Market Research Reports - Ken Research Online Mode of Payment Saudi Arabia

Online Fashion Market in Saudi Arabia is expected to Increase at a CAGR of 20% in Future in
terms of GMV due to Elevating Demand for Clothing and Footwear from Online Sellers: Ken
Research
• In 2017, Riyadh generated maximum revenue in fashion apparel segment amongst different
states of Saudi Arabia.
• Gymwear is also gaining popularity in the country among sportswear category with more
adoption/ subscribers for fitness clubs. The number of subscribers going to fitness club has
more than tripled in the last 7 years to 567 thousand people in 2017.
• Handbags have dominated the online accessories market with leading share in the total GMV
generated during the year 2017.
Saudi Arabia online fashion retail market is quite dynamic and is in the early growth phase. A
phenomenal growth of 10.1% in the internet users in the last 5 years and in smartphone users
in the country have acted as drivers for the online fashion market. Convenience to purchase
online, rising disposable income, easy availability of branded products and rising demand for E-
commerce products in Riyadh and Jeddah are other major factors which have augmented the
growth of online fashion market in Saudi Arabia.
Saudi Arabia online fashion industry is moderately concentrated with the presence of around
20-30 fashion websites and dominance of 4 E-commerce portals (Namshi, Souq Fashion,
Jollychic and Wadi).
Fashion companies compete with each other on the basis of different parameters such as
Discounts, Target Audience, Delivery time, availability of products and different brands, net
promoter score and process involved in refund, return and exchange (handling reverse
logistics). Future competitive edge in the market will be based on interest free installment
options, try-at-home feature, cash-backs in semi closed wallets, private label brand sales,
exclusive brands availability and style (plus size stores, maternity wear, exclusive designer wear,
Arabian style wear, party and active wear)
According to the report by Ken Research titled "Saudi Arabia Online Fashion Industry Outlook
to 2022 - By Apparel, Footwear and Fashion Accessories, By Menswear, Women wear, Kids
wear, by Footwear (Sneakers, Flip-Flops, Sandals, Boots), by Apparel (Top, Dresses and
Bottom, Jackets, Shirts and Shorts)", Saudi Arabia E-commerce market GMV is expected to
grow at a rapid pace from 2021 to 2022 owing to the rising number of online market players
entering the E-commerce industry and efforts of the government to shift people to digital
platforms.