ISLAMABAD, Mar 13 (APP): Pakistan, although a late entrant
to world of e-commerce, has emerged and recorded a reasonable rise
in online shopping trends and other e-commerce businesses.
Such growth trends over past few years-with more than US$ 30
million being spent on online purchases currently-depict a highly
positive picture for future and the size of Pakistan’s
e-commerce market is expected to reach over US$ 600 million by 2017.
No doubt e-commerce industry is booming throughout the region
including in China where Alibaba’s e-commerce market capitalization
estimated to be over US$ 250 billion.
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 e-commerce
potential of the country and compete with other big players of
the region.
Experts on Sunday said one of the most important factors
in equation is 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.
Moreover, the experts said Pakistan’s 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) revealed that the total number of third-generation (3G) and
LTE mobile subscriptions have risen up to 24.8 million.
Pakistan has now moved in era of broadband with 15 %
tele-density and it has great potential for proliferation.
Over the next 5 years, 28 per cent 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 e-commerce arenas, such as online
job hunts, land, property and rental transactions.
Similarly, along with increased internet penetration,
67 per cent of the entire population also have access to mobile
phones. There is also a recent surge in smartphone usage which is
increasing day by day.
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, e-commerce trends in the country are expected to
boom in the near future, the experts maintained.
Even though Cash-on-Delivery (COD) payment methods continue to
remain widely popular in Pakistan and account for more than 95 per
cent of online purchases, other promising initiatives such as
branchless banking and Inter Bank Fund Transfer (IBFT) are also
underway.
Many banks and Telecom operators have already introduced the
concept of branchless banking and the number of branchless banking
agents facilitating offline payments for online purchases have
recently tripled, making it much more convenient to transfer money
in a secure environment.
In his comments on Branchless Banking, Chairman PTA has said,
being a modern facility, it would have positive impact on
Gross Domestic Product (GDP) growth and lives of people.
He said the consumers would have the most attractive benefits
of keeping bank account in their pocket with advantages like low
cost and fast transfers.
PTA is also making efforts to promote this area through
holding workshops and by bringing global and local insights from
branchless banking industry.
Online merchants now have much greater access to merchant
accounts that enable them to collect payments electronically via the
more than 12 million debit cards in circulation in Pakistan.
Moreover, with more and more banks now offering consumers
internet banking payment facilities, a vast volume of payments are
made through IBFT which enables consumers to electronically transfer
funds directly from their online bank accounts to online stores.
Delivery giants and other couriers are providing COD delivery
services across 150 cities nationwide.
These trends provide ample growth opportunities for emerging
online business, as well as potential exploration and growth avenues
for courier services by association.
The future of e-commerce trends lay in the ability of online
business to gain their foothold and establish trust in online
shopping and e-commerce initiatives. There is a long way to go. With
just 3 per cent of the Pakistani population indulging in online
shopping, several initiatives are starting with online businesses
in Pakistan to reach out to their potential market, build up their
credibility, and garner consumer trust.
The timing is ripe for e-commerce in Pakistan and the
industry is all geared up to create massive waves with colossal
scope for innovation and improvement.