Your brand has been increasing in popularity. You’ve saturated your market and now you’re looking outside of your city and maybe outside of your country. Expanding globally can enable you to generate more sales and significantly increase your bottom line.
You start to do your research to determine which new markets to expand into, and you learn Kuwait may be exactly the ecommerce hub you’ve been looking for.
Here are some reasons international retailers are attracted to the unique opportunity Kuwait offers.
1. It’s a Thriving Luxury Retail Market
Though Kuwait has a relatively small population, its GDP per capita is among the highest in the entire world. It’s home to wealthy and tech-savvy residents, with over 60 percent of the population being made up of expatriates. There’s high spending power, which creates an opportunity for a major luxury retail segment.
In 2015, the luxury market in the Middle East reached €1 trillion. Shoes, leather goods, and accessories are the most in-demand luxury items.
What’s more, much of the population is younger, which means a greater percentage of the population in Kuwait considers online shopping a great leisure activity—one they partake in Kuwait online shopping frequently and in high volumes.
In fact, the Middle East is second on the list in terms of luxury market growth opportunities, according to the 2014 Knight Frank Luxury Retail Opportunities Index. Kuwait is a country all international retailers—especially those selling luxury goods—should be paying attention to.
2. It’s Largely Untapped
When it comes to global ecommerce, the Middle East is still relatively untapped compared to other markets. Middle Eastern countries like Kuwait were largely built on oil, but they’re now beginning to diversify. Ecommerce in particular is seen as a new industry with great growth potential.
If you’re looking to make your mark in the ecommerce industry, Kuwait may be the country for you.
3. The Government Is Invested
Due to a forward-thinking mindset, most of the governments in the Middle East are investing heavily in the rise of mobile technology. There are more social media users in the Middle East than there are in the Europe or the US. The region has the greatest mobile penetration in the world. This is partly due to the fact that the region has a very young population. This increased online activity means the market for online shoppers is huge—and waiting to be reached by global retailers like you.
No doubt, this focus on mobile will drive the growth of ecommerce in countries like Kuwait. In fact, the growth of ecommerce in Kuwait is likely to surpass the global average due to the government’s active promotion of a digital future.
4. The Middle East Is the Leader in Logistics
Kuwait is one of the world’s top 30 most urban countries. Most of the country’s online shoppers reside in urban areas, which makes the logistics of delivering goods a breeze.
And because the governments are so invested in the digital future, Middle Eastern countries like Kuwait have some of the most advanced logistics and infrastructure worldwide. These countries know ecommerce is a huge opportunity for their economies and continue to invest more into infrastructure to improve delivery, particularly in rural areas.
5. It’s Not Subject to Stern Ecommerce Legislation
The rules and regulations surrounding the selling of goods in other countries can be tricky to get around. There’s often a lot of red tape and bureaucracy that can make prime opportunities seem less than fruitful.
The same can’t be said for Kuwait. The government in the country takes a more liberal approach when it comes to internal use and e-commerce, which makes selling there easier than in other countries.