E-commerce transactions in Egypt set to reach EGP 100 billion by end of 2021: report – Tech – Business
The value of e-commerce transactions in the Middle East region is also expected to reach $ 71 billion by the end of 2021, according to the report.
The report also states that electronics lead e-commerce revenue in Egypt with 28%, followed by fashion (21%), food and personal care (19%), toys, hobbies and do-it-yourself products (19%) and furniture and appliances (12%).
The report also pointed out that direct-to-consumer (D2C) businesses are part of the world of e-commerce.
D2Cs are retailers who sell direct to consumers typically investing in new product development and branding while outsourcing their supply chains, pointing out that they typically sell through digital channels or direct distribution while omitting retail overhead and capitalizing heavily on social media marketing.
In this regard, the report notes that D2C companies like Amazon, Jumia and Noon only account for 50% of the e-commerce industry.
Boost CEO and Egyptian Junior Businessmen Association (EJB) member Sherif Makhlouf expected the spread of D2C to have a positive impact on the Egyptian economy as many e-commerce brands source and manufacture locally and that many of them ship products around the world. .
He also predicted that the e-commerce market in Egypt does not need regulations different from current retail and consumer protection laws, asserting the importance of providing it with support and incentives to enable it to prosper.
Makhlouf predicted that the fashion industry would be the most demanded sector via D2C due to the industry’s relatively advanced supply chain and new product development in Egypt, followed by home accessories, personal care, toys, hobbies, pet products, furniture and appliances.
He also predicted that the electronics and media industry would not make progress in the D2C model due to the complexity of the production and supply chain.
“The D2C brands will attract more foreign direct investment to Egypt. Amazon’s acquisition of Souq Egypt and German group Rocket Internet’s investment in Egypt via Jumia are examples, ”Makhlouf explained.
He added that the pandemic has accelerated the adoption of e-commerce by Egyptian consumers.