E-commerce Overtaking Offline Retail…!
FOR anyone just discovering e-commerce, it may seem the industryis quite niche; that offline retail will forever remain the dominant sales channel. However, this assumption is being challenged, and quickly proven wrong in many parts of the world.
Offline retail may seemingly have advantages, ranging from established players with historical knowledge of customer habits, physical displaysfor its products, placement in areas of high traffic flow (like malls and outdoor markets).These big brand names must understand the art of selling better, right?
Not always the case.Even with so much firepower, traditional retail is losing ground to e-commerce. Several major retail brands are being forced to reduce their outlets and offerings, adapt to a niche category, or risk exiting the market altogether. Global e-commerce sales are estimated to have doubled between 2010 and 2013, and the average amount spent by consumers in developed markets is expected to increase by more than 40% by 2016. Below is just one breakdown of the reasons people are turning to shop online according to a recent survey.
Top Consumer Reasons For Shopping Online % Citing Reason
Time Saving 73 %
More Variety 67 %
Easy to Compare Prices 59 %
No Crowd 58 %
Lower Prices 55 %
Spend Less on Gas 40 %
Less Taxes 30 %
Other 3 %
The emergence of online marketplaces such as Kaymu, HelloFood, and Jovago hasincreased people’s participation in e-commerce on everything from products to food to lodging. The present trend in e-commerce also revolutionizes the opportunities that other entrepreneurs have may have, and those who choose to embrace and leverage the platforms can thrive.
“Most offlinebusinesses are almost always about the product, as opposed to online businesses like Kaymu, where the entire business is centered on the customer. Offline companies have intelligence about a lot of things but they have very little knowledge about individual customers” told us Dr. Omar Mbura, who teaches Marketing at the University of Dar-es-Salaam.
So the next time a company goes out of business, doubt its ability to understand its customers, ability to drive useful insights and ability to use these insights for highly-targeted and value-based campaigns.
About Kaymu
Kaymu is the leading online shopping community, and the safest platform on the market. It connects and empowers buyers and sellers to allow them to take advantage of the best deals on an extensive range of products including electronics, mobile phones, fashion items and tons of gadgets. Thanks to a fixed price system, Kaymu guarantees that users will always find the lowest prices on the market.
About AIG
Africa Internet Group introduces and accelerates the online shift in Africa – for its people and its culture. It is committed to running successful and vibrant internet companies which boost the evolution of African online culture. AIG is the parent group of nine successful and fast-growing companies in more than 25 African countries, accounting for over 3, 000 staff. AIG cares about entrepreneurship and brings together all the key elements required to build great companies: team, concept, technology and capital. Its network of companies includes JUMIA, Kaymu, Hellofood, Lamudi, Carmudi, Zando, Jovago, Lendico and Easy Taxi.