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News > Overseas market analysis: Middle East e-commerce is making money!
According to BMI Research Report, the Middle East is one of the fastest growing e-commerce markets in the world. The overall growth rate of e-commerce in the Middle East has exceeded 20% in the past two years, and e-commerce will maintain an annual growth rate of about 20% in the next few years. According to relevant data, the website predicts that by 2020, the scale of e-commerce market in the Middle East will grow to USD 69 billion.

China's cross-border e-commerce has gradually risen in the Middle East, and the development speed is shocking. Take jolly chic in Zhejiang as an example. It was originally positioned as a global cross-border e-commerce enterprise and began to focus on the Middle East market in 15 years, which is the dominant local market with souq under Amazon.


Overseas market analysis: Middle East e-commerce is making money!


The following is a brief description of the advantages and disadvantages of the Middle East market and the core elements of trade:

Market advantage

Market and network

E-commerce only accounts for 0.7% of the total GDP of the region (world average 3%, developed country average 5%);

More than half of the population are young people under the age of 24, who love to experience new things and have a high degree of acceptance of new things;

In the United Arab Emirates, Saudi Arabia and Egypt, the penetration rate of smart phones exceeds 70%; In Qatar, mobile network penetration has exceeded 90%;

Geography and resource

Most of the Middle East region relies on oil resources to obtain wealth. The wealth of the rich class is significant and the purchasing power is considerable; In addition, because the region is mostly desert terrain, resources are very scarce, and many commodities are very dependent on imports;

In the Middle East, 4.8 million newborns are born every year. Infants under the age of 5 account for 11% of the total population, and children under the age of 10 account for 22% of the total population. The infant and child industry has a great prospect;

Religious history

The Middle East has a strong religious atmosphere, conservative customs and few entertainment programs, especially local women, who can't drive and often go to the streets because of customs, and e-commerce has become a part of their life;

During the Muslim holy month of Ramadan, people's working hours are reduced, and consumers' online shopping time and consumption motivation are increased;

Market disadvantage

Some consumers lack confidence in online shopping and worry about personal information disclosure and fraud;


Local people's shopping habits are "random" and prefer the payment method of "cash on delivery", which will increase the return rate of goods and increase the logistics cost;


Most of the Middle East are Muslim countries, with many taboos on selection and packaging;


The disparity between the rich and the poor in the Middle East is more obvious, and online shopping consumption is mostly the rich class;

Logistics status


Doing e-commerce is also doing logistics. Especially for China's e-commerce, the competitiveness of cross-border logistics is the core competitiveness of monopolizing a region. Only with a complete set of "mobile Internet logistics solutions" can it be handy in the local market.


For the Middle East region, there is still a certain gap between the popularity of local logistics and that of North America and Southeast Asia, and the consumption habits of users are not fully established, which brings the following disadvantages to local logistics:

The address is unknown and the investment rate is low


Cash on delivery, high return rate


Insufficient development of Internet of things and insufficient delivery efficiency

In view of the above problems, if the seller settled in the region, it is recommended to plan the store logistics system in advance, improve the after-sales customer service service, and follow up the filling in of the user's address; By interfacing with the API of the logistics company, the order delivery track is monitored in real time.

Payment status

More than half of online shopping in the Middle East uses cash on delivery, and the popularity of credit card is low. However, with the growth of the Internet and the younger generation, the proportion of card payment is rising.

In addition, the Middle East also prefers to use "prepaid cards", in which cashu and onecard are the leaders of prepaid cards. Users can recharge their account by credit card, PayPal, bank transfer, mobile phone or offline physical store recharge card.

To solve the above problems, sellers can increase the proportion of users' online payment and reduce the return rate caused by cash on delivery through credit card payment incentives.
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