How has Covid-19 impacted the Georgian e-commerce market?
The report reads that the most popular categories on the local e-commerce market are electronics, household appliances and equipment, accounting for 65% of local e-commerce sales in 2020. Photo: Nino Alavidze/Agenda.ge.
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The Georgian e-commerce market is growing as Covid-19 lockdowns have encouraged many to purchase online for the first time or increase the frequency of online purchases, while Georgian companies were forced to expand their online offerings, says Galt & Taggart in its latest report 'E-Commerce In Georgia'.
The size of the local e-commerce market increased 3.2 times y/y to 137.9 million GEL in 2020... We expect local e-commerce spending to grow at a compound annual growth rate of 52% to 1.1 billion GEL over 2020-2025", says Galt & Taggart.
The report reads that the most popular categories on the local e-commerce market are electronics, household appliances and equipment, accounting for 65% of local e-commerce sales in 2020.
Retailers started to invest in digital channels long before Covid-19 hit, entering lockdown more prepared than other sectors. Apparel and accessories are the second largest category, grabbing 16% of the local e-commerce market, followed by home and furnishing materials with an 8% share in 2020", reads the report.
The report reads that food delivery earned a special niche in Georgia’s digital buying ecosystem as Georgian retailers used food delivery channels to deliver grocery, personal care and pharmaceutical products during the pandemic.
We estimate the food delivery sector turnover at 167 million GEL in 2020, up three times from 2019, with grocery and personal care products accounting for 20% of the total", says Galt & Taggart.
The report notes that Georgians spend 3.3 times more on international online shops than locally because of poor customer experience of local online shops, thus ‘improvement of the user experience is crucial for sector development’.
Read the full report here.
Online businesses will be inspected next week to check for compliance with the recommendations of the Health Ministry in order to receive permission to begin working again safely, Georgian Economy Minister Natia Turnava said earlier today.
Online shopping for all items except food and medical supplies has been suspended in Georgia until April 21 - the date until when the state of emergency is in force - in order to prevent the spread of the coronavirus in the country.
Georgia is strengthening its e-commerce industry in order to stimulate what is quickly becoming one of the world’s most important tools of modern trade. A new electronic commerce platform will soon be launched in Georgia that will allow the local population, including small and medium businesses, to order or sell products and services in Georgia as well as abroad, the delivery of which will be carried out by the Georgian Post.
TBC Bank is initiating a new digital trade platform – Vendoo – which is planned to be launched in Georgia in February 2019.
Georgia will receive 500,000 doses of Pfizer donated by the United States this Saturday, July 24. The Biden-Harris administration unveiled the strategy for global vaccine sharing ‘in service of ending the pandemic’ in early June.