REPORT

Nigerians and E-Commerce Vol. 1 E-Commerce Report

ur lives have changed tremendously with the advent of the over the past 20 years. Our habits, expectations and lifestyles have all been Oaltered, and the Internet continues to greatly impact our lives. The various Internet platforms have brought about numerous opportunities for rapid growth and development. Today we continue to embrace new ideas like e-governance, e-learning, e-banking, and e-commerce.

E-commerce has become a phenomenon over the last decade and has been embraced the world over. The advent of companies such as eBay and Amazon in 1994 paved the way for e-commerce growth and advancement. E-Commerce has become an important tool for small and large businesses worldwide, not only to sell to customers, but also to engage them. According to e-marketer, ecommerce sales topped $1 trillion for the first time in history in 2012.

Although the emergence of e-commerce in started just a few years ago, it has come a long way. is gradually increasing its use of the Internet as a medium for purchasing and marketing goods and services. Online stores are increasingly gaining patronage from individuals and businesses and many companies in the country now use the Internet as a platform to advertise and sell their products and services. Due to these developments, the e-commerce industry in Nigeria has experienced growth.

2 E-Commerce in Nigeria

Nigeria’s large population coupled with the rapid spread of Internet-enabled mobile phones and the growing access to broadband makes the country’s e-commerce market one of the most attractive in the African continent. According to the former Minister of Communication Technology, Dr. Omobola Johnson, Nigeria’s electronic commerce market has a potential worth of $10 billion. She stated that the e-commerce market in Nigeria has attracted over $200 million in foreign investment with about 36% of the country’s 180 million people connected online. She also revealed that the e-commerce market has created over 12,000 jobs since 2012, expanding the infrastructure, warehousing, advertising and logistics services industry. According to Mobile Media Info Tech, Nigeria recorded over $2 million worth of online transactions per week in 2014.

Though the e-commerce market has been projected to grow at 25% annually, the current economic situation has resulted in a decline in patronage of e-commerce platforms. According to techpoint.ng, web traffic on the major e-commerce sites in Nigeria is at an all-time low. Konga fell 113 places in global web ranking during the first three months of 2016. Nigeria fell by 183. Although Kaymu’s web traffic grew, bounce rate grew by 44%, daily page views per visitor fell by 22.5%, while daily time spent on site went down by 21%. This has resulted in layoffs across the different platforms. The decline in performance can be attributed to the current economic situation, which has resulted in a decrease in the disposable income available to citizens. It is believed “Though the that once the economic situation improves then good times will be back again for the e-commerce e-commerce platforms. This just shows that e-commerce is a long-term game. Like market eBay and Amazon have shown us, only those who have staying power will succeed. has been The Nigerian e-commerce industry is still relatively young, so it is not surprising that projected to majority of the e-commerce platforms are in the commercial capital of the country. A grow at 25% report by Kaymu on e-commerce in Nigeria shows that Lagos has the highest number of e-commerce visits. Over 86% of total visits to e-commerce sites come from Lagos, annually, while a distant 2nd is Abuja, the Federal Capital Territory with 9%. Based on research the current conducted, Nigerian males prefer to shop online compared to females with 59% of economic e-commerce customers being male and 41% being female. The report also showed that about 69% of online shoppers are between 18 and 34. The data shows that the situation has youth are more interested in buying online than any other group. 18% of shoppers resulted in are between the ages of 35 and 44 and 11% of shoppers fall into the 45-64 age group. a decline in People older than 65 were found to be less interested in shopping online. patronage of e-commerce platforms.”

3 Ciuci Insights

These insights represent findings from a study carried out with 4,000 respondents in Lagos, to discover how the behavior of different groups of customers across gender, age, educational level and income levels affect shopping online in Nigeria. This information aims to provide a better understanding of the e-commerce industry in Nigeria.

S/N Name Description Industry Product Category

An e-commerce site that sells Mass Electronics,household and fashion 1 1500naira.com fashion items, home appliances Merchant items and other items for just N1,500.

An online shopping platform Mass Power solutions, electronics, fashion, 2 Adibba.com that offers an ever-growing Merchant household items, recharge cards, food variety of product categories. & drinks It is known as “The one place to get it all.”

