A phenomenal growth of 10.1% in the internet users in the last 5 years and in smartphone users in the country have acted as drivers for the online fashion market. Convenience to purchase online, rising disposable income, easy availability of branded products and rising demand for E-commerce products in Riyadh and Jeddah are other major factors which have augmented the growth of online fashion market in Saudi Arabia.
The online fashion market in Saudi Arabia is still in its early growth stage, while it showcases promising outlook for the future. Customers still have a preference for touch and feel concept before purchasing apparel and footwear, which has restricted a large population group to make online purchases. Significant proportion of customers have adapted themselves to the technological advancements in retail sector in terms of shifting to online stores from physical stores while others still depend on brick and mortar stores to make their purchase decisions.
Availability of international brands and presence of trending products on such online platforms with varied offers and discounts are the major factors which have driven sales of apparels on E-commerce portals.
Saudi Arabia online fashion market is expected to grow at a rapid pace owing to rising number of smartphone users, increasing awareness about online shopping among customers, and growing efforts of government to shift customers to digital platforms. New entrants are expected to grow in terms of GMV in future adding to the competition in online fashion markets. Strategic expansions by the existing market players via inorganic growth and innovative ease provided by tools such as 3D try-and-buy tools would further assist in growth of the online fashion market. E-commerce markets will witness an increase in customer base, of which Riyadh and Jeddah will contribute a larger share.
Women in Saudi Arabia are generally highly fashion-conscious when it comes to footwear. Their ability to express themselves through their appearance when in public is limited by the fact that they must wear an Abaya so footwear is only means of distinguishing themselves. This is the reason Saudi women tend to invest in wholeheartedly in footwear.
In 2016, 85% of the payments were done through Cash on Delivery (COD) option while other payment option contributes only 15% which include digital payments like debit card, credit card and online payment. Buyers preferred receiving the product first and then paying the price due to the trust issues that is still faced by the E-commerce players in Saudi Arabia. However, this scenario of traditional payments for orders placed is changing to modern methods of online payments with people accepting the change and making themselves more familiar with digital payment modes.
In long term, the E-commerce market will witness more global players to enter the league via inorganic mode, thus making the online industry contribute a larger share to the total economy of the country.
In addition to that, the forward integration trend observed in the market as offline giants are entering into online market is further expected to drive the market during the forecast period. Players such as Zara, Maxx, Shopperstop, Nextdirect and Bershka which have entered into the market are going to revolutionize the online market as they have readily available portfolio with strong brand awareness among the people.
E-tailers would expand in size and number, offering more products to customers, along with offers and deals that will act as the drivers for increase in customers making more online purchases. Internet facilities and the awareness among people about online fashion markets will fuel the growth of e-tailing in Saudi Arabia.
Key Topics Covered in the Report
Competition E-commerce KSA
Formal Wear Sales KSA Online
Consumer Online Buying Behavior Saudi Arabia
Online Plus Wear Market KSA
Online Mode of Payment Saudi Arabia
Online Desktop Search Saudi Arabia
Online Mobile Search Saudi Arabia
Online Hand Bags Market Saudi Arabia
Online Imitation Jewelry Market Saudi Arabia
Online Sneakers Market Saudi Arabia
Men Footwear Online Market Saudi Arabia
Online Tops Market Saudi Arabia
Online Jackets Market Saudi Arabia
Maternity Wear Online Saudi Arabia
For more information on the market research report please refer to the below link:
Related Reports
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-124-4230204
No comments:
Post a Comment