Using E-commerce to Promote Exports of Pakistani Fashion Products
This report titled “Using E-Commerce to Promote Exports of Pakistani Fashion Products” is an in-house publication of The Pakistan Business...
This report titled “Using E-Commerce to Promote Exports of Pakistani Fashion Products” is an in-house publication of The Pakistan Business Council (PBC). It is a part of the PBC’s “Make-in-Pakistan” initiative which has three pillars; “Make Better”, “Serve Better” & “Grow Better”. This Report concentrates on the B2C (Retail) E-commerce of Fashion Products and within that on cross-border E-commerce trade.
The Report aims to answer the following questions:
E-commerce (Electronic Commerce) is defined as the activity of electronically buying or selling of products using online services or the internet. Among the various categories of E-commerce, B2C E-commerce receives the most attention due to its simplicity and familiarity.
In 2022, global E-commerce sales were estimated at about $5.5 trillion, accounting for about 19.7% of total global retail sales.
Cross Border Trade occurs when products are sold to customers beyond the geographical boundaries of a country. It can be B2C (Business 2 Consumer) or B2B (Business 2 Business), this report will focus on B2C. Cross border trade benefits both sellers and brands in providing access to new markets, increased sales, higher revenues, all year demand, brand visibility and finally to help gain a competitive advantage over rivals in international markets.
In 2021, the global cross-border E-commerce trade was estimated to be about $784.6 billion and was expected to grow at a CAGR of 26.2% between 2022 & 2031 reaching $7.9 trillion by 2031.
Fashion Products have three major categories; these are Apparel, Footwear, and Accessories. Accessories include women, men and children clothing accessories, bags, eye wear, watches, jewelry, etc.
Globally, most revenue in retail E-commerce has been generated through Fashion sales, wherein Apparel constituted 57.3% of the revenue, followed by Accessories (29.3%) and Footwear (13.5%) in 2022.
In Pakistan, the top 5 websites in terms of Domestic Net Sales were all websites selling Fashion Products in 2021. The top three websites; limelight.com, gulahmedshop.com and khadi.com hold 2% of the online revenue in Pakistan (ecommerceDB, 2022).
Top E-commerce Websites in Pakistan in Terms of Domestic Net Sales in 2021
2021 | Website | Owner | Net Sales | Market Share | Total Revenue Growth | Revenue Growth % |
---|---|---|---|---|---|---|
1 | limelight.pk | Limelight | $50.4m | 0%-5% | >US$50m | 39.0% |
2 | gulahmedshop.com | Gul Ahmed Textile Mills,ltd | $48.1m | 0%-5% | >US$75m | 33.8% |
3 | khaadi.com | Khaadi Pvt.,Ltd | $28.7m | <0% | >US$50m | 26.7% |
4 | sanasafinaz.com | SS Fashion Resources | $23.4m | <0% | >US$20m | 33.1% |
5 | alkaramstudio.cm | Alkaram Textile Mills | $22.1m | <0% | > US$50m | 31.1% |
Main markets for Pakistani Fashion using the E-commerce platform are the U.S.A., the U.K., the U.A.E., Canada, Australia, Europe and Gulf countries. Even though Saudi Arabia and the U.A.E have the highest number of Overseas Pakistanis, the sales of Fashion products are mainly dependent on the purchasing power of the diaspora, the currency conversion rate, and the customs regulations of that country.
The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 98) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. More information about PBC, its members, objectives and activities can be found on its website: www.pbc.org.pk
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