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ONLINE RETAILING Mobile network The website has also employed ONLINE SALES some savvy thinking when it comes operators are to payment options. Consumers can replacing banks BOOMING IN EUROPE choose between several payment modes, including cash on delivery. Shagaya While online retailing (or explains that this has helped create ‘e-tailing’ as it is sometimes exposure among “consumers who might known) is still in its infancy in have been unfamiliar with, or apprehensive country” is the trend that marks out Africa, in Europe it is booming. about, online transactions”. (Editor’s note: the cultures, habits, preferences and Britain, the biggest online sales for more on Sim Shagaya see the previous priorities that differ considerably between market in Europe, is experiencing issue of Strategic Marketing Africa.) nations, making it impossible to adopt a rise of over 15% against the a blanket approach to e-commerce 2012 figure, while Denmark is Where to from here? throughout the continent. seeing a massive 33% increase Examples such as Konga.com seem to The third trend referred to in the report over the same period. indicate that once Africans are given is dubbed ‘Ring it up’. This is where A study in November 2013 by a chance to familiarise themselves we see the greatest impact of mobile Adobe Digital Systems showed with online platforms, they will heartily penetration, as phones do more than that the average UK online embrace them. And, according to the simply drive Internet usage. In Africa, with shopper spends US$657, while World Wide Worx study, this is slowly credit-card uptake impeded by the same those in Germany and France happening. The report identified key factors that have slowed the development spend US$411 on average. trends that are driving the industry in of e-commerce, mobile network operators But in Britain, in particular, Africa: the uniqueness and diversity of the are taking the place of banks. the trend is towards the so- African market, as well as the proliferation ‘World Wide Worx’s report quotes called ‘click-and-collect’ online of cellphones among African consumers. the 2013 Gemalto Netsize Guide (a model rather than home delivery Both of these will help to shape the comprehensive reference work on the via post office or courier. With industry as it grows and develops. state of mobile technology ), which click-and-collect, customers go The study refers to the first trend as notes that there are more mobile money to a website to order and pay ‘satisfying a special appetite’. ‘Special’ accounts than bank accounts in Kenya, for their items; they then visit a because of the personality of the African Madagascar, Tanzania and Uganda. The nominated store or pick-up point online industry, which is different to any 81,8-million users that are currently to collect the order themselves. other such industry worldwide – largely registered are expected to increase to “Store collection is now seen because of the constraints that it has 381-million by 2017, with the total value as a basic offering and those faced while still in its infancy. of transactions mushrooming from retailers without this capability The response of online retailing US$44-billion to US$395-billion. will struggle to convert online businesses to these constraints has been If innovation born out of necessity has sales and lose customer footfall vital here. The report lists these: from become a hallmark of African online retail, in-store,” said Ian Geddes, UK developing in-house logistics networks to it’s also helped to drive the mobile money head of retail at consultancy ensure that goods are delivered despite industry. Examples of successful players firm Deloitte. poor road infrastructure to the importance abound, from the Kenyan M-Pesa system of service and word-of-mouth referrals to to MTN Mobile Money, active in Ghana drive the adoption of the Internet-based and Uganda. Into the future shopping model. But the report notes that these The existence of these options solves Another factor that has informed the models are just the beginning. We’ve one of the greatest concerns facing online distinctive character of this industry is the seen the adoption of mobile payment shoppers: that of payment. high penetration of mobile commerce, apps in South Africa; in Nigeria, So, now that the basics are in place, which has in turn spurred e-commerce. MasterCard has joined forces with the can e-retailers look forward to a bright The result, says the World Wide Worx government to create ID cards embedded future in Africa? Memeburn is too report, is a “hybrid e-commerce model with credit-card capabilities, while cautious to give an unequivocal yes, but it that is reliant on significant offline telecommunications company Orange has indicates that rewards lie ahead for those inventory stocks”. recently introduced the first multicountry who are prepared to take risks – and then PHOTOS: GETTY/GALLO IMAGES The report adds that if the money transfer across Mali, Senegal and wait. For those who focus on providing a e-commerce model is uncommon within Ivory Coast; and, in Egypt, MasterCard superior product, at a good price and with Africa, then it’s equally so within African and mobile operator Etisalat have excellent service, good times are in store countries themselves. “Africa is not a partnered to create mobile wallets. … or should that be ‘in the online store’? 50 strategicmarketingafrica First quarter 2014