Itcan-Blog

Top 3 E-commerce categories in MENA 2020

Abdelrahman Darwish
July 2, 2020

Introduction

Covered in this article are top performing categories in e-commerce industry in MENA along with various insights related to the e-commerce landscape.

The existence of a strong e-commerce product category list is one of the main reasons behind this substantial growth.

Leading e-commerce product categories are at different levels of development and maturity here in the MENA region. Electronics and beauty & personal care are considered to have penetration levels closer to those seen in developed e-commerce markets. 

Let us briefly discuss the available opportunities for e-commerce in MENA in 2020 in each category. Also, let us check out how customers’ buying behaviour is developing along with the current economical changes.

#1 Electronics:

Electronics led to the e-commerce transformation in MENA. The industry has around $4 billion (AED 14.6 billion) market size in the UAE and KSA in 2020. It is the biggest e-commerce category and has been rising 23% annually over the past few years.

MENA electronics shoppers spend AED 1,285 on average per shopping cart

Electronics is also the highest category in the region in terms of total retail sales. The average basket size on e-commerce websites is AED 1,285 online vs. AED 1,362 offline, primarily due to an active phone usage culture and a large product selection at attractive prices.

#2 Beauty & Personal Care:

Beauty & personal care category has had a great role in shifting the online shopping market in KSA, UAE, and GCC, reaching around $1.6 billion (AED 5.9 billion) e-commerce market size in the UAE and KSA

Increasing consumer trust in the originality of the brands enabled the category players to establish a strong online presence. This resulted in exceptional growth in the beauty & personal care market.

Beauty & personal care is a field of interest in the GCC market: In KSA the average revenue per user in the personal care segment has reached AED  442.28 in 2020 according to statisa.com. Shoppers found that shopping online is more convenient than buying in-store, it offers lesser prices and higher product variety.

#3 Fashion:

Fashion e-commerce is valued close to $3 billion (AED 11 billion) in the KSA and UAE. The industry has been growing 20% annually over the past three years, with average basket size being AED 393. Competition has been rising among regional and international e-commerce players.

Local shoppers have various choices when searching for online stores compared to other market types. Customers conduct more generic and less brand-specific search queries on search engines according to Google Insights.

E-Commerce Landscape in MENA:

It is time to enter the e-commerce space in the MENA region. The market is estimated to reach $28.5 billion (AED 104.7 billion) in 2022 as mentioned by menabytes.com. The regions’ digital-oriented consumers are craving new shopping experiences and broader product selection.

E-commerce is transforming the shopping landscape in the MENA region. Consumers tend to use their mobile devices for online shopping than any other device.  E-commerce businesses must develop user-friendly websites as it impacts customers’ preferences and conversion rates. This allows online stores to offer promotions that customers always seek and increase total retail sales.

The ability to penetrate the online world today provides opportunities for all business sizes to compete. They also have a chance to offer a variety of product selections and categories for online shoppers. The demand volume in the MENA is huge and profitable, which is creating great opportunities for all businesses.

E-Commerce Growth through ITCAN :

We offer e-commerce growth services for the MENA region across all product categories:

Connect with us at https://www.itcan.co/en/contact