Pakistan has an unorganized retail sector. Example: Factory Outlets of Levis, Fifth Avenue. The target of the exhibitions was the retail sector with focus on importers, agents, distributors and wholesalers. They offer selected items and are not at all organized. They are manufactured using materials such as fabric, wire, carbon black, natural and synthetic rubber, and other chemical compounds. There was a strong upsurge in demand for cough, cold and allergy (hay fever) remedies in the first quarter of 2020 at the peak of the pandemic. COVID-19 impact on Chatbot Industry. According to a research study conducted by Standard Chartered Bank last year, between 2011 and 2015, the size of the retail pie in Pakistan jumped from $96 to … To provide an edge to the fast-moving consumer goods (FMCG) market in Pakistan, Nielsen recently completed digital mapping of 674,980 FMCG retail outlets in the country, an enhancement to Nielsen’s previous retail census projects. The key features include store profiling, mobile data collection and output delivery via web and mobile platforms. The sector is not patronized by the government it should be. The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. In future, Kiryana stores in Pakistan is likely to exist but their growth will retard because of their unorganized retail format. Pakistan textile industry is currently facing several challenges. Last year, nine Pakistani companies participated in the Southern African International Trade Exhibition for Retail Products and Africa Big Seven. Pakistan whose retail potential is expected to be $42 billion. Pakistan still lacks a skilled labor, trained, qualified and experienced manpower in its retail market. In relative terms too, both India and China outpace Pakistan with e-commerce sales as a percentage of country retail sales being 1.85% and 21.19%, respectively, compared to Pakistan’s 0.34%. - Specialty Stores: These specialize in a particular product and would not sell anything else apart from the specific range. Digital Marketing The Key to Improve FMCG…. The retail e-commerce market has the greatest revenue generating potential within the entire e-commerce sector. The retail stores and shopping malls have become very attractive to the consumers in Pakistan. Example: Khaadi, Junaid Jamshed, & Out Fitters. There are approximately 2 million retail outlets in the country. The competition between global retail outlets and local department stores will intensify in future. Example: Chase & ChenOne. - Mom and Pop Store (Kiryana Stores): These are the small stores run by individuals in the nearby locality/neighbourhood to cater to daily needs of the consumers staying in the vicinity. What are the constraints that hamper the country to keep up the momentum of its growing retail market? Last year, South Africa imported goods worth $290 million from Pakistan while its total imports were $85 billion. Apparel Retail in Pakistan Summary Apparel Retail in Pakistan industry profile provides top-line qualitative and quantitative summary information including: market size (value 2014-18, and forecast to 2023). Its three biggest malls, Lucky One in Karachi and Packages Mall and Emporium Mall in Lahore, opened in the past two years. Booming growth in Pakistan’s retail sector, Interactive guide on cross border paperless trade, Pakistan’s financial institutions growing under digital age, Add video to take your customer service to the next level, Home remittances to rectify pandemic-suffered economy, E-Commerce market moving in right direction under covid strain, COVID-19 Pandemic Ushers new wave Of Digitalization (Facts & Figures), Future of shipping industry in the digital era, Digital payment services changing the way economy works, IATC AWARDS: recognizing the frontline heroes, Pakistan stock market – ‘needed resolves’, Pakistan stock market performance and outlook in 2020, Pakistan on the crossroad of unconventional investment trends, Fertilizer earnings future revised as urea offtake set to beat outlook, SAPT- Only facility in the country designed and purposely built as a deep-water container terminal, Green Banking – a new frontier for the banks in Pakistan, For the love of blue gold: an alternative to traditional economy. - Independent retailers aggressively compete with modern grocery retailers: Pakistan’s modern grocery retailers such as Hyperstar, Metro, MCC and Imtiaz represent a potential threat to independent players as due to their wide ranges of grocery and non-grocery products at attractive prices. Pakistan is an emerging market where the size of the retail market is estimated around $42 billion, growing faster than the economy at a rate of 5.3%. - Multi format retailing: With consumer business taking a more important role in driving economic growth, in the next five years the retail industry will come into an era which opportunities and challenges coexist. These stores