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BOPIS: The Game-Changing Retail Experience in Kuwait

BOPIS: The Game-Changing Retail Experience in Kuwait
October 6, 2021
BOPIS: The Game-Changing Retail Experience in Kuwait

Buy Online Pick Up in Store (BOPIS) refers to a service that enables customers to make online purchases and pick up their orders in-store. There are various options for picking up the order, including using BOPIS retail lockers, curbside pickup, or designated pickup locations.

Here is a summary of Poixel's market research findings, based on statistical surveys, data analysis, and in-field interviews:

Kuwait BOPIS Market Competitors

The BOPIS industry was born during the COVID-19 period, as consumers wanted a safe and fast way of ordering food while outside.

Based on Poixel's analysis, the BOPIS market in Kuwait has a market value of 5,750,000 KWD in 2021. The demand for BOPIS is expected to continue growing as more consumers become aware of the convenience it offers. The key players in Kuwait are V-thru, Cofe App, and Deliveroo, which have a growing market share in the region. These competitors market their products through the restaurant’s social media following, thus boosting its brand presence in the market.

Consumer Behavior

From our market survey, nearly half of the respondents say they are highly likely to order pick-up through mobile applications, making it the most popular channel for brands. Car pick-up services allow fewer in-store visits, convenient purchasing, and quicker service without interaction with the store employee -  which is the main reason why consumers use such services. It is the same reason why McDonald’s kiosk system worked in Kuwait.

The Kuwait Buy Online Pick Up In Store (BOPIS) market is still in its infancy, but it has tremendous growth potential with the rise of e-commerce in the country. The main reason for this is that word-of-mouth is one of the most effective marketing tools in Kuwait, due to the close ties of family relationships

There is no doubt that the world has transitioned to an online shopping era. However, physical stores are still prevalent since 45% of people prefer to visit physically.

This is especially true for products that require consumers to touch and feel, such as clothes and garments. The BOPIS market growth for such products will develop slowly.

Economic Factors

Kuwaiti nationals already have strong spending power in the country, which is set to grow in the coming years, impacting positively groceries, food and beverages. Two main factors allude to this, which are government subsidies and higher salaries (1490 KWD average for Kuwaiti nationals).

Despite the decline in the expat workforce and expats leaving Kuwait, Fitch Solutions expects consumer spending in Kuwait to grow by 6.8% in 2022 and 2.6% in 2023. It is also expected that the country’s gross domestic product will achieve a growth of 7.1% this year, and 4.6% next year.

According to Central Bank data, the money supply remains larger than it was in 2021. This means that people have the purchasing ability to purchase food, groceries. As a result, the money supply is sufficient to incentivize individuals to spend in the economy.

V-thru Market Performance and Consumer Response

Users of the curbside pickup app V-thru can either choose to order food in advance for curbside pickup or to pick it up themselves. V-thru first became popular in the summer of 2020, and the lockdown in 2021, when they added automobile dine-in services on top of the pickup services, generated the most interest.

Customers of V-thru have access to a limited number of restaurants, including chain eateries like Burger King, Arabica, and Johnny Rockets as well as regional eateries and coffee shops. Pick Restaurant was the first company to offer V-thru, and it is now available in numerous national and international brands.

Conclusion

Curbside pickup allows consumers to order online and pick it up from the store. The demand for curbside pickup is growing in Kuwait. With the introduction of proper parking spaces, loyalty programs, and a smart UI experience, consumers will find it easier to order through curbside pickup in Kuwait. Businesses need to re-think their business strategy toward offering convenience to a consumer base that is ready to spend.

Get our full market research report on the automobile market of Kuwait. Reach out to us at info@poixel.com to initiate a market research study for your business.

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