Future of e-commerce with respect to Pakistan

1. Future of Online
Business in Pakistan
Presentation
Aqeel Ahmed
Muhammad Abdullah
Hassaan Tauqeer
Mobeen Ayaz
Ali Hashmi
Saad Malik

2. Online Business
• Online Business or e-business is any kind of business or commercial transaction
that includes sharing information across the internet.
• Commerce constitutes the exchange of products and services between
businesses, groups and individuals.
• Online Businesses processes may include
• Buying and selling products; Supplies and services
• Servicing customers and Processing payments
• Managing production control and Sharing Information
• Collaborating with business partners

3. Statistical Comparison
• In Pakistan, the worth of e-commerce market is expected to reach over US$600
million by 2017.
• The ecommerce industry is booming throughout the region, with India’s leading
ecommerce website, Flipkart, raising a record US$1 billion in investment and
Alibaba’s market capitalization was estimated to be over US$250 billion.
• Pakistan, although a late entrant to the world of ecommerce, has recently recorded a
massive rise in online shopping trends, with US$30 million being spent on online
purchases in 2015 and expected to rise to US$ 600 million by the year 2017
• The number of registered e-commerce merchants has risen by 2.6-times and e-
commerce payments have surged 2.3-times (State Bank of Pakistan)
• As per the SBP’s Payment Systems Review (Q2FY18), e-commerce merchants in
the country had climbed to 905 from 305, each of them are registered with the banks

5. Global Comparison

6. Future of Online Business in Pakistan
• Online shopping in the global space has become the norm
• If you are not online, you are not in business
• Import of International Products into Pakistan through different e-commerce
platforms
• Increase in the sales of Online Businesses indicates the trust and popularity

7. Factors to the future
• Increasing population and expanding market:
63% of the total population is youth, therefore, they have access
to the new technology and better utility of mobile platforms
• Increasing Entrepreneurial Culture within Pakistan:
Start-up businesses in Pakistan e.g. Food Panda, Travly, Pakwheels
etc.
• Strategic location has huge untapped market for thriving industries:
Tourism industry has a lot of potential to reflect GDO, as tourism
apps would promote online hotel booking and real time
information e.g Tripadvisor, Jovago etc.

8. • Increasing Internet Penetration:
Introduction of 3G and 4G connections have helped local businesses to
emerge on the international market. These businesses have found a new way of
connection with customers via e-business
• Rich Tech based Acumen:
Pakistan possesses a rich tech based acumen. Many IT specialists
including teenagers competed on several tech-based platforms.
Bronze medals at the Microsoft Office Specialist World Championship 2016.

9. • Logistics and delivery infrastructure
Delivery giants TCS and FedEx, are providing COD delivery services across
150 cities nationwide. 35 percent of the total 70,000 COD parcels are delivered to
cities Karachi, Lahore, and Islamabad
• Growing trust and reliance on ecommerce
The future of ecommerce trends lay in the ability of online business to gain
establish trust in online shopping
• Access to smartphones
73.2 percent of the entire population also have access to mobile phones,
with such easy access to the internet via affordable smartphones, ecommerce trends
in the country are expected to boom in the near future.
• Modes of payment
COD payment is widely popular in Pakistan and is used in 95 percent of
online purchases, initiatives such as branchless banking (Telenor’s Easy Paisa,
Timepey, Mobicash etc.) and Inter Bank Fund Transfer (IBFT), are also considered.

10. Pakistan’s new ecommerce horizons
• Many existing local businesses such as Shophive, Homeshopping, ROZEE, and
Pakwheels are operating with ease bringing in new investments
• While foreign investors such as UBER, Rocket Internet with their diverse online
initiatives such as Jovago, Tripda, and Foodpanda, are all establishing their market
share in the emerging ecommerce industry of Pakistan.
• Various other local and home operated business have also flourished through
Facebook and Instagram due to extensive payment and delivery options
• However, this industry is lagging behind in terms of security concerns regarding
online transactions, low access to technology, low literacy rates, and limited
infrastructure and logistical support.
• Regardless, the industry is all geared up to create massive waves in the country,
with scope for innovation and improvement as well as long-term growth.

11. Barriers to online business in Pakistan
• Trust issues
E-commerce sites can exaggerate their product description which can put people
off from buying online so People Favored Traditional Shopping
Expectation vs. Reality

12. • Low literacy rate
Around 75 percent of the population without computer literacy, the growth of E-
commerce in the country cannot be expected to progress at any faster pace.
• Access to technology
In order to undertake E-commerce transactions, one must be connected to the World
Wide Web, for which possession of a personal computer (PC) or a laptop is a basic
requirement.
Personal computer is still not affordable by vast majority of the people of the country
• Access to internet
The Internet penetration in Pakistan is quite low in comparison to the West.
There is about 28 percent of the population having access and using the Internet in
the country.

13. • Traditionalist nature of Pakistan society
There is lack of awareness among the masses regarding e-commerce
Some people strongly believe in physical dealing.
People are accustomed to the traditional mode of shopping – they go to the market, visit
shops, bargain to get a good deal, and return home with the product.
• Security and Privacy issue

14. How to promote Online business
• Improve technology
• Expand the internet connections.
• Educate people and give understanding about internet business.
• Introduce cyber laws ,regulated cyber space will not open the doors for locals to
shop safely but will also encourage foreign investments.
• Government must announce a comprehensive policy to promote e-commerce in
the country.
• The government should establish regulatory authority to regularize e-commerce
businesses and to implement commerce policies.

15. Ecommerce Advantages and
Disadvantages
Advantages:
• Low Financial Cost
• 24/7 Potential Income
• Sell Internationally
• Affordable employees
• Gain Access to Customer Data Easily
• Able to Process a High Number of Orders
• Easy to Retarget or Remarket to Customer

16. Disadvantages
• No One Can Buy During a Site Crash
• Customers Can’t Try Before They Buy
• Ecommerce Is Highly Competitive
• Customers Can Be Impatient
• You Need To Ship Your Product
• Physical Retail is Still More Popular Despite Decline