Egypt's e-commerce market to reach $3 billion, with new changes in buyer behavior

Egypt’s e-commerce market is expected to grow 33% annually to reach about $3 billion by 2022, according to Oxford Business Group .

Experts analyzed that the growth of e-commerce in Egypt is due to the increase in Internet penetration , which is driven by millennials who are proficient in Internet and digital technology. In addition, some local companies and international platforms are also actively promoting the growth of e-commerce in Egypt , such as Source Beauty, a DTC beauty e-commerce company that has subverted the local beauty industry.

By understanding the changing consumer behavior trends in the e-commerce environment, e-commerce companies such as Source Beauty continuously promote customer engagement with the community they have created. Its customer service team, along with the editorial and marketing teams, respond to every comment from consumers, making consumers feel heard.

“Egypt has always been a price-driven market,” said Lydia Schoonderbeek, founder and CEO of Source Beauty . “After currency devaluation and high inflation rates, Egyptian consumers have become more price-sensitive . Due to price, availability and inconsistency in supply, people are reducing or eliminating consumption of imported products and are looking for local alternatives.”

In line with Egypt's digital transformation and financial inclusion agenda, the Egyptian government announced that it would increase the upper limit of electronic payments by individuals via mobile phones to 30,000 Egyptian pounds (about 12,400 yuan) per day and 100,000 Egyptian pounds (about 41,400 yuan) per month from March 2020. This is very good news for the e-commerce industry.

However, consumers in Middle Eastern countries, including Egypt, tend to pay cash on delivery , which has always been a major challenge for sellers and platforms. Under the influence of the epidemic, data from multiple research institutions show that Middle Eastern consumers have gradually embraced electronic payments. But whether this situation can continue in the long run remains to be seen.

Lydia also mentioned that Egyptian consumers' spending on non-essential goods has increased last year and this year. According to a report by FitchSolution, Egyptian consumers spent 3.99 billion Egyptian pounds (about 165,000 yuan) on non-essential goods in 2020, and it is expected to reach 8.81 billion Egyptian pounds (about 365,000 yuan) in 2021.

middle East

Egypt