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Nigeria’s E-commerce, Still Has Vast Room for Growth – Coronation Merchant Bank

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E-commerce - Investors King

The demand for mobile data usage as well as increased network coverage has increased the potential of Nigeria’s e-commerce market. Based on data from the Nigerian Communications Commission (NCC), as at end-2021, mobile network coverage was estimated at 102% based on a population size of 190 million. However, internet data penetration via GSM was at 74.5%.

A thriving e-commerce market will enable small and medium-scale enterprises (SMEs) across the country benefit from increased business activity and reduction in operational costs, which would translate into increased profit margins. The role of e-commerce was reemphasized following the outbreak of the COVID-19 pandemic. There has been a visible boost to online marketplace activities.

In 2020, the United Nations Conference on Trade and Development (UNCTAD) B2C index value for e-commerce in Nigeria stood at 46.2 points (the 8th highest in Africa). The index measures an economy’s preparedness to support online shopping and takes four indicators into account. They include, (i) the percentage of the population with bank accounts or that have accounts with a mobile money service provider, (ii) the percentage of the population that use the internet, (iii) the postal reliability index, and (iv) the presence of secure internet servers.

According to industry sources, the e-commerce market in Nigeria is estimated at USD13bn (N5.4trn), with at least 87 Nigerian e-commerce platforms (including, Jumia, Jiji and Konga).

In 2021, based on ranking from Statista, Jumia was the most popular online marketplace in Nigeria, with an estimated 147 million visitors. According to Jumia’s FY 2021 financial statement, the e-commerce platform generated 34 million orders and revenue of USD177.9m (N7.4bn), compared with 27.9 million orders and a revenue of USD159.4m (N6.6bn) recorded in 2020.

Coronation Merchant Bank noted that in general, food, personal care, fashion, beauty products, and electronics were the most common items purchased online.

It is worth highlighting that logistics plays a key role in the e-commerce value chain (which includes processing, packaging and delivery of orders). This value chain generates employment for logistics personnel and services. Coronation Merchant understands that in 2021, Jumia shipped 8.3 million packages to at least c.1,500 customers. This is compared with half a million packages distributed to c.270 customers in 2020.

The latest data from the Nigeria inter-bank settlement system shows that Nigeria recorded a total of c.160 million bank accounts as at May ’20, while the number of active bank accounts stood at 111.5 million. The advent of the eNaira (a digital currency issued by the CBN) as well as the development of mobile money given the CBN’s approval of Payment Service Banks (PSB) like MOMO, Smart Cash, Money Master and 9PSB, is expected to improve financial inclusion.

The latest data on e-payment channels from the National Bureau of Statistics reveals that 3.5 billion transactions valued at N356.5trn were recorded on electronic payment channels in Q4 ’20.

For e-commerce to attain its full potential, technology infrastructure needs to be enhanced and logistical challenges need to be addressed. Furthermore, forward-thinking solutions with regards to cyber security issues are required in order to boost consumer confidence.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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E-commerce

Xiaomi Launches Black Friday Sale With Discounts and Extra Gifts on Smartphones

Xiaomi gives discount of N5,000 on every purchase of its smartphone

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Mobile phone maker, Xiaomi has lined up good discounts and extra gifts to thrill its customers during black Friday sales.

The company which is also into consumer electronics noted that it’s back Friday sale will run between November 18th to November 30th, 2022. 

Apart from a flat discount of N5,000 on every purchase of its smartphone, customers can also win amazing gift prizes which include refrigerators, Xiaomi luggage, Redmi Bud 3 earbuds. 

A star winner who will go home with an N3 million cash prize will also emerge through a raffle draw on January 10th, 2023. 

Investors King understands that Black Friday is an opportunity to buy the product you desire either smartphones, groceries, or any type of electronic at a very good price. It is celebrated virtually around the world. 

Black Friday which followed “thanksgiven day” in the United States is largely regarded as a day or season to say thank you for being with us this far. 

While amazing discounts are being offered on several products, a number of top brands especially electronic and smartphone-making companies do use black Friday to say thank you to their customers. 

Some of the platforms where you can get an amazing offer in Nigeria during this black Friday season include Jumia and Konga.

You can check the filing articles for amazing offers that both Jumia and Konga offer during this year’s black Friday. 

For Jumia click here and for Konga here you.

