The Nation Newspaper

Category: Shopping

  • JUMIA wins best Online retail brand

    Jumia an online outfit, received another big award as the best Online Retail Brand of the year from the Brand Journalist Association of Nigeria.  At the same time, announced its new CEOs; Nicolas Martin and Jérémy Doutté.  They will replace former Managing Directors, Tunde Kehinde and Raphael Afaedor, who decided to leave JUMIA Nigeria to start their own businesses.

    Jeremy Hodara, Co-CEO of Africa Internet Holding (AIH) – JUMIA’s holding company said: “We are glad our hard work and growth over the years has paid off following our World Retail award as Best New Retail and now we are also recognised locally by the Brands Journalist Association of Nigeria. We only launched Jumia in Nigeria one and a half years ago and we are eager to share our success story.”

    Chairman of the BJAN, Goddy Ofose said “he has seen Jumia’s growth and how it has managed to keep a good perceived brand that customers, both offline and online, can identify with. Even though Jumia still has a long way to go, this is just the beginning to building the brand we want in Nigeria.

    Sacha Poignonnec, Co-CEO AIH added: “JUMIA had a very successful 2013, from launching the leading e-commerce app in Africa to building our e-commerce campus in West Africa. We have to say a big thank you to everyone who has contributed to this. Especially to Tunde Kehinde and Raphael Afaedor, for their achievements with JUMIA Nigeria. They’ve made a great impact on our development and we wish them all the best”

    Raphael Afaedor and Tunde Kehinde were also a part of the Co-Founders team, which set up JUMIA together with the AIH in 2012. Last year, JUMIA was the first African company to win a World Retail Award as “The Best New Retail Launch of the Year”. Further to this, MTN and Millicom announced its investments into AIH.

    Raphael Afeador, former Managing Director of JUMIA said: “JUMIA was an exciting one and a half year journey for us. We are extremely proud of JUMIA and wish all the best to the company and all the people here. E-commerce in Nigeria is growing very fast and is an exciting industry to be involved in.”

    Bidding farewell to the JUMIA team, Tunde Kehinde, former Managing Director of the company said: “As we move on to start our own businesses, we owe a lot to every member of the team, together we made history, together we have built Nigeria’s first and biggest online retailer; a fate we never would have achieved without you. Let us urge you to continue to hold the values of looking after and satisfying every customer, supplier, and the people around you. There is no doubt we are building a great team of entrepreneurs that will leave a huge mark on this nation’s history”.

  • What trade fairs offer

    To most manufacturers and suppliers, trade fairs are veritable avenues to showcase their various products and services. But are they also means of discovering investment opportunities and promoting trades, or they only offer windows of sight-seeing for shoppers? TONIA ‘DIYAN asks.

    Trade Fairs are as old as history of business. Many see it as a platform where manufacturers, service providers, small/medium entrepreneurs and end users interact and discuss their products and services. Thus, it is a bargain ground for producers/products exhibitors and shoppers; and the economy stands to derive some benefits from it.

    The “trade shows” is not only to create an atmosphere for shoppers and buyers to interact; it is also to create room for variety of products among sellers, thus bringing about reduction in prices to shoppers’ delight.

    As shopping is like a stage play where every actor comes, exhibits and leaves, shoppers and vendors adequately maximize their presence at trade fairs.

    Nigerian fairs are primarily designed for enterprises seeking wider access to internal and international markets, and investors seeking joint-venture partners and markets for various goods.

    Nigeria, being a viable market for assorted goods/services from all continents of the world, makes provision for ample opportunities to market new innovations and bring exhibitors and shoppers together for trade activities.

    Trade exhibition poses a lot of competition, especially among those who sell the same products, thus causing pleasant confusion for the shopper who is expected to be prudent and patient on product choice. But shoppers get good bargains, as many products are on promotion with attractive discounts.

    In addition, companies provide casual jobs to unemployed youths who help them market their products. This helps shoppers purchase items at cheaper rates in a relaxed atmosphere spiced with music and other side attractions.

    Trade fairs are significant in the realisation of a nation’s collective aspirations of rapid economic transformation as businesses are enhanced and promoted in the process.

