ecommerce development forum - الصناعة والتجارة · pdf filepage 2 ecommerce...

Investment Opportunities in eCommerce

March 2016

eCommerce Development Forum

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.


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”.


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


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.


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


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


http://www.google.com.bh/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiU5umRiebLAhUDuBoKHe_YAkwQjRwIBw&url=http://phx.corporate-ir.net/phoenix.zhtml?p%3Dirol-mediahome%26c%3D176060&psig=AFQjCNE-P4Mf0GXC0pgOjdChapivISAHRg&ust=1459346935273800

http://www.google.com.bh/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj1lqusiebLAhVM1RoKHSkjAMQQjRwIBw&url=http://tr.aliexpress.com/&bvm=bv.117868183,d.d24&psig=AFQjCNF8kDbBOi8cmENPU5ev2Uyc_9mlBQ&ust=1459346991504608

http://www.google.com.bh/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj1lqusiebLAhVM1RoKHSkjAMQQjRwIBw&url=http://alixblog.com/en/aliexpress-wholesale/&bvm=bv.117868183,d.d24&psig=AFQjCNF8kDbBOi8cmENPU5ev2Uyc_9mlBQ&ust=1459346991504608

http://www.google.com.bh/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjk5PD1iebLAhXJLhoKHXxlByUQjRwIBw&url=http://248am.com/mark/food/talabat-not-hacked/&bvm=bv.117868183,d.d24&psig=AFQjCNHDdquJWyxB18OA_5Sto8E2ZSw59g&ust=1459347145484117

https://www.google.com.bh/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiP--CPiubLAhVJHxoKHThVBpEQjRwIBw&url=https://en.wikipedia.org/wiki/Al-Wasat_(Bahraini_newspaper)&bvm=bv.117868183,d.d24&psig=AFQjCNHSglZ8pEjRXTuJ--hxwLTF2O8DzA&ust=1459347198026290

http://www.google.com.bh/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjW4P_XiubLAhWJChoKHcZRB7QQjRwIBw&url=http://arabbrains.com/2014/06/30/souq-com-egypts-e-commerce-development-project-facilitates-launch-new-e-commerce-startups/&bvm=bv.117868183,d.d24&psig=AFQjCNFPNgQDffPgEcWpqCIHa_saOe9ukg&ust=1459347271656677

https://www.google.com.bh/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjGpK_3iubLAhVEtxoKHaUcA7UQjRwIBw&url=https://www.consumeraffairs.com/travel/orbitz.html?page%3D9&bvm=bv.117868183,d.d24&psig=AFQjCNFecXPGO_M8-NvX6ECBpn7IAejk7g&ust=1459347403962545

https://www.google.com.bh/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjZpIyRi-bLAhXLfRoKHZlYB_UQjRwIBw&url=https://www.kayak.com/flights&bvm=bv.117868183,d.d24&psig=AFQjCNFphvC4FY8jzFoQMD9avF_loX3QYg&ust=1459347472221571

http://www.google.com.bh/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiguoisi-bLAhXJXhoKHUdAC9QQjRwIBw&url=http://www.bmhc.bh/&bvm=bv.117868183,d.d24&psig=AFQjCNGIgFWwRqsp-o2lflNPTofMwRn4Iw&ust=1459347526815117

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.


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



► Type of Opportunity: B2C + B2B

1. Private Tutoring: 2. Payment gateway for schools


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




► 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


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 +




1. Gaming



► 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+


► Capital Requirement: High


► 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


► Capital Requirement: Medium


1. Online Recruitment & Internship Desk 2. Homecare Facility Management



► An online insurance search engine allows users to compare rates of different insurance options. The online portal is dedicated for personal and corporate insurance.



► Capital Requirement: Medium + High


► 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.



► Capital Requirement: Medium + High


1. Online Insurance Brokerage Portal 2. Booking/Queuing Portal


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


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/


EY

Assurance | Tax | Transactions | Advisory

About EY

EY is a global leader in assurance, tax, transaction

and advisory services. Worldwide, our 167,000 people are united by our shared values and an

unwavering commitment to quality. We make a difference by helping our people, our clients

and our wider communities achieve their potential.

EY refers to the global organization of member firms of EY Global Limited, each of which is a

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

and our wider communities achieve their potential.

© 2015 EY.

All Rights Reserved.

Thank you

ecommerce development forum - الصناعة والتجارة · pdf filepage 2 ecommerce...

Documents