The Impact of Coronavirus Pandemic on eCommerce in Egypt
Now, more than ever, Egyptian businesses are realizing the importance of having a powerful digital presence. When businesses are put to the test at an unprecedented crisis, adapting is critical.
This Coronavirus pandemic is affecting the health of the public, as well as affecting the health of businesses and impacting the economy.
A recent study showed that a double-digit share of online shoppers globally was buying online more than ever due to COVID-19 pandemic, and some of them have shopped online for the first time during the outbreak.
The share of global retail sales generated via eCommerce is growing, as a result, foretold to reach one-third by 2024.
How COVID-19 Will Permanently Change Egyptian Consumer Behavior?
The COVID-19 pandemic has changed the world as we know it. People are now living differently, shopping differently, and in many ways, thinking and acting differently. On the other side, retailers are closing doors, and consumers across are looking at the shopping process through a new lens.
The Egyptian Consumers’ attitudes, behaviors, and purchasing habits are changing, and many of these new ways will remain post-the COVID-19 pandemic.
“We’re witnessing a great shift in where consumers are spending, with a dramatic shift towards eCommerce. We can say that eCommerce sales have doubled for Egyptian merchants since March 11; the day the World Health Organization announced that COVID-19 is a global pandemic.” Said Ahmed Nagy, the managing director of eMarketing Egypt, the leading digital consulting agency in the Middle East.
Since the announcement of the first infection of coronavirus in Egypt, and since the Egyptian government has issued “stay-at-home” orders in an attempt to slow the spread of the epidemic, many Egyptians are now self-isolating while turning to technology for working, education, communication, and shopping to buy their daily necessities.
How Egyptian Businesses Have Affected by the COVID-19 Pandemic?
There is some confusion in the Egyptian business scene, and in this case, we collected some experts’ views to clarify their vision regarding the current situation and what the future of eCommerce in Egypt will look like as a result of the COVID-19 pandemic.
Nagy, the eMarketing Egypt’s Managing Director, said “Egypt is on the digital tipping point. The COVID-19 pandemic pushed every Egyptian business to its limits and have put the businesses’ maturity into a hard test. Businesses in Egypt and all over the world are facing a great challenge and the winner is who can cope up with it.”
He stated that most of the small and medium businesses lack the cash reserves to weather a month-long interruption. Also, there is the possibility of a startup depression, wherein new companies don’t enter the job market as a result of the pandemic.
So, the way out of this crisis is the digital transformation and going to eCommerce for selling products and services.
The Future of eCommerce in Egypt Post the COVID-19 Pandemic
The eCommerce industry in Egypt has been forecasted to see a boom in the upcoming years, even before the spread of the Coronavirus outbreak.
“Islam El-Saadany”, the Egyptian strategic consultant and market trends analyst, mentioned that the COVID-19 impact takes 18 months to be visible in the Egyptian business and economic sectors. He also claimed that the eCommerce industry in Egypt is one of the highest growing sectors amid the Coronavirus pandemic and it sees a growth of between 300 to 500%.
According to a report by MENA B2C E-Commerce Market in 2019, the eCommerce in Egypt is rising with growth rates of more than 30% between 2019 and 2022,
Organizers of Egypt’s eCommerce Summit stated that the electronic financial transactions in Egypt are expected to be worth $2 billion, including online purchases and hotel and airline bookings.
Why You Should Invest in eCommerce NOW!?
For brands who are seeing a slowdown, eCommerce is a powerful solution to stand out the scene without worrying as much about disruptions. eCommerce will most likely grow on as the shoppers’ habits will have been irreversibly shaped by the pandemic.
The online sales in Egypt are expected to overtake physical retail while traditional stores will most likely never return to former glory.
In summary, organizations need to be vigilant, practical, and proactive to build robust mechanisms using eCommerce to exploit this crisis for their own benefit.
Sign up now and get a consultation on how to take advantage of the current situation.