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There is no doubt that Lebanon’s Generation Z favors online commerce, also known as e-commerce. The revenue speaks for itself; it is expected to show a compound annual growth rate (CAGR 2023-2027) of 9.2%.
E-commerce has ushered in a comprehensive ecosystem over the past decade, blurring the traditional boundaries between 3D stores and shopfronts. However, some academics claim that both concepts can coexist and even seem to complement each other.
Marketers will clearly continue to encourage retailers to maximize the use of environmental factors inside their stores to optimize customers’ cognitive and emotional perception of their products, so brands are increasingly focusing on the management of olfactory and auditory cues.
That being said, the e-commerce experience is also multifaceted, hinging on the identification of the “right triggers.” Potential customers or leads have the ability to place an order very comfortably, just by tapping on the keyboard. In a matter of seconds, they can compare prices, a key factor in sealing a purchase deal. This dynamic fosters heightened competition among suppliers.
Lebanon ranks 69th
Lebanon is the 69th largest e-commerce market with an expected revenue of 1.614 billion dollars by the end of 2023, surpassing Costa Rica, according to ecommerceDB.
The revenue is expected to show a compound annual growth rate (CAGR 2023-2027) of 9.2%, resulting in a projected market volume of 2.298 billion dollars by 2027.
With an anticipated increase of 14.2% in 2023, the Lebanese e-commerce market would contribute to the global growth rate of 9.6% in 2023. Just like Lebanon, global e-commerce sales are expected to rise in the upcoming years.
Electronics sector
EcommerceDB categorizes the Lebanese e-commerce market into five sectors of the real economy. The electronics and media sector is the most significant, representing 33.3% of Lebanese e-commerce revenue. It is followed by food and personal care at 26.6%, furniture and appliances at 17.7%, fashion at 16.5%, and toys, leisure and DIY accounting for the remaining 6%.
China
Cross-referencing several databases shows that with an estimated market volume of $1.319 billion in 2023, most revenue is generated in China. In the e-commerce market, the number of users is projected to reach 3.3 million by 2027, while the user penetration rate is expected to be 60.8% in 2023 and should reach 67.2% by 2027. The average revenue per user (ARPU) is expected to rise to $502.6.
IDAL and e-commerce
According to the Investment Development Authority of Lebanon (IDAL), whose statistics unfortunately only go up to 2018, the government entity granted tax incentives in the category of e-commerce platforms for shopping and retail. This category includes: ChouChic, La Redoute, Lébelik, Mes Petites Ballerines, Markavip, MySouk, ô De L’arôme, Scentle et à Young Wilderness. In the books sector, to Antoine Online. In the technology sector, to Macrotronics and OptionMegastore. In the gifts and flowers category, to Exotica, We Delivergifts. In the miscellaneous sector, to Ishtari, E-mall, Instruments Garage, Kay Store by Khoury Home, Wild Willy and Virgin Ticketing Box Office. In the food sector, to Buy Lebanese, Raafat Hallab and Spinney’s Delivery. Finally, for day-to-day matters, to Gosawa, Makhsoom and Scoopcity.
