The Georgian e-commerce market is growing, as Covid-19 lockdowns have encouraged many to purchase online for the first time or increase the frequency of online purchases, while Georgian companies have been forced to expand their online offerings, says Galt & Taggart in its latest report “E-Commerce In Georgia”.
“The size of the local e-commerce market increased 3.2-fold YoY, to 137.9 million GEL in 2020. We expect local e-commerce spending to grow at a compound annual growth rate of 52% to 1.1 billion GEL over 2020-2025”, says Galt & Taggart.
The report reads that the most popular categories on the local e-commerce market are electronics, household appliances and equipment, accounting for 65% of local e-commerce sales in 2020.
“Retailers started to invest in digital channels long before Covid-19 hit, entering lockdown more prepared than other sectors. Apparel and accessories are the second largest category, grabbing 16% of the local e-commerce market, followed by home and furnishing materials with an 8% share in 2020”, reads the report.
Food delivery earned a special niche in Georgia’s digital buying ecosystem, as retailers used food delivery channels to deliver grocery, personal care and pharmaceutical products during the pandemic.
“We estimate the food delivery sector turnover at 167 million GEL in 2020, up 3-fold, with grocery and personal care products accounting for 20% of the total”, says Galt & Taggart.
The report notes that Georgians spend 3.3 times more in international online shops than locally because of poor customer experience of local online shops, thus “improvement of the user experience is crucial for sector development”. (Agenda/Business World Magazine)
