Most nations’ economies suffer due to global political and economic situations. A variety of causes similarly impact Pakistan. One of them is the conflict in Ukraine, which has caused food prices worldwide to skyrocket, particularly wheat prices. The situation will also worsen due to the drought in Australia, several regions of North America, and Europe. India temporarily stopped exporting wheat recently, and the recent floods worsened matters for the nation.
E-commerce can assist businesses in effectively reaching their target market. Despite the current state of the economy, products like a new phone, such as the latest models of well-known firms like Google’s Pixel 6 and Apple’s shopping mode iPhone 14, were eagerly awaited. However, the e-commerce environment in Pakistan is considerably different because it has numerous difficulties.
An intriguing trend—the growing involvement of women in e-commerce—has developed as Pakistan’s e-commerce market continues to expand. E-commerce is becoming a more popular choice among Pakistani women to launch their enterprises, attract new clients, and offer their goods and services on the Internet. This trend could severely impact the future of Pakistan’s e-commerce sector.
The Position of Women in Pakistan’s E-Commerce
E-commerce is becoming increasingly popular among Pakistani women, both buyers and sellers. According to recent research, women make up around 50% of internet buyers in Pakistan, which is anticipated to rise over the next several years. In addition, more and more Pakistani women are launching their internet stores to sell various goods and services. In Pakistan, there are some successful women-owned e-commerce companies. One of them is MyGerrys, an online store that offers a variety of things such as electronics, home goods, and clothing, and Sheops, a platform that links female business owners with potential clients. However, there are some obstacles to the e-commerce sector in Pakistan.
Pakistan’s Current E-Commerce Situation
Recent statistics indicate that Pakistan’s e-commerce market will grow from just $1.5 billion in 2018 to $13 billion by 2025. Numerous causes, such as the proliferation of mobile devices, the easy availability of internet connectivity, and the increased customer need for economical and accessible shopping options; all contribute to this rapid expansion. Please read through this blog as I explore four issues Pakistani businesses encounter when marketing online and how to fix them.
Lack of Skilled Workers
E-commerce enterprises need help maintaining their operations and growing their business because they need a competent workforce. For example, without experts who can fix bugs or create game-changing applications, how can a software company provide its clients with the services required? Or does a consulting company give a startup flawless marketing plans?
There are around 4,000 institutions in Pakistan, including 140 universities, that competent train workers for the country’s e-commerce sector. However, the rapid expansion calls for a qualified workforce rather than just young people familiar with social media. What, then, is the cure? First, the government must do everything possible to encourage the business sector to support the youth. This may open the door for millions to begin working on lucrative e-commerce projects.
Lack of several major market players
The absence of several significant competitors has given Pakistan’s most well-known corporation, Daraz, a monopoly. The market will benefit from the entry of new competitors. As a result, Daraz will see intense competition, and consumers will gain from lower pricing and a more comprehensive selection of goods. Consider that Amazon. Pk would provide all its services in Pakistan, just as it does in the USA, the UK, or Japan. The likelihood is good. Thus, we can count on Amazon entering Pakistan at any point.
Businesses must have excellent competition to succeed. Monopoly is wrong because it limits consumers’ options, which hurts them. The environment is anticipated to shift drastically in the years. Several new players are attempting to improve Pakistan’s e-commerce environment.
Items and Services with the Potential to Lead the Revolution
Numerous little-known companies are succeeding in the market. The real obstacle, though, is how many SaaS-based companies and services like Webx are attempting to revolutionize e-commerce in Pakistan and make it available to everybody. However, there is a negative perception of e-commerce in general. Despite being the easiest way to shop, there are other favored methods. The situation is rapidly shifting, with hundreds of thousands of independent contractors pursuing side incomes or full-time employment slavishly. Additionally, freelancers are starting their enterprises and supporting the e-commerce industry. And they’ll begin their businesses and enterprises relatively soon.
E-commerce is not widely used in Pakistan.
In a November 2021 interview, the CEO of Daraz stated that only 2% of Pakistan’s retail market is made up of e-commerce. However, he claims that by 2026, Pakistan could have more than 50 million customers using e-commerce services. To force consumers to utilize e-commerce rather than conventional brick-and-mortar retailers, digital literacy is essential.
More than 88% of Pakistanis have access to broadband services and the Internet, according to the most recent statistics. However, only a few people are eager to use online shopping services. One of the causes is online fraud, particularly when it comes to bank and financial institution data leaks. These problems exist in other nations as well. However, Pakistan is the location of these crimes and con jobs more frequently. In addition, many businesses are still determining whether Pakistani consumers would embrace e-commerce in light of recent events.
Pakistan’s e-commerce market is mature, and the future seems promising. Pakistani entrepreneurs received investments totaling more than 350 million dollars in just 2021. Since 2015, more than 250 startups have been launched, and several hundred more are soon to do so. However, the issues and scenarios listed above are actual, and there’s a risk that more will materialize over the next few years. Nevertheless, the general situation is encouraging, as many firms have succeeded in recent years, including FastTech Media, TechKnowable, Bazaar, Qisstpay, and Sehat Kahani.
What does the future hold for Pakistan?
Every industry, including e-commerce, needs to be more suitable for political unrest and unpredictability. Due to clients’ reluctance to spend more than is necessary, even large corporations and international conglomerates need help to stay profitable. Businesses find it difficult because of this, but the light is always at the end of the tunnel. By 2030, Pakistani startups might be worth $50 billion, claims Faisal Aftab, CEO of Zayn Capital. That’s a remarkable statistic that might inspire Pakistani young. It is poised for a strong future, with more than 60% of the population between the ages of 15 and 29. The e-commerce market in Pakistan will double in size over the next three years, according to Webx Ecommerce. The call will be swamped with young hopefuls trying to build a name for themselves, which is both thrilling and challenging.