On Xiaomi’s black Friday for instance, when a customer buys Redmi Note 11 or Redmi Note 11S, he will get a discount of N5,000 and Xiaomi in-ear headphones. Similarly, Redmi Note 11 Pro or Redmi Note 11 Pro+ 5G comes with a 10000mAh power bank.

Interestingly, Xiaomi noted in a statement that the offer is open to all new and old customers while customers can enjoy the amazing offer by visiting any of Xiaomi’s retail stores nationwide or at Essence House, Computer Village Ikeja. 

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Konga Kickstarts Black Friday “Yakata” With 90% Discounts on Rice, Cooking Oil, and Mobile Phones

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Konga

E-Commerce giant, Konga has begun its discounted sale with up to 90 percent off on some house need products which include rice and cooking oil. The sale which is already witnessing a high volume of patronage is tagged “Friday Yakata”

Other products available for grabs at a very good price on the Konga platform include mobile phones of different brands, Laptops, TV sets, Refrigerators, Air conditioners, and Washing machines. 

At exactly 12 midnight every day till 12th of December, Konga will stage one of its much anticipated events, “Teasure Hunt”. Investors King learnt.

Treasure Hunt gives lucky buyers the opportunity to purchase products with up to 90 percent off them. 

Other lined-up events for Friday “Yakata” include Flash Sale and Cyber Monday. 

Additionally, Konga also partners with MedDirect to provide a 10 percent discount on all medicine which will be delivered free to anywhere in Nigeria.

Another way to benefit from the “Yakata” season is to use Konga Pay which comes with a 5 percent discount on any shopping basket above N100,000.

A statement released by the e-commerce platform noted that back Friday “Yakata” is regarded as the biggest sale of the year in the annual shopping calendar in Nigeria. 

According to the company’s head of marketing, Anthony Nwabuisi, Konga has seen improved patronage on its platform since the beginning of this year despite the prevailing economic challenges both in the domestic and international markets. 

‘‘It has been an impressive start to this year’s edition of Konga Yakata for us. Despite the undeniably harsh economic conditions, general buying sentiments are way above expectations,” he said. 

Also speaking on the importance of the Konga Friday Yakata, Nwabuisi stated that Konga has a 50 percent discount on virtually all meals ordered on the platform. 

He added that shoppers can also get the advantage of free delivery or buy-one-get-one-free in select restaurants. 

Conclusively, Konga’s platform can easily be used by downloading the application or navigating through the website at Konga.com. 

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How to Enjoy Discounted Price on Jumia Black Friday Sales

Jumia consumers receive significant discounts on a variety of products across various categories from top international and local brands.

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Jumia, an African e-commerce platform, has announced that on its Black Friday shopping event in 2022, consumers in Nigeria will receive significant discounts on a variety of products across various categories from top international and local brands.

Customers are urged to download the Jumia App to take advantage of the deals in order to take advantage of this fantastic opportunity during the Jumia Black Friday Sales. This indicates that downloading the app is the only prerequisite for taking advantage of the Jumia Black Friday Sales. 

Treasure Hunts, Brand Days, Daily Check-Ins, Flash Sales, and Jumia Games are among the anticipated campaign elements that will give customers the chance to win exciting prizes and further savings on a variety of goods.

The campaign, which will end on November 27, 2022, will feature JumiaPay incentives, offers exclusively for Jumia Prime members, and free shipping on a variety of products for customers in Lagos, Abuja, and Ibadan.

Massimiliano Spalazzi, Chief Executive Officer of Jumia Nigeria, stated that the “Beat Sapa” campaign for 2022 is intended to support SMEs and brands in reaching millions of consumers while assisting consumers in navigating the current economic realities.

He said: “The Jumia Black Friday campaign is another opportunity for us to enrich the shopping experience of our consumers. With the current economic situation, it is important to ensure that consumers can still shop for their needs at the best prices. This 9th edition is set to provide this, and we are happy to have partnered with the biggest household brands and SMEs. We are encouraging our consumers to take advantage of this campaign and “Beat Sapa” with Jumia.

According to him, Adidas is the Platinum sponsor for this year’s Jumia Black Friday, and Nivea, Xiaomi, Oraimo, and Guinness are Gold sponsors.

Consumers can anticipate receiving flash sales on specific products, free shipping from brands, daily games, offers specifically for prime members, and discounts for JumiaPay, among other things. Consumers can also expect to pay significantly lower prices, according to what Investor Kings gathered. 

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