The Nation Newspaper

Category: Shopping

  • Sweet Nutrition unveils chocolate malt drink

    Sweet Nutrition Limited, formerly Bayswater Industries Limited, has unveiled Choco Love Chocolate malt drink.

    This launch held in three states, including Abuja, Port Harcourt and Lagos.

    “Choco Love is an awesome brew, manufactured with the highest standard we can find in the market. When we decided on this drink, we decided to bring to Nigeria the best brew that you can find in the market” says Mr. Emilio Maldonado, the Head of Research and Development for the Choco Love brand.

    He extolled the motivation behind the brand, as well as its qualities.

    Its Managing Director Mr. Kumar Venkataraman, expressed optimism that the brand would do well in the  market.

    “We are providing a tasty and nutritious drink for kids and the entire family, and Choco Love is delicious enough to become a household name on its own merit, Choco Love is only the first of many top nutritious quality products that are slated to be introduced to the market by us, and we urge our customers to be on the lookout in the coming months,” he said.

    Mr. Swatanter Saraswat, the firm’s Head of Sales and Marketing, said: “The brand is strong, and as everyone here experienced, the product is very delicious and of a high quality. We have worked hard to make Choco Love the best it possibly can, and I am optimistic as to how it will be received by Nigeria. Our brand is designed to be a close ally to kids and by extension the family.”

  • Amazon Shoppers disturbed by counterfeits

    More than half say they’re at least somewhat worried.

    Amazon has dealt with sales of counterfeit goods on its site for some time, and despite its efforts to thwart third-party knockoffs, some consumers remain cautious.

    Survey conducted by Survata for CPC Strategy, nearly six in 10 US Amazon buyers who had made a purchase on the site in the past six months said they’re somewhat concerned about counterfeit products on Amazon, though they haven’t had a problem yet.

    Meanwhile, a smaller but still significant share of respondents (14.4per cent) said they were very concerned about this issue.

    And brands have not only taken notice of Amazon’s counterfeit problem, but they’ve taken action as well. Birkenstock, for example, made headlines in 2016 when it removed its popular sandals from Amazon and ended third-party authorisation needed to sell its shoes on the marketplace.

    Still, consumers continue to unwillingly purchase counterfeit goods.

    According to a November 2017 Vitreous World survey for MarkMonitor, 31percent of internet users worldwide have unintentionally bought a knockoff online, an increase of 23 percent from 2016. And it hasn’t just happened once. Some 34 percent said they were tricked two to three times, and another 5percent said they unwillingly bought a counterfeit item more than five times.

    In China, where a sizable portion of knockoffs are created, local online marketplaces have been proactive in reducing counterfeit goods on their platforms after being labeled by brands as complicit in the sale of fakes.

    Alibaba, for one, has been aggressive in recent years to combat counterfeits on its site. Recent measures include using blockchain technology to track cross-border goods, including manufacturer information, through a partnership with logistics company Cainiao.

  • Here are new smart grocery stores

    Grocerant is a new term, which describes what smart grocery stores have become. At such places, shoppers not only stock essentials, but also buy high quality prepared meals that can be taken home or eaten at the location, writes TONIA ‘DIYAN

    Food trends are difficult to follow these days. Just like hip sectors, the food industry is coming up with its peculiar lingo when describing market shifts.

    One of the latest examples is “Grocerant,” a word combining “grocer” and “restaurant.” The term has been around for a few years, but it seems to have gone mainstream in recent months. Or at least, it’s a term people will be hearing more often.

    But as trendy as it is, the term “grocerant” is quite relevant and accurately captures what is happening in the food industry these days. In short, a grocerant is a grocery store, which sells prepared meals to either be eaten at locations or taken home.

    Given that convenience seems to have more currency than ever before, two worlds are colliding in the ready-to-eat space at grocery stores, which caters to people seeking portable solutions to accommodate their hectic lives.

    Grocerant offers a one-stop-shopping solution for consumers driven by either curiosity or a lack of time. An increasing number of grocery stores now allow customers to buy and eat on the spot. Examples of such stores are Shoprite and SPAR.

