The Nigerian e-commerce industry is no doubt young. But lately, it has been faced with issues of lack of trust, low purchasing power, shrinking middle class and a lot more.
The future, however, is no doubt bright for anyone that cracks the right model for such a complex system as ours. It is estimated that the industry is worth about $12.5bn and it is expected to rise to close to $60bn by 2030.
Back in 2016, Kinnevik AB released its 2016 second quarter report, which showed that Konga had an active customer base of about 184,000.
A lot of industry watchers were disappointed because they believed that the e-commerce company had burnt so much money on customer acquisition and it ought to have had more impressive numbers to share, but alas, that was not the case. Well, sometimes it is really not about burning money alone!
That said, you may have come across the news that konga.com had found a new home at Zinox group, one of Africa’s most strategic IT groups. The group decided to acquire Konga as a way of revolutionising retail in Africa.
Let me use this opportunity to commend the strategic move by the Chairman of Zinox Group, Chief Leo Ekeh, to acquire the e-commerce company because the industry needs more formidable players who are long-term focused.
With the situation today, customers have multiple options to choose from and this competitive market gives room for efficiency and improved customer service.
Commenting on the acquisition, Chief Executive Officer, Nick Imudia stated, “Our mission is to revolutionise e-commerce, not just in Nigeria, but the whole of Africa and Kong is at the heart of this bold move.
“On the short term, we would re-position the business on the path of profitability. Our mid-term goal would see to the establishment of more stores across Nigeria, while our long-term plans will be focused on seeing Konga well established in many other African cities.”
It is indeed interesting that the Yudala team led by its founder, Nnamdi Ekeh, found a common ground for collaboration which has led to the birth of the new Konga.
Looking ahead, Nigeria is about to experience something different, akin to what I observed Amazon doing during my recent trip to Silicon Valley.
Yes, I observed the e-commerce giant expanding its offline footprints. Apart from snapping Whole Foods, it is also investing in various real estate projects that will create more pick-up zones for its customers.
Bringing this home, this is the major reason why I believe that the merger of a 100 per cent e-commerce platform with a hybrid model that has physical centres in — Finish Reading on the Punch
