Saudi Arabia stars in cross border e-Commerce growth

Saudi Gazette
Saudi Arabia stars in cross border e-Commerce growth

  Black Friday and Cyber Monday have helped generate 64.3 percent growth year-on-year for Borderlinx Cross Border e-Commerce Solutions. Borderlinx offers global shipping expertise, giving retailers the ability to reach international customers. Some country destinations which have shown particularly rapid growth are: Singapore (100%+), Malaysia (100%+), Saudi Arabia (98%), Qatar (84%) and the UAE (78%).

"The considerable growth in cross border e-commerce we’ve seen this year signals exciting times for Borderlinx Solutions, and we’re expecting to see these figures continue to rise into 2014," said Jérôme Mercier, Borderlinx CEO. "This year we have observed some interesting trends in various regions, such as a remarkable 120 percent growth in jeans in Saudi Arabia.

Other trends, such as the decline in book sales which can perhaps be attributed to the growing popularity of e-readers such as the Kindle, are being seen worldwide. By monitoring trends such as this and reacting with flexibility alongside the value for money and reliability our customers rely on, we hope to be able to maintain the growing success of Borderlinx Solutions in 2014."

A number of brands have been particularly popular in recent months. Fashion brands including Ralph Lauren, ASOS and The Kooples are leaders in e-Commerce trade. Well-known British department stores also fared well, with Marks and Spencer, Debenhams and John Lewis all featuring in the top ten.

Looking more closely at the figures from fashion brands, accessories are displaying the strongest growth (110%) while clothing is still a key volume driver with 35.1 percent growth. As an example of a particularly successful product in a certain region, specialist handbags in the Middle East & North Africa (MENA) have done especially well, with sales up by 350 percent in Lebanon, 300 percent in the UAE and 200 percent in Saudi Arabia.

The volumes of each product category in different regions are interesting to consider. In all but one region clothing still comprises the biggest volume, with electronics and leisure also contributing significant volumes worldwide. Electronics are particularly popular in the emerging economies (BRICs).

These figures should be a wakeup call to Saudi retailers who have been slow to launch their own e-Commerce operations. Saudi women are well able to navigate the information superhighway. With poor service, expensive prices and limited styles and sizes at brick and mortar retail outlets in Saudi Arabia, it’s clear that the women of the Kingdom have begun to shop elsewhere. The government too needs to consider that by raising costs on local businesses through multiple new, complex and constantly changing regulations, the authorities are crushing retail trade as local shops become less able to compete with international e-Commerce powerhouses.

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