    The representative of the Lagos State Commissioner for Commerce and Industry, Mr Alayande Olarewaju said: “It is through trade that domestic companies can take advantage of bigger markets at regional, continental and global levels.”

    He said: “Trade fairs offer excellent platforms for the promotion of domestic and international trade. However, for us to benefit from trade, local companies must be competitive. Therefore, the creation of an enabling environment to enhance competition is crucial.

    “Putting up trade fair expositions and promotions is the only way the organised private sector can reposition itself to face the emerging challenges of global competition. The importance of trade fairs and exhibitions in the expansion of trade and promotion of economic diversification cannot be over-emphasised as it creates opportunities for buyers and sellers to meet and forge partnerships that can last for a long time. Nigeria like many other developing countries is prepared to streamline trade in its development strategies. The consensus amongst policy makers and the private sector is that in the current economic climate where most economies are battling to reduce budget deficits, reduce unemployment and tackle their sovereign debt crises, the most potent tool for sustainable and inclusive economic growth is trade and investment.”

    Experts see trade fairs as an avenu for people to make contact with manufacturers, create network for new businesses, make contact as distributors/agents, show-case new products and services as well as other benefits. They say, the essence of trade fair is not only for buying and selling.

    In a bid to ensure that people make maximum use of fairs, they are encouraged to give handbills and business cards to those they come in contact with so, that participants at the fair can easily be located for more business deals after the fair.

    Trade fairs contribute meaningfully to the expansion of trade for the sustainable economic growth of a nation, thereby leaving a positive impression on the minds of participants.

    The Nation Shopping spoke with some shoppers to find out what their attractions to trade fairs are and how they have gained one way or the other.

    Mrs Adesuwa Ehiadolor said her attraction is the free package that goes with visiting the fairs. “There are free this and that everywhere. Sometimes, when you don’t buy anything, you are given something for spending time at the fair. For instance, drink and beverage industries like Nutri-C, Milo and the likes give out free drinks to shoppers whether you patronise them or not. Pens and souvenirs of all sorts are commonly given out at fairs. Some of us patronize fairs because of these consolation gifts we get, regardless of other things.

    For Mr Nurudeen Komolafe, the attraction is discounted goods. At trade fairs, shoppers are sure of getting products at cheap rates. “If trade fairs continue the way they are today, people like me will not miss one for anything. I look forward to fairs, it is favourable.”

    Yet for Mr Sanya Akinkunmi, the attraction is also the discounts placed on products. “At the last Lagos International Trade Fair, I was given a 10 per cent discount when I bought a bed, I was to buy it for N40, 000, but I was given 10 per cent discount and I got it for N30, 000,” he said.

    An exhibitor, Mrs Olushola Ajireru who sells Mouka foam, said “trade fair is an avenue for creating awareness for products, though customers benefit more from fairs,” she said.

    Another exhibitor, Mrs. Praise Shopeju who sold Ghana wears at the last Lagos International Trade Fair said, “trade fairs are an opportunity for us to know how receptive Nigerians are and how they value our own products.”

    Observation has it that whenever there is a kind of bilateral activity, the government would be involved. That is why, in the course of preparing for a fair, relevant contact within and outside the country is made. Also, the government is grossly involved to provide security, the land and some other necessary things.

    The benefits and the main purpose of trade fairs is exchange of technology and ideas, so that when people are invited, they come and showcase what they have and they try to pick what they have seen also. The real gain from trade fair is the exchange of ideas, exchange of technology and exchange of bigger business. The actual benefits are in billions and those come from the discussions and exchange of ideas.

     

  • Facebook team visits Konga headquarters

    There is an increasing interest in the Nigerian start-up ecosystem by Social Media giant, Facebook.com.

    Recently, a 12-man Facebook team led by Nichola Mendelsohn; Head of Facebook, Europe, Middle East and African visited the Konga office and had a lot of good things to say about Konga and Nigeria as a whole.

    Leading the delegation of social media gurus, Nichola Mendelsohn; Head of Facebook, Europe, Middle East and Africa, met and addressed the Konga leadership and Marketing team, where she highlighted the role and importance of Konga as a success story with a reputation that has gone beyond local shores but quickly gaining traction around Africa despite having only being in existence for less than two years.

