March 08, 2025 • By KWD
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Consumers have increased their reliance on online buying as a result of the COVID-19 outbreak that occurred last year, as well as travel limitations. According to data from Politecnico di Milano's B2C eCommerce Osservatorio, the number of eShoppers increased by more than 12 million in 2021, reaching a peak of more than 1.3 million during the first lockdown's two months. Today, approximately 2 million people in Kuwait, or 50% of the population, shop online on a semi-regular basis.
The Current Scenario in Kuwait
The following are the observations published in an article published by KPMG in 2020:
- Cosmopolitan demographic: Kuwait has a high rate of mobile and internet penetration (>90%), as well as a young population (56 percent under the age of 35) with a high disposable income.
- Ecosystem in Transition: Public sector initiatives such as the Kuwait National Fund for Small and Medium-Sized Enterprises, home business licenses, and others are emerging to encourage the growth of the e-commerce market, as are private sector incubators and accelerators, as well as venture capital firms.
- No longer restricted to established sectors: Kuwait's e-commerce activity, which was formerly dominated by food and beverage and retail (personal care, grocery, and electronics), is now focusing on underdeveloped categories such as home services, laundry, and real estate.
- Private sector investment: Kuwait's e-commerce enterprises have always relied on regional investors for finance rather than on domestic investors. With an increasing number of success stories, the industry is gaining popularity among Kuwaiti corporates, investment firms, and family businesses as a possible investment opportunity.
- Business models that are evolving: To maximize value per customer in a market with high customer acquisition costs, select e-commerce businesses in Kuwait have successfully refocused their business models around niches such as influencer marketing, data and analytics-driven models such as loyalty programs, and sector-focused one-stop-shop approaches.
Video Shopping Is The New Explosion
It's no secret that video shopping exploded in popularity in 2021. Consider China, the world's fastest expanding ecommerce market.
Last year, 37% of online customers in China used video shopping, generating $74 billion in sales on Singles Day alone. Bloomberg expects that by 2022, video will account for an amazing 20% of all internet buying in China.
As 2022 begins, key economies around the world, including the United States and Europe, are paying attention, with China serving as a barometer for the impact of this seismic upheaval.
By 2021, prominent companies such as Levi's and Herman Miller will have integrated video shopping into their retail strategies, allowing online buyers to engage with local store staff for an in-person buying experience.
In 2022, firms large and small are expected to invest aggressively in video shopping, utilizing the medium for everything from 1-on-1 virtual consultations to Instagram Story-style purchasing.
Customers Will Shop For A Reason, And Entrepreneurs Will Respond To The Occasion
In 2020, a widespread appeal to support Black-owned companies became one of the most effective ways for people of all backgrounds to demonstrate their sympathy with the Black community.
This message quickly expanded to other social justice topics, prompting corporations to rethink their overall mission as customers sought enterprises whose cultural and social messages reflected their own. Customers were 4-6 times more inclined to acquire, defend, and advocate purpose-driven businesses in 2021, and this trend shows no sign of abating.
Independent retail firms, in particular, should expect to assert their cultural identity as platforms like Shopify assist a new generation of socially conscious entrepreneurs in connecting with like-minded customers.
Authentic Content Will Impact The Manner In Which Brands Reach Out To Customers
Standing out in a sea of social media information continues to be one of the most difficult difficulties facing the retail industry.
By the end of 2021, new mediums would have returned ownership to businesses, enabling them to generate and distribute real content via their own eCommerce channels.
For example, brands like as size, Faherty, and HAY employed one-to-many video shopping to capitalize on the meteoric rise of stories as the world's preferred way to consume original video content on social platforms such as Instagram, Facebook, and Snapchat.
In 2022, an increasing number of retail firms will implement one-to-many video shopping and welcome eCommerce customers with customised product recommendations, just as they would in person, leveraging this authentic content as a doorway to a significantly more personalized buying encounter.
The Sales Associate's Role Will Change
Store teams are critical to a retailer's success: 90% of shoppers are more inclined to make a purchase when assisted by a knowledgeable associate.
By 2021, brands that provided an in-store experience via virtual shopping had significantly increased their revenues across the board. Accent Group, an Australian retailer and distributor of performance and lifestyle footwear with over 500 locations, achieved five times the conversion rate of online sales without virtual shopping, resulting in a 20% increase in average order value.
By 2022, associates will continue to advise customers through their shopping journeys via text, chat, and video, significantly expanding their sphere of influence outside the physical store's four walls. It also won't end with a single purchase.
Associates will establish meaningful relationships with consumers via text, email, and WhatsApp, converting them from one-time shoppers to lifelong customers.
Apart from their critical role in the entire shopping experience, associates will develop into genuine micro-influencers as they star in authentic eCommerce content, serving as the face of brands as retailers grapple with the impact of one-to-many video shopping.
Stores Are Going To Become "Dark"
The growth of "black" retailers was one of the most foresighted tendencies accelerated by the events of 2020. Retailers converted real premises into warehouse-like places where online orders could be packed for pickup or delivery in response to widespread closures.
As virtual shopping bridges the divide between the in-store experience and the convenience of internet shopping, so-called "dark" stores will become more prevalent, providing companies with an additional reason to maintain a physical presence.
While some retailers may convert certain locations permanently to "dark" stores, others will find inventive ways to go "black," such as during peak trading season, when associates and gig workers will be tapped to fulfill online orders outside of normal business hours.
If you have a eCommerce idea or existing store, we offer extensive services to make your store stand out from the crowd and generate business even during economic adversities.
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