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The Kuwait E-commerce Market size is forecast to increase by USD 1.47 billion, at a CAGR of 12.57% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. Firstly, the advantages of E-commerce platforms, such as convenience, wider product selection, and competitive pricing, have resonated strongly with consumers in Kuwait. Additionally, the emergence of omnichannel retailing, which allows customers to shop seamlessly across multiple channels, is becoming increasingly popular. However, challenges persist, including the rising issue of counterfeit products on E-commerce platforms, which undermines consumer trust and threatens the long-term sustainability of the market. To mitigate this, regulatory bodies and E-commerce platforms must collaborate to implement stricter measures to ensure the authenticity of products sold online. Overall, the Kuwaiti E-commerce market is poised for continued growth, but it is crucial that stakeholders address the challenges to maintain consumer trust and ensure a level playing field for all players.
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The market is witnessing rapid growth due to digitization and the widespread use of smartphones. Both retailers and government services are adapting to this trend by offering convenient mobile apps and digital payment systems. Social media platforms such as Instagram and Snapchat are playing an increasingly significant role in marketing and sales. Various sectors, including electronics, fashion, grocery, and more, are thriving in online retailing. With high internet penetration and the emergence of 5G networks, e-commerce startups are proliferating. Legal frameworks like the Electronic Signature Law ensure secure transactions, while robotics-fulfillment centers optimize logistics for increased smartphone usage.
The advantages of E-commerce platforms are the key factors driving the market. Online shopping portals offer not only a broad range of B2C E-commerce products but also a convenient experience. The entry of offline retailers into the online platform is also shaping the B2C E-commerce market in Kuwait, which is expected to grow at a significant rate during the forecast period.
Moreover, some of the services that E-retailers offer include product comparison, cash-on-delivery (COD) service, and easy return policies. Therefore, the abovementioned advantages of E-commerce platforms are expected to drive the growth of the market during the forecast period.
The emergence of omnichannel retailing is the primary trend shaping the market. Consumers look for information on products and new releases on the Internet. Major retailers and companies that manufacture consumer goods do not consider physical storefronts as an alternative to online businesses; however, they consider the online platform as an additional sales channel to increase their market presence. Online presence aids these companies in expanding their business reach and brand awareness. In addition, many physical stores and retailers are adding E-commerce platforms to reach more people, thereby expanding their brand awareness across all sales channels.
Additionally, evolving customer shopping patterns, changing online purchasing behavior, and the growth in the number of digitally driven customers, especially among the Millennial population, are some factors that encourage vendors to opt for online retailing. Therefore, several retail brands, such as Apple, have entered the online space and are adopting omnichannel retailing. This is expected to boost the growth of the market at a significant rate during the forecast period.
Increasing number of counterfeit products on E-commerce platforms is the major challenge that affects the market expansion. The prevalence of counterfeit products is significant. Fashion piracy is considerably high in Kuwait. Counterfeit versions of premium fashion products are easily accessible, with a major portion of these counterfeit products being for women. People tend to buy counterfeit products as they are available at a considerably lower cost than the originals, especially for luxury goods like apparel and fashion accessories, to maintain their social status.
Consequently, the high presence of counterfeit products on E-commerce platforms lowers consumer confidence since people are concerned about whether they are paying for an authentic product or a counterfeit one. Thus, the lower consumer confidence in E-commerce due to the availability of counterfeit products may negatively impact the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amazon.com Inc.: The company offers e-commerce solutions for books, electronics, computers, fashion products, and health products through its online portals.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The fashion and apparel segment is estimated to witness significant growth during the forecast period. E-commerce is an essential tool for the fashion industry. Discounted prices heavily influence the E-commerce apparel segment, making it the most attractive and adopted proposition to attract customers. The fashion and apparel segment is considered to be the most important for acquiring new customers.
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The fashion and apparel segment was the largest segment and was valued at USD 327.66 million in 2018. Another major factor influencing the segment is showrooming, where the customers check for the product in brick-and-mortar stores and later purchase the same from the website at a lower price. Further, there are various trends emerging in the fashion and apparel segment, such as virtual trial rooms that allow customers to try the products themselves or on people with similar body structures. Thus, such factors are expected to drive the growth of the market during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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In the realm of the e-commerce market in Kuwait, statistics show a growing trend in online transactions driven by mobile applications and digital marketing strategies. With the advent of E-Government projects and digital education programs, students are embracing online platforms for learning. From Furniture & Homeware to Care Products, ECDB offers a plethora of options. Enhanced by 5G Standalone Services and fiber-optic internet, E-commerce Businesses like Avenues Mall cater to consumer behavior while ensuring cybersecurity in online transactions. This dynamic landscape reshapes the traditional retail industry by leveraging technology for delivery services and online share expansion. Additionally, in the market arena, retail volume surges as consumers explore a vast array of physical goods ranging from Hobby & Leisure items to DIY supplies. With the ubiquity of desktop PCs and tablets, the Digital Economy thrives, supported by initiatives like the E-Government Website and oversight from the International Trade Administration.
Further, the market is flourishing with the rise of digitization and the widespread use of smartphones. Retailers and government services have adapted, offering mobile apps and digital payment systems. Social media platforms like Instagram and Snapchat play a significant role. Various sectors, from electronics to groceries, thrive in online retailing. With high internet penetration and the advent of 5G networks, e-commerce startups are on the rise. The Electronic Signature Law ensures secure transactions, while robotics-fulfillment centers optimize operations, catering to increased smartphone usage.
Market Scope |
|
Report Coverage |
Details |
Page number |
146 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.57% |
Market Growth 2024-2028 |
USD 1.47 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.33 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Al Yousifi and Sons Co., Amazon.com Inc., Apparel Group, Boutiqaat for Makeups and Perfumes Co., Cartlow DMCC, Eureka, Faisal Al Rasheed General Trading and Contracting Group Co. W.L.L., Farfetch Ltd., H and M Hennes and Mauritz GBC AB, Jarir Marketing Co., Lulu Group International, Mamas and Papas Ltd., Namshi General Trading LLC, PerfumesKuwait, SULTAN CENTER FOOD PRODUCTS CO., Tawseel Holding K.S.C., Ubuy Co., VogaCloset Ltd., WB Technologies Co., and Yusuf A. Alghanim and Sons WLL |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Market Segmentation by Method
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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