    The team was really interested in how Konga has been able to stamp its footprint in Nigeria in such a short time with plenty of positive feedback coming from users on Facebook

    Speaking further, she emphasised the team’s admiration and satisfaction for the successful execution of Konga’s Black Friday/Cyber Friday-Fall Yakata and Konga’s Christmas Campaigns while expressing their desire to further strengthen Facebook’s relationship with the Konga brand with mutually beneficial partnerships that would help the brand and over 12 million active people using Facebook in Nigeria as a whole.

    COO of Konga.com, Alex Kamara on behalf of the Konga team thanked the Facebook team for taking out time to visit and talk about how Konga always goes where its users love to go. He also spoke about some of the initiatives that Konga has planned for its users in the new year.

    Also, this past weekend, Konga was honored by the Creative Entrepreneurs of Nigeria with an award for excellence at a Gala night that was held at the British council gardens. The event had Nigeria’s Minister of Finance and Coordinating Minister for Economy, Dr Okonjo Iweala and Dr Andrew Pocock, the British High Commissioner to Nigeria in attendance.

  • Reckitt Benckiser brings innovation into market

    The business landscape in Nigeria is undoubtedly attractive to investors because of the size of the population. Consequently, the array of items  on shelves in supermarkets and in the mass market may be sometimes confusing to consumers. Nowhere is this dilemma more evident than in the health, hygiene and home care products segment of the fast moving consumer goods sector. Understandably, competition for patronage by operators in the sector is fierce. But in an increasingly health conscious world, people  will only choose to buy the best. The products that will ultimately survive the contest for consumer loyalty will be ones manufactured with quality using world-class technology.

    In selling  products consumed by everybody, there is the added burden of ensuring that the product is exciting and appealing. And if retailers  are to agree with the position of Jack Trout and Al Ries in their landmark book, then retail business is not truly a battle of products but a battle of perceptions. The implication of this is that even if a product is of the highest quality imaginable, retailers  must still work on the perception of consumers.

    That is why Reckitt Benckiser Nigeria Limited, the producer of Dettol Soap and market leader in health, hygiene and home care products segment has adopted innovations to achieve its five decades of patronage and customer loyalty.

    Following their innovative strategy, a new Dettol variant called Dettol Re-energise was added to the existing variants. The new soap has the combination of a reviving pleasant citrus fragrance and the trusted Dettol germ protection function.

    The new dettol soap underscored the acceptability of the product  as a household name in the health and hygiene segment.

    Reckitt Benckiser has continued to innovate, noting that being innovative has helped it to build the Dettol franchise across markets including Nigeria.

    The journey began in 2009 when the  ‘Good Health in Our Hands’ campaign was launched, as well as series of programmes. The Dettol team  have gone to schools where they have reached nearly three million students and have taught them good hand washing practices; they  have also  reached new mothers and have engaged with them to spread the message of health and hygiene.

    Innovation is one of the pillars that accounted for the success of  Dettol in its last 50 years of its existence in Nigeria.

    Dettol has been passed on from generations to generations to provide a healthy and hygienic environment. It  has been so successful that its name has become the generic name for health and hygiene.

    Dettol has  recorded tremendous growth since its introduction to the Nigerian market. In the last five years, it has achieved 216 per cent growth in its market share and is now present in 63 million households in Nigeria, which means one out of every three households in Nigeria uses Dettol.

    Research has shown that people want a soap that has pleasant fragrance and ability to refresh them, this is why a Dettol Soap variant with a pleasant long lasting orange fragrance that refreshes and also gives them protection against germs was introduced.

    Dettol was able to triple its market share because it has adopted the right market strategy of building consumers’ trust and confidence in it. It  has the biggest consumer direct contact programme in Nigeria. The product has reached out to 5.8 million mothers in 44 cities in Nigeria, I.e, close to six million mothers in five years, who were  sampled and thought good hygiene practices and were  educated  on what good hygiene does for them and their families.

    The product has also  reached 3.5 million school children in three years by visiting 7,000 schools, teaching  them how to wash their hands and other good hygiene practices. In the last five years, the product  has achieved 216 per cent growth in its market share and is present in 63 million households in Nigeria, which means one out of every three households in Nigeria uses Dettol.

