Black Friday, the biggest shopping extravaganza, presents a ~$350 Bn global opportunity through online sales. This year Black Friday will coincide with FIFA World Cup, impacting customers’ purchase behaviour and shopping patterns. Driven by deals and discounts, the Black Friday season is filled with excitement for shoppers, and financial sharing applications are providing an additional […]
Digital Media has revolutionized how we experience sports events; its impact on World Cups has historically been massive and is expected to increase with the current edition of the Qatar World Cup. World Cup will drive audience engagement whose interest is directed not only to the 90 minutes of the game but also to behind-the-scenes […]
Food delivery market is poised to benefit from the celebratory atmosphere that has been a feature of Mega sports events. High consumption enthusiasm will drive consumer spending and acts as a springboard to boost sales. “The Qatar cloud kitchen culture is rapidly evolving and will naturally get a major boost from the celebratory atmosphere” Ramez […]
It is our pleasure to release our report “The Most Inclusive Football Tournament” covering key themes that will play out during the upcoming World Cup in Qatar. The championship in Qatar is one of the largest sporting events in a post-pandemic world. This report covers the impact, market outlook, and evolving consumer and supplier trends […]
Football world championship in Qatar is one of the largest sporting events in a post-pandemic world. Enabled by the proliferation of digital media channels and internet/smartphone penetration, an unprecedented 5 billion consumers are expected to engage with the event. Consumption is expected to spike during the tournament which overlaps with the retail festive season. The […]
MENA Food Delivery Ecosystem is rapidly evolving. While food aggregators helped restaurants weather the pandemic, their impact on the profit margins has been reduced. Restaurants are creating own unique propositions to attract consumers and consecutively restaurant own apps are now the fastest growing segment. Evolving stakeholder economics is poised to reshape the food delivery market in […]
OTT is the future of entertainment, and sports tournaments have emerged to springboard user engagement. FIFA World Cup 2022 is expecting ~5bn viewership, out of which ~1bn viewership is projected through OTT platforms. A steep spike in OTT subscriptions is seen during a major sports event, which experiences a dramatic fall post event. Thus, OTT […]
The BPC market in the MENA region is going through a transformational period driven by evolving consumer needs and shopper persona. While legacy brands have undertaken various initiatives to fulfill emerging trends, consumers aren’t fully satisfied. This has led to the emergence of D2C brands who have been able to develop meaningful relationships with customers […]
Black Friday has emerged as one of the most important events in retail in the Middle East and North Africa (MENA), owing to the wide array of deals and discounts, spread out over the 5–6 week festive period. As retail traffic is set to be high; retailers in the region need to be cognizant of […]
Black Friday is the most anticipated online shopping event of the year, owing to the wide array of deals and discounts, spread out over the 5–6-week festive period. This year promises to be no different with consumer purchase intent peaking in anticipation of this sales extravaganza. With interesting price drops and high consumer purchase intent, […]
The digital economy went through a disruption and high growth phase over the last few years, aided by the pandemic. While most sectors are still in nascency in terms of online penetration, there are a few sectors like FoodTech which are more evolved in the region with penetration levels higher than most other global benchmarks. […]
1. Online viewership expected to reach 5 Bn during FIFA World Cup 2022 5 Bn eyes are expected to be glued to FIFA World Cup in Qatar, expecting a growth of over 43% than the viewership witnessed during FIFA World Cup in Russia. Covid fueled digital penetration which has given fans multiple ways for football […]
1. UAE Fashion E-tail market poised to near 20% penetration by 2025 on the back of soaring purchase frequency rates An instrumental change to the UAE fashion scene in the coming years is that increase in frequency and average order value which will drive higher wallet share for online channel, will drive a lot more […]
1. UAE Travel market has recovered swiftly, closing in on pre-pandemic levels in 2H2021… In 2020, The travel market fell by over 65% owing to mobility and travel restrictions. However, Expo 2020, Global events like Dubai Shopping festival, Sport and Music concerts coupled with practical and responsive government policies, drove tourists to UAE and proved […]
1. Grocery was the most underpenetrated online sector pre pandemic… The Grocery sector has been a predominantly offline shopped sector before the covid 19 pandemic, due to its essential nature. Consumers have always preferred to personally check the products before shopping for grocery as it directly impacts their health and wellbeing. Grocery shopping was a […]
MENA is a ~$2.8Tn economy with a young and vibrant digitally evolved population and strong enabling logistics infrastructure, making the region a fertile ground for digital solutions. Strong regulatory backing, coupled with macroeconomic tailwinds including the pandemic has accelerated the evolution of the MENA digital economy. Online service users are set to grow by 100 […]
B2B trucking across the MENATP region is a massive USD 80 Bn market
Creators are now playing an equally important role compared to celebrities as the content is more relatable and the format is more engaging
Beyond the mentioned growth drivers, this massive growth also stems from the growing consumer influx from under appreciated cohorts such as females and Gen Z.
