Kuwait is a country with high internet penetration levels, however, e-commerce is not too popular in the country. Further details surrounding the use of the internet and e-commerce in the country are provided below.
Mobile Internet Users
- The total number of internet users that use the internet on their mobile phones is 3.29 million.
- This represents a mobile internet penetration rate of 78% of the total population.
- The total spending on e-commerce in Kuwait was valued at $670 million in 2017.
- The total spending on e-commerce in Kuwait is expected to reach $1.07 billion by 2020.
- As per the calculations presented below, the total spending on e-commerce in Kuwait was estimated to be $770.5 million in 2018.
E-Commerce Share in Retail
- The total retail sales in Kuwait were estimated to be $16.7 billion in 2018.
- As per the calculations presented below, the share of e-commerce in total retail sales was estimated to be 4.6%.
We started our research by looking for market research reports for Kuwait. We were able to locate some of the information easily, e.g. the internet penetration levels in the country. However, some information was not directly available. As a result, we have used other pieces of available information to triangulate the desired information.
Even after attempting to triangulate the requested information, we were unable to determine the penetration levels for smartphones and feature phones separately. This is because information pertaining to the total number or percentage of feature phone users in Kuwait was widely unavailable.
To find out the penetration levels for smartphone and feature phone users separately, we looked initially looked through market research reports hoping to find relevant statistics but to no avail. Instead, we were able to find other useful information, e.g. the overall internet penetration rate, that we have provided in this brief.
Subsequently, we looked through credible news and media sources, e.g. Arabian Business, Oxford Business Group, but no helpful information was found. These sources published overarching statistics, e.g. the retail and e-commerce spending in the country, but not the minor details.
As a last resort, we looked through global organizations, e.g. World Bank, CIA Factbook, and International Telecommunication Union, for statistics without any success. We found a research report that stated that the statistics compiled in the report were sourced from these organizations, hence it would make sense to look through these organizations for statistics. After exhausting all possibilities of finding the exact information requested, we have provided the penetration levels for mobile phone users as a whole as an alternative.
The details of the triangulation of the total spending on e-commerce in 2018 and the share of e-commerce in total retail sales are given below.
- The total spending on e-commerce in Kuwait in 2018 can be calculated by using the 2017 spending and the projected spending to 2020 as follows:
CAGR = [(End Value / Start Value)^(1/Years)] - 1 = [(1,020,000,000 / 670,000,000)^(1/3)] - 1 = 0.15 = 15%
E-commerce in 2018 = $670 million * 1.15 = $770.5 million
- The share of e-commerce in total retail sales in Kuwait can be calculated as follows:
E-commerce sales in 2018 = $770.5 million
E-commerce as percentage of retail = ($770.5 million / $16.7 billion) * 100 = 4.6%