Specialized data released by the Communications and Information Technology Commission (CITC) shows that e-commerce markets have experienced rapid growth, driven by the increasing shift from traditional shopping to online and mobile shopping, generating $3.8 trillion in e-commerce transactions between consumers and businesses in 2016. The ICT Authority report noted that e-commerce markets in the Middle East, North Africa, Central Europe, and India account for 2.51% of global e-commerce spending.
3.8 billion users by 2020
The report noted that investments by international companies have contributed to the e-commerce sector, and the presence of a rapidly growing sector of venture capital funds and entrepreneurs has led to the emergence of a number of emerging e-commerce markets. It also noted that the global proliferation of the internet and the demand for internet-based services, The ability of e-commerce companies to provide services and goods tailored to customers“ personal needs, growth in e-commerce investments, market-changing innovations in payment methods, and improvements in logistics and delivery are among the key drivers of the global e-commerce sector.
The report projected that the number of Internet users worldwide would rise from 3.2 billion (a global penetration rate of 43.1% of the total world population) to 3.8 billion users by 2020, which means the global penetration rate will rise to 49%, and more than $106 billion has been invested in technology and e-commerce companies since 2012.
33% of e-commerce in China
The Communications and Information Technology Commission report noted that emerging economies such as China and India are witnessing unprecedented growth in e-commerce, with China, the world’s largest e-commerce market, and thus its share of global e-commerce spending exceeded 33% in 2015, compared to its 2014 share of 5.9%.
The report attributed the rapid growth of the e-commerce sector in emerging economies to the growth in the number of internet users, with 1.14 billion people in China over the age of 15 and more than 583 million internet users (with an internet penetration rate of 51%), in addition to 400 million online shoppers, as well as the rise of digital payments, the expansion of logistics capabilities, and investments by global e-commerce giants.
E-commerce Forum in the Kingdom
The study emphasized the importance of continuous innovation in e-commerce products, services, and business models through new business models such as ”online-to-offline” (O2O) and ”group buying,“ across both online and traditional channels to achieve broader engagement with consumers, as well as the use of artificial intelligence and the provision of new shopping experiences to attract online shoppers.
It is worth noting that the Communications and Information Technology Commission (CITC) will hold its 2017 annual forum titled “E-commerce in the Kingdom of Saudi Arabia” next Tuesday at the Commission’s headquarters in Riyadh, with the participation of the Ministry of Commerce and Investment, the Saudi Arabian Monetary Authority, the Saudi Post, the General Authority for Small and Medium Enterprises, e-commerce experts, numerous investors in this field, logistics and payment service providers, and a number of stakeholders in the telecommunications and information services sector.
The forum aims to provide a comprehensive overview of the local, regional, and global state of e-commerce through panel discussions with experts, raise awareness of its benefits in the Kingdom, and review its economic and social impact.
