Al Shaya - Brands and Markets
To gain an in-depth understanding of Al Shaya's current markets (i.e., KSA, UAE, Kuwait, and Egypt) covering its key competitors, the internet penetration levels in each country, the mobile penetration levels in each country, the average e-commerce spend in each country, the proportion of e-commerce spend as a percentage of total retail, and a general demographic analysis of each country.
Kingdom of Saudi Arabia
Internet Penetration Rate
- Internet penetration in Saudi Arabia currently stands at 89.39% representing 30.26 million residents. Internet penetration in Saudi Arabia is expected to rise to 96.44% in 2023.
Mobile Penetration Rate
- Smartphone penetration currently stands at 58.45% and is projected to rise to 59.18% in 2023. On the other hand, the rate of use of mobile phones (both smart and feature phones) is at an all-time high, reaching 99.16% in 2018.
Average E-commerce Spend
- According to a recent report by Socialize, Saudi Arabia spent a total of $1.728 billion on fashion and beauty products, $1.66 billion on electronics and physical media, and $3.442 billion on travel in 2018 — all via e-commerce channels. The average annual revenue per user in the country is $294.
The Proportion of Retail Spend
- Saudi Arabia spent a total of $6.360 billion on e-commerce purchases in 2018. According to the Saudi Gazette, the retail industry in Saudi Arabia was worth $106 billion in 2018 and is projected to grow to $119 billion by 2023. Based on this fact, e-commerce purchases currently represent 6% of the entire retail market in Saudi Arabia.
Summary Of Our Early Findings Relevant To The Goals
- Our first hour of research provided several insights surrounding the level of internet penetration, mobile phone penetration, average e-commerce spend, and the percentage of retail revenue generated via e-commerce in Saudi Arabia.
- Finally, we were able to further optimize the cost of the whole project while providing you with the same value. As we explained to you in chat, the primary aim of the Strategy step is to help determine the feasibility and cost of the project. While doing this, we discovered that information on the project as a whole is more available than we initially thought them to be, hence the reduction in the total cost of the project from $1,392 to $937.
Proposed next steps:
You need to be the project owner to select a next step.