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E-commerce defies poor connectivity, attains growth

23 March 2016, 21:52

Lagos – Despite unreliable connections, Nigeria’s use of mobile devices to make online retail purchases is significantly higher than global purchasing rates across several categories.

This is according to findings from a new survey a global performance management company has conducted in 24 countries.

The Nielsen Global Connected Commerce Survey said findings indicated the fact that an e-commerce experience was the new retail reality, as digital devices enable Nigerian consumers shop wherever and whenever they choose.

Based on findings, Nigerian respondents (77 percent), who are online or connected have used their laptop and 46 percent their smartphone, to purchase packaged grocery food; 69 percent and 48 percent respectively to buy beauty and personal care products, 67 percent and 42 percent for fashion-related products and 52 percent and 46 percent for restaurant deliveries or meal delivery services.

Of the categories they have ever purchased online, 60 percent of Nigerians said fashion with the same number citing IT and mobile.

This was followed by travel at 39 percent and stationery/music at 38 percent.

Also read: E-commerce key to Nigeria economic growth 

More than half of Nigerian respondents (61 percent) who shopped online in the past six months say they purchased items from an out-of-country or foreign retailer.

One of the biggest barriers when it comes to online shopping in Nigeria for consumable categories includes: the inability to inspect goods with 78 percent of Nigerians citing it as a deterrent.

Nielsen Africa Retailer Services and E-Commerce Managing Director, Harsh Sarda, said while modern-trade retail penetration is still low in Nigeria, e-commerce retailers had the opportunity to leapfrog the challenges of the physical store environment, enabled by the growth in smartphone penetration.

“The challenge is, however, that current online shopping growth is primarily driven from new, standalone e-commerce retailers, rather than the physical offline channels expanding into an online environment, where their advantage lies in bringing products and assortment previously unavailable.”




- CAJ News


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