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Demand Analysis for E-Commerce

What is Demand Research for eCommerce? Consider a South African entrepreneur who want to use eCommerce to sell her cosmetics and personal hygiene items in the GCC market. However, she is unsure of which GCC regional market to focus on. Both the necessary demand quantities and the market share she anticipates her brand gaining must be met by the chosen market. She can find the answers to these questions through demand analysis.
Determining the demand levels for a product category and its variations in a market or region with a focus on consumer behavior online is known as e-commerce demand research. Keep in mind that the businesswoman in the aforementioned scenario is not present in the GCC market. She lacks the business data necessary to do a demand analysis. As a result, her demand research depends on outside data.
We will look at the key components of demand analysis for eCommerce in this blog post on online market research. Drawing and inferring conclusions for commercial decision-making will be the main focus.
Drawing Insights from eCommerce Demand Research The term "demand analysis" is not new. But the goals must be stated before a demand analysis is conducted. These goals establish the desired result, which is research reports. The ability to accurately and pertinently interpret and analyze these reports is the second prerogative.
It is clear from the data that, out of the four nations, Kuwait has the lowest search volumes for beauty and personal care items, while the United Arab Emirates has the highest. This provides several macro-solutions. Should you focus on Kuwait or the United Arab Emirates? Despite being basic statistics, they are important enough to guide the direction of your company. Additionally, if you choose a market for additional analysis based on this data, Additionally, it provides you all the data you need to determine whether the industry is sufficiently large to venture into. Of course, this data set by itself cannot reveal the micro features. All of the products in the category of beauty and personal care products are combined to create this data. You can be working with a product category (for example, skincare) that isn't extremely well-liked in these nations. You may learn more about the market demand from the following data item.
Demand Analysis by Product Type The demand search popularity of the various product categories is taken into account in Product Type Demand Analysis. Businesses with extensive and diverse product combinations will find this study very helpful. They can create their product-market strategies with the use of the data. However, more study is required if they are targeting a highly competitive market or trying to establish a niche. Returning to the table below, it displays the search analysis of eleven product categories in the four GCC nations, including skincare.
Given that you deal with skincare products, it is only natural for you to observe that the UAE has once again become a promising market, with the highest search volumes for skincare products compared to the other three states. However, even within skincare products, there may be a lot of subtypes. For example, if your lifting and firming product has a compelling value proposition for the Middle East, you may be drawn to it; however, based solely on this data set, it is impossible to determine how popular lifting and firming products are. For example, the number of searches for skincare products in Kuwait is 27,300, while the same number is 10,000 in Saudi Arabia. Does this imply that Saudi Arabia is a more favorable market for your company? The popularity of the skincare product subcategories is not shown by these figures. Furthermore, you cannot use this data to accurately determine how popular lifting and firming goods are in the specified nations. However, the following data set would be far more definitive.
Demand Analysis for Product Subtypes Product subtype demand analysis is the data filter set that shows the demand search popularity of a particular subtype of product within a product type. The visual below shows the break-up of the search volume data of the lifting & firming product across the four GCC countries.
It is evident from the data on "lifting & firming" products that Qatar has the most searches. You might have been wrong to assume that the UAE is your best market because it has the greatest search volumes for personal care and cosmetics if you had only looked at the Product Category Demand Analysis or Product Type Demand Analysis. The Product Subtype Demand Analysis, however, has given you the knowledge that your "lifting & firming" product has a better chance of succeeding in Qatar. If your product mix includes a face-peeling product, Saudi Arabia would be your ideal target market.
Businesses also use the data from product subtype demand analysis to inform a lot of their decisions and strategies. It is simpler to determine the course of decisions about distribution, inventory allocation, warehousing, team structure, digital marketing initiatives, etc., once the demand cues are available. For instance, you might think about using 3PL services rather than setting up your own fulfillment system if the search volumes are less than 100 in a given time frame. Additionally, since the audience is small in this instance, your digital marketing needs to be more targeted.
Analysis of Per Capita Spending It is not possible to conclude that a search will always result in a purchase, even though demand research based on search volume is a useful predictor of market potential. A more reassuring step in eCommerce demand research is demand analysis followed by purchase/spend analysis. The figures for the four GCC countries' average annual per capita eCommerce spending are shown below.
We will continue the evaluation with these aspects in mind, building on earlier evaluations that showed Qatar to be the top market for lifting and firming solutions. The UAE spends the most per person on eCommerce, followed by Saudi Arabia, Kuwait, and Qatar, just like in the majority of the macro factors. The UAE does better than Qatar in terms of per capita eCommerce expenditure, despite Qatar having a higher per capita income. The fact that the UAE's eCommerce market is far bigger than Qatar's is one logical explanation for this. Qatar is only a third of the United Arab Emirates and a tenth of Saudi Arabia in terms of population. Although Qatar's market seems to be smaller than the UAE's, its consumers have robust purchasing habits. The levels of demand are probably going to stay low. However, it is a suitable place to enter the market, provided that long-term attention is paid to the Kuwaiti and United Arab Emirates markets. Future demand research will be crucial in determining Saudi Arabia's consideration.
The degree of demand in a market indicates its potential. Additionally, the current and consistent customer behavior reflects the levels of demand. Search analytics are a crucial component of this consumer behavior for an eCommerce brand. Using the appropriate eCommerce market research tools and methodology, we saw in this article how search-based demand evaluation may assist eCommerce organizations in focusing on assessing a target market. In-depth information and insights about a market can be obtained by combining demand research with consumer and competition studies. eCommerce companies can use these insights to evaluate and choose markets, enter new markets, and implement other marketing initiatives.

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