Affordableponesng A platform that offers a wide Electronics Phones, tablets and laptops 3 .com range of popular brand name mobile phones, tablets and laptops at competitive prices.

An African-focused retailer of Ticketing Ticketing strategy, ticketing logistics, 4 Afritickets.com ticketed events and associated ticket sales, inventory management, merchandise. It acts as an in- ticketing reconciliation and sales termediary between consumers promotion and organisers of events.

An online event ticket service Ticketing Ticket sales 5 Ariyatickets.com provider that helps event planners market and organize their tickets sales

An e-commerce and online Beauty & Cosmetics and personal care products 6 Beautyrevng.com community for African makeup Cosmetics artists, beauty bloggers, and makeup enthusiasts. This niche e-commerce site provides cool, edgy global and indigenous makeup brands at the click of a button

7 Car.jumia.com.ng A premium online vehicle Automobiles New and used automobiles (formally market place. They provide Carmudi.com.ng) users with new and used cars for every price range

8 Cheki.com.ng An online marketplace where Automotive New & used automobiles, spare parts, all of Nigeria’s leading car car loans, car insurance and car ship- dealers, importers and private ping, etc sellers post their cars for sale in Nigeria.

9 Coliseum.com.ng Nigerian online fashion des- Fashion Clothing, shoes, accessories, jewelry tination for fashion-forward, and watches aspirational individuals. It is a massive one-stop fashion desti- nation for Nigerian consumers.

Connectnigeria 10 An online business directory Mass Cars, businesses, real estate, jobs, etc .com and marketplace Merchant

4 s/n Name Description Industry Product Category

It is an online destination for 11 Dafunshop.com Child Care Children’s fashion, personal care, edu- children’s products from cloth- cational and household items ing to personal care and educa- tional items all for children.

This online platform features a 12 Dealdey.com Discount Food, travel, hotels, spas, professional daily deal on the best things to Merchant courses, restaurants, fashion items, do, see, eat, and buy in Nigeria. gadgets, mobile phones, electronics etc. DealDey is an easy and fun way to get fantastic deals on great experiences. They support local businesses and in turn support consumers with good savings

A discount website where 13 Deals.jumia. Discount Food, travel, hotels, spas, professional individuals can get the best com.ng Merchant courses, restaurants, fashion items, deals for a wide range of items gadgets, mobile phones, electronics etc. in Nigeria.

An online store in Nigeria cre- 14 Depearl.com Fashion Clothing, shoes, accessories, ated to deliver quality fashion jewelry,perfume and watches items

A site where you can buy and 15 Efritin.com Mass Electronics, property, fashion, beauty sell everything from used cars Merchant & health, education, automobiles, to mobile phones and comput- household items, pets & animals, job ers, or search for property, jobs vacancies, etc. and more in Nigeria - for free.

A convenient online food-order- 16 food.jumia.com. Food & Native & international cuisine and ing site, connecting people with ng (hellofood.com. Drinks drinks the best restaurants around ng) them.

Offers access to a rich online 17 furnish.ng Furniture Furniture, homeware and interior catalogue of highly-custo- decoration misable, high quality, and affordable pieces of furniture, homeware and interior décor items.

A high quality IT products com- 18 Gafunk.com Electronics Smart phones, PC’s, pc accessories, pany. Have partnerships with software, tablets, printers, projector HP, Dell, Acer, APC, Benq, setc. Microsoft, Dlink, Epson, Canon, Lexmark and a host of others

An electronic retailing service 19 Gloo.ng Mass Grocery, household items, personal and corporate procurement Merchant care products and accessories engine dedicated to delivering direct to the doorsteps of cli- ents, on a same-day basis and at very affordable prices, a wide variety of high quality brands of supermarket goods.

A premier female shoe mega- 20 Heels.com.ng Fashion Female shoes store offering a wide selection of handpicked designer shoes.

An online travel agency special- 21 Hotels.ng Hospitality Hotel booking and recommendation ising in hotel bookings within services. Nigeria. They help customers book hotel rooms online, pro- vide comprehensive help and support to clients and make the hotel booking process smooth and easy.

5 s/n Name Description Industry Product Category

house.jumia. An online platform that helps 22 Real Houses, land and commercial property com.ng (formally people find real estate proper- Estate lamudi.com.ng) ties to rent, buy or lease.

