Online retail penetration in Egypt to reach 5% during 2016
Following the trend of the more Internet developed countries, retail Internet penetration in Egypt is growing to catch up with more developed countries and it is expected to reach about 5% online retail penetration during 2016. According to Jumia Egypt CEO, Mattia Perroni, the e-commerce industry is continuously growing and, despite the fears that could be drawn from the unstable political situation, sales remain upbeat in Egypt.
The leader e-commerce company in Egypt, Jumia, participated in Arabnet Digital Summit celebrated in Beirut 4-6 March. There, Jumia’s CEO Mattia Perroni shared relevant data with the public that confirms the optimistic trend of the e-commerce industry in the country.
E-commerce is one of the biggest trends in business in the 21st century around the globe. According to Euromonitor, Egyptian consumers online transactions are expected to more than triple by 2016. Although the e-commerce penetration rate is currently relatively low in Egypt (1%)spending online is expected to reach up to $447.3 million. And according to its CEO, Jumia Egypt aims to grow at the same rhythm as the e-commerce industry does not only in Egypt, but also in Africa.
The young company has proved to be an example of growth, celebrating soon 2 million followers on their Facebook page.Moreover, Jumiais transforming the African market by tapping into Africa’s most promising markets, targeting 600m + people. Jumia has internalized the main activities of their business and today they count with their own warehouse, fleet delivery, customer service and photo studio.
E-commerce users behavior differs from one country to another and this is something that Jumia takes into consideration: “The main reason why users shop online differs from developed countries to developing countries. The more developed shop online in order to save time, while the developing do it for economic reasons(price and weak retail presence in remote areas).We understand those reasons and work according to them”, Mr. Perroni assured.
E-commerce targets everyone who has access to Internet, whatever his or her background is. With challenges ahead, the e-commerce field in Egypt is growing to become an important player for the economy of Egypt.