After spending a staggering EGP 400 billion online in 2020 due to all the COVID-19 lockdowns and restrictions, how much have Egyptians spent over the internet in 2021?
What had become a necessity in 2020 had turned into a comfort in 2021, with Egyptians spending nearly EGP 100 billion in e-commerce transactions over the past year. According to a spokesperson for the Egyptian Junior Business Association, Egyptians have spent the most online on electronics, which make up 28% of e-commerce profits in 2021. Fashion comes next, accounting for 21% of the profits, followed by food and healthcare at 19%, and furniture and appliances at 12%.
The Association notes that many direct-to-consumer companies have propped up recently, producing and distributing their own products rather than going through an intermediary. While platforms like Amazon, Jumia and Noon still make up 50% of the e-commerce market in Egypt, this rise in direct-to-consumer businesses is seen as a reflection of Egyptian entrepreneurship, and the appetite for Egyptian brands to participate in both local and international markets. It is also expected that these businesses will attract more foreign investment into Egypt.
Egyptians spent four times as much in 2020 - a staggering EGP 400 billion - which is more likely a reflection of the heavy restrictions placed on businesses due to the COVID-19 pandemic. With the lifting of many of those restrictions in 2021, it is notable how e-commerce had maintained its popularity, even as it exists alongside IRL shopping.