The Growing Popularity of Online Shopping in Pakistan
In recent years, a surge in the eCommerce market has taken place, making online shopping one of the most convenient and popular ways of purchasing goods in Pakistan. With just a click of a button, customers can now access a wide range of products at their fingertips. In this blog, we’ll take a closer look at the growth of online shopping in Pakistan, the importance of eCommerce and how it’s changing the dynamics of the retail industry. So, buckle up and let’s dive right into it!
Market Size and Growth Pakistan is quickly gaining recognition as a thriving eCommerce market. With a predicted revenue of US$5,601.1 million by 2023, Pakistan is already the 46th largest market for eCommerce. However, the growth rate in eCommerce is predicted to show a compound annual growth rate of 5.9% from 2023-2027, resulting in a projected market volume of US$7,042.4 million. It’s interesting to note that Pakistan’s eCommerce market has a higher revenue than Romania’s even though Romania is considered to be a much larger market. Furthermore, with an expected increase of only -2.4% in 2023, the Pakistani eCommerce market still contributed to the worldwide growth rate of 9.6% in 2023. Despite the growth potential, Pakistani eCommerce still has some catching up to do when compared to other countries’ eCommerce markets. However, the increasing number of eCommerce stores and the growing consumer demand for online shopping suggests that Pakistan’s eCommerce market will continue to mature and gain ground on its more established counterparts.
Popular Product Categories: When it comes to online shopping in Pakistan, there are certain product categories that are more popular compared to others. Electronics & Media is currently the largest market, accounting for 35.4% of Pakistani eCommerce revenue. It is followed by Furniture & Appliances with 31.0%, Fashion with 15.5%, Food & Personal Care with 11.5%, and Toys, Hobby & DIY with the remaining 6.6%. This indicates that Pakistanis are more inclined towards purchasing electronic goods and home appliances online. However, the fashion industry is also slowly gaining popularity in the eCommerce market.
Top Online Stores in Pakistan When it comes to online shopping in Pakistan, there are several top players in the market. The largest player is junaidjamshed.com, with a revenue of US$37.5 million in 2022. Other popular online stores in Pakistan include daraz.pk and homeshopping.pk, both of which have seen significant growth in recent years. In terms of sales and revenue, junaidjamshed.com leads the pack, followed by daraz.pk and homeshopping.pk. However, each of these online stores offers a unique shopping experience and product selection, catering to a wide range of customers.
Despite challenges faced by Pakistani eCommerce companies, such as logistical issues and payment processing limitations, the top online stores in Pakistan continue to thrive and pave the way for future growth in the Pakistani eCommerce market.
Challenges and Opportunities of Online Shopping in Pakistan: The Pakistani eCommerce market has grown at a rapid pace in recent years, but it still faces several challenges. One of the biggest challenges is the lack of infrastructure to support delivery and logistics. The country’s road and transport networks are underdeveloped, which makes it difficult for eCommerce companies to deliver products on time. Another major challenge is the high rate of digital illiteracy, which means that many potential customers are not comfortable buying products online. Despite these challenges, there are several opportunities for growth in the Pakistani eCommerce market. One of the biggest opportunities is the country’s large population. With over 200 million people, there is a huge potential customer base for eCommerce companies to tap into. Additionally, the increasing penetration of smartphones and the internet in the country is opening up new avenues for online shopping. Looking to the future, the Pakistani eCommerce market is poised for continued growth. As the government invests in infrastructure and more people come online, the market is expected to expand rapidly. Additionally, the COVID-19 pandemic has accelerated the shift towards online shopping, and this trend is likely to continue in the post-pandemic world. Overall, while the Pakistani eCommerce market faces several challenges, there are also numerous opportunities for growth and development.
Conclusion
Summary of key points discussed in the blog: Pakistan’s eCommerce market is rapidly growing with a projected market volume of US$7,042.4 million by 2027. The largest market segments include electronics and media, furniture and appliances, and fashion. The COVID-19 pandemic has significantly impacted the eCommerce industry in Pakistan, with an increase in online shopping and changes in consumer behaviour. However, Pakistani eCommerce companies still face challenges, such as logistics and payment systems. The top online stores in Pakistan include junaidjamshed.com, daraz.pk, and homeshopping.pk, with junaidjamshed.com leading with the highest revenue. Despite the challenges, there are ample opportunities for growth in the Pakistani eCommerce market, including increasing internet penetration and evolving consumer behaviour. Final thoughts on Pakistani eCommerce market: Online shopping in Pakistan is on the rise, and the future looks promising. With the increasing need for convenience and accessibility, eCommerce is expected to continue to grow at a steady pace. Pakistani businesses should leverage the opportunity and work on overcoming the challenges to establish themselves in this rapidly-growing market. As for customers, it’s time to get onboard with the online shopping revolution and enjoy the convenience and ease it provides.