WINNING STRATEGIES IN THE GCC E-COMMERCE GAME

GCC e-commerce is on the cusp of becoming the world’s fastest growing market. However, this growth could come at the expense of traditional retail. As consumers become more tech- savvy and embrace e-commerce, e-tailers will have the first-mover advantage. Traditional retailers that took a wait-and-see approach will need to act now to reserve a share of this fast- growing market. An omnichannel approach with a strong online presence, robust payment mechanisms, and an efficient distribution and logistics network will put retailers on course. The question remains: are traditional retailers willing to shake their inertia, take the plunge, and disrupt their established business models? A recent study reveals that only 34 percent of major GCC retailers have an e-commerce channel, compared with about 58 percent in the United States. However, with the right enablers in place, the GCC e-commerce market could almost quadruple to reach $20 billion by 2020. With 30 percent CAGR, e-commerce is expected to outpace traditional retail’s 9 percent CAGR in this same period. Several factors will drive this growth, including greater awareness of e-commerce, higher online conversions, and more retailers offering e-commerce solutions.