Can online retailers make 2021 another blockbuster year?

Can online retailers make 2021 another blockbuster year?

2020 was a volatile year for most sectors. High touch and discretionary sectors such as leisure, travel, and mobility sector revenues nose-dived.

Overall retail also had a tough year as customers shopped less. On the other hand, online sectors such as e-tail (online retail) including eGrocery, ePharmacy, eBPC, online fashion and online electronics witnessed hyper growth during 2020.

The pandemic proved the utility of the large technology companies. During the peak of lockdown when all malls were partially closed, on-demand delivery of services helped in social distancing, while ensuring essential services were not disrupted during the pandemic.

E-tail had a blockbuster year with year-on-year growth of more than 50 percent in some part of Middle East. For example, eGrocery grew 500 percent during the peak of pandemic as new customers who had never tried ecommerce were forced to adopt it.

Almost a third of consumers in eGrocery were first time e-commerce buyers. Many beauty brands reported tripling on their online revenues – albeit on a smaller base.

In 2020, online retailers benefited from increased adoption from consumers on the back of social distancing.

The supply landscape also got a big boost as retailers expanded their scope and entered into new categories. For example, Noon launched NowNow,