  • Online stores wax stronger

    In Nigeria, online business, which is barely two years old, seems to have overcome its teething problems. There are prospects for the growth of the sub-sector, TONIA ‘DIYAN reports.

    Two years after it made its debut in the country, online stores are gaining acceptable in the delivery services.

    Analysts say with the level of its growth, players will soon start reaping profit while there are job prospects that the sub-sector will help address the deficit in job placements for the youths.

    Though it is natural for new businesses to face initial challenges, especially in an environment where the cyber space is porous and largely unregulated, acceptance of online stores have been phenomenal. Operators have been able to convince people that in these age of cyber crimes, there is nothing to fear as the security of their transactions online remains sancrosanct.

    Though individuals perceive them differently, operators say in the two years of their existence, they have proved themselves worthy.

    They say the number of people who buy goods online, shunning the malls and the markets across the country, has increased, and will continue to increase because of the convenience, transparency in service delivery, and affordability of the choice items, among other benefits.

    Offline Manager, Jumia.com.ng, Afam Ayika, said business has grown over the last two years in spite of the initial challenges.

    He said:“At Jumia.com, we have made tremendous sales since our inception and have also succeeded in transforming the way people shop in Africa.”

    Information shows that last year, more online stores sprang up, some of them even gave tips to customers on their websites on how they could make the right choices. This attribute is peculiar to BuyOlogy.com.ng.

    Another online store, Buyam.com.ng, acts as an intermediary between the buyer and the buyer’s favourite offline store. At Buyam.com.ng, products of some of the best offline stores are posted on the website so that buyers could conveniently buy what they need and have them delivered to their doorsteps. The Buyam.com.ng says it tries to eliminate the stress of commuting while buying from offline stores.

    Others are Adibba.com.ng, Revive.com.ng, Hellofoods.com.ng, Easytaxi.com.ng, Kaymu.com.ng and Carmudi.com.ng, an online car dealership portal that provides buyers with a large selection of detailed vehicle models, and give car dealers a platform to showcase their cars to a large audience from the comfort of their homes.

    From Jumia to Konga to BuyOlogy, online business has become a multi-billion naira business. Since Nigeria joined information technology super highway, traffic on the internet has tripled.

    Players recall that during the last festive period, there was business boom as many people bought many goods such as clothes, home appliances and other items online.

    The Nation Shopping observed that the top 10 products purchased online  included electronics books or e-books, home appliances, groceries, beauty products, baby products, event tickets and others. In the mobile phone sector, people bought more Nokia Lumia, Blackberry and Tecno Phantom phones.

    Same applied to the tablet, laptop and electronics/home appliances category. In the fashion sphere, it was discovered that dresses of all shapes and sizes were ordered for more than trousers and blouses.

    Experts say the reason for this is because dresses were the vogue last year while women are known for moving with the trend. They say while women were busy buying dresses, men bought more shoes.

    In the beauty care category, Elizabeth Arden perfumes went out the most. People, who love books and literature bought more copies of Accidental Public Servant a prose work written by the former Minister of the Federal Capital Territory (FCT) Nasir el Rufai. The book was in high demand till December.

    In the food category, Mama Gold Rice topped the chart while in the household category, people ordered more towels.

    Co-founder, Jumia.com.ng, Rapheal Afaedor said with its partners Kaymu, Vamido and Hello foods, it secured $35million from Millicom. Earlier, JP Morgan had made a significant investment in the business, followed by Summit Partners with $26million, all in less than two years.

    Also, the store has become Nigeria’s number one e-commerce platform with over 200,000 unique visitors and a daily subscriber base of over 400,000.

    However, Buyam.com.ng still struggles with popularity and acceptance because it is relatively. But it has been able to keep a healthy social media community of about 8,000 Facebook fans and 206 Twitter followers. It gets about 2,000 visitors to its website daily.

    Konga is also winning the online store social media battle with 418,000 Facebook fans and 48,000 Twitter followers.

    Public relations strategist, Konga.com.ng, Ifeanyi Abraham, has promised more offers this year. According to him, there will be more deals and discounts; there will also be educational drives to empower entrepreneurs.

    “We started the year with the screening of Crocodile In The Yangtze (The Alibaba Story), which was geared towards encouraging entrepreneurial Nigerians to move forward with their plans and work in line with our upcoming launch of a service that will help make this easy for them.

