GCC e-Commerce Retail is projected to have a considerable CAGR during the forecast period. The factors attributing the growth of GCC e-Commerce Retail Market includes increasing internet penetration, increased profit margins due to direct distribution channels, rise in crude oil prices and developed infrastructure in large countries. The major GCC countries, such as Saudi Arabia, the UAE, Oman, and Kuwait, also have well-developed infrastructure, that also allows the e-commerce market to serve a larger population. The GCC countries have a large population that uses the internet, providing companies with a larger target market. Rise in exclusive launches on online stores like Amazon, Flipkart, also encourages e-commerce companies to gain a competitive advantage and expand their market share. Furthermore, other key market indicators, such as consumer spending, are growing rapidly in the GCC countries, creating numerous opportunities for the GCC e-commerce retail market growth. 

Impact of COVID-19 on GCC e-Commerce Retail Market

The impact of COVID-19 lockdown measures benefited e-commerce significantly. Despite the fact that sales were already growing strongly during the review period, restrictions and curfews forced most retailers looking to cover the losses to shift from in-store to e-commerce. Retailers without an e-commerce platform quickly adjusted their websites to accept e-commerce orders and delivered the orders received through their retail apps. One of the dramatic changes that took place in that pandemic among Saudi Arabia populations were increasing their spending in home furniture. As the consumers who had been spending more times at their homes realized that they need to invest more in their homes. The companies like IKEA witnessed huge growth in e-commerce retailing in furniture categories during the COVID-19 pandemic.  BinDawood Holding, a local online retailer, announced in late March that, since the escalation of the Covid-19 crisis, its 10-day average sales had increased by 200%, while its average order value had increased by 50 % and app installations had increased by 400%. The virus's threat, combined with efforts to maintain social distance, has resulted in a significant shift in lifestyle and consumer habits, with e-commerce retail experiencing a rapid increase in growth of market in GCC countries. 

 Segmental Outlook  

The GCC e-Commerce Retail market is segmented based on customers, products and device used. Based on the customers, the market is further classified into business to consumer, business to business, and customer to customer. On the basis of products, the market is further segregated into electronics, fashion, books and magazines, and others(home décor, automobile, sports, beauty and personal care, kitchenware). Further on the basis of device used the market is categorized into smartphone, tablets, and personal computer. 

 GCC e-Commerce Retail Market Share by Products, 2020(%)

The Fashion segment is estimated to have significant CAGR in GCC e-Commerce Retail market

Among products, the fashion segment held a significant share in the GCC e-Commerce Retail market. People in the UAE are tech-savvy, and are fashion and brand-conscious, so they spend online to maintain their fashion factor. Premium priced fashion products generated the most sales in the UAE. Emerging product categories such as maternity wear, plus size wear, and sportswear among UAE residents will boost the fashion segment. Existing market players who offer a variety of shopping experiences, such as a try-on-and-buy tool, would also contribute to the growth of the online fashion segment. Moreover, Convenience of purchasing online, rising disposable income, easy availability of branded products, and rising demand for E-commerce products in Riyadh and Jeddah are other major factors driving the growth of the Saudi Arabian e-commerce fashion segment.

 Regional Outlook 

Geographically, the GCC e-Commerce Retail market is classified into six major regions including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). UAE is projected to be one of the dominating regions in GCC e-Commerce Retail market attributing to the factors that includes increasing adoption of e-commerce payments on platforms such as Dubai smart city.  Further, The UAE has numerous advantages that make it an ideal location for eCommerce growth. Its consumer demographic is made up of young internet-savvy people who use social media extensively. These people are more likely to spend time online than others in their age group around the globe. eCommerce companies, whether they are online markets or cross-border sellers, are trying to capitalize on the sector's high latent demand, disposable income, and digital penetration. Infrastructure development, financial account penetration levels, and supportive government policies serve as the basis for innovation and start-up growth in the region making the UAE major region of e-commerce growth in the GCC. 

GCC e-Commerce Retail Market Growth, by Region 2021-2027

Market Players Outlook

The key players in the GCC e-Commerce Retail market contributing significantly by providing different types of products and increasing their geographical presence across the globe. The key players of the market include Amazon.Com, Inc, Souq.com., Next Retail Ltd, Rakuten Kobo Inc., BasharaCare among others. These market players adopt various strategies such as product launches, partnerships, collaborations, mergers, and acquisitions to sustain a strong position in the market. In March 2021, Amazon.com Inc an ecommerce giant announced that it is expanding its operations network throughout Saudi Arabia, creating over 1,500 new jobs in 2021. According to the company, the enhanced delivery network will have a total footprint of six fulfilment centers that store goods and 13 delivery stations from which parcels are delivered, allowing the company to reach more customers with a wider geographic coverage and remote locations. This investment on expansion will increase the storage capacity of its fulfilment network by 89 % and the area of its delivery network across the country by 58%.

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the GCC e-Commerce Retail market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.