    Some stores in Canada and the United State (U.S.), including several independents such as Longo’s and even larger outfits, such as Loblaw, Sobeys and Metro, merge food retailing and food service under one roof.

     

    When grocery stores challenge restaurants

     Research suggests that many consumers perceive grab-and-go food products to be healthier than meals that can be gotten at a restaurant. This works well for grocers.

    Price wars constitute the other driving issue for grocers. Over the last 15 months in Canada, food retail prices have barely moved. But the price of food purchased at restaurants has increased significantly, more than double the general inflation rate.

    This would suggest that menu prices are much more immune to market cycles than retail food prices. Demand in food service is inherently more inelastic, so margins can be kept up and defended in most cases, no matter what the economy is doing.

    But restaurants aren’t staying quiet in the face of this new trend.

    Restaurant operators are fighting back by using technology to their advantage. Many are responding by using certain Apps and other food delivery services, they are even expanding their market by offering meal kits and developing new ways to reach consumers.

    In other words, they are trying to go where the money is instead of just waiting for the consumers to come to them.

    Some say it’s all about millennials. It is, indeed, about offering fresh, healthy, reasonably priced products for the largest generation that is slowly taking over the economy.

    But the changes are more deep-rooted, beyond just millennials. Millennials certainly have the economic influence to trigger the changes we’re seeing, but many demographics are behaving differently around food.

    Families with older children like the enhanced grocerant experience for convenience. The appeal is across the board. The rise of the grocerant represents the awakening of an industry that’s been complacent for quite some time.

    Grocers do have the capacity to cover a broader market with their product offerings, but have not yet made much of a play on meal delivery and quality.

    Grocery chains, in fact, are often not hardwired to meet new challenges. But that’s slowly changing.

    So, the convenience food battle is alive and well. Grocers were losing for a while, but the emergence of grocerants across the country is a sign that the industry is listening to what the modern consumer is telling them.

  • Krispy Kreme doughnut makes debut in Ikeja

    Krispy Kreme, the world’s maker of doughnuts, has opened its first Nigerian outlet at Ikeja City Mall in Lagos.

    The brand, founded over 80 years ago, is famous for producing fresh doughnuts daily. The doughnut giant is a global retailer of premium-quality sweet treats offering the highest-quality doughnuts and great-tasting coffee since it was founded.

    Thousands of Lagosians flooded the Ikeja City Mall at the weekend as Krispy Kreme made a splash with its “doughnut drops”,giving out gifts of doughnuts to lucky people, leading up to the opening.

    Krispy Kreme has the mission of bringing “More joy to Eko”. It has built quite a following on Instagram, with fans lauding the choice of flavours, drinks and iced shakes – most famous being the Original Glazed ® doughnut. NBA champ Shaquille O’Neil is a fan and the brand ambassador and lives the dream, as a Krispy Kreme shop owner in Atlanta, Georgia.

    The expansion of this Krispy Kreme brand in the country is being implemented by Quality Foods Africa (QFA), which has invested in the best quality equipment and recruited over 200 Nigerians, putting them through extensive training to ensure the customer experience is world-class. Store furniture is manufactured in Nigeria and produced by Nigerian craftsman.

    Krispy Kreme is known for its coffee culture and a special blend of Nigerian, Rwandan and Kenyan coffees has been prepared in Nigeria.

    QFA Marketing Manager, Busayo Awosiyan, said: “We are so proud to bring awesome doughnuts to the most vibrant city in Africa and Africa’s largest economy. We are really excited to spread the joy of Krispy Kreme – and greeting all of our fans at our grand opening for the first time.”

    Besides, Krispy Kreme Doughnuts has  a fundraiser programme, which, for decades, has helped non-profit organisations raise millions of dollars.

    Krispy Kreme doughnuts can be found in 12,000 grocery, convenience and mass merchant stores in the United  States.

    The company has more than 1,300 retail shops in 31 countries.

  • Easter: Retailers woo shoppers

    With Easter kicking off next weekend, the atmosphere around shopping places is getting busier daily with retail outlets rolling out promotional offers and pushing out affordable items for shoppers. TONIA ‘DIYAN reports

    Easter is in the air. With a week to go for the yearly celebration, shoppers are set to get as much deals from the season as possible ffrom traders.

