According to a VISA study of the MENA’s internet usage, released in June, the Arab region represents the fastest growing ecommerce sector in the world, with an estimated 45% yearly growth. Within that, the Kingdom of Saudi Arabia has topped their charts as having the largest expansion in recent years.
With a population of nearly 29 million people and an internet penetration rate that matches that of China (at 45%), this is hardly surprising. With 39% of adult internet users making purchases online, the internet sector for the Kingdom was worth $9.9 billion in 2010 and is set to expand to more than $28 billion by 2016.
When it comes to what Saudis are buying online, the items are varied. From fashion to consumables the market is similar to other GCC countries; however, recently there has been a rise in the number of sites dedicated to items that might traditionally have been seen in a souq, or more recently, supermarket setting.
Muhammad Arrabi, the CEO of internet holding group N2V, told Wamda that there has certainly been a rise in the demand for locally manufactured products. “Buyers do have a world view,” he said, “but they are also keen for products from within Saudi.” However, when it comes to penetrating the Saudi market, Arrabi points out that people would be mistaken to lump the Saudi taste in with the rest of the GCC. “Saudi has a huge population with multiple, semi-independent, subcultures,” says Arrabi, “Each with their own preferences, habits and spending levels.”
Original article by Lucy Knight
Continue reading at Wamda:
Traditional Saudi products make move to online
Comments
Facebook
Twitter
Contact
Elan.tv
Comments