Online channel has increased in prominence and now makes up ~20% of luxury sales in UAE currently influencing more than 90%
The fund-raising activity in 2021 in Vietnam has broken all previous year deal making records. 2022 continues to show a similar trajectory
Ramadan is a $6.2 Bn online sales event in MENA. Festive periods account for ~40% of annual e-tail in MENA.
The MENAP Digital Economy will multiply 7x by 2030; this will require a funding of ~$20 Bn in the coming 2-3 years
Players have access to a mix of 3PL and captive logistics to meet their specific growth targets
Dark Kitchens would account for 13%+ of the FoodTech market in 2025 the penetration would be significantly higher in UAE & KSA
Fueled by recent funding, the Pakistan digital landscape is now set to take of as players storm the market
Buying is seen as a better value-added proposition especially for home and electronics sectors where the estimated duration of use can be higher.
Celebrations will drive Ramadan purchases and Grocery, Fashion key sectors that will see spike in demand
Ramadan days are expected to see 23% shoot up in sale
Salary accounts of white-collar employees, with a Lifetime value of ~3X, seem an addressable market and the best way forward for neobanks
The Indian EDC market stands at ~4.7 Mn terminals and is expected to grow to ~12 Mn by FY25, with steady adoption across merchants
The supply side is gearing up to tap into the massive opportunity which is unfolding, through localization, technology investments and eSports events
Q-commerce with sectors that already have the necessary digital infrastructure and consumer awareness in the MENA region expands the market potential for quick commerce to encompass a $100 Bn opportunity .
A key trend that was alluded to coming into the Black Friday event is the further inclusion of sectors such as Beauty & Personal Care and Fashion into the promotional offerings.
Sector appeal slightly varies among the different generations with Gen Z being most inclined towards Fashion this Black Friday.
eHealth platforms have come in to drive efficiencies and create value for consumers and suppliers
Black Friday is a critical event in the retail calendar in MENA. This event which was first launched by Souq (now Amazon) as a 3-day online only event has now expanded to over six weeks of Q4. The event has been so popular that ~20% of annual online retail sales happen during the Black Friday sale period.
Key Black Friday Trends:
a. The Market is Stabilizing:
Last year BF season achieved +90% YoY growth; this year YoY growth is expected to stabilize at ~30%; Sales to reach ~$6 bn during BF period.
b. Differentiated Strategies are going to be at play
In terms of strategy, higher focus on private labels, Inventory led fulfilment and fast delivery speed are expected.
c. Consumer is moving beyond discounts
Discounts will become a right-to-play during BF. For right-to-win, other factors such as offer variety and exclusivity and experience will be key.
The Online Festive Sales of 2021 saw 23% YoY sales growth in 2021
The USD 1 Bn eB2B market is setting itself up for explosive growth with penetration levels <0.5%
CPaaS could represent a USD 5 Bn+ opportunity in MENA by 2030
MEA investments surged to USD 2.1 Bn YTD in 2021, already ~2x of last year
More than 95% of consumers plan to use some digital channel for product discovery this Black Friday.
