eCommerce Development Forum - الصناعة والتجارة · PDF filePage 2 eCommerce...
Transcript of eCommerce Development Forum - الصناعة والتجارة · PDF filePage 2 eCommerce...
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Investment Opportunities in eCommerce
March 2016
eCommerce Development Forum
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eCommerce – Facts & Figures
► Globally, online retail sales are expected to reach $4.3 trillion by 2025 accounting for 19% of the
overall retail sales.
► “By 2020, there will be 80 billion connected devices and 5 billion internet users globally ….
………… The MENA region will be linked through 545 million connected devices and 390 million
internet users by 2020.”
- Sarwant Sing, Sr. Partner & Practice Director at Frost & Sullivan, Gulf News – Feb 2015.
► A recent Frost and Sullivan report entitled ‘New Mega Trends’ estimates that the value of the
'internet economy' in the MENA region will double to $200bn by 2020, which is expected to be 5%
of the region’s GDP (vs. currently 2%).
► The e-commerce market in the GCC is climbing by nearly five-fold over the past five years, from $3.3
billion in 2010 to $15 billion in 2015, according to a report by AT Kearney
► According to Gulf News, eCommerce across GCC to grow by 40% in 2020 with expected sales to
touch $41.5bn, which will be one of the highest growth areas across this industry worldwide.
► “eCommerce is the top mega trend to affect future business in the GCC and the Middle East as well”
- Aroop Zutshi, global president and managing partner of Frost & Sullivan.
Investment Opportunities in eCommerce
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Bahrain – ICT Landscape Overview
► The Kingdom of Bahrain is considered to be
amongst the region’s, and the world’s most
vibrant and advanced markets for ICT services;
► High mobile and broadband penetration;
and
► Top-performing regulatory frameworks
► 96.4% of Bahrain’s population is connected
thus making Bahrain the country with the
highest internet penetration percentage in the
Middle East “Internet World Stats”.
► Ongoing Government robust initiatives to
support and develop the ICT sector; most
recently through Bahrain international
Technology Exhibition (held January,2016)
► Relatively inexpensive high speed connectivity i.e.
affordable broadband service which is below 5% of
GNI (Gross National Income) per capita.
► Bahrain is ranked at 61 in terms of openness to
creating unique economy, fast growing economies
and openness for investment to create business
opportunities “world bank”.
Investment Opportunities in eCommerce
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Stakeholder Voice – Key Findings Overview
A sample size of 70 respondents were asked to participate in a survey related to eCommerce.
42% of the sample size have had previous
experience in establishing either an
eCommerce Company, Website or Platform.
42%
58%
Yes No
Previous experience with eCommerce
28%
16%
18%
10%
24%
3% 1%
Social Media
Media Apps
E-Retailers
E-Wholesalers/E-Distributors
Website
According to surveyors,
Social Media, followed
by Websites and
eRetailers, respectively
Surveyors are the most
effective distribution
channels for an
eCommerce business
Effective Distribution Channels
73%
25%
Frequently Every So Often Rarely Never
The majority of
respondents have a
frequent tendency to
use eCommercial
channels. (whether to
commence a
transaction or in hopes
of seeking business
opportunities)
eCommerce Usage
47%
32%
21%
B2C B2B B2G
Based on the sample’s
opinion; the Business
to Customer (B2C)
eCommercial segment
is considered to be the
main opportunity for
developing eCommerce
in Bahrain, followed by
the Business to
Business (B2B)
segment.
eCommerce Opportunities
Investment Opportunities in eCommerce
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0%
20%
40%
60%
80%
100%
Number of Users Cost Control Business Model Gov. funds, Grants Services / Productportfolio
Critical Success Factors
1 2 3 4 5
Stakeholder Voice – Key Findings (Continued) Opportunities
►
0%
20%
40%
60%
80%
100%eCommerce Maturity by Sector
5 4 3 2 1
1 = Least Critical
5 = Most Critical
# Most Matured Industries
(Ranked by Maturity)
1 Telecommunications
2 Financial Services
3 Government Services
4 Information Technology
5 Tourism
6 eWholesaler / eRetailer
7 Hospitality
8 Construction
9 Manufacturing
Ranking of the Critical Success Factors that can enable the eCommerce sector within the Kingdom of
Bahrain.
