Egypt's e-commerce transactions expected to hit EGP 100 bln by end-2021: Report

Doaa A.Moneim , Sunday 19 Dec 2021

E-commerce transactions in the Egyptian market are expected to reach EGP 100 billion by the end of 2021, according to a new report published by Boost – a digital strategy provider for companies and entrepreneurs.

Egypt s e-commerce transactions

E-commerce transactions’ value in the Middle East region is also projected to record $71 billion by end of 2021, according to the report.

The report also said that electronics top the revenues of e-commerce in Egypt with 28 percent, followed by fashion (21 percent), food and personal care (19 percent), toys, hobby and do it yourself products (19 percent), and furniture and appliances (12 percent).

The report also highlighted the Direct to Consumer (D2C) Companies as a part of the e-commerce world.

D2C are retailers that sell directly to consumers usually by investing in new product development and branding while outsourcing their supply chains, underlining they are typically selling using digital channels or direct distribution while omitting retail overheads and capitalizing heavily on social media marketing.

In this respect, the report noted that the D2C companies like Amazon, Jumia, and Noon only account for 50 percent of the e-commerce sector.

The CEO of Boost and member of the Egyptian Junior Businessmen Association (EJB) Sherif Makhlouf expected that the spread of the D2C would positively impact the Egyptian economy given that many e-commerce brands are sourcing and manufacturing locally and many of them are shipping products globally.

He also predicted that e-commerce market in Egypt does not need any regulations different from the current enforced retail and consumer protection laws, asserting the importance of providing it with support and incentives to allow it to flourish.

Makhlouf predicted that the fashion industry would be the most demanded sector through the D2C because of the relatively advanced supply chain of the industry and new product development in Egypt, followed by home accessories, personal care, toys, hobby, pet products, furniture, and appliances.

He also forecasted that the electronics and media sector would not achieve progress in the D2C model due to the complexity of the production and supply chain.

“D2C brands will lure more foreign direct investments in Egypt. Amazon’s acquisition of Souq Egypt and German group Rocket Internet's investment in Egypt through Jumia represent examples of that,” Makhlouf explained.

He added that the pandemic has accelerated the adoption of e-commerce by the Egyptian consumers.

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