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Wednesday, 13 November 2013
Nigeria: How Nigeria's Growing e-Commerce Fosters New Partnership Across Sectors
Although the e-Commerce market in Nigeria, is relatively new, it is however growing in fast pace to attract interests of different sectors of the economy.
With an estimated growth rate of 25% annually, the sector is said to worth more than N255Bn annually.
However, this figure is expected to change rapidly and positively as more and more customers look towards the internet to find the best deals on products and services.
Moreso, other trends, including investments in telecommunications industry which is driving cheaper data prices and increased internet penetration; massive mobile phone penetration with significant growth in the acquisition of smart feature phones, would ensure that the figure remains high.
In fact, online researchers, emarketer.com states that while e-Commerce across the rest of the world is growing at 16.8%, Africa's e-Commerce space is growing at a rate of 25.8% - making it the fastest growing in the world.
This growth has also been seen as fuelling a massive consumer behavioural change in favour of electronic commerce.
Meanwhile, there are noticeable reasons why this growth has remained constant and may so remain for sometime:
Massive Population: Nigeria is amongst top 10 most populous nations in the world with approximately 170million residents. Participation of even a fraction of this population could send any economy sky high on the market table.
There is also the Central Bank of Nigeria, CBN angle, with its cashless economy push which has seen Point of sale terminals, PoS, Web and Mobile Transaction Volumes, rise in Nigeria.
However, the most interesting thing is that this development is fording partnerships across sectors there were hitherto difficult in the past.
For instance, it could have been difficult in the past for FirstBank of Nigeria to see prospects in partnership with an online outfit,
But last week it linked Medessy Enterprises Limited, owners of online platform, Gidimall.com to deliver xmas promo proposal to its customers
The initiative, tagged Buy now, pay later becomes one of the innovative partnerships between an online retail store and a bank in Nigeria.
It allows customers who have salary accounts with FirstBank, an opportunity to shop and pay over a period up to 18 months.
What this means is that, customers can enjoy this Christmas and more by having a complete makeover of their homes and apartments for as low as N199, 000 and this is backed by a 12 to 24 months warranty on all appliances. Medessy Enterprises said that it resolved to make life more meaningful and convenient for customers in the belief that one do not need to be cash strapped to fully enjoy the best of what the season has got to offer. With this offer, we hope that customers will be able to plan their cashflow properly for the following year while still enjoying all the blessings of Christmas.
Meanwhile, the promotion was just at the heels of the launch of its first Facebook store in Nigeria barely a month ago.
Need and opportunity matrix
Besides the excitement that the deal brings, Gidimall's Director of operations, Esi Evbakhavbokun said his company has also discovered a need and opportunity matrix that would always keep online business up and running in the country. Part of the opportunities he discovered included the opportunity to bridge the retail gap of the economy by providing a web and mobile shopping channel for Nigeria's growing population. According to him, "changing customer behaviour in favour of e-Commerce acceptance is an opportunity to expand market share and become one of the market leaders in online retailing across Africa.
An opportunity to grow and expand the retail sector of our economy with positive effect in reducing unemployment and building the right, sustainable retail infrastructure across the continent.
Customers can now have 24/7 access to different markets so they can make their choices and have them delivered to their doorsteps.
To improve the quality of lives of urban professionals, particularly, in the cities with heavy traffic congestion, by bringing the market straight to their homes via PC & mobilegadgets".
He also added that his company needed to take the market to the people without having them commute long distances to visit several shops/malls to get what they truly want; bridge the retail gap by providing a wide variety of products accessible from anywhere at any time;
have alternative methods and platforms for shopping such as mobile and web and create nation-wide access to different markets to find great offers at no stress, among others.
Considering that massive urbanization, growing economic and professional demands have put the average-working professional under immense pressure to deliver both at work and on the home front, any service that gives 24/7 access to favourite products and reduce stress is welcome.
No wonder why eCommerce is becoming the next sector to experience massive investment in the near future. It is also not any magic that this market has attracted over N5bn worth of investment in key eCommerce Brands like Jumia, Gidimall, Konga & DealDey.