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We first learned to satisfy consumers’ needs. Then we realised more was needed so we strived to delight consumers. Now that too is not enough ... ... consumers need to love the brand. Saatchi & Saatchi researched “What makes some brands inspirational, while others struggle?” They came up with the answer: Lovemarks: the future beyond brands [READ MORE] |
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According to WWWMetrics, In South Africa, 51% of individuals with internet access shop online. In Kenya, 18-24% make online purchases. In Nigeria approximately 28% of the population has internet access according to ITU figures.
In Nigeria and other African countries, a growing generation of young, internet-savvy individuals has embraced new, online technology. The International Telecommunication Union (ITU) has documented an increased internet penetration in sub-Saharan Africa. The numbers of users are still far below the world average of around 30%, but are increasing as Africans become more familiar and proficient with online shopping. E-commerce activities have expanded in Nigeria, South Africa and Kenya both due to the proliferation of mobile phones and availability of faster internet networks.
Nigeria has a rapidly-growing economy and a population of 170m, most of them young. But supply is another matter. The African Economist reports that the boss of Shoprite, Africa’s biggest supermarket chain, said that his firm would like to open 700 stores in Nigeria but it is hard to find places to build them. It has just seven stores in Nigeria. Woolworths, another South African chain, recently announced it would close its three stores in Nigeria because of high rents and gaps in the supply chain.
This creates an opportunity for a business like Jumia in Nigeria, an online retailer. Only online shopping can grow quickly enough to bridge the “shocking” gap between demand and supply, says Mr Hodara, the French co-founder of Jumia. Access to the internet is no bar: Nigeria is smart-phone crazy. The challenge is to offer a wide range of goods and reliable delivery. Jumia stocks 100,000 separate items at its main warehouse near Lagos airport, including phones, TVs, clothes and white goods. It has satellite storage units in the seven other cities it serves. And it has a fleet of 200 mopeds and vans to get the stuff to its customers quickly.
In the U.S., Forrester Research forecasts a compound growth for internet sales of 10% for the next five years. In Western Europe sales are expected to grow of 11% percent annually. Apparel, computers and consumer electronics will continue to be dominant purchases; these three areas make up 40% of the current online sales which won't change in the near future.
A survey of U.S. online customers found that 82% are satisfied with buying experiences that began and ended with the online store. Satisfaction dropped to 61% when they researched online and then bought in a store.
Online sales continue to be mostly small-ticket items. The high-ticket products lag far behind by comparison. On average, retailers that have both a physical (store) and online presence have reported an average of 23% growth. Online only retailers (including catalogue sales) however have seen only 9% yearly growth. Online shoppers are beginning to think that the best deals are available online (71%) and that they get better prices there (66%).
The internet is only going to become more popular as time goes by and purchasers worldwide become more comfortable about the security and on-time delivery of their purchases. This is the one area of merchandising that continues to have a positive outlook far into the future.