23 Iqrabooks.com.ng Online bookstore that has Books & Physical books, audio books & e-books. created an innovative way of Stationery meeting the needs of customers for books and educational materials covering all topics & subject matter using advanced technology and e-commerce to deliver quality services.

24 Jiji.ng A free online classified site with Classified Electronics, property, fashion, beauty advanced security systems. Advertising & health, education, automobiles, They provide a simple has- household items, job vacancies etc. sle-free solution to sell and buy almost anything.

25 Jumia.com.ng An easy and convenient online Mass Electronics, books, home appliances, mall. The Jumia mall provides Merchant fashion items, shoes, mobile phones, you with a wide range of prod- computers, groceries, automobile parts, ucts you can trust at the best etc. prices.

26 Kara.com.ng An online shop which offers a Mass Electronics, health and beauty, house- massive collection of everything Merchant hold goods, apparel and accessories at some of the best prices

27 Konga.com An online mall where retail Mass Electronics, health and beauty, house- customer can buy from a wide Merchant hold goods, apparel and accessories range of products

28 Laternabooks. A literature importation, Books & Bibles, christian books, business books, com distribution and marketing Stationery children’s books, music, organization.

29 MallforAfrica.com Provides Africans the platform Mass All products to purchase items directly from Merchant international online retailers – companies.

30 Market.jumia. A marketplace which connects Mass All products com.ng (formally buyers and sellers and enables Merchant kaymu.com.ng) them to make safe and success- ful transactions in all product categories.

31 Micostarmall.com An online mall that helps Mass All products customers residing in Africa to Merchant purchase and receive products from US, UK, Canada, Europe and .

32 Miskayboutique. A Womenswear fashion retailer Fashion Womenswear com

33 Mobofree.com An online platform for buying, Mass All products selling and swapping of items Merchant with trusted people

34 Mystore.com.ng An online store which deals in a Mass Electronics, health and beauty, house- wide range of products Merchant hold goods, apparel and accessories

35 Nigeriacardeal- A platform to buy and sell new Classified New & used Automobiles ers.com and used cars, and search for Advertising the best auto insurance rates.

6 s/n Name Description Industry Product Category

36 Naijaticketshop. An online ticket buying and Ticketing Ticket sales com selling platform

37 OLX.com.ng A free online platform to buy Classified All products goods for sale from cars, furni- Advertising ture, and electronics to jobs and services listings.

38 PayPorte.com An online shopping site, where Mass Household electronics and smart- different items are purchased. Merchant phones, clothes and fashion accessories

39 Pricecheck.com. A platform that enables users Mass All products ng compare millions of product Merchant prices, across thousands of categories.

40 Privateproperty. An online platform that enables Real Houses, land and commercial property com.ng users to search tthousands of Estate properties for sale, rent or lease

41 Property24.com. An online platform that shows Real Houses, land and commercial property ng buyers and renters properties. Estate

42 Shopaholicng.com An online clothing store, trade- Fashion Clothing, beauty and accessories marked under BVX Limited. They deal in accessories and clothing.

43 Shoptomydoor. An American AirSea Cargo. Mass All products ranging from consumer com They allow Africans, individu- Merchant goods to heavy equipment and als and business owners, shop machines from thousands of stores in UK, U.S.A and China. They provide a combination of air and ocean shipping services from any country in the world to Africa.

44 Slot.ng A retail store that specializes in Electronics Mobile phones, personal computers the sale personal electronic de- and electronic accessories. vices. They offer their services through physical and online sales.

45 Supermart.ng An online supermarket that Mass Grocery, household items, personal majorly deals in household and Merchant care and office products office items.

46 Swiftermall.com An online retail store for Electronics Electronic devices ranging from strictly electronic appliances personal gadgets, office and home and devices. appliances.

47 Timeless.com.ng An online retail store that spe- Mass Personal accessories such as wrist- cializes in providing personal Merchant watches and clothing products to its customers

48 Time-tellng.com Online retail store Mass Clothing, stationary and electronic Merchant devices

49 Tolet.ng A property search website in Real Houses, land and commercial property Nigeria for rent and for sale. Estate

50 Topdowngames. An online retail store for video Video games Video games and consoles com.ng gaming products.

50 Travel.jumia. Brings available accommoda- Hospitality Hotel booking and recommendation com.ng (formally tion in Nigeria online, and cre- services jovago.com) ates the easiest and cheapest way for customers to book it.

