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ONLINE RETAILING Africans on the rise: in 2011, online shopping in increasingly, smartphones) and the stage Nigeria grew by 25%. In South Africa, the is set for a burgeoning industry. Digital Marketing and Media Association still (DMMA) reported that 52% of a sample Yes, but… of roughly 2 300 respondents said they However, according to the social media had visited sites like Amazon and BidorBuy and technology website Memeburn, only South Africa, Namibia, Nigeria, Ghana within the past year. The organisation choosing estimated that the country’s online and Northern Africa are geared to take advantage of this fertile soil. The website economy was expected to account for 2,5% of the total SA economy by 2016. cites Emilian Popa, CEO of the Africa Internet Accelerator, who maintains that But, while these statistics are bricks indicative of a positive trend, a look reasons for this range from a lack of big enough cities to make e-commerce viable at Kenya’s online shopping industry through to the high cost of connectivity. encapsulates the challenges and These factors combine to create an online over complexities facing players in this field. that there are other obstacles in store: Although research conducted by the market that’s still lacking in size. MasterCard Worldwide Online Survey The World Wide Worx study observes last year revealed that 71% of Kenyans clicks who had purchased goods online had issues such as a lack of infrastructure and reliable services, both of which play described themselves as extremely or havoc with e-retailer’s ability to deliver very satisfied with the experience, a hefty majority – as much as 86% – of the country’s shoppers still choose bricks products timeously. over clicks. Success stories While ‘Amazon’ has come They’ve avoided online retailers Even so, more and more online retailers to mean something other because of concerns around delivery time are overcoming these stumbling blocks. than a South American and online security. However, if these One such example is Jumia, the Nigerian rainforest to consumers issues are addressed, they may well be e-retailer. Its secret to success? Finding innovative solutions such as implementing converted, especially since Kenyans in many parts of the tend to hold positive perceptions of a pay-on-delivery system – as opposed world, Africa still remains online shopping – most notably that there to the EFT or invoice model – to set a Dark Continent when is a wider variety of goods available at shoppers’ minds at ease. Konga.com, also Nigerian, is another it comes to online retail. The African online better prices. case in point. Cofounder Sim Shagaya With the enormous boost the Internet Are our consumers ready industry is facing has received since the explosion of social agrees that, in principle, online shopping to make this change? media, it’s likely these figures will be on has an edge over traditional stores. diŽerent challenges the up. As Elna Smit, a senior market This is because it provides a convenient researcher who was involved with the answer to the challenges that have DMMA’s study, noted: people generally dogged shoppers on the continent OR THE AMBITIOUS ONLINE tend to feel comfortable with the notion – from lack of transport options to retailer, the African marketplace of online shopping once they have been a dearth of malls. F is certainly an attractive prospect. using the Internet for three to five years. It all comes down to access. In reality, Consider this: according to ‘The Digital So, with consumers freely expressing their though, the online shopping environment Savannah: Africa’s e-commerce promise’ opinions about products on forums like has its own set of stumbling blocks – – a late 2013 study conducted by research Facebook and Twitter, they may soon have think fraud, inadequate power supplies house World Wide Worx on behalf less trepidation when it comes to making and poor logistics, according to Shagaya. of technology company Amadeus – the leap of faith to online purchasing. So, how has Konga.com overcome a significant 16 to 20% of the continent’s Another factor pushing shoppers in them? “By laying solid foundations as 1-billion people are digitally connected. the direction of online retailers (or at least a technology and logistics company; Importantly, although the study noted away from traditional shops) is the lack of building a system by which buyers and that the concept of online shopping is development of the formal retail sector in sellers find one another. We have worked new to these Internet users, the sense of Africa, which manifests in, among other with partners in the postal and delivery mistrust they initially felt for it is slowly things, a limited product range. Add to this industry to ensure that our customers get dissolving. As a result, online shoppers are the penetration of mobile phones (and, their goods on time.” Shagaya says. 48 strategicmarketingafrica First quarter 2014 First quarter 2014 strategicmarketingafrica 49