    To retailers, it is just about making profit, but also about quality service delivery to ensure that their customers get real value for their money.

    At Shoprite, retailers are hoping to cash in on the season across all sectors, with groceries and Do it yourself (DIY) goods topping the charts.

    In areport, Shoprite stated that this year‘s retailers are capitalising on the “Mega sales promo” flagged off by major retail outlets across the state online and in-store, since the beginning of the month, causing an influx in retail sales.

    Last year, the grocery category increased by 16 percent, while DIY had a 10 percent uplift.  Last May saw a 60 percent jump in searches for clothes alongside a 40 percent increase in searches for furniture. Artificial plants were also high on search engines.

    Whether this year’s sales will follow 2017‘s trends is yet to be determined. However, last year, consumers made the most of a warm start to dry season, with Easter Sunday providing one of the sunniest Easters to date. The weather allowed  customers to do their shopping outdoor.

    Nonetheless,  experts said retailers must make the most of the holiday. The Easter Mega Sales promo signals the start of a lucrative time for brands, as shoppers look forward to having extra days to revamp their homes, spaces and gardens and spend time with their families.

    While shoppers look to spending this weekend buying one item or the other,  Easter item prices are dropping, leaving extra cash in the pockets of shoppers. The average price of items this Easter has dropped by 9.7percent, no doubt connected to the battle of Big supermarkets. Shoprite was the first to cut its prices by 7.3percent with SPAR and Supersaver soon following suit.

    Shoppers are spending in more organised, ‘healthy‘ ways. Gluten-free products have seen a surge of 80 percent since last year.

    “Regardless of which sector they belong, all retailers should be focusing on their advertising strategies this Easter,’’ Shoprite’s spokesperson Ini Archibong, said.

    Archibong, who had added his  firm’s Easter promo prices earlier on its online platform,  said: “One of the huge advantages of online advertising is its capacity to accurately segment audiences and this is a prime example of how precision targeting at scale can pay dividends for brands that have access to sophisticated insights. Whether they are organised and planning ahead, or rushing to purchase at the last minute, brands must be flexible enough to respond to the needs of all consumers if they are to gain share of wallet.”

    While small retail outlets are struggling to push sales for themselves, particularly those selling consumables, Shoprite is providing an in-store activity organised by suppliers in all its outlets. In it’s low price Easter promotion, shoppers should enjoy huge price drops on essential lines for the celebrations.

    Shoppers are also advise to check promotion leaflets in-store and on various retail websites. They are encourage to join stores social media pages for competitions and limited time specials.

    Businesses should not only concentrate on the ‘seven day shoppers‘ but on all season generally.  On the other hand, Gidimall.com.ng, an online grocery  platform has said from its Easter sales survey, searches on Android, iPhone and iPad platforms outstripped those on desktop.

    The outfit owner, Osamede said, there should not be “one size fits all” approach to engaging consumers during this period. Instead, he advise that brands must leverage the observed insight that online advertising can offer to serve shoppers with the right message at the right time on whichever device they choose to shop on, urging brands to “grab share of wallet” and to  be prepared for business.

    Shoppers have the opportunity to buy at affordable prices as retail operators are seen at shopping places putting out campaigns to ensure patronage.

    Some retailers are putting together trade shows/fairs to promote products and services saying they want people to have a place to shop for items everytime there is festivity.

    These retailers have decided not to wait for the government, to provide conducive environment and infrastructure for them, they are seen outside shopping malls, complex and plazas with their umbrellas  shielding them from the scotching sun, they continuously beckon on consumers saying; “ we are here because of you. You don’t have to go into the mall, ours are cheaper”.

     

     

  • Chapman Happy Hour offers customers ‘Naija style’

    Chapman Happy Hour by Chivita is fast becoming a mainstay in the minds of consumers across Nigeria, who now consider the drink an indispensable feature, turning their every moments into special occasions.

    With a unique taste and distinct refreshment Naija style, it has become a popular drink of choice because of its fruity deliciousness, authentic indigenous flavour, style, and consumer preference for a refreshing drink.