# Critical Success Factors
(Ranked by Criticality)
1 Services / Product Portfolio
2 Number of Users
3 Cost Control
4 Government Funds / Grants
5 Business Model
1 = Least Matured
5 = Most Matured
Ranking of the most matured industries/sectors in terms of eCommerce involvement and participation
within the Kingdom.
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Stakeholder Voice – Key Findings (Continued) Challenges & Risks
►
38
25
38 35
05
10152025303540
Accessibility of Funds Investment Opportunities Legal, Regulatory &Governmental
requirements/compliance
Human Capital, SkilledWorkers (Competences)
Main Challenges
frequency
# Popular Results
(ranked by frequency)
1 Finding the required funds to start a
business
2 Legal, regulatory and governmental
requirements compliance
3 Human Capital / Skilled Workers /
Required Competencies
4 Identifying proper investment
opportunities
48
29 34
0
20
40
60
Financial Risks Legal Risks Technology/Information Risks
Main Risks
frequency
# Popular Results
(ranked by frequency)
1 Financial Risks
2 Legal Risks
3 Technology/Information Risks
The following illustration highlights main risks faced by the eCommerce sector within the Kingdom of
Bahrain based on a set of potentially categorized issues illustrated in the chart below**.
The following illustration highlights main challenges faced by the eCommerce sector within the
Kingdom of Bahrain based on a set of potentially categorized issues illustrated in the chart below**.
**Respondent has the option to choose more than one selection
Investment Opportunities in eCommerce
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Stakeholder Voice – Key Findings (Continued)
Respondents were asked to mention successful examples of eCommerce companies, websites, and
platforms (local, regional or international) that they would like to simulate. The following are popular
results ranked by occurrences.
AMAZON
1
ALI BABA / ALI EXPRESS
2
TALABAT
3
ALWASAT NEWSPAPER
4
SOUQ.COM
5
ORBITZ
6
KAYAK
7
NBB ONLINE BANKING
8
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eCommerce - Market Opportunities Emerging Trends
Education
Health Care
Entertainment Professional/
Financial Services
mCommerce
B2B: Companies
doing business with
each other.
B2C: Businesses
selling to the
general public.
C2B: A consumer
posts his project
with a set budget
online and
companies review
the consumer's
requirements and
bid on the project.
C2C: Consumer-to-
Consumer through
many sites offering
free classifieds,
auctions, and forums
where individuals can
buy and sell.
G2G/ G2E/ G2B/
B2G/ G2C/ C2G:
Government to
Government/
Employee/
Business/
Consumer and vis-
à-vis.
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Education – Potential Opportunities
► A dynamic online criteria based database portal with instrumental feedback and monitoring system connecting private tutors of various subjects and educational levels providing optional learning methods including; visual learning, virtual e-classrooms and Home/ Tutor
► Market Potential: BD 12,000,000
► Market Positioning: Local + Regional
► Capital Requirement: Medium/ High
► Type of Opportunity: B2C
► Online fee payment is convenient for parents, smart for schools, gives parents what they want and schools what they need. It allows parents to make quick and easy online payments to their children’s school accounts.
