1. Ecommerce in Pakistan Muhammad Adan Abid Nextgen@ICANN60 Meeting
Good afternoon everyone.
I am… from…
And doing my Masters in Management.
I have always been interested in the economical aspect of internet.
Therefore, today I am going to talk about e-commerce in Pakistan.
Muhammad Adan Abid
Meeting
Abudhabi | 28oCT – 3nOV 2017

2. Outline Global Ecommerce Growth Ecommerce Trends in Pakistan
Infrastructure
Current Market Trends
Expected Growth
Challenges
Way Forward
E-commerce provides a useful resource for the growth of MSME’s and all aspects of the rural community
Ecommerce market is a useful resource to tell you about growth of SMEs and all aspects of the rural community

3. Global Ecommerce Growth
global e-retail sales grew 24.6 percent compared to the previous year, making up 8.7 percent of the total retail market worldwide.
So, as more people come online and build their trust online, it’s going to grow more. And currently half of the population is offline. So this is going to see an increasing trend until all of them come online. More rapid people come online, more rapid will be growth in this sector.
That year, retail e-commerce sales accounted for 8.7 percent of global retail sales. So it’s still an open field.
Reasons
The e-commerce industry is profoundly impacted by the rise of social networks and the proliferation of mobile devices at an enormously large scale. Since mobile devices such as smartphones and tablets have made a vast number of choices and plenty of information available at fingertips, consumers are leaving behind traces and records of their behaviors, preferences and interests
The rise of social networks
Proliferation of mobile devices
Interest Targeting

4. Ecommerce Trends in Pakistan

5. Digital Evolution in Pakistan
Digital eveolution is at an early stage. Therefore, Pakistan had a relatively slow start at ecommerce. This map is showing how the ICT sector evolved in Pakistan. The major change came through in 2014 after 3G and 4G Broadband services were launched in Pakistan. And this launch enormously affected the growth of digital economy in Pakistan.

6. Infrastructure Population: Above 200 Million
Broadband Users: 45 Million
22% of households have broadband internet
Telecom Penetration is 72%
75% of population has access to 3G
27m M-Wallet Accounts
Multiple under sea optic fiber links
85000 km of fiber deployment across Pakistan
Pakistan has got a huge market potential.
-->Before 2014, there was 2% broadband penetration and now it is 23%. So Pakistan’s Internet users are gorwing at rapid speed. Growth is pretty good.
Which is also a huge growth
Which means they are able to go online which is a huge number relatively
Government along with private sector has played a vital role in last 4 5 years in this growth.
Has been deployed. After the deregularization,
Had a slow start---
E-commerce in Pakistan has had a slow start and is still finding its legs but pushed by 3G and 4G/LTE, given that the country’s overall retail market is worth $152 billion but Pakistan’s e-commerce is not faltering

7. Market Trends $60m-$100m Market Size
90% Cash on Delivery Business Model
Low contribution to overall economy
Major Players: Daraz.pk, zameen.com, olx.com, pakwheels.com
Have recently launched Uber and Careem
No major International Player in Market i.e No Amazon, Ebay, Paypal
Every minute, 26 Pakistanis access the internet for the first time.
Massive strides in last two years.
Even after this huge increase, still it has low contribution to overall economy.
There have been massive strides in e-commerce in the last two years
There have been huge investment in these major players
--great opportunity for local entrepeneurs to grow their local stores at a rapid pace.
They have been growing at a rapid scale.

8. Expected Growth Expected to achieve more than 72% growth
Expected market size by 2020 is $1B Dollars.
By 2020, more than 65 Million 3G/4G users.
163 million mobile subscribers -89% of Pakistan’s population
5G roll out by 2020 (Government’s commitment)
Around 60 per cent of our population is below 30
People above the age of 35 are less inclined towards technology and its uses
AliBaba group signed MoU with Trade Development of Pakistan to explore ecommerce opportunities.
Pakistani e-Commerce market is expected to achieve more than 72% growth in e-commerce transactions in the near future. This consensus is based on 10% exponential growth in e-commerce transactions for each passing quarter.
it is set to cross $1 billion by 2020.
Add to this mix the fact that around 60 per cent of our population is below 30
younger population - between years - is most actively involved in e-commerce trade, as compared to the rest of population. Moreover, those falling between the age brackets of years account for the highest number of users, with the bracket falling at second place. One of the most significant reasons for this observation is the fact that people above the age of 35 are less inclined towards technology and its uses, whereas youth between years are at forefront of the technological revolution and are more open towards online shopping.

9. Challenges Low usage of Credit Cards/Debit Cards
Lack of E-payment Gateway
Integration with Delivery Channels
Weak Consumer Services
No Government Framework
Different Product Display vs Actual Product
As stated earlier, there 90% is based cash on delvery model.
No epayment gateway no paypal, no stripe which are the major e-paymeny gateways.
There is no speedy delivery service like ecommerce companies are facing integration with the delivery channels. Most of them do not deliver to most of the area in Pakistan. One major delivery service TCS.
It’s booming
No one can be held accountable.
Fraudelent products, no accountability, transparency, low quality products. Major hinderence in creating trust of users in ecommerce.
Will drive more customers towards online shopping

10. Way Forward Ecommerce Policy Framework in process
E-payment Gateway under process
Interoperability in Mobile Banking
Startups, Angel Investor Platforms
Incubation Centers
ICT Capacity Building is on the rise
National Financial Inclusion Strategy
Growing Competition will enhance country’s economy
Increase in Online Educational Activities in Rural Areas
Will encourage retailers to build global brands
Increased access to financial services through rapidly growing mobile market
Ecommerce on social media
More people go online, more ideas come out and more the ecommerce will grow
50%(25% of women) of people in Pakistan will have bank account till % from now
US e-commerce Market is 8% of the total retail market. So soon there would be a unicorn ecommerce store in Pakistan like they have in China and US.

11. Thank You! Questions ?