Saudi Arabia: Millenials are the most important factor in ecommerce adoption
14.07.2014 817 views
One of the most important factors driving e- and m-commerce adoption in Saudi Arabia is the Millennial Generation, recent findings indicate. In 2014, internet penetration in the Kingdom reached 59.25 percent of the population, which means an increase of 11% as compared to 2013, according to a report issued by the strategic management firm, Sacha Orloff Group, saudigazette.com reports.
Moreover, the young population has rapidly adopted digital and social media channels which are used to deliver daily communication, product reviews and buy-in tools. The Arab kingdom, in turn, has adopted ecommerce solutions and payments so that consumers may purchase goods and services online, encompassing the full value chain from banking system, retail, airline, hospitality, tourism, transport couriers to telecommunication sectors.
The Saudi Arabian ecommerce registered a growth of 43% in Q1 2014, as compared to the same time frame in 2013. Out of the country’s population of 29.99 million, 47.8% are in the 0-24 age category and 44.81 in the 25-54 age group. The report also highlights that the country’s retail sector is expected to reach USD 73.6 billion by the end of 2014. In 2013, Saudi Arabia has registered transactions across all payment cards (debit and credit) of over USD 138 million M-commerce, a significant potential branch of the local ecommerce as the report suggests, is projected to increase from under USD 0.10 billion to over USD 0.70 billion from 2012 to 2015 through the increase in sales via tables and smartphones.
Source: The Paypers