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E-tail – How Will MENA Order Online Post COVID-19?

Published in Jun, 2020

Executive Summary

Impact on Businesses

MENA E-tail is a $10 Bn sector led by UAE and KSA, and is expected to touch $35 Bn by 2023.

Online food delivery is also gaining popularity fast and this is being driven by changing customer behaviour and the rise of internet kitchens.

Covid-19 has had a profound impact on business in MENA. Retail is under a lot of stress as lockdowns imposed to combat Covid-19 prevents businesses from functioning normally.

However, while a lot of businesses are struggling due to the pandemic, there are quite a few of them that are actually thriving, too. For instance, e-Grocery has been the biggest beneficiary of the pandemic as people have flocked on online platforms to meet their demand for essential goods.

E-tailing, as a whole, has grown by 40% over the lockdown but not all product categories have fared well. eGrocery, Home and BPC have been the standout performers across all product categories whereas fashion and electronics have seen sales being hit the hardest.

Online food-delivery is also under a lot of pressure as the number of daily orders have taken a massive plunge during the lockdown. Daily orders in UAE and KSA have fallen by 20% and 40%, respectively over the lockdown.

While e-tailing has seen a spike during the lockdown period, there are a few key questions for the post-Covid world that are yet to be answered.

What would be the customer stickiness to the online channel?
How would the e-tail sector shape up in the region?
How can brands prepare?

Impact on Consumers

Covid-19 has also had a profound impact on consumer attitudes and behaviour. It has expedited the shift towards online: it has increased consumer stickiness and driven a lot of first-time users to online shopping.

Key Implications

The key questions answered in this report include:

  1. What is the expected trajectory for e-tail post COVID-19?
  2. What are the key trends that will shape 2020?
  3. What are the different playbooks brands can use?

This report also covers sector-level insights such as the ecommerce business model as well as player-level insights such as Amazon Revenue, Amazon Business model, Amazon Profitability, Next DAU and Amazon DAU, among others.

  • See: Inside the Report

    1. Market Scenario
    1.1. Market Size(Current & Historical)
    1.2. Market YoY Growth
    1.3. E-tail penetration
    1.4. Impact of Covid-19 on online industry
    1.5. Market trends during Covid-19

    2. Competitive landscape
    2.1. Market categorization by e-tail channel
    2.2. E-tail players strategies in recent times
    2.2.1. Raised capital
    2.2.2. Partnership
    2.2.3. Expansion/Launching new venture

    3. Consumer Perspecitve
    3.1. Impact of covid-19 on Consumer behaviour
    3.2. Consumer adoption of e-tail
    3.2.1. Influx of First-time users
    3.2.2. Stickiness of existing consumers
    3.3. Consumer decision criteria
    3.4. Consumer preference for online and offline players

    4. Post Covid-19 development
    4.1. Challenges in the e-tail market
    4.2. Market Forecast( Moderate & Optimistic scenario)
    4.3. Demand & Supply drivers
    4.4. Market ecosystem drivers
    4.5. Shift in consumer behaviour from purchasing offline to online
    4.6. Recommendation of how e-tail players can maximize their performances post covid-19
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