Nigeria’s retail pattern tilts towards online shopping

Retail firms are grappling with a rapidly shifting business environment with many retailers struggling to drive incremental growth. However, some of these retailers do not have enough capital to fund all initiatives they want to pursue.

Joseph Ebata, president, DMS Retail West Africa, says Nigeria’s retail marketing has witnessed vast transformation in a short space of time.

Ebata, in his welcome address at the 2014 Retail Leaders Conference held in Lagos, says: “In less than 10 years, a lot of change has occurred with the entrance of multi-national food chains and mega malls and supermarkets. Not many would have thought that concepts like online shopping would be a success in Nigeria.”

He says supply chains in Africa are more challenging than many other markets in the world, as “the key to success is understanding these challenges in order to offset the risks versus the opportunity, which the continent offers. This knowledge will allow retailers to service markets with a supply chain that is agile enough to respond quickly to sudden or unexpected changes, flexible enough to customise products and efficient enough to protect margins.”

While customer behaviors are changing profoundly, particularly due to the ways technology is now being used as part of the shopping process, innovations in technology have witnessed the e-business and online marketplace boom, growth of Nigeria’s online culture largely influenced by social media platforms such as Facebook, Twitter, Google+, LinkedIn,2go, etc.

These social media platforms have placed so much power at the disposal of consumers, bringing enormous information and increased interaction. It has become a primary vehicle for the promotion of businesses as it allows consumers engage in a discussion about a product or service they like or intend to purchase, and this influences consumer purchasing behaviour.

From convenience to options, price and competitiveness, brands are constantly using social media to capture and retain attention as well as influence sales. Besides giving brands a platform for marketing and promotion of their goods and services thereby bringing them closer to the customers, social media have greatly impacted how businesses are done today, particularly enhancing the e-commerce industry in the country.

An interesting phenomenon is that they serve also as a platform for enormous information, ideas and resources for development and social good. This is evident in the media industry, a revolution no one may have anticipated in the history of man, showcasing the power of the internet.

Besides engaging people, social media has become a marketing function that allows businesses target consumers with personalised offers and deals. Little wonder players in the Nigerian online marketplace, kaymu.com.ng, have identified social media platform as a valuable marketing tool, given its influence on consumer buying behaviour. A study by Jana Mobile Research reveals that social media and mobile phone are greatly influencing retail choices of customers in Africa.

According to the research, slightly more than 20 percent actually use the company’s website to find out about products before purchasing in Nigeria. This trend is the same in countries like Kenya, Ghana and South Africa.

Jana Mobile Research discovered that majority of respondents revealed that they used their mobile phones to find out about products and services. In Ghana and Nigeria, the situation is the same with the biggest percentage using the mobile phone “every time” for searching for product information before purchase.

Shoppers embrace online shopping for a variety of reasons ranging from convenience to options, price and competitiveness. To this end brands are constantly using social media to capture and retain attention as well as influence sales.

Anne Agbaje