do not bother much about the interiors of the store and the products are not properly displayed. (PAGE) is the leading weekly financial magazine of the country for nearly 40 years. The size of the store would not be very big and depends on the land available to the owner. Example: Poonam Rice of Imtiaz and Metro’s ‘OK and Fine Food Brands’. According to statistics from the Pakistan Bureau of Statistics for the years 2011-12, the retail sector is worth $4.2 Billion, which represents around 18% of GDP. On the other hand, the developing economies of Asia-Pacific, the Middle East, and Latin America have been instrumental in driving the market growth. The total retail spending in Pakistan was forecasted at 210 billion U.S. dollars for 2018. This kind of shopping is convenient for those who have a hectic schedule and are reluctant to go to retail outlets. Several changes will take place, while industry players are trying to establish their core competence in the market with diverse consumer tastes and intense competition. Pakistan Mobile Wallet and Payment Market Opportunities (Databook Series) - Market Size and Forecast across 45+ Market Segments in Mobile Commerce, International Remittance, P2P transfer, Bill Payment, Retail Spend, Consumer Attitude & Behaviour, and Market Risk © Copyright 2020, Pakistan & Gulf Economist ® All Rights Reserved. Footwear market size was valued at $365.5 billion in 2020, and is estimated to reach $530.3 billion by 2027 with a CAGR of 5.5%. New global chains of grocery and life style stores are likely to enter in the country’s market in future. Retail e-commerce. The country has witnessed the mushroom growth of more and more malls, restaurants, sport complexes, multiplex cinemas, and a large number of shops in big cities. With the induction of global brands and outlets, Pakistan’s retail sector at present witnessing a booming and impressive growth. Remote is the new normal. Another report by the Express Tribune suggests that the retail sector in Pakistan is booming because of women whose participation in the formal labour force has gone up from 16.3% in fiscal year 2000 to just over 24.4% in 2011. The retail market is mature and highly competitive in the developed economies of Europe and North America. Apart from its market size one of the cultural reasons for this is that in Lahore dining out is more of a preferred experience whereas in Karachi ordering in is far more widely accepted. A major challenge is the counter sale outlet phenomenon to trade marketers who find it extremely difficult to implement various sales promotion tools like shoppers’ messaging and category management. A retail body should be established to promote the sector and the government should facilitate its growth by taking initiative to streamline the retail sector. Such limitations negatively impact the ability of unorganized sector to display its products. However, value growth in modern grocery retailers outpaced growth in traditional grocery retailers over the entire review period due to rising income levels, a sense of modernization, the need for greater convenience in terms of one-stop shopping and heavy marketing campaigns by Pakistan’s leading hypermarkets. This will give rise to an era of multi-format retailing – an inevitable future trend of the industry. It is the biggest economy in Africa with a gross domestic product of $390 billion and total trade of $190 billion. The menswear segment was the industry's most lucrative in 2018, with total revenues of $4.6bn, equivalent to 50.4% of the industry's overall value. This is also necessary to broaden tax net and document the national economy. The Pakistani apparel retail industry had total revenues of $9.1bn in 2018, representing a compound annual growth rate (CAGR) of 5.9% between 2014 and 2018. Further classification of local trade, traditional trade, and international modern trade is given below: - Departmental Stores: offer a wide range of products to the end-users under one roof. Talk to Sam +1 718 303 2384. Retail Industry 2020 - Pakistan Market Research & Statistics. Pakistan, 2016-2021f Internet Users, in Selected Countries in Asia, incl. The traditional segment is largest in terms of trade. At $1 billion, however, the size of Pakistan’s e-commerce market will still be tiny. There is considerable opportunity for disruption in Pakistan’s retail market, a discerning observer might conclude. Cough, Cold and Allergy (Hay Fever) Remedies in Pakistan. - Traditional grocery retailers continue to dominate retailing: This is due to the extremely high number of retail outlets in the country, with hundreds of thousands of small independent grocery retailers in operation. About two third of FMCG outlets consist of neighbourhood 'kiryana' stores, commonly called general stores, which sell multiple brand grocery items of daily use. Consumers can get almost all the products they aspire to shop