7 s/n Name Description Industry Product Category

51 Travel.jumia. Brings available accommoda- Hospitality Hotel booking and recommendation com.ng (formally tion in Nigeria online, and cre- services jovago.com) ates the easiest and cheapest way for customers to book it.

52 TravelStart.com. An aviation agency that offers Travel & Flight tickets and hotel reservation ng online ticket sales and online Hospitality hotel reservation services

53 Tripican.com An online movie ticketing com- Ticketing and Movie tickets pany which sells movie tickets entertain- for cinemas across the country ment

54 uk2meonline.com A logistics company that Mass Household items, electronics, clothing provides online retail services Merchant and accessories by bringing shoppers in Nigeria products from online stores in the UK and USA.

55 vcocnnect.com An online business directory Travel & Household items, electronics, clothing, that evolved into a marketplace Hospitality accessories

56 Wakanow.com An online travel company that Travel & Flight tickets and hotel reservation provides online ticket sales and Hospitality online hotel reservation.

57 Walahi.com An online platform where books Books & Books can be purchased. Stationery

58 Webmallng.com An online retail store that Mass Household items, electronics, clothing provides a wide variety of con- Merchant and accessories sumer products

59 Wholesaleng.com An online wholesale Super Mass Household items, electronics, clothing mart. They provide a wide Merchant and accessories range of products for their customers

60 Yudala.com A retail company that provides Electronics Home appliances, personal electronic both online and offline retail devices and toys services.

Preferred Channels for Purchasing Goods

Research in the use of online shopping platforms for goods under four product categories – clothes & accessories, food items, personal products and electronics – showed that e-commerce channels are more widely used to purchase electronics and clothes & accessories than they are for purchasing personal care products and food items. Inventory in electronics and clothes & accessories move quicker through this channel than food and personal care products.

8 Clothes & Accessories 35% 65%

Food Items 4% 96%

Personal Care Products 25% 75%

Electronics 41% 59%

Online Store/Market

Preferred Platform for Purchasing Goods

For both genders, goods in the electronics and clothes & accessories categories were purchased the most using e-commerce platforms with 37% of female respondents indicating they purchased their electronics online, while 38% of male purchased their electronics online. Clothes & accessories have the second highest share with 34% of female respondents stating they used online platforms to purchase these products, while 35% of male respondents stated the same.

37% 34% Electronics Female Personal Care Products Food Items

Clothes & Accesories 4%

25%

38% 35% Electronics

Personal Care Products

Male Food Items

Clothes & Accesories

4%

23%

Distribution of Product Categories Purchased Online by Gender

9 Results also show an average of 38% across all age groups indicate that they purchase their electronics online while an average 34% of respondents across the different age groups stated they bought clothes & accessories online. Personal care and food items came in third and fourth respectively with an average 25% and 4% of respondents across the age groups stating they purchased these products online. This chart is almost suggestive that consumers may choose to purchase simply what is available, given the similar ratios across all age groups, despite the very different needs to individuals in each group. There is also a more than double the use of online purchases for food items by the 25-34 age group than any other age segment. This would suggest to food retailers which age group ought to be targeted for growth of online sales revenue, being the most receptive thus far.

18-24 34% 25% 3% 38%

25-34 37% 21% 7% 35%

35-44 40% 27% 3% 30%

45+ 40% 25% 3% 32%

Electronics Personal Care Products Food Items Clothes & Accesories

Distribution of Product Categories Purchased Online by Age

Similarly, the results across educational and income levels showed that electronics and clothes & accessories were purchased the most online by respondents while personal care and food items were purchased the least online. This chart shows the importance of electronics across the different education levels. The importance across the different levels of acquired knowledge bases remains the same, making them appear as social needs. This shows a lot about the behavior and digitization of the educated Nigerian population.