    Its infusion of indigenous culture and style in a refreshing mix resonates with what consumers want to complement their authentic Naija experiences, keep them satisfied and coming back for more. Little wonder the drink takes pride in offering ultimate “Refreshment Naija Style”.

    Craved for its burst of unrivalled refreshment, Chapman Happy Hour by Chivita comes in handy packs which makes it convenient for consumers with preference for a readily available chapman drink. Being an indigenous drinks, it contains a blend of fruits and offers a refreshing way for consumers to enjoy their favourite chapman drink.

    Yewande Busayo, a boutique owner, said she was introduced to Chapman Happy Hour by Chivita by a friend, and since then, it has become her go-to drink for refreshment.

    “The fruity taste is excellent, and its refreshment value is incomparable. Along with its whole new level of convenience, Chapman Hour by Chivita does not only having me feeling refreshed, but it also gives me this feeling of being very Nigerian,” she stressed.

    Thomas Maduko, a brand analyst, reiterated that though chapman drink is a Nigerian drink, not many have projected its indigenous origin and association with Nigeria like Chapman Happy Hour by Chivita has done.

    “By highlighting the Chapman drink’s close association with Nigerian culture, Chapman Happy Hour by Chivita has keyed into an important source of indigenous refreshment tobecome the toast of many Nigerians,” he noted.

    For Chi Limited’s Marketing Director, Probal Bhattacharya, Chapman Happy Hour by Chivita is an indigenous drink guaranteed to provide Nigerians with ultimate refreshment they would love.

    “Chapman Happy Hour by Chivitais unique in its own way in that it truly speaks to the Nigerian way of refreshment with its indigenous taste and fruity blend, which connects with our distinct style of celebration and culture. We believe consumers can take pride in Chapman Happy Hour by Chivita and what it offers,” he added.

  • Is Dubai shopping attractive ?

    If there’s any city that takes shopping malls seriously, it is Dubai. Not only do global brands flock to this retail capital, but shoppers from across the Middle East and beyond go to Dubai to appreciate the grandiosity and beauty of its shopping centres.

    The city’s weather, always sunny and known to surpass 110 °F, and its economic climate, deeply rooted in property development to the point of experiencing hyper growth, create a unique mix of tropical and capitalistic energy rarely matched by other cities. Dubai builds with a panache seldom seen anywhere else around the world, so it’s no wonder that stepping into a Dubai shopping mall is an experience in itself.

    Known as the world’s first shopping resort, Mall of the Emirates has an amazing 2.4 million square feet of retail floor space. Not only does it boast of 630 high-end brands, but fashion designers from around the world are put on full display in the mall’s Fashion Dome and Luxury Wing. Tenants include Boutique 1, Centrepoint, Forever 21, Kate Spade New York, DKNY and an Apple store.

    If shoppers get tired of shopping, there are many things to do at Mall of the Emirates. People enjoy the games and are entertained at Magic Planet, a family theme park among other fun activities.

    The Nation Shopping spoke with some Nigerians about how they shop in Dubai.  Mr Emeka Obiama was seen at the mall of The Emirates sightseeing with his family. “Items are a bit expensive,” he said.

    “It’s not about the sales alone but the experience. I like my family spending time here particularly during the shopping festival. Though it cost me plenty of money, but it’s worth it. I can’t suffer to make money in Nigeria and suffer to spend it as well, hence my reason for coming here. I have also bought few things with great discounts apart for the flight ticket to come to Dubai, every Nigerian should be here.”

    Another Nigerian, Mrs Omowunmi Linda who was at The mall of Emirate was there for  sightseeing  and buy a few things for her friends back in Nigeria. “I reside here in Dubai and visit this mall only when the shopping festival is ongoing.  It is relatively cheap here because of the discounts attached.”

    “If you are coming to spoil yourself and take a tour, the malls are the right place to be but if you are coming to buy things to sell in Nigeria, Deira Market (an open traditional market) is the right place to be. There you can bid and negotiate for favourable bargains.”

    For Ms Patience Onuoha, a regular shopper to Dubai who buys her ticket early. “I travel yearly to shop in Dubai. I take my time to buy items i really want. I have  chosen to buy from Marks and Spencer shop because I like their underwears, particularly the sport braziers, they are strong and sell for  N175UAE. Those I bought last year still look good.”

