The world of ecommerce has recently emerged and progressed at an astonishing speed in Pakistan with many new and existing organizations, businesses, and customers.
The ecommerce industry is booming throughout the region, with India’s leading ecommerce website, Flipkart, raising a record US$1 billion in investment and Alibaba’s – China’s ecommerce giant – market capitalization estimated to be over US$250 billion.
Pakistan, although a late entrant to the world of ecommerce, has recently recorded a massive rise in online shopping trends and other ecommerce businesses. Such exponential growth trends over the past few years – with US$30 million being spent on online purchases currently – depict a highly positive picture for the future and the size of Pakistan’s ecommerce market is expected to reach over US$600 million by 2017.
With many new online ventures springing up rapidly and existing businesses recording unprecedented growth rates, there is still a lot that needs to be done to reach the true ecommerce potential of the country and compete with other big players of the region. Several factors are responsible for drastically changing shopping trends over time and driving the growth of ecommerce in Pakistan.
Internet penetration in Pakistan
Internet Users (% of Total Population)
One of the most important factors in the equation is the rate of internet penetration in Pakistan. Pakistan’s internet enabled population is limited to around 30 million users today. This, however, is expected to rise up to 56 million users by 2019. Pakistan’s much-awaited entry into 3G and LTE services in 2014 has increased internet accessibility and will also most likely propel the growth of online purchases. Statistics from the Pakistan Telecommunication Authority (PTA) reveal that the total number of third-generation (3G) mobile subscriptions have risen up to 10.3 million in 2015. The number of 4G or Long Term Evolution (LTE) subscribers also increased to over 68,000.
Over the next 5 years, 28 percent of the country’s population is estimated to have internet access. With increased access to the internet and social media sites such as Twitter and Facebook, marketing trends are also rapidly changing and transforming the way opinions are now being shaped. This will not only transform shopping trends but also significantly impact several other ecommerce arenas, such as online job hunts through Rozee.pk which has facilitated job hunts for over 1 million people, and land, property and rental transactions via Zameen.pk, to name a few.
Access to smartphones
Annual Cellular Mobile Teledensity (%)
Along with increased internet penetration, 73.2 percent of the entire population also have access to mobile phones. There is also a recent surge in smartphone usage with an estimated 9 million smartphone users in Pakistan. Internet-enabled smartphones have dramatically increased the ease of internet access and made online businesses much more accessible for all.
Both the rise of internet penetration and the declining costs of smartphones have accounted for this rapid rise in smartphone usage in Pakistan. Many Chinese brands have launched sophisticated devices at the fraction of the costs associated with the world’s leading mobile phone brands, which has augmented mobile penetration across the lower income strata of the country.
With such easy access to the internet via affordable smartphones, ecommerce trends in the country are expected to boom in the near future.
Online modes of payment
Logistics and delivery infrastructure
Growing trust and reliance on ecommerce
Pakistan’s new ecommerce horizons
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
