12 Points That Highlight the Future Growth Opportunities in the Online Consumer Goods Sector

Today, I will talk about a very important topic for those looking to seize new opportunities. I will focus on opportunities related to fast-moving consumer goods (FMCG) and the growth potential of selling them online.

For those who think the opportunities have passed, please follow the points below, as the massive growth in this field caught my attention and inspired me to gather this information.

It is clear that e-commerce is reshaping the retail market, supported by logistics companies. We will notice that any growth in e-commerce will be followed by a clear increase in logistics services as well as in the technological projects supporting both sectors.

Globally, it is expected that there will be high growth in online sales of clothing, fashion, consumer products, and electronics, with an expected global average growth of 20%. The market value could reach over 4 trillion dollars by 2020.

There is no indication of a decline in e-commerce, and this is a very strong motivator for those interested in entering the field.

It is clear that online sales have recently excelled in the travel and clothing sectors. However, studies show that high-consumption products make up only about 7% of online sales, which presents a great opportunity for those looking to seize this chance.

Of course, one of the biggest obstacles in this market is the need for similar growth in logistics support and transportation and delivery companies for it to thrive.

The issue is not just the presence of delivery and transportation companies, but also the quality of these companies, which help ensure that products arrive in good condition, especially products that are sensitive to temperature or require special shipping conditions.

In comparison with global markets, South Korea holds an 18% market share, China holds 16%, and as we mentioned globally, it is 7%. In Saudi Arabia, we are still in the early stages, with less than 1%.

This explains the size of acquisitions that have occurred and will continue to happen in the market soon.

It is expected that the global market share of consumer goods sold online will rise to 14% over the next five years, doubling the previous figure by 100%.

There are key factors supporting the growth of e-commerce in the FMCG sector, such as:

• Growth in GDP
• E-payments
• Access to internet services
• Widespread use of smartphones
• Ease of starting businesses
• Population size
• Logistics services
• Trust in online sales
• Societal culture
• The maturity of market giants

All of the above points are in favor of growth in the Saudi market

If we look at the previous ten points, they are all showing significant growth and are trending upward, supporting the idea of expanding opportunities in this field

Finally, I will mention some of the largest global companies specializing in fast-moving consumer goods so everyone can imagine the size of the market and the nature of the products:

Nestlé, Johnson & Johnson, Procter & Gamble, Pepsi, Unilever, Coca-Cola, Philip Morris, L'Oréal.