MENA E-Commerce and the Namshi Story

In a culture where the mall serves as a nexus of retail, community, tourism, and social activity, building an online retail business for the Arab world seems poorly conceived. Whereas many Western consumers have looked online to avoid the hassle and price premium that are characteristic of brick and mortar vendors, consumers in the Middle East and North Africa (MENA) are accustomed to the mall experience, sometimes traveling great distances to get it. But as MENA consumer becomes more digitally competent, developing the market for e-commerce has proven lucrative for a number of the region’s homegrown startups including online retailer Namshi.com. Combining their expertise and understanding of the region, co-founders Louis Lebbos, Muhammed Mekki, Faraz Khalid, and Hosam Arab put their heads together to create a promising business model in an undeveloped market. Investing in consumer education in the relatively nascent market has been the primary goal for Namshi, a one-year-old start-up modeled on the success of Western brand Zappos.com. According to Lebbos who also serves as managing director of this exciting startup, “there is a lot of investment needed to build a good reputation for e-commerce in the region.” As a company striving to define the market, Namshi offers over 400 international brands and in excess of 10,000 products, many of which are exclusive and unavailable in local retail shops. Items are shipped free of charge from Namshi’s Dubai-based distribution center across the GCC and in Egypt, using Amman-based Aramex as its shipping partner.

 

Since its launch one year ago, Namshi has grown to become one of the Middle East’s most recognized destinations for online fashion shopping, managing upwards of 600 daily orders, but the road has not been easy. Namshi is one of only a handful of companies that has been able to successfully pioneer the e-commerce market, a feat that has not gone unnoticed by global investors. In late September 2012, the company succeeded in securing two sizable capital investments from U.S.-based J.P. Morgan Asset Management and the U.K.’s Blakeney Capital. In a statement, Caspar Romer from Blakeney Management comments, “The Middle East market is ripe for the superior convenience and choice offered by online retail. There is no better placed team to execute on this opportunity than Rocket Internet’s Namshi.” Rounding off his praise for the successful startup, Romer adds, “We are confident that Namshi will build on the rapid growth it has experienced to date to consolidate its position as the leading online retailer.