    “Stores here would not compromise good quality or standard. There are stores and there are stores. I can’t imagine getting inferior items at Marks and Spencer, Louis Vuitton, Fendi, Gucci or Raff Lauren. Nigerians can only buy inferior items when they patronise unknown brands but brands that are known will not compromise standard and this is what is unique with the malls here.”

    Unlike Onuoha, Mr Badmus Ajibade lament that items are expensive. “I have come to sight see which is what most Nigerians who visit shopping malls here do. You sightsee and go to the traditional market to shop for same items. Items might not be same quality, but Nigerians can manage.

    Some items sold in the mall are not 100 percent good quality, he said. The finishing of some products is poor and is of mass production.  I don’t buy much when I come to Dubai particularly things I will use. I rather buy cheap things to sale and make huge profits.”

    “The malls here are better in terms of infrastructure but stock designers which are mainly mass product commonly found everywhere.  For example, I have seen inferior Hacket shirts which are not properly sown with bad finishing. I advise Nigerians to come for sightseeing but go back home to buy ‘Made in Nigeria’ products which are not mass products and are of good quality”.

  • New deal for pay-TV consumers

    New deal for pay-TV consumers

    A new and exciting viewing experience is here for consumers of pay television (pay-TV) services in Nigeria. With the introduction of ‘pay-per-day’ or ‘pay-as-you-watch’ service by StarTimes, the latest entrant into the pay-TV market has warmed itself into the hearts of subscribers. This market strategy, which targets low income subscribers, may have ignited a fresh wave of competition in the pay-TV industry. Assistant Editor OKWY IROEGBU- CHIKEZIE reports.

    A fresh wave of competition is imminent in Nigeria’s pay television (pay TV) industry. Courtesy of the introduction of ‘pay-per-day’ or ‘pay-as-you-watch’ offer by StarTimes, a relatively new entrant into the market, there are indications that the scramble for consumers’ patronage by service providers will intensify.

    The expectation by consumers is that the new wave of competition ignited by StarTimes through the introduction of new and exciting contents, with top-notch audio visual quality and low-priced bouquets, will prompt a response by existing service providers and ultimately, force a drastic reduction in subscription rates and decoder prices.

    Already, a few consumers have started embracing the StarTimes’ game-changing pay-per-day service, which, according to the company’s management, attracts a daily payment of N60 to enjoy all the channels.

    Interestingly, recently launched Telecom Satellite Television (TStv) has also caught the low-priced bouquet bug, offering its pay-as-you-watch model at a daily subscription rate of N200. Three days subscription attracts N500, while its weekly subscription goes for N750.

    The Pay-As-You-Consume cable TV provider in Nigeria charges N1, 000 for 10 days subscription, N1, 500 for two weeks subscription, while its monthly subscription goes for N3, 000.

    Until StarTimes threw its hat in Nigeria’s highly competitive pay TV market, existing pay TV operators had segmented the market with price differentiation for their bouquets.

    For example, Multichoice, owners of DStv, has four bouquets namely, Family, Compact, Compact Plus and Premium, which are subscribed for at N1,900, N3,800, N6,300, N9,900 and N14,700, respectively.

    But StarTimes may have changed the dynamics with its ‘pay-per-day’ or ‘pay-as-you-watch’ offer. This means that a consumer will only be charged for what he uses, unlike DStv. “Our aim is to ensure that we deliver digital entertainment to every Nigerian home at very affordable rates and we will ensure that this is done in the coming years,” its Chief Executive, Mr. Justin Zhang, said.

    He explained that the cable TV provider reached the decision to introduce pay-per-day service in Nigeria late 2016, but was delayed because Nigeria being the biggest market in sub-Saharan Africa, it would not be a wise business decision to launch a product or service without proper testing.

    Zhang said the launch of the service had to be properly done to avoid any technical disruption, hence the need to test-run the offer for months and make corrections where needed before rolling out a hitch free service.

    He said as a highly innovative company, StarTimes continually seeks new ways to improve its customer experience and satisfaction and pay-per-day is one of such.

