KUWAIT CITY, Nov 14: Information technology expert and former Director General of the Central Agency for Information Technology (CAIT) Eng. Qusay Al-Shatti expects that the volume of e-commerce in the country will reach KD 1.61 billion in the current year — an increase of more than KD 500 million according to Technavio Consulting and Research Center, reports Al-Anba daily. Al-Shatti said the growth rate of ecommerce in the country from 2018 to 2023 reached 11.33 percent, while the compound annual growth rate of e-commerce in Kuwait is expected to rise by 12.57 percent from 2024 to 2028, indicating these rates put Kuwait among the markets with rapid e-commerce growth. He affirmed these figures and rates are based on the volume of online trade in the sectors of fashion, clothing, electronics, beauty and personal care products, toys and children’s supplies, food, meals and beverages. He disclosed these transactions include those sent through all kinds of courier or delivery services, as well as those paid electronically or cash on delivery.

Al-Shatti explained the quality of the digital infrastructure is a major factor in the growth of e-commerce in the country, as it is considered the basic enabling tool for this trade and plays a major role in its growth, especially since more than 99 percent of the Kuwaiti population can access the Internet with broadband and fast capacities and at competitive prices that allow them to use the Internet easily and practically. He added smartphones are within the reach of all residents of the country, regardless of their income and standard of living. This year, Kuwait is the first country throughout the world to adopt the fifth generation technology for communications, according to data from the International Telecommunication Union. The country occupies this position for the second year in a row; hence, its infrastructure is one of the main factors in the growth of ecommerce, he revealed.

Al-Shatti expects the growth in the volume of e-commerce to continue in the medium term, not only in Kuwait, but also globally, at the expense of traditional shopping through various branches, where the percentage of buying and selling will continue to decline, which has become clear and evident worldwide. In the United States of America, many retail companies have closed their stores due to bankruptcy, such as Sears stores, for example. The same is happening in the United Kingdom, particularly Debenhams. Many retail companies have reduced their branches, because of the consumers’ trend towards e-commerce and online shopping, he elaborated. He said e-commerce and online shopping will completely replace shopping centers and stores in the near future. According to the report issued by the Ipsos Center for Studies (IPSOS) on e-commerce in Kuwait, 53 percent of the segment covered by the report made purchases and shopped online and 60 percent of the segment stated at the same time that the actual shopping experience in malls and stores cannot be replaced by online shopping, although 39 percent of this segment also stated that most of their shopping in the future will be online. This pattern does not only apply to Kuwait or the region, as it also applies to various countries around the world, he stated.

Al-Shatti added the volume of ecommerce globally, according to the report issued by the eMarketer Research Center, is expected to reach $6 trillion by the end of this year, as China alone accounted for $3 trillion of the volume of e-commerce globally in 2023. The volume of e-commerce in the Chinese market reached 47 percent of the total retail market. The same report states that the volume of retail trade globally amounts to $29.7 trillion, 19.5 percent of which is ecommerce. This is an indication that e-commerce still has more room for accelerated growth at the level of various countries, while traditional shopping is still the main sales channel in the retail market, he affirmed. Asked about the reasons behind the changing consumer behavior and their interest in e-shopping; Al-Shatti pointed out that with the development and increasing use of electronic payment methods, the consumer segment in Kuwait is encouraged to move towards this type of shopping for many reasons like saving time, ease and practicality in shopping, greater product diversity, promotional offers, digital marketing, and price preference. He went on to say that Technavio Center cited other vital factors like the development of global trade platforms towards improving and facilitating the e-shopping experience, ease of sending and receiving products, reliance of global companies in the retail market on multiple sales channels, which is called the Omnichannel concept, and popularity of the concept of marketing through social networking platforms.