Can direct-to-consumer commerce maintain its momentum in Mena?
D2C companies manufacture and ship their products directly to buyers without going through the middlemen of online marketplaces or traditional stores, enabling them to sell their products at a lower cost. This ability to redirect consumers from a social media platform and directly onto a merchant’s website has become one of the subtle ways that online shopping has shifted over the past few years, empowering smaller brands and fueling the growth of direct-to-consumer (D2C) commerce. Globally, the D2C model was pioneered by the likes of Warby Parker and Casper mattresses, who shunned brick and mortar retail and offered consumers niche products online.
Rise of online shopping in the Middle East
In the Middle East and North Africa (Mena), D2C is still in the earlier stages of its development, one fueled by the rise in e-commerce. Consumer behaviour has shifted dramatically towards an online-centric one; 53 per cent of consumers in the region said they are doing more of their shopping online compared to pre-Covid levels. The region’s e-commerce sector is one of the fastest growing in the world and is set to be worth $48.6 billion by 2022 according to Visa.
Social media is set to play an evermore important role in this growth with 20 per cent of Mena consumers saying they shop online within a social media app. Most recently, TikTok partnered with Shopify in Mena, to allow its users to “swipe up” and buy the products they see in the videos. This ecosystem of social media, e-commerce and fintech has enabled digitally native brands to easily identify suppliers and manufacturers, build a platform to sell, and target specific sets of consumers via digital ads.
The growth of specialized D2C sectors
The Beauty and Wellness market
With the Middle East and North Africa beauty market projected to exceed US$50bn by 2027, this is where Western startups and SMEs take their first leap into global expansion. Emerging and fast-growing beauty brands that are looking to break into the Middle Eastern market include:
- Ki’Olal: based on ancient ritual-rooted skincare.
- Exoceuticals: inspired by regenerative medicine to rejuvenate skin and stimulate collagen.
- High on Love: focuses on luxury wellness and sensorial self-care.
- Männ Skincare: a UAE-based line blending neurocosmetics and its signature Desert Date Seed Oil complex.
- Bellavita Luxury: a digital-first fragrance house scaling via Amazon and TikTok Shop.
Expansion in Menswear and Fashion
Industry shifts are also attracting international players. Indian D2C menswear brand Snitch plans MENA expansion and IPO push after rapid growth. Snitch secured USD 40 million in Series B funding to facilitate its expansion, targeting the Middle East and South Asia as next growth frontiers. Founded in 2020, it pivoted online and gained major traction with urban Gen Z men looking for stylish, affordable fashion.
Market Growth and Projections
The following table summarizes the market potential and key data points for the D2C ecosystem in the MENA region:
| Sector/Metric | Estimated Value / Statistic | Projected Timeline |
|---|---|---|
| General E-commerce Sector | $48.6 Billion | By 2022 |
| MENA Beauty Market | Exceed US$50 Billion | By 2027 |
| Social Media Shopping (Mena) | 20% of consumers | Current trend |
| Recent D2C Funding (Snitch) | USD 40 Million | Series B |
The main advantages of D2C is that you have direct access to customers, make improvement on your product based on customer feedback, and importantly, own your customer data. For entrepreneurs, social media platforms are vital; as Maria Eduarda Becker Pavani, founder of Tres Marias, noted: "it would have been much harder and taken us longer to reach customers without Instagram and Shopify."
