Madagascar, the fourth largest island in the world, is known for its unique wildlife and biodiversity. However, the country's retail delivery market has been experiencing a shift in recent years.
Customer preferences: The majority of the Malagasy population resides in rural areas, making it challenging for retailers to reach their customers. As a result, traditional brick-and-mortar stores have been the dominant form of retail in the country. However, with the rise of e-commerce, online shopping has become increasingly popular among urban consumers. Customers are now looking for convenience and faster delivery times.
Trends in the market: The retail delivery market in Madagascar has been growing steadily in recent years. The rise of e-commerce has created new opportunities for retailers to reach customers outside of major cities. Delivery companies have been investing in last-mile delivery solutions to improve delivery times. Additionally, there has been an increase in the number of small businesses using social media platforms to sell their products online.
Local special circumstances: Madagascar faces unique challenges when it comes to retail delivery. The country's infrastructure is underdeveloped, making it difficult for delivery companies to reach customers in remote areas. Moreover, the country's political instability and economic challenges have hindered the growth of the retail sector. Despite these challenges, the retail delivery market in Madagascar has been growing, albeit slowly.
Underlying macroeconomic factors: Madagascar's economy has been growing at a slow pace in recent years. The country faces high levels of poverty and unemployment. However, the government has been implementing economic reforms to attract foreign investment and improve the business environment. These reforms have created new opportunities for retailers to expand their operations in the country. Additionally, the country's young and growing population presents a significant market for retailers to tap into.
Data coverage:
The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.Modeling approach / Market size:
Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.Additional notes:
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.
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