10 SSCE 34% 16% 3% 47%

OND 29% 24% 8% 39%

HND 32% 23% 8% 37%

BA/Bsc 39% 24% 4% 33%

Postgraduate Diploma 100%

Masters 41% 27% 2% 30%

PHD 35% 27% 3% 35%

Others 36% 21% 4% 39%

Electronics Personal Care Products Food Items Clothes & Accesories

Distribution of Product Categories Purchased Online by Educational Level

Looking at the spend of consumers by their income, there is a slight increase on electronic spend on the online platform as monthly income levels rise. A more apparent decrease in clothes & accessories expediture as monthly income levels rise is also seen on online channels. This suggests a differential in consumer behaviors with the online channels depending on their income levels. This could be dependent on a number of factors such as the offerings provided to the different segments in these different income groups.

Less than N25,000 31% 24% 3% 42%

N25,000 - N50,000 36% 19% 5% 40%

N50,001 - N100,000 32% 23% 6% 34%

N100,001 - N500,000 40% 24% 4% 32%

N500,001 and Above 38% 29% 3% 30%

Electronics Personal Care Products Food Items Clothes & Accesories

Distribution of Product Categories Purchased Online by Income Level 11 Jumia and Konga have the largest market share in the online space for the respondents questioned, with over 75% for both. This also validates the earlier responses assessed in this study, as the Jumia’s and Konga’s products are primarily electronics and clothing & accessories. This suggests that most buyers are not deciding not to make other purchases online, but rather, other options such as personal care products and food items may not be as readily available. Or it could also mean that the product offerings of both Jumia and Konga appear to serve consumer needs better than other platforms.

1%

12% 3% 39% Jumia

Kaymu

36% Konga Payporte

Supermart 9% Other

Market Share of Surveyed E-commerce Platforms

By gender, more males purchased products online than female. However, Supermart. ng was the only e-commerce site surveyed that had more female users – 58% than male – 42%. This shows a clear distinction in consumer habits by gender on this specific online sales channel.

49% 40% 43% 42% 58% 33%

Female

Male

51% 60% 57% 58% 42% 67%

Jumia Kaymu Konga Payporte Supermart Other

12 The two giants of the e-commerce space have different age group customers. Between the ages of 18-34, most consumers use Jumia. However, from ages 35 and above, most users use Konga. This shows a user preference based on age between the two most dominant online sales platforms. Subsequent strategies by both players should be look to understand why this is and what areas of their business have led to these consumer preferences.

18-24 45% 9% 30% 4% 14% 0%

25-34 41% 10% % 3%10% 0%

35-44 35% 8% 41% 5% 10% 1%

45+ 31% 5% 31% 6% 25% 2%

0% 20% 40% 60% 80% 100%

Jumia Kaymu Konga Payporte Supermarket Other

Use of Surveyed E-commerce Platforms by Age

Assessing the results of the e-commerce platforms by education levels, Kaymu stands out. Unlike other platforms with even distribution across the board, SSCE students seem most interested in the Kaymu e-commerce platform . This would suggest a specific need for that segment is being met by Kaymu.

SSCE 31.7% 18.8% 26.7% 5% 17.8%

OND 28.2% 11.6% 30.9% 3.3% 25.4% 0.6%

1.8% HND 35.3% 7.5% 41% 13.8% 0.6%

2.9% BA/Bsc 42.6% 8% 36.5% 9.6% 0.4%

Postgraduate Diploma 50% 50%

Masters 38.3% 10.4% 37.7% 7.4% 5.6% 0.6%

PHD 48.5% 3% 31.8% 4.5% 12.1% 0%

Others 19.4% 52.8% 5.6% 22.2% 0%

0% 20% 40% 60% 80% 100%

Jumia Kaymu Konga Payporte Supermarket Other

Use of Surveyed E-commerce Platforms by Level of Education 13 An interesting insight into the use of e-commerce platforms based on income levels is Supermart. Their largest user base from the responses earn less than N25,000 a month. Based on this it appears that they have a mass-market strategy, providing affordable goods to as many people as possible. Monitoring the success of this strategy would be interesting to note the correlation between their growth in e-commerce and which income group would be most relied on.

