Retail, regulation and revolution

It is now beyond doubt that the people of Pakistan, rural and urban and particularly women, have embraced the opportunities offered by shopping online. Choice, price-point, security, convenience and speed all contribute to what amounts to a growing boom in the retail sector. It is not yet the death-knell of the shopping mall, but probably the writing on the wall. The online retail industry has developed faster than the lawmakers have been able to enact legislation to regulate it and it is something of a lawless free-for-all.

The need for an e-commerce policy in Pakistan is now urgent. The digital marketplace requires trust at a different level to that of face-to-face purchasing. The market is currently worth around Rs65 billion a year and projected to rise to Rs100 billion by 2020. Most transactions are in cash paid at the door or gate but card sales are on the rise. E-traders are not reliant on bricks and mortar shops, and can conduct high-volume trade from small premises. It is an open house for those that would wish to operate fraudulently and that is one of the pressing reasons why regulation and the development of supportive laws and protocols, old fashioned consumer protection, is so necessary.

The digital economy has enormous potential, but is currently held back by the trust gap. Potential shoppers are wary of illegal or fraudulent scams, unclear terms and conditions of sale/purchase and surprise ‘hidden costs’ that can appear as ‘add-ons’ to a final price. Online shopping has opened a range of opportunities to both vendor and purchaser the like of which has never been seen before. Given the near blanket coverage of the internet and affordable smartphones that work as well in the hands of the uneducated and illiterate as they do in the hands of educated urbanites, this market has the potential for exponential growth. The government should take this as an opportunity to bring in benchmarking legislation that regulates the emerging sector and guarantees a square deal for vendor and consumer. This is a win-win and early action the need of the hour.

Published in The Express Tribune, March 16^th, 2018.

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