26.Mar .2021 00:00

Mobile E-commerce in Georgia to Grow Around 25%, Reaching GEL 35.7 MLN in 2021

Mobile E-commerce in Georgia to Grow Around 25%, Reaching GEL 35.7 MLN in 2021
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In 2019 m-commerce current value in Georgia amounted to GEL 20.4 million, excluding VAT, in 2020 the figure stood at GEL 28.7 million. It includes online retailing mobile e-commerce value sales. As for 2021, current retail value of mobile e-commerce in Georgia is forecasted to grow by almost 25%, reaching GEL 35.7 million.
 
Online food delivery companies of Georgia drive value sales in mobile e-commerce of the country. While value sales are still low, mobile e-commerce registered the highest current value of any retailer channel in 2020. This was largely driven by online third party food delivery companies such as Glovo and Wolt.
 
Mobile e-commerce remains in a nascent stage in Georgia in 2020, with online shoppers still making most of their important purchases in-store or on computers rather than on mobile devices. However, COVID-19 encouraged many first-time users to try mobile e-commerce, especially for food delivery.
 
“M-commerce value is low in Georgia as a penetration of total e-commerce and at the same time it is low in actual terms when comparing to other countries. However, we look at m-commerce as a part of total e-commerce in Georgia, which means that value and penetration of m-commerce is low when comparing to other countries,” Lilija Vladykina, Senior Analyst – Services & Payments at Euromonitor International, told BM.GE.
 
Vladykina explained, why Georgian online shoppers are still making most of their important purchases in-store or on computers rather than on mobile devices. In her words, “on one hand it is due to mentality of consumers. Despite smartphone ownership is rather high in Georgia, consumers prefer more offline shopping to online, due to lack of education, trust in online payments. On the other hand, a lack of mobile applications and mobile-adopted webpages remain a significant barrier. This is especially common for domestic brands, their applications are simple with limited number of functions.” 
 
However, Vladykina continued, “due to Covid-19 the pandemic has become a significant booster for retailing transformation towards online shopping when speaking about both consumers and retailers. This trend will accelerate in future.”
 
Pursuant to Euromonitor International report on Mobile E-commerce in Georgia, “mobile e-commerce received an unexpected boost in 2020 and it is expected that a growing number of e-commerce players will launch mobile-friendly interfaces on their websites over the forecast period. Retailers, such as book chain Biblusi, are increasingly launching convenient mobile apps that provide users with purchasing options.”
 
“In 2021 current retail value of mobile e-commerce in Georgia will grow by almost 25%, reaching GEL 35.7 million,” said Vladykina, adding that further growth will be encouraged by “global brands like Aliexpress, Amazon, Ebay marketplaces, which have significant dominance in e-commerce and encourage users to switch to mobile internet retailing.”