Pakistan Is Transforming Into A Magnet For E-Commerce Investors

Karachi, Pakistan, June 3, 2015 (Newswire.com) - Pakistan has been garnering attention for reasons both good and otherwise, but the investors, local and overseas seem to like the growing population and internet usage.

A few years ago, this market was non-existent. Today, it’s a million dollar industry for online shopping and advertising portals. In just a few years, several big names in e-commerce have popped up, all of which have since doubled and tripled their revenues since their start and have made the investors drool over the lucrative possibilities.

Telemart believes the industry can cross the estimated billion dollar amount before 2020 and might even finish close to giants like India and China who are currently ahead in terms of maturity.

Ahmed Abdul Rauf, CEO, Telemart

It is estimated that the e-commerce sector might soon cross $1 billion by the end of 2017. The current worth of the industry might not even be 5% of the pie, but it is rapidly increasing (up to 30% per year) thanks to aggressive advertising and the increasing trend of internet and social media. Some e-commerce firms have even reported about 80 percent rise in a quarter.

One of the brands optimistic about the boost in pie size is Telemart. Telemart  is one of leading contributors to Pakistan’s e-commerce industry and expects to be market leader in a few years.

Telemart believes the industry can cross the estimated billion dollar amount before 2020 and might even finish close to giants like India and China who are currently ahead in terms of maturity.

Pakistan is off to a head start and is looking at a very promising future. Some brands anticipate growth by 800% in the coming years. This doesn’t seem like an exaggeration because currently, Pakistan’s e-commerce is already thriving in Smartphones, laptops, fashion, electronic and apparel industries with a recent leap in FMCG industry.

The industry already has a healthy competition and as more entrants step in, the industry will get more competitive as the struggle for the bigger slice will heat up.

Current Challenges/ Hindrances to the Sector

The industry may be booming, but thriving in Pakistan’s e-commerce battlefield is not a walk in the park. The players need to overcome some major issues in order to fulfill the prophecies.

Major challenges which the industry needs to overcome include:

·         Slow adoption of next generation communication services

·         Better broadband penetration

·         Absence of dedicated payment channels

·         Lack of access to rural and non-metropolitan areas

·         Supply chain issues

·         Shifting the consumer’s interface from desktop to mobile/ tablet

·         Gain more venture capitalist activities