MENA Q-commerce market is expected to grow by 24% to reach $20bn as consumers continue looking for convenience and immediate gratification.
MENA Digital Economy to reach new heights
UAE Prime Day is still in emerging phase with 140% sales increase from an ordinary day compared to 250% in US
Electronics and Gaming were highly dominated by online channel whereas Kitchen & Dining and Jewelry by offline channel
QSR’s are usually met with the trade-off between focusing on their own app vs a marketplace app. Each have their own pros and cons. Broadly, having one’s own app creates better control of the brand, greater engagement with the customer but it is a high cost and effort activity in terms of building a userbase and capabilities.
Online Food service market penetration to remain stable at around 15-20%
The market in India will grow 10x over the next 5 years to reach $5 billion by FY2025
Q-commerce has enabled consumers to try new online categories because of its convenience thus increasing the share of wallet.
MENA online electronics has ~3x penetration levels compared to online retail
Lebaran 2021 is expected to contribute USD 5+ Bn to e-tail GMV
Offline fashion is poised to recover this year while online fashion is growing strong Y-o-Y
The MENA market has grown significantly in recent years and its GMV has become comparable to other emerging economies such as India and Indonesia.
Ramadan 2021 to contribute more than $2Bn to e-tail GMV, 2x that of 2019
Players have been innovating to improve profitability, more players expected to enter
Consumers are now looking at sustainable fashion and value purchases; the luxury segment consumption remained largely unaffected
Consumer shift towards online is permanent and will drive further growth
Mobility recovered 63% with overall 71 million rides
e-Grocery players that address the pain areas will grow faster than the market
Social media penetration stands at 99% in UAE and 72% in KSA.
Growth of social commerce is likely to create new opportunity for millions of resellers and suppliers in next 5 years
An interesting factor is that an overwhelmingly large proportion of consumers believe that discounts during the white/yellow friday period are higher online than they are offline.
Pre-COVID estimates of $16bn, the food services market is now estimated at $9bn in UAE as lockdown restrictions suppressed the sector.
Q4 Festive sales to reach ~$1.5 Bn at a 65% y-o-y growth rate
Rise of ‘Integrated eCommerce’ which digitizes both the front end and back end will create a new retail model in post COVID world
Basis strong shipments growth, we expect the festive sales GMV for the first event to grow 50% y-o-y over CY19 to reach $4 Bn
1.5-1.6x increase in online grocery households in May vs Jan, most of which is organic adoption especially April onwards.
Lockdown measures have led to growth for e-tail. The growth rate during the lockdown has been ~20% by order volume and ~40% by value resulting in annualized GMV of $11 Bn.
E-tailers generate ~25% of their annual GMV during Ramadan time, which when compared with White/Yellow Friday sale, stands at ~5%. Brands also realize the importance of Ramadan where many engage in activities such as launch of new products, new services, bundling of offers. A third of their annual marketing budget is spend in promotion of the same.
India Consumer Internet Performance (during lockdown) Published on: 2nd April 2020
Brands across categories are facing challenges in their existing distribution network owing to fragmentation
1. Fashion shopping in Ramadan peaks during Eid week Fashion is the most exciting retail category, when it comes to Ramadan shopping in MENA. Excitement levels for clothing are high throughout the festival season, however it peaks during the Eid week. When this trend was studied at country level, UAE and KSA followed the same […]
1: Niche models gain traction Noon and Amazon have emerged as the key players in the online marketplace in the region. However, niche players have also emerged who either have a specific focus on customer segment, category or business model. Some niche marketplace examples are around grocery, value focussed, pre-loved fashion and gifting: 2: Electronics continues to […]
Insight 1: Fast-paced etailing market growth in 2019 Online retail market grew at a fast pace this year compared to last few years – greater than 35% this year compared to ~25% annually over the last few years.