Less than N25,000 32% 16% 28% 2% 22% 0%

N25,000 - N50,000 38% 10% 38% 4% 10% 0%

N50,001 - N100,000 39% 6% 38% 3% 13.% 1%

N100,001 - N500,000 42% 7% 35% 5% 11% 0%

N500,001 and Above 42% 9% 36% 4% 7% 2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Jumia Kaymu Konga Payporte Supermarket Other

Use of Surveyed E-commerce Platforms by Level of Income

Respondents were asked which of the surveyed e-commerce sites, they purchased goods from within four product categories. 46% of respondents stated they purchased their clothes & accessories on Jumia, 38% on Konga, 8% indicated Kaymu, 5% on PayPorte while Supermart and other e-commerce sites were 2% and 1% respectively.

Clothes & Accessories 46.4% 7.7% 38.4% 4.7% 2.2%0.6%

0% Food Items 29.9% 3.7% 61.7% 3.7% 0.9%

4.3% Personal Care Products 38% 6.8% 46.3% 4.0%0.6%

3% Electronics 47.7% 8.2% 37% 4.1% 0.1%

0% 20% 40% 60% 80% 100%

Jumia Kaymu Konga Payporte Supermarket Other

Share of Products Purchased on Surveyed E-commerce Sites

14 Online Shopping Customer Profiles – Electronics

The chart below gives insight into the platform preferences by gender for the purchase of electronic goods. Of the chosen e-commerce platforms, Jumia and Supermart showed greater female use for these purchases. The greatest differential was that of PayPorte with 80% of users of this platform from the respondents being men.

49% 56% 61% 80% 34%

100% Female

Male

51% 44% 39% 66% 20%

Jumia Kaymu Konga Payporte Supermart Other

Surveyed E-commerce Sites Electronics Customers by Gender

Assessing the electronic purchases by age, the youngest age category showed a high preference for Jumia to purchase electronics. This corresponds with the earlier analysis identifying the younger age groups use Jumia more for their purchases across the e-commerce platforms. Supermart interestingly has most of its electronic sales across the youngest and oldest age groups. The 2% of other e-commerce platforms from the correspondents shows most electronic sales occur on these identified platforms.

18-24 62% 7% 22% 2% 7% 0%

1% 25-34 45% 9% 42% 3% 0%

1% 35-44 47% 8% 38% 6.% 0%

45+ 36% 8% 38% 6% 10% 2%

0% 20% 40% 60% 80% 100%

Jumia Kaymu Konga Payporte Supermarket Other

Surveyed E-commerce Sites Electronics Customers by Age

15 The lowest income group that make electronic purchases online uses Jumia primarily. This indicates probably that Jumia could be the site with the best deal offerings for the consumers in this income bracket. The 1% for Other appears in the income bracket of over N500,000. This could indicate the use of e-commerce platforms outside Nigeria as platforms such as Amazon.com now have expanded their delivery regions to Nigeria.

2% Less than N25,000 64% 4% 22% 8% 0%

1% N25,000 - N50,000 45% 9% 43% 0% 2%

3% N50,001 - N100,000 46% 7% 38% 6% 0%

2% N100,001 - N500,000 48% 8% 37% 5% 0%

N500,001 and Above 46% 9% 35% 5% 4% 1%

0% 20% 40% 60% 80% 100%

Jumia Kaymu Konga Payporte Supermarket Other

Surveyed E-commerce Sites Electronics Customers by Levels of Income

Online Shopping Customer Profiles – Electronics

100%

90%

28% 25% 80%

42.5% 43.9% 60.3% 85.2% 70%

60%

50% 72% Male 40% Female 30%

20% 57.5% 56.1% 39.7% 75%72%

10% 14.8%

0 Jumia Kaymu Konga Payporte Supermart Other

Surveyed E-commerce Sites Personal Care Customers by Gender

16 3.3% 18-24 47% 5% 37.5% 6.7% 0%

2.6% 25-34 38% 6.8% 49.1% 2.6% 0.9%

1.4%

35-44 36.6% 8.5% 47.4% 5.6% 0.5%

45+ 23.8% 4.8% 49.2% 7.9% 12.7% 1.6%

0% 20% 40% 60% 80% 100%

Jumia Kaymu Konga Payporte Supermarket Other

Surveyed E-commerce Sites Personal Care Customers by Age

An analysis of the responses when assessed by the different income brackets shows a general dominance of Konga in providing personal care products except in the N500,001 and above segment where it comes 2nd by 1%.