► Market Potential: Over BD 50M
► Market Positioning: Local + Regional
► Capital Requirement: Medium/ High
► Type of Opportunity: B2C + B2B
1. Private Tutoring: 2. Payment gateway for schools
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Health Care – Potential Opportunities
► This business helps customers attain their fitness goals through its expert (Diet and Fitness’ advisory). The website aims to attract fitness enthusiasts from all over the Middle East with an integrated system that extends to individual wearable devices and mobile applications with the opportunity to dynamically adapt according to individual lifestyle habits, caloric measurements and health indicators
► Market Potential: BD 12,000,000
► Market Positioning: Local + Regional
► Capital Requirement: Medium/ High
► Type of Opportunity: B2C
► Online appointment improves efficiency and productivity in healthcare through patient appointment scheduling. It allows patients to search, select and schedule an appointment with an appropriate doctor. This compliments the doctors’ practice with a tangible increase in their patient’s overall satisfaction.
► Market Potential: Over BD 3,000,000 or less
► Market Positioning: Local
► Capital Requirement: Medium
► Type of Opportunity: B2B
1. Online Diet & Fitness advisory 2. Online Doctor-Patient Booking System
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Gaming – Potential Opportunities
► Creation of game simulations targeted towards local and regional youth and adult segments that may involve interactive simulations and strategy with online connectivity and reward points system; for example: Online sports tournaments
► Market Potential: BD 25,000,000 +
► Market Positioning: Local + Regional
► Capital Requirement: Medium/ High
► Type of Opportunity: B2C
1. Gaming
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Health Care – Potential Opportunities
► An intelligent online recruitment, internship service provides assistance for companies to post internships or job opportunities and hire students / fresher for internship offering part time and full time job opportunities with preliminary psychometric testing. This website aims to help students and fresh graduates become better professionals to dynamically build their career-oriented capabilities.
► Market Potential: BD 25,000,000+
► Market Positioning: Local + Regional
► Capital Requirement: High
► Type of Opportunity: B2C + B2B
► An easily accessible online portal (website / mobile application) for homecare facility management with a 24/7 dispatch assistance accessible without the need subscription fees.
► Market Potential: Over BD 6,000,000 or less
► Market Positioning: Local + Regional
► Capital Requirement: Medium
► Type of Opportunity: B2C + B2B
1. Online Recruitment & Internship Desk 2. Homecare Facility Management
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Health Care – Potential Opportunities
► An online insurance search engine allows users to compare rates of different insurance options. The online portal is dedicated for personal and corporate insurance.
► Market Potential: BD 7,000,000+
► Market Positioning: Local + Regional
► Capital Requirement: Medium + High
► Type of Opportunity: B2C + B2B
► An online portal that assists in advanced queuing and pre-allocated scheduling slots to lessen the time spent waiting in lines for a smoother scheduling management on both end users and the respective company/organization to avoid rush hours. A dynamic system that integrates estimated time to destination and total wait time.
► Market Potential: BD 4,000,000+
► Market Positioning: Local + Regional
► Capital Requirement: Medium + High
► Type of Opportunity: B2C + B2B
1. Online Insurance Brokerage Portal 2. Booking/Queuing Portal
Investment Opportunities in eCommerce
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Recommended eCommerce Builders
Ecommerce platforms readily available to custom tailor
ecommerce websites:- (Allows you to create an online shop
regardless of programming or web design experience)
► Wix.com
► Bigcommerce
► 3dcart
► shopify
► Weebly
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Useful References and Websites
► eOpportunities in the Kingdom of Bahrain – Ministry of Industry
and Commerce ‘First Edition’
► Invest in Bahrain 2014 Forum, Industrial Investment
► Opportunities – Ministry of Industry and Commerce
► http://www.ey.com/
Investment Opportunities in eCommerce
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About EY
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unwavering commitment to quality. We make a difference by helping our people, our clients
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separate legal entity. EY Global Limited, a UK company limited
by guarantee, does not provide services to clients. For more information about our organization,
please visit www.ey.com.
The MENA practice of EY has been operating
in the region since 1923. For over 90 years, we have evolved
to meet the legal and commercial developments of the region. Across MENA, we have over 4,000
people united across
18 offices and 13 Arab countries, sharing the same values
and an unwavering commitment to quality. We make a difference by helping our people, our clients
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