    Zhang revealed that apart from introducing the pay-per-day service, StarTimes moved a notch higher by improving its content. According to him, the company has not only upgraded its movie channels, but also added more safe channels for kids to also enjoy.

    He further stated that StarTimes now broadcast new movies from Hollywood, Nollywood and Bollywood, (America, Nigeria and India movie industry, respectively).

    For existing and prospective subscribers to StarTimes, the icing on the cake is perhaps, the broadcasting of the Russia 2018 World Cup live on StarTimes.

    Zhang said this was in fulfilment of the company’s promise to ensure that digital entertainment was delivered to every home. “All our subscribers will be enjoying live matches of the World Cup from the comfort of their homes without putting a hole in their pockets,” he said.

    Explaining further on how pay-per-day or pay-as-you-watch works, Zhang, said: “When you talk of pay-as-you-watch, we may be construing it to mean pay-per-day.

    “If you want to watch a match today you can pay for one day, or you pay for one week or pay for month for your family. I think this is another definition for pay-as-you-go. You can pay-per-day instead of paying per month.”

    Zhang commended the discerning members of the public for the dramatic increase in subscription and promised that they are in business to represent the interest of all potential customers, especially those in the lower rung of the ladder.

    Indeed, the offer has gladdened the hearts of consumers. For instance, a subscriber, Eunice Igbokwe, said she is happy with the competition in the sector, noting that consumers are better off with such. She said though StarTimes has not been too long in the market, but coming up with this innovative payment model will be a plus for them.

    She decried a situation where some operators in the sector practically held consumers to ransom. She lamented that sometimes consumers pay and will not be connected for days and weeks as the case may be.

    According to her, one of the factors that attracted her to the network was the fact that she can travel for weeks without her account reading. Igbokwe related this to the new electricity prepaid regime, which makes it possible for somebody to only pay for what he or she consumed.

    Another subscriber, Dele Abiodun, who also uses StarTimes and has bought the recently launched Kwese, attested to the quality of the programmes. He, however, asked that they continue to maintain the quality of the programmes.

    He went on to say that the purchase of Kwese was because of the free-to-air soccer channels and its flexible subscription plan.

    Another subscriber, Ibukun Oni said she uses the latest entrant, Kwese because of its simplified payment system. “If I am cash strapped I will go for the N990 or N1,800 bouquet, since it will give me the same number of channels for the number of days my subscription will last.”

    The Nation learnt that the new wave of competition in the pay TV markets re-ignited by StarTimes comes in the mould of the competition in the telecoms sector, where the introduction of per second billing by indigenous telecoms giant, Globacom forced other services providers to drastically reduce the cost of their services.

    Recall, for instance, that at the take off of mobile telecommunications in Nigeria, MTN was the premiere company and it only provided call rate billing on per minute while the cost of SIM card was as high as $500 as at 2002.

  • Shopper protection: Lagos, HP shut int’l counterfeit operation

    The Lagos State government and a leading original equipment manufacturer (OEM), HP, have collaborated to protect shoppers from the menace of counterfeiters.

    Lagos State Police Command, under Commissioner of Police I.O Edgal and HP officials swooped on  a large-scale international counterfeiting operation in the state. As part of the raid, there were several seizures in the Lagos and and also Abuja, in shops, warehouses and at manufacturing sites. The Nigerian officials were seized 142,000 illegal items, which were primarily components for manufacturing counterfeit toner and ink cartridges.

    Counterfeiting is a crime. For users, such illegal imitations can cause a multitude of problems that may lead to performance and reliability issues. Should your printer breakdown because of using counterfeit printer ink or toner, you could also have issues with your manufacturer’s warranty becoming not applicable.

    In contrast, original HP products are designed to meet HP’s strict quality and reliability standards, based on a long history of inventing and testing. Original HP LaserJet and HP inkjet cartridges, unlike counterfeits, benefit from superior performance and consistent results.