0% Less than N25,000 40% 52% 8%

N25,000 - N50,000 38% 5% 50% 1% 5% 1%

N50,001 - N100,000 35% 4% 50% 6% 4% 1%

N100,001 - N500,000 38% 8% 46% 4% 3% 1%

N500,001 and Above 40% 11% 39% 6% 4% 0%

Jumia Kaymu Konga Payporte Supermarket Other

Surveyed E-commerce Sites Personal Care Customers by Level of Income

Online Shopping Customer Profiles - Clothes & Accessories

The study revealed that contrary to what most will expect, about 56% of individuals who purchase clothes & accessories online are male while 44% are female. 76% of individuals who shop for clothes & accessories on Payporte are male, 60% of clothes shoppers on “Other” sites are male, and this gender also accounts for 59% of Konga’s clothes & accessories shoppers.

17 100%

90%

80% 51% 51% 59% 76% 40% 60%

70%

60%

50% Female 49% 49% 40% 41% Male 30%

20% 24% 60% 40%

10%

0 Jumia Kaymu Konga Payporte Supermart Other

Surveyed E-commerce Sites Clothes & Accessories Customers by Gender

3.3% 18-24 48.1% 12% 33.9% 2.7% 0%

1.5% 25-34 49.1% 10.2% 36.4% 2.5% 0.3%

0.8% 35-44 43.2% 2.5% 44.8% 8.3% 0.4%

45+ 38.8% 1.3% 40% 8.8% 7.5% 3.8%

0% 20% 40% 60% 80% 100%

Jumia Kaymu Konga Payporte Supermarket Other

Surveyed E-commerce Sites Clothing & Accessories Customers by Age

When considered across age groups, respondents across in the 18-24 and 25-34 age groups prefer Jumia as their online destination for clothes & accessories while those aged 35 and above prefer Konga. For clothing & accessories, Jumia is most popular among respondents in the 25-34 age bracket, Kaymu is more popular in the 18-24 age bracket, and Konga is most popular in the 35-44 age bracket.

18 1%

Less than N25,000 35% 24% 40% 0% 0%

1% N25,000 - N50,000 56% 6% 34% 2% 1%

N50,001 - N100,000 46% 5% 40% 6% 3% 0%

N100,001 - N500,000 44% 8% 39% 6% 2% 1%

N500,001 and Above 43% 4% 41% 7% 4% 1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Jumia Kaymu Konga Payporte Supermarket Other

Surveyed E-commerce Sites Clothing & Accessories Customers by Level of Income

Jumia was the most preferred store with an average of about 45% of customers going to the site for clothes & accessories even when it was filtered across the various income levels. Konga was the second most popular store with an average 38% of customers preferring them for clothes & accessories across all income brackets. Kaymu is most popular amongst those earning less than N25,000 and Payporte and Supermart were found to be most popular amongst those earning above N500,000.

Why Respondents Shop Online? The main driver for e-commerce is the convenience it provides, according to 45% of respondents. More variety on offer and better prices for goods are 2 other factors that are considered after convenience, with these three views providing over 90% of the responses. E-commerce seems to provide a favorable and desirable solution to the needs of shoppers.

8%

8% 25% Ability to Inspect product 21% Cheaper

More Convenient

More Variety

Other

45%

Surveyed E-commerce Customers’ Reasons for Shopping Online

19 The report shows the different reasons the respondents chose the various e-commerce platforms. Most platforms provide convenience as the primary reason, but Kaymu stands out as the e-commerce platform with the reason primarily being for the cheap prices offered. This gives insight to the consumer understanding of the strategies provided by the different e-commerce platforms.

1%

7% 25% 18% Ability to Inspect product

Cheaper Jumia More Convenient More Variety

Other

49%

Ability to Inspect product

Cheaper Kaymu More Convenient

More Variety

Other

20 1%

2% 21% 24% Ability to Inspect product Konga Cheaper More Convenient

More Variety

Other

52%

3% 14% 10%

Ability to Inspect product

18% Cheaper Payporte More Convenient More Variety

Other

55%

1%

26% Ability to Inspect product 30% Cheaper Supermart More Convenient

More Variety 7% Other 36%

Surveyed E-commerce Customers’ Reasons for Shopping Online by Online Store

21 Payment Card Preference

When asked which payment card they preferred, most respondents (70%) chose MasterCard, 21% Visa, 8% Verve Card and 1% UnionPay Card.

