Over 70 per cent of Nigerian’s population are still skeptical of shopping online and yet to be captured in the e-Commerce net, according Konga.
Worried by the situation, which is affecting e-Commerce growth in the country, Konga said it is an anomaly that its futuristic business model is gradually catering to.
Head, Corporate Communications at Konga, Mr. Gideon Ayogu, who stated this, noted that despite the changes caused by e-Commerce in the country, shopping in Nigeria was still largely traditional and the issue of trust has further hindered the pace of growth.
These challenges, according to Ayogu, would continue to adversely affect e-Commerce growth in Nigeria. But he, however, explained that Konga was already doing something differently to change the narrative for the better by giving Nigerians a better platform to shop online.
According to him, the situation worsened with the sheer proportion of Nigerians who are left out of the equation.
“Indeed, to millions of Nigerians who reside outside the cosmopolitan cities such as Lagos, Abuja and Port Harcourt, for instance, online shopping is a hard sell,” Ayogu said.
Quoting latest estimates from the United Nations Conference on Trade and Development (UNCTAD), which said that the global e-Commerce market is worth around $22.1 trillion, Ayogu said data from research firm, Statista also indicated that e-Commerce in Africa accounted for $16.5 billion in revenue in 2017, with forecasts estimating revenue in the sector to gross the $29 billion mark by 2022.
Interestingly, Africa’s share of the global e-Commerce market is expected to grow even more significantly in the years ahead, backed by factors such as increasing levels of literacy, fall in average smartphone prices, mobile adoption, growing internet penetration and innovative payment solutions. The foregoing has seen projections of Africa as the next emerging market to make significant strides in online shopping.
Perhaps, justifying its status as the continent’s biggest market and most populous country, Nigeria is further estimated to play home to about 40 per cent of the continent’s e-Commerce ventures within its shores – a positive development that has, nevertheless, failed in ensuring that the bulk of the country’s under-served or unreached millions partake in the e-Commerce revolution.
“Through a realistic and well-thought out business model, Konga is gradually changing the narrative in the following ways: Growing chain of nationwide physical retail stores: With over 30 brick-and-mortar stores spread nationwide and many more springing up all over Nigeria’s vast landscape, Konga has given millions of unreached Nigerians a reason to smile. A bold, ambitious plan to spread its tentacles across the length and breadth of the nation, with the establishment of at least one store in each of Nigeria’s 774 local government areas, will unleash the power of the country’s booming population and see e-Commerce finally achieving its huge potential in Nigeria and beyond,” Ayogu said.