    “The first quarter of the year will see Konga launch its Super Savers, where we have launched a massive clearance sale that will run till the end of February. We have also launched a daily deals platform that will give Nigerians access to limited time offers across the Konga website.’’

    In partnership with blogs such as Lindaikeji.blogspot.com, ynaija.com, 360nobs.com, notjustok.com, Unilag olod.com and radio stations like; Beat FM, Brilla FM to reward Nigerians with discount codes to get deeper discounts on Konga and the Valentine’s massive sales and discounts which is aimed at helping Nigerians celebrate love and friendship.

    Ifeanyi added that there would be more employment opportunities online through the creation of a Konga Marketplace

  • 2014 will be better, say market leaders

    Some market leaders in Lagos say 2013 ended on a bad note. However, they hope for better things this year. ABISAYO AWOLEYE reports.

    SOME market leaders have identified some factors as setbacks for their businesses. These are insufficient funds and importation hassles. However, they are optimistic that things will get better once these are elimi.

    The Leader of Oyingbo market,Lagos, Alhaja Bashirat Abeni Balogun, said activities in the market would have been smooth this past year if the ongoing stall construction had not disrupted their sales.

    Also, Alhaji Chief Bolaji Awoyemi, a Market Leader at Mushin market, said the market which has been under construction for sometime should be completed this year. He was optimistic that all that his colleagues couldn’t achieve last year would be got this year once it is completed.

    He added that the displaying of wares on the road and the streets would finally stop when the government eventually completes the market. “I hope traders will be able to afford the rent,” he said.

    “If the government can provide means of transportation, it would be a big relief for traders. Transporters charge exorbitant prices knowing that traders have no other means of conveying produce.”

  • Connecting with customers

    This article by the late Janice Ifeme is being rerun in her honour. The late Janice Nkoli Ifeme, who died on January 29, last year, was Head of the Shopping Desk, who ran the column Shopping rite with Janice.

    Naturally, the retail climate favours big-box stores that can offer bargains. But because small retailers cannot win price wars, experts say independents need to leverage their biggest advantage over the chains: personal relationships with customers and the ability to deliver superior service.

    As shoppers become more value focused, they are turning toward big-box retailers. Small retailers can bolster sales by targeting wealthier shoppers who are less price-sensitive and may pay premiums for better service. Upper-income households often perceive of value in very different ways from lower-income shoppers.

    So, what can independent retailers do to compete with their larger counterparts?

    In whatever market they are targeting, small retailers need to court their best customers. They need to maximise the one-on-one personal relationships that they have with customers.

    That is the secret weapon that small independents have against big national chains. If I am savvy and communicate with my customers well, I can draw loyal customers into my store before they go into the national chains.

    One way to do that is through affinity discounts that encourage loyal customers to spend more, rather than trying to attract new business by cutting prices across the board.

    They are going to their customer base, and they are mailing out to their best customers targeted discounts to get them into the store. That is a lot smarter than putting a 70 per cent off sign in front of your store

    Through affinity programs, retailers can strengthen their relationships with their best customers and appeal to those shoppers’ bargain-hunting mood at the same time.

    Beyond customer service, retailers need to keep inventories lean to keep costs down. Store owners need to be especially vigilant in refusing late orders and watching for over shipments to avoid having merchandise they would not be able to sell.

    In addition, small retailers can take a cue from large chains that display as much merchandise as possible on the floor, rather than holding inventory in the stockroom.

    Likewise, stores should watch their staffing levels to control costs. They want to be able to staff to the peak hours as much as they can.

    That means mostly in evenings and weekends, as most two-income families have little time to shop during the day. Businesses might decide to open later in the morning and extend hours at night to reach more customers without needing to staff more hours.

    Marketing companies are experimenting with a new wave of digital technologies to pitch to consumers while they shop: interactive dressing-room mirrors, kiosks with virtual customer-service representatives, shopping carts and digital scanners that offer personalised discounts.

    They are also marshalling out innovative ways for marketers to connect with customers as part of an effort to better understand what makes consumers buy and to encourage companies to rethink their approaches to the role of the retail store.