21%

Matercard

UnionPay 8% Verve

1% Visa

70%

MasterCard was given the highest rating by respondents, with Verve being rated least.

Mastercard

Visa

Union Pay

Verve 39%

3.8 3.9 4 4.1 4.2 4.3 4.4 4.5

Card Rating

22 8%

Brand Name

33% It Can be used outside the country

Promotions 56% Works well on all platforms

3%

Reason for choosing card type

Majority of respondents (56%) stated the ability of the card to operate well on all platforms influenced their preference for their payment card of choice. The2nd most important factor was the cards ability to be used outside the country as 33% of respondents chose this factor. Promotions and brand name were minor factors considered in their decision-making processes. Other Insight This part of the report gives information on other relevant data gathered from online shopping customers.

27% Mastercard

UnionPay 67% Verve

5% Visa

1%

Use of ATM Card Type for online Shopping

67% of respondents who shopped online stated that they use MasterCard ATM cards, 27% use Visa cards while 5% and 1% use Verve and UnionPay cards respectively. Type of ATM cards used by customers could affect or trigger certain online shopping behaviours.

23 7.1% 7.2% 6.9% 6.9% 6.8% 6.4% 6.6% 5.6% 5.7% 6.0% 5.5% 4.7% 5.4% 4.4% 4.6% 3.4% 4.1% 2.8% UBA FCMB GTbank Ecobank FirstBank Skye Bank Unity Bank Union Bank Wema Bank Access Bank Zenith Bank Stanbic IBTC Fidelity Bank Sterling Bank Heritage Bank Diamond Bank Kkeystone Bank Standard Chartered Bank

Distribution of Online Shoppers by Bank

The chart above depicts the share of customers who stated they shopped online by their respective banks. It reveals customer behavior from the different banks in relation to their online shopping habits. Sterling bank customers had the highest response rate of shopping online with their banks, revealing the habits of these customers are quite different to those of Zenith bank. The profiles of the respondents therefore seem to differ across the banks, suggesting both Zenith and Sterling bank would have different strategies with their customers on e-commerce platforms.

Jumia 29% 11% 60%

Kaymu 31% 14% 3% 52%

Konga 19% 5% 1% 75%

Payporte 46% 10% 44%

Supermarket 39% 18% 47%

Others 28% 36% 36%

0% 20% 40% 60% 80% 100%

Visa Verve UnionPay Mastercard

Use of E-commerce Platforms by ATM Card Type

24 Of those who shop on Jumia, 60% use the MasterCard ATM card. 46% of PayPorte customers use Visa cards, while 36% of those who use other e-commerce platforms use both the MasterCard and Verve cards.

23% 29% 25% 32% 26% 24% 37% 62% 38% 30% 56%

41% 51% 33% 56% 5% 6% 45% 38% 82% 5% 10% 21% 6% 13% Jumia 3% 13% 5% 8% 17% Kaymu 6% 22% Konga 19% 18% 9% 1% Payporte 49% 7% 27% 55% Supermarket 3% 50% 56% 12% 2% 8% 70% 40% 33% 12% Other 47% 56% 3% 46% 25% 30% 28% 15% 26% 32% 34% 4% 2% 24% 9% 1% 1% 9% 12% 16% 7% 5% 8% 1% 9% 10% 9% 9% 9% 2% 5% 5% 6% UBA FCMB GTBank Ecobank FirstBank Skye Bank Unity Bank Union Bank Wema Bank Access Bank Zenith Bank Stanbic IBTC Fidelity Bank Sterling Bank Heritage Bank Diamond Bank Keystone Bank

Distribution of E-commerce Platforms by Bank Standard Chartered Bank

While Jumia and Konga were used by most bank customers, 34% of Ecobank customers who shop online do so on Supermart, 21% of Heritage bank’s online shoppers shop on Kaymu, 15%% of Skye bank’s online shoppers purchase goods on PayPorte, 24% of Standard Chartered’s online shoppers buy goods on Supermart and 46% of Unity bank’s customers also shop on Supermart.

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