, tech‑savvy urban consumers, and improved internet infrastructure. With smartphones facilitating over 70% of online transactions, major platforms like Shopee and Tokopedia are strategically positioned to capitalize on this trend.

Government initiatives are also playing a pivotal role. The rollout of the Quick Response Code Indonesia (QR‑IS) and enhanced data‑protection regulations are fostering safer digital payment ecosystems. Additionally, the widespread adoption of digital wallets—led by GoPay, DANA, and OVO—is reshaping consumer behavior by offering seamless, secure, and efficient transaction options.

Key Insights

  • The electronics segment captured the largest share (35%) of e-commerce revenue in 2024, with roughly one‑third of consumers purchasing laptops, smartphones, and accessories online.
  • The apparel & footwear category is the fastest‑growing, buoyed by social commerce and mobile‑first consumer trends.
  • B2C platforms dominate the market with a 75% share in 2024, propelled by robust internet access, smartphone adoption, and aggressive promotions like flash sales, free shipping, and cashback offers.
  • B2B e-commerce is the fastest-growing platform segment, with a 15.9% CAGR, as SMEs increasingly embrace digital solutions for procurement and supply‑chain efficiency.
  • Digital wallets held the largest payment share (45%) in 2024, supporting 40% of online transactions thanks to user‑friendly QR‑based payments.
  • The BNPL (buy‑now‑pay‑later) option is expanding fastest among payment methods, with 68% of users adopting installment plans.
  • Marketplace models led in business structure, holding a 70% share in 2024, with approximately 47% of shoppers purchasing through multi-seller platforms.
  • The hybrid model is growing fastest, driven by platforms like Bukalapak and Shopee that offer both marketplace breadth and inventory‑led quality, with a 16.1% CAGR.
  • Standard delivery services account for 60% of shipments, while same‑day/next‑day delivery is the fastest-growing service segment—around 80% of consumers expect rapid shipping.
  • Social commerce and live‑stream shopping are reshaping user engagement: about 60% of consumers purchase via live‑stream, and 70% of those aged 18–34 shop online regularly.
  • Strengthened trust in digital security is fueling adoption: 48% of consumers cite secure payments as a reason to shop online, though 78% remain concerned about data privacy. In response, companies are implementing improved return policies, real‑time delivery tracking, advanced cybersecurity measures, and comprehensive government‑backed data protection initiatives.
  • The market remains fragmented geographically, characterized by large national players (e.g., Shopee, Tokopedia, Lazada) and numerous regional champions that cater to culturally diverse customer preferences.
  • Strategic investments and partnerships—most notably TikTok’s USD 1.5 billion investment in Tokopedia in December 2023 and the GoTo merger in May 2021—are accelerating growth, innovation, and competitive positioning in Indonesia’s dynamic e-commerce landscape.
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