Internet Retailing in Dominican Republic

PROSPECTS

Internet retailing enjoys another year of solid growth

As more Dominican consumers continue to embrace technology and smartphones, their love of devices has had a favourable impact on the growth of internet retailing in the country. In terms of merchandise goods, most purchases are made via websites abroad, especially those based in the US which offer a wider variety of products.

Surprisingly low engagement from local players

In 2018, local players remained on the side lines of domestic e-commerce in the country. Despite the opportunities that exist for internet retailing and the untapped growth potential on the domestic front, few local companies have chosen to participate actively in this channel.

More incentives needed to engage domestic firms in internet retailing

More local players are expected to enter the internet retailing channel during the forecast period. However, this is likely to be a somewhat gradual process as domestic players remain hesitant to enter the fray.

COMPETITIVE LANDSCAPE

Competitive landscape of internet retailing is undefined

Given that most online purchases involve cross-border sales from international websites and retailers, it is difficult to clearly define major players within the retail landscape. Access to technology, smartphones and other mobile devices has driven consumer demand for online sales in the Dominican market.

Expect some consolidation over the forecast period

With the large number of authorised couriers operating in the country, some degree of consolidation is expected over the forecast period. This could occur at the regional level to centralise operations within strategic points throughout the country and/or via mergers or acquisitions, as larger retailers purchase some of the companies providing cross-border delivery services in the internet retailing channel.

As the channel matures, lower growth is expected over the forecast period

Given the strong growth witnessed in this channel in recent years, internet retailing is beginning to show signs of maturing. Growth rates are expected to be lower as a result over the forecast period, slowing somewhat compared to the review period.

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