When many industries were taking the blow of the global pandemic, the eCommerce sector rose like a phoenix and started to show unprecedented growth and that too globally, including in Pakistan.
Owing to the pandemic, many countries imposed lockdowns to restrict the spread of the virus, as a result of this many brick-and-mortar stores were closed. As a result of this, many people switched to online showing and when people started experiencing the convenience of online shopping, the eCommerce sector started seeing huge growth.
With the closure of the physical store, the eCommerce sector started filling the gap between the customers and products. Within a very short period of time eCommerce companies like Amazon saw huge growth. This eCommerce boom was also visible in Pakistan, where online customers ordered products from the comfort of their homes and got them delivered right to their doorsteps with the help of logistic services like Pakistan Post and TCS. The growth of the eCommerce sector started for real during the pandemic and it looks like there is no going back now, which is good news for sure.
Covid Was A Catalyst For The E-Commerce Sector Of Pakistan
Even though eCommerce companies existed in Pakistan even before the pandemic, it was never extremely popular or to be precise, it was not household name. However, when Pakistan came under the grip of the pandemic, the people had no option but to turn to the eCommerce companies to get their products delivered at home which ensured that they did not have to step out of their homes to purchase a product. In short, the Covid-19 pandemic acted as a catalyst to make the eCommerce sector extremely popular in Pakistan. The result of the same is visible from the fact that in comparison to offline purchases, the volume of online purchases was higher during the lockdown.
The Potential For Growth Of The E-Commerce Sector In Pakistan
Even though at the current time, the eCommerce sector is popular in Pakistan, still there is a huge potential for growth in it. According to a report, the eCommerce sector of Pakistan does not even fully occupy a one percent share in the retail market of Pakistan. This very fact throws light that there is a huge space for growth in the eCommerce sector in Pakistan. Now that the citizens of Pakistan have started trusting digital payment and online shopping, the time is ripe to take the benefit of this trust and grow the sector further.
The eCommerce companies of Pakistan should now focus on retaining existing customers while expanding their customer base. One way of expanding the customer base is by digital marketing for sure. Secondly, the companies should focus on satisfying the customers to ensure that they do not move from online shopping to offline shopping again. Lastly, operation efficiency should be ensured too.
Also, for the growth of eCommerce in Pakistan, there is a need for the government to focus on e-governance, and the same was stated by Asad Ali Shah, the former provincial minister. According to him, eCommerce is the future of Pakistan. Previously, two big revolutions changed the life of Pakistan. The first one was that of telecommunication and the second revolution was that of satellite television channels. It is now speculated that the E-Commerce sector will bring the third revolution in the country for the good. With the rising importance of going digital, it is true that the eCommerce sector has a huge potential for growth in Pakistan.
However, to ensure this growth, there are a few things that the government should take care of to support eCommerce companies. Firstly, the literacy rate should be improved and the importance of digital literacy should be realized. Secondly, the electricity supply should be ensured, thirdly, it should direct the banking sector to come together with the eCommerce sector to provide better financial service to the customers. Lastly, policies that are friendly to the eCommerce sector should be designed.
The highest potential within the eCommerce sector is that of beauty, health, personal and household care, followed by beverages, electronics, fashion, food, furniture and media. It is projected that the eCommerce market of Asia will reach a valuation of US $2,093 billion this year itself, and Pakistan has a huge potential to contribute to this valuation.