    Country Supplies Business Manager, Nigeria and Ghana, Olatunji  Itiola, said: “HP is thrilled to continue its success working with the Nigerian government and authorities, to close down these illegal counterfeit operations. We are proud that the collaboration is working to reduce counterfeiting operations in the region, and bring the associated criminals to justice. With our unwavering efforts and commitment to end these counterfeit operations with local officials, we continue to focus on the safety of our customers through our anti-counterfeiting and fraud programme.”

    Across EMEA over the last five years, approximately 12 million counterfeits and components have been seized by local authorities, supported by HP. HP has conducted over 4,500 audits and inspections (CPPAs and CDIs) of partners’ stocks or suspicious deliveries for customers.

    Through HP’s Anti-Counterfeiting and Fraud (ACF) Programme, the company actively educates its customers and partners to be vigilant against fake printing supplies. It also cooperates closely with local and global law enforcement authorities to detect and dismantle illegal operations that produce counterfeit HP printing components.

  • Why we acquired Konga, by Zinox

    Why we acquired Konga, by Zinox

    The Zinox Group has acquired Konga to create jobs for over 750 youths and deepen the e-commerce space in the country. Many workers of the company laid off in the restructuring process may be recalled.

    Zinox Head of Corporate Communications Gideon Ayogu, who made the clarification to The Nation said the decision to invest in Konga was an easy one for the Zinox Group.

    “We have always had an interest in Konga and another big one you know very well but our priority was Konga first because of her integrated nature of four quality companies in one. Konga is a world-class, professionally-run company whose landmark strides in the sector has gone a long way in ushering millions of Nigerians into the ease and convenience of online shopping while boosting the conduct of e-commerce in the country.

    “Today, many Nigerians can attribute their first experience of e-commerce to Konga.com and we are excited to be a part of this remarkable story. Many shoppers can also attest to the speed and efficiency in delivery that characterizes KOS-Express, the company’s logistics arm, which is arguably the best in the sector at the moment.

    “Our ambition is to up the tempo by revolutionising e-commerce on the African continent, with Konga at the fore-front of this initiative. In addition to positioning the business on a path of profitability in the short term, our long term plans are focused around seeing Konga well established in other African capitals. Furthermore, we will be unveiling a lot of new initiatives soon and we advise shoppers and merchants alike to look out for these innovations which will radically reshape the average customer experience of e-commerce in Nigeria and on the continent,” Ayogu explained.

    The acquisition of the e-commerce powerhouse was concluded after successfully rounding off months of long-drawn negotiations with major investors, Naspers and AB Kinnevik.

    Based in South Africa, Naspers is a broad-based multinational internet and media group, offering services in more than 130 countries while AB Kinnevik, founded in 1936, is a Swedish investment company investing primarily in digital consumer brands.

    Through this acquisition, the Zinox Group, foremost integrated ICT solutions conglomerate and Original Equipment Manufacturer (OEM), will expand its operations to e-commerce, an industry it pioneered in the country with the launch of BuyRight Africa.com which was challenged by the absence of credit card and e-payment infrastructure when it was launched over 12 years ago.

    The acquisition has passed all regulatory approvals by the Securities and Exchange Commission (SEC).

    The Zinox Group, arguably Africa’s most-integrated technology group, will assume ownership of the e-commerce platform, Konga.com which remains one of the biggest players in the sector and its KOS-Express, a world-class logistics arm of the business in additon to KongaPay, the company’s integrated mobile money payment channel with over 100,000 subscribers.

    Widely expected to place Konga, Nigeria’s largest online mall on a sound footing for increased market share, the acquisition is seen by industry watchers as one that could see e-commerce in Nigeria finally unlocking the massive revenue potential in the global multi-billion  dollar industry.

    Interestingly, this unprecedented development is coming at a time when global e-commerce spending is expected to top previously unheralded levels. In 2017, retail e-commerce sales worldwide amounted to $2.829 trillion while e-retail revenues were projected to grow to $4.48 trillion in 2021.

    Konga had recently announced a shift to a prepay-only model, essentially putting a stop to Pay on Delivery (PoD) – a significant decision which formed part of an internal restructuring aimed at cutting costs and putting the business on a growth trajectory. This move, coupled with the new investment, is expected to spark an up-turn in the company’s fortunes which will see Konga assume a more significant share of the e-commerce market.