The coronavirus pandemic has lasted just over four months across Pakistan and the main question that has arisen is: Will the coronavirus accelerate the market penetration rate of e-commerce in Pakistan and get more Pakistanis comfortable with the idea of shopping online? Everyone has been saying since the last decade that the future is online: from grocery shopping to education but the way this change has been enforced has caught everyone unaware. But as the demand for online deliveries increase, and innovations such as contactless delivery become the new norm, companies are not just ramping up their efforts but actually changing the way they operate and picking issues in their structures and business models.
Contactless delivery is catching on in Pakistan and according to Cheetay CEO Majid Khan, it was his company that first initiated it in Pakistan and according to him, it has been paying off. The rise in an increase of orders was going to happen sooner or later as fears about the coronavirus pandemic grew in the country. And while e-commerce companies were quick to make their deliveries contactless, they jumped on the idea of delivering groceries quickly as well. Even Foodpanda, which was going to see a rise in demand in any case with people stuck at home and unable to eat out, was fast to create and launch Foodpanda Mart, a contactless grocery delivery service. And while some players in the e-commerce sector have been trying their best to innovate quickly, even the most agile companies have sort of been caught off-guard. Growth strategies and plans that they had hoped would phase in over the years, they are having to implement now.
People are approaching this period of isolation and uncertainty in huge overnight changes to their shopping behaviors. From bulk-buying to online shopping, people are changing what they’re buying, when, and how. As more cities are going under lockdowns, nonessential businesses are being ordered to close, and customers are generally avoiding public places. Limiting shopping for all but necessary essentials is becoming a new normal. Brands are having to adapt and be flexible to meet changing needs. As news of COVID-19 spread and as it was officially declared a pandemic by the World Health Organization, people responded by stocking up. They bought out medical supplies like hand sanitizer and masks and household essentials like toileteries and bread. Soon, both brick-and-mortar and online stores were struggling to keep up with demand, and price gouging for supplies became rampant.
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As a matter of fact that this is the time for e-commerce to thrive. It has its greatest opportunities at a time when all work and physical interaction brings with it great risks. In their case, however, there are also great rewards. E-commerce retailers and logistics service providers are encouraging digital payments and accepting credit cards, Mastercard QR, SimSim and JazzCash, they have started an initiative offering cashback on Mastercard QR in partnership with banks. While supply shortage and panic buying is definitely a challenge for the e-commerce industry, however, in order to ensure that inventory shortage is addressed, focus should be on expanding the universe of small, medium businesses.
Pakistan has adapted quickly to online commerce. People who feared online ordering in the past are now making multiple online orders. In the coming months, more and more brands will be dependent on digital platforms. Even traditional vendors, who had no online presence, will have to move to e-commerce. According to the PTA, internet usage has increased by 15% since the lockdown. This trend will continue to rise as more and more people practice social distancing. Brands will also shift their marketing efforts and communications online.
While spending power, infrastructure and buying capacity are all important factors in this business, there are, however, some good signs at least. While the pandemic may continue to ravage, e-commerce may still boom. The customers are trying their best to adapt to strange times without a lot of footholds and shifting their behavior as a result. Businesses are facing much of the same uncertainty, while trying to support their customers’ needs and their own. Depending on the industry and audience, the response to the ever-evolving situation will change as business owners know their customers better than anyone.
[box type=”note” align=”” class=”” width=””]The writer is a Karachi based freelance columnist and is a banker by profession. He could be reached on Twitter @ReluctantAhsan[/box]