Consultancy firm predicts e-commerce will be the region's new leader
The GCC e-commerce sector is set to see huge growth in the near future, according to a new report by Kearney Middle East.
Kearney Middle East has stated that by 2025, the GCC region will be worth around $50 billion.
The prediction was levelled in a recent report which states that e-commerce will be the leading retail sector in terms of profits over the next five years.
Given the impact of lockdowns due to coronavirus, shoppers have become dependent upon e-commerce to secure goods and services.
While the move away from the high street was already well underway, recent events have served to expidite the process.
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Adel Belcaid, a Partner in Kearney Middle East, said: “e-commerce continues its rapid growth in the region.
"In our last e-commerce outlook for the GCC in 2017, we forecasted growth of 35% CAGR, which was essentially more than a four-fold jump in value for the sector between 2015 and 2020.
"By the end of 2019, it was worth just short of $18 billion, with signs of maturing growth and intense market competition.
“However, Covid-19 caused an unforeseen push and gave a new, accelerated lease of life to the sector, in line with what we have seen in global markets.
"This is due to a rapid change in consumer behaviour, with unprecedented adoption of e-commerce by all population segments, spurred to a large extent by the new normal of social distancing, lock-downs and reduced capacity in physical stores.”
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