Market Trends of Cyprus E-commerce Industry
This section covers the major market trends shaping the Cyprus E-commerce Market according to our research experts:
Significant Growth in E-Commerce is Expected due to digital transformation
- The global impact of the Covid-19 outbreak has caused the shutdown of various industries related to the e-commerce market. This impact has led to the adoption of digitalization across the world, and the rise in the e-commerce market was observed. Also, several customers in Europe switched towards digital mediums to buy their commodities which in turn gave a huge boost to the e-commerce economy in Cyprus.
- The rapidly increasing internet penetration is a key factor contributing to the growth of the market over the forecast period. For instance, Datareportal stated that the internet penetration rate in Cyprus is recorded as 91 % of the total population in 2022.
- In April 2022, Cyprus and Greece signed a memorandum of understanding for digital development. With the help of this MoU, digital IDs and online signatures will be made available from April. And the government services will also be accessed digitally.
- The country is improving its digital connection to get in touch with the digital world. For instance, In March 2022, Cyprus Telecommunications Authority (Cyta) announced the operations of the ARSINOE optical fiber subsea cable system to enhance digital interconnection with the other parts of the world. This digital interconnection will help make Cyprus an integral part of the global digital ecosystem and promotes sustainable growth.
- According to Digital Economy and Society Index 2021, the e-Ministry of Communication and the Council of Ministers (CoM) has approved the revised cybersecurity strategy proposed by Digital Security Authority. This will further help the country to accelerate the digitalization of businesses.
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Fashion is Expected to Hold a Major Share
- The concepts of e-commerce have revolutionized the fashion industry in multiple ways. The buyers can shop from their homes, but they can also ensure that they can still keep their favored brands in their closets. Digital shopping is the most preferred way of buying goods in Cyprus.
- The country is expecting new entrants from different parts of the world as the market expects continuous growth in the fashion sector in the e-commerce market. For instance, In March 2022, the latest launch of the APPLA Platform gives shoppers to compare product categories, various stores, and prices. This platform offers the availability of 50,000 products on a single platform.
- With the growth of consumer behavior and shopping inclination, many companies are expanding their reach to find new consumers in the Cyprus e-commerce market. For instance, in October 2021, Neo plaza announced the launch of 45 stores in Cyprus with the aim of 'All day destination for Fun, Food, and Fashion' it is giving consumers a platform of entertainment by providing various facilities with fashion stores.