at one place only. Trends in the country’s retail industry are quite encouraging, as far as the development of new retail formats and the establishment of a large number of global chains’ retail outlets all across the country is concerned. The retail market size in India was expected to amount to 1.7 trillion U.S. dollars by 2026, up from 950 billion dollars in 2018. The lack of concrete and reliable data does not allow foreign companies in Pakistan, to formulate ‘fact-based’ plans for product availability and to roll out trade incentives. Traditional trade such as Kiryana stores, neighbourhood stores, Jodia Bazaar etc. Research estimated employment within the market … Consumer needs are becoming more individualized and diverse along with the rising middle class in Pakistan, driven by the notable increase in household income. In 2013, seven Pakistani brands were nominated for the first time for the World Retail Awards held in Paris, in which three brands were shortlisted. The Pakistan tyre market reached a consumption volume of 21.9 Million Units in 2019. All that is needed is skilled labour, education, training and a retail body to promote the sector and engage the government - joining hands with stakeholders to create a platform to address local issues and to present Pakistan at global platforms in future. Reasons for implementing multi-format retailing strategy would include: meeting the diversified needs of consumers, reducing competition pressure and diversifying operating risks and achieving differentiated competition. The economic downturn prompted many consumers to try private label goods for the first time, and once they did so, they discovered that not only was the pricing right, but the quality of the goods met or exceeded expectations. The country still lacks in both upper management and lower management positions. Retail Sales CAGR, in %, by Selected Fast-Growing Markets Worldwide, incl. Report is to depict the trends and upcoming for the Pakistan Cosmetics Market industry over the forecast years. With an estimated size of the retail market at around $50 billion, the country’s retail sector is growing faster than its economy. Get Reports. There are inherent limitations which include lack of economies due to small scale operations, lower level of functional expertise and lack of financial strength. Out of these retail outlets, nearly 800,000 outlets represent FMCG channels including 'kiryana' stores (mom & pop), 'pan' shops (kiosks selling betel leaves and cigarettes), department stores, medical-cum-general stores and the like. Pakistan consumer goods and retail service offers analysis, data and forecasts from The EIU to support industry executives' decision-making Retailing is the set of business activities that adds value to the products and services sold to consumers for their personal or family use. The Pakistani companies that took part in the exhibitions included Mehran Food, Niraav Foods, Dawood Textiles, Softwood Textiles, Golden Pearl Cosmetics, Crosswear, Unique Trader and Best Clean Textiles. Originally, private brands’ packaging designs were poor, which – rather than reflecting lower prices – actually made consumers suspicious about product quality. Consumers are less price sensitive compared to previous times, while they have become more aware of the brands and cost-effectiveness of the products. Grocery stores include Meat One and K & N’s (specializing in meat and chicken respectively), Simply Sufi and other neighbourhood stores that offer convenience and availability of grocery and dairy items. Nov 2020. Quality shopping has led consumers towards modern retail shopping options. Industries. Online Retail in Pakistan industry profile provides top-line qualitative and quantitative summary information including: market size (value 2014-18, and forecast to 2023). Pakistan, in millions, 2017 - Supermarkets: A retail store, which generally sells food products and household items, properly placed and arranged in specific departments. Pakistan is world’s fastest growing retail market: Bloomberg April 10, 2018, 4:58 pm April 10, 2018 1012 The market is predicted to expand 8.2 percent per annum through 2016-2021 as disposable income has doubled since 2010, according to research group Euromonitor International. - Other retail channels: include 'pan (Beatle Leaves)’ shops, petro marts, department stores, medical-cum-general stores, book shops, road side eateries and other specialty shops. The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Pakistan’s retail sector has embarked on a growth trajectory that can predict the industry becoming a major hub for growing businesses. The Retail landscape in Pakistan, with a population of 196 million, is constantly evolving and transforming in its dynamism, as consumer lifestyles keep changing with growing consumerism in the country. 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