2. Outline
¨ Online customer demographics in MENA
¨ Landscape of online customer profile and behavior in MENA
¨ Social Media key business driver for e-commerce with Facebook being the leading platform
¨ Drivers and challenges of e-Commerce in MENA
¨ Revolutionary perspectives for e-Commerce business in MENA
¨ Selected e-Commerce players in MENA region
3. Online customer demographics in MENA
Woman
40%
Man
60%
Online shopping penetration by
gender
0%
20%
40%
60%
80%
100%
Less than 16
years
16-25 years 26-35 years Above 35
years
Online shopping penetration by
age
Online Shoppers Rest of internet users
§ While women enjoys going to a store, men are more practical and like to shop online. Men are more common on the tech
scene in the Middle East which justifies that Electronics and Tech items are the most sold products online; MENA compare to
Europe and US is the region where man enjoy more shopping online. In Europe 65% of online shopaholic are females, while
the males are more hesitant buying online.
4. Landscape of online customer profile and behavior in
MENA region
q Key decision for shopping online
besides products and brand
awareness:
Ø Free & fast delivery
Ø Prompt Customer support
Ø Loyalty programs
Ø Transparency through shopping cycle
Ø Content accurency and less retouched
pictures
Ø Delivering a unique experience online
- promotions or lower prices
Ø User-friendly experiences while
browsing online
Ø Active Social Media presence
q 70% of customers consider still to
buy cash on delivery while
purchasing online, even though 45%
of the online customers in the region
own a payment card
q People tend to shop online more at
night than during the day; customers
react based on impulse
q Brand carries status and status
symbols are important
q Fashion is immensely popular and
people like to wear what pleases
others
5. Social Media key business driver for e-commerce with
Facebook being the leading platform
90%
50%
45%
14%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Facebook Twiter Google+ Instagram
Social Media penetration
MENA internet users
¨ Facebook is the leading platform among
Social Media channels
¨ Instagram is perceived as the best
platform to present and sell products
¨ Twitter is mainly used to inform customers
about services, events and update people
with the latest news
¨ Social Media channels considered to be
the main traffic drivers for e-Commerce
¨ Pintrest does not have a considerable
presence and influence in the region
² Imperative to have a Social Media plan and strategy
6. Drivers and challenges of e-Commerce in MENA
¨ Cash On Delivery preferred MENA
payment method … puts pressure on
working capital requirements
¨ Security and fear of fraud, counterfeit,
non-delivery still a challenge but
improving
¨ Cash On Delivery leads to higher rate of
return, as it makes the return decision
easier (10-25% rate of returns)
¨ Better offers due to lower operations costs
¨ Easy to compare products while shopping
¨ Access to wide range of products without
having to spent much time
¨ Shopping online is less time consuming
¨ Possibility to read reviews and share your
shopping decisions with friends and family
Drivers Challenges
7. Revolutionary perspectives for e-Commerce business in
MENA
¨ Buy online return in store
¨ Buy online, pick-up in store
¨ Buy online, fulfill through any store
¨ Buy in store, fulfill through online
¨ Buy via Social commerce sites