    New waves of digital technologies that pitch consumers while they shop are being developed. Some retailers have started testing basic versions of the new technologies, for instance a door frame that comes with a 52-inch touch screen that lets consumers see the retailer’s full range of merchandise. Consumers can email data about an item to themselves or a friend or scan a bar code to learn more about a product and get recommendations, such as tops and accessories that match a pair of pants.

    Another device is a mirror that enables a shopper to scan a dress and then project that clothing onto her body before going to the dressing room. She can also tap the mirror to view different colours, find matching shoes and send the image to her Facebook profile.

    On the other hand, retailers are grappling with lacklustre sales and consumers who are dissatisfied with the store experience as online shopping with its related interactivity becomes mainstream. Shopper satisfaction at retail stores is declining up to 15 per cent yearly, according to an ongoing IPG Media Lab study of more than 10,000 North American shoppers.

    Online shopping gives buyers lots of information to guide their purchases. And consumers want detailed product data, reviews from previous buyers, related recipes for food products, health and nutrition information and more.

    A shopping site, The Digits blog Stop & Shop Supermarket is testing handheld scanners in 289 stores that show customers’ personalised discounts as they shop. The offers are based on such factors as shopping history and just-purchased items. The scanner also lets consumers place orders and check out faster.

    The role the store is playing is changing. Shoppers are walking up with a different set of expectations.

    In all, the surest way to meet a shopper’s expectation is through good service and quality delivery. Even the most difficult shopper cannot shun this.

  • Meat price goes up

    Meat price goes up

    The price of meat has gone up in Lagos markets.

    Butchers at the Harmony Abattoir Management Service Limited said the increase in the price was caused by hike in fares. According to meat sellers, they risk their lives to get meat transported from the North.

    They said Boko Haram problem is a major cause and that most of them get killed when ferrying cattle from up North to Lagos.

  • First Nigerian-Korean online shop berths

    First Nigerian-Korean online shop berths

    The first Nigerian-Korean network and online shop has opened. It is called KAVWIN.COM.

    Its Chief Operating Officer, Kavwin Nigeria, Gabriel Olatoye, said the firm’s vision is ‘’to change lives for a greater and better tomorrow’’.

    He said: “It is a reality as testimonies of many people have further enunciated the fact that, Kavwin is an income-well, where you can determine the kind of better life you would love to live and every effort is adequately compensated and rewarded.”

    The KAVWIN Direct sales /Referral model, he said, would help millions of individuals experience the benefits of entrepreneurship with little risk and minimal investment compared to traditional retail or franchise models.

    He introduced one of Kavwin’s products – the induction cooker, which he said, is the most modern cooking technology, faster than normal gas cooker and automatically shuts down when not in use.

    Unlike other conventional cooking aids, he said the energy is directly supplied to the cooking vessel.

    “It does not burn the hand or any material when in use except metal objects. According to empirical studies in the United States, the efficiency of an induction cooker is 84 per cent while that of a normal gas cooker is 40 per cent. Hence, the money spent on cooking energy is reduced by more than half.

    “The surface of the induction cooker is made of monolithic micro-crystal. It does not heat up and is very safe for the use of persons above 10 years because it does not shock even when water splits on the surface while it is plugged in power. The environment does not get heated up during cooking but remain cool and calm,” he said.

  • Arena traders bemoan low sales

    Arena traders bemoan low sales

    Traders at the Arena Shopping Complex in Oshodi, Lagos are complainiing of low patronage as the main gate leading to the market has been closed for two weeks, preventing shopper’s entry into the market. The once-busy Arena Shopping Complex has today become a grave yard, with locked up shops and traders having their hands on their cheeks hoping for shoppers to patronise them again.

    Traders said their daily income has reduced and they hardly make sales. A trader at the shopping complex, Mrs Serah Anuobi, whose daily sales used to hit N300, 000, complained that the development has become a barrier for her business. “These days, I hardly make N150, 000 daily. I am a distributor of staple items and I am sure of making huge sales. These past few weeks, the reverse is the case” she said.

    The Nation Shopping learnt that the market authorities locked the gate to reduce the number of people trooping in and out of the compound. Complaining that the market is congested and welcomed hoodlums; they decided to lock the main gate leaving the small one open.

    The shopping complex is an ultra-modern market that is strategically located at the Army Barracks in Bolade, Oshodi.