‘Convenience’ ranks much ahead of ‘price’ as the main reason to avail on-demand home services Published on: Dec 2019 Compared to many sectors, on-demand home services has a high share of ‘convenience seeking users’ Which is likely to enable players to rationalize pricing and driving better unit economics in the long run Home services consumers […]
1. Organized B&M is expected to grow at a CAGR of 20% while online retail is expected to grow at a CAGR of 35% till 2022 Published on: Nov 2019 Organized retailers have gradually expanded into several categories and no longer stick to just one format or product offering. They have been leveraging their brand […]
Subscription users of cloud kitchen apps show stronger platform loyalty (vs on-demand users) even when preferred dishes are unavailable Published on: Oct 2019 When preferred dishes are unavailable, subscribers of on-demand cloud kitchen apps are much more likely to still buy something else on the platform In comparison, non-subscribers/on-demand users are highly likely to switch […]
Structural shift happening in used car market from classifieds model to transactions driven model Published on: Sep 2019 Together with value added services, revenue from B2C+C2B play within the online used car market expected to grow the fastest out of all revenue streams The Online Used Car Market is shifting to transaction-based models Published […]
Despite slowing growth of mobiles category, e-tailing firmly on track to grow 32% in 2019 and reach USD ~82 Bn by 2022 Published on: Sep 2019 2019 to see the slowest growth in online mobiles sales in the last five years Despite the slowdown in mobiles, e-tailing to continue its rapid growth trajectory owing to […]
GCC – a unique market showing characteristics of both developed and developing markets GCC countries have most of their population concentrated in urban centres. This helps the organized retail players to make a deeper reach out to the population, resulting in a high representation of organized players in retail. This characteristic of the high share […]
Globally, apps are taking superapp journey by adding services to its offering and increasing per-customer revenue Published on: Jul 2019 A country/region becomes superapp ready when its large base of the population is smartphone first instead of desktop and the ecosystem of apps customized to local needs is not evolved. WeChat in China leveraged this […]
Sellers prefer an online retail platform majorly for their consumer reach followed by their UX/UI experience and word of mouth Published on: Jul 2019 Our research shows that Top 4 platforms are especially preferred for their reach, while sellers sell on social media primarily due to its zero commissions and easy to use UX/UI (and […]
Business in MENA are taking digital journey led by social media, for marketing its products and services to customers Published on: Jul 2019 MENA region comprising of GCC, Levant and North Africa is home to 40+mn businesses represented by corporates, government, SMEs and self-employed. These businesses in the MENA region are increasingly using digital platforms […]
Diabetes care market in India is ~$17 Bn in size as of FY21, expected to grow 3X+ to ~$59 Bn by FY31.
Buy Full Report With technology driving businesses across the region, Retail technology enabler market is a picking up trend in Middle-east, driven by marketing solutions, analytics, and other retail support Published on: Jun 2019 Technology is playing a key role in driving the retail business in Middle-East. With Amazon-Souq and Jumia already crossing USD 1 […]
Buy Full Report Customization and Lead qualification key to scalability in the Online Interior Design market Published on: Apr 2019 Online Interior Design market is a large and fledgling opportunity in India (RSC estimates the market to be ~$ 100 mn in FY19, with online penetration of <1%). Despite the large addressable opportunity, leading Online […]
Buy Full Report Share of organized grocery retail in UAE+KSA is expected to increase to 80% by 2022, from current 60%; Unorganized grocery retail to shrink Published on: Jan 2019 RedSeer estimates grocery retail to grow at CAGR of ~5% to reach size of USD 73 Bn by 2022, from current USD 60 Bn for […]
1. Fintech: Funding in MENA fintech is led by lending and payment focused start-ups Published on: Oct 2018 Fintech based start-ups in the MENA region are seeing a lot of traction recently with a funding of ~USD115mn till date, of which ~75mn is received within last two years. UAE is the most popular geography among […]
1. Cab: After a first wave of rapid growth, MENA’s cab hailing market is ready for the next wave of expansion into smaller cities and realize its huge potential Published on: Sep 2018 MENA region’s online cabs market has grown rapidly to reach similar scale as its better funded regional peers in India and SE Asia in […]