HIGHLIGHTING THE ACCELERATING E-COMMERCE INDUSTRY IN NIGERIA & BEHAVIOURAL CHANGE IN CONSUMER BUYING PATTERN

A Brief Report by HotSauce

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We can define E-Commerce in this context as simply the electronic ( online ) powered trading of goods and services.

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The Customer chooses a product from the goods and services, catalogue via the internet and places an order which is physically or digitally fulfilled.

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In Nigeria today, the Retail Industry is undergoing massive positive evolution thanks to the technology of e-commerce – let’s dive in!

A population of 180+ million, twice the population of Turkey!

Nigeria is listed among the top 5 emerging e-commerce markets in 2015. As a matter of fact, has become the world’s fastest expanding e-commerce scene with its current potential worth

of $10 Billion.

Source: Euromonitor International

Over 85Million Nigerians are actively online.

Source: ncc.gov.ng

The combination of enhanced domestic broadband offerings and a vibrant domestic retail environment have led to Nigeria becoming the global leader in e-commerce growth

for 2015, with annual real growth of 177%, almost triple the rate of the next closest developing country.

In Nigeria, With mobile Internet to be accessed by a fifth of mobile subscribers in 2015, venture capitalists are taking notice of the e-commerce success and are actively seeking

to invest in this market.

Source: Euromonitor International

The arrival of e-commerce in Nigeria wasn’t one consumers envisaged, we can however say the move was innovative as e-commerce owners foresaw a growing trend

in the behavioural patterns of consumers, such as the increased time spent ‘online’.

Source: Google barometer/Nigeria

Our consumers rely on various connected devices, including smartphones, when looking for information on upcoming purchases. Also, we notice how people aren’t really going ‘online’ with their tablets.

To be Pondered!Are people still using tabs?

Consumers online and shopping habits in Nigeria

Source: Google barometer/Nigeria

Smartphone Use During Stages Of Purchase

Smartphones are an important resource throughout many phase of product research

TOP E-COMMERCE SITES IN NIGERIA BY WEBSITE RANKING

Source: Similarweb.com

Website Visits *The number of visits the website got in the last one month*

Jumia takes the lead on the highest number of website visit with 6.40Million in one month! Interestingly, We see a huge gap here between Jumia and Konga.

Source: Similarweb.com

Website Traffic Sources*This shows where all traffic to the website come from*

Dealdey.com

Kaymu.com.ng

Olx.com.ng

Jumia.com.ng

Konga.com

These players know the power of digital marketing. Other upcoming E-commerce owners should not under rate the power of digital marketing as we see Jumia particularly investing in display advertising.

Source: Similarweb.com

Insights into the Top 5 E-Commerce Players

Audit Restricted to Google Trends & Facebook Insight

GOOGLE SEARCH TREND*This shows their popularity on google search engine*

Source: google.com/trends

Again, Jumia takes the lead on google search trend, with Konga at 2nd place. However Konga, watch your back! Olx, Dealdey and kaymu are racing to catch up.

Facebook Insight*Facebook insights allows a brand to keep track of information such as its Page views, fans, post and its page growth generally*

Although ‘High riding’ Jumia has a high fan base, they need to understand that Engaging fans on social media will help increase their brand affinity, which means people become loyal customers.

It’s really not about how many post a brand posts up, but about how these posts resonate with the consumer.

Dealdey also needs to understand the importance of engaging fans.

E-commerce players need to watch out for Kaymu! With an overall profile performance of 82%, not bad!

Olx Nigeria seems to have the least performing profile performance.

Source: Fanpage karma

Source: Techcabal.com, www.ipsos.com

There is unarguably a huge market for ‘Electronic’ commerce in Nigeria as Opportunities from the Challenges above can be

Source: Techcabal.com, www.ipsos.com

in Conclusion

Today’s consumers are very visual driven and marketing strategies can address brand retention by focusing on showcasing unique and relevant products and services.

We’d advice any player to invest in Digital marketing strategy that are visually appealing and capable of stimulating audience interest. This will not only be

aesthetically pleasing but also focused on sustainable and measurable investment.

A Little Something Extra – Invest in Mobile

Smartphones are the ultimate SHOPPING companions, transforming us into more savvy consumers whou make decisions on What to buy, compare prices, find

retailers and product reviews.

Essentially Going Mobile for literally EVERYTHING

Mobilize your marketing to reach new & existing smartphone consumers!

Let’s Discuss – info@hotsauce.com.ng