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Is Mocality Really Closing Down? Why? - Business - Nairaland

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Is Mocality Really Closing Down? Why? by smartmom(f): 9:20pm On Feb 15, 2013
I am wondering if its a hacker's job on their site or if Mocality is really closing down as posted on their website. Can someone pls confirm? Why are they unable to survive in the market?

Mocality has achieved some incredible things over the last four years, and has touched the lives of many people in Africa, but alas, all good things must come to an end.

All of the Mocality Kenya and Mocality Nigeria operations will be closed on the 28th February 2013.

We would like to thank all of our Customers and Business owners for your patronage and support over this time. We would also like to thank all of our Agents, Suppliers, Staff and die hard Fans for your enthusiasm, drive and dedication that made Mocality into what it was.


Business Owners:

Please log into the system between now and the 28th to retrieve any data that you may require from the system, as the system will no longer be available after the 28th February 2013. All paid for services that should have been rendered after that date (including advertising space and the like), will be refunded in full, and you will be contacted about that refund individually if it applies to you.


Deals Customers that have purchased from us:

Of course, the fact that our site and related services is shutting down does not affect any coupons you may have purchased via our site. Coupons remain valid until they either expire or are redeemed in full by you at the relevant merchant. However, please log into the system between now and the 28th to retrieve any coupons or information that you may need as Mocality Deals will not be available after the 28th February 2013.
If you are due a refund for any reason, you will be contacted individually to facilitate that refund.

Please direct any queries to support@mocality.com.ng
Goodbye & THANK YOU

FROM TEAM MOCALITY

http://blog.mocality.com.ng/2013/02/15/closure-of-mocality-on-28th-february-2013/
Re: Is Mocality Really Closing Down? Why? by souleymon(m): 6:01am On Feb 16, 2013
Yes they are
28th Feb 2013
they cease to exisit online n offline
Re: Is Mocality Really Closing Down? Why? by Nobody: 7:24am On Feb 16, 2013
Yes they are but sadly so. The Nigerian market is not yet ready for an online business directory as such. Internet penetration in Nigeria is still far too low to sustain such a business.

1 Like

Re: Is Mocality Really Closing Down? Why? by naijacutee(f): 8:47am On Feb 16, 2013
Yes, I got an an e-mail stating that as well.

Brand_new: Yes they are but sadly so. The Nigerian market is not yet ready for an online business directory as such. Internet penetration in Nigeria is still far too low to sustain such a business.

Do you really think internet penetration is the problem? If so, how are sites like Jumia, Konga and Dealdey able to survive if this is the issue? How is @Gidi-Traffic able to gain such great recognition time and time again?
Re: Is Mocality Really Closing Down? Why? by Seun(m): 8:59am On Feb 16, 2013
I think the market may have been too small to support their cost structure. "Overhead walks on two legs".

1 Like 1 Share

Re: Is Mocality Really Closing Down? Why? by DualCore1: 9:04am On Feb 16, 2013
It wasn't built with just the passion, it was built with people's funding.

When something is built with passion, it takes time to watch it grow and you don't mind if it doesn't start making you any real money in the first 2-3 years. On the other hand when something is built with funding, the aim is profit from the start. So when you can't realize that aim you come under pressure from those funding your project to kill the business as they don't see any profits coming in.

4 Likes

Re: Is Mocality Really Closing Down? Why? by naijacutee(f): 9:04am On Feb 16, 2013
Seun: I think the market may have been too small to support their cost structure. "Overhead walks on two legs".

As a web company with a limited physical presence (if I presume correctly), how can their overheads in a country where the cost of living is relatively low, possibly swallow up their strategy? I still don't get it.



Dual Core: It wasn't built with just the passion, it was built with people's funding.

When something is built with passion, it takes time to watch it grow and you don't mind if it doesn't start making you any real money in the first 2-3 years. On the other hand when something is built with funding, the aim is profit from the start. So when you can't realize that aim you come under pressure from those funding your project to kill the business as they don't see any profits coming in.

I see what you mean about their vision/strategy being to blame, but is this fact or is it a presumption?
Re: Is Mocality Really Closing Down? Why? by ifyalways(f): 9:05am On Feb 16, 2013
That's sad.
I've got really cool deals from them.
Re: Is Mocality Really Closing Down? Why? by bigx(m): 9:05am On Feb 16, 2013
The Business model they are all copying, Groupon is not a viable one, so they'd all just go the same way with it

1 Like

Re: Is Mocality Really Closing Down? Why? by Delorwah(m): 9:05am On Feb 16, 2013
Duno, i jez want to comment..
Re: Is Mocality Really Closing Down? Why? by naijacutee(f): 9:07am On Feb 16, 2013
bigx: The Business model they are all copying, Groupon is not a viable one, so they'd all just go the same way with it

But Dealdey is copying Groupon too... are they at risk?
Re: Is Mocality Really Closing Down? Why? by Tinyemeka(m): 9:09am On Feb 16, 2013
I'm not being sarcastic. I never knew what mocality was until now (after checking it up on Google).

Bottomline: They didn't do sufficient advertising.

3 Likes

Re: Is Mocality Really Closing Down? Why? by egift(m): 9:10am On Feb 16, 2013
Sad they are closing.

But if they are interested, I will like to buy it Domain Name only.

Am waiting if they are interested. 08097876284
Re: Is Mocality Really Closing Down? Why? by vicade(m): 9:17am On Feb 16, 2013
Its sad Mocality is gone and I hope Deal Dey won't be next.

Lowering overheads is the only way. I once asked a friend why an online business would like to have a mansion office in Lekki ?

Why not have a 2 room office in Lekki for customer facing activities and have the mansion office/warehouse in Ikorodu/Sango or some where else cheaper ?

Konga and Jumia also had some serious funding but I doubt they will survive if their overheads are high and advert costs continue to spiral without increasing patronage. Same with Jobberman.

All in All,Internet penetration is quite low in Naija.You can force us to sign up, you can't force us to use your service. How many of Nairalands 1,000,000 signed up users are unique and how many of them are active ?

Watch out for the Mobile Money Market. Its gonna crash very very soon.

3 Likes

Re: Is Mocality Really Closing Down? Why? by Nobody: 9:29am On Feb 16, 2013
Sad one, one less competitor.
Re: Is Mocality Really Closing Down? Why? by infolpf: 9:42am On Feb 16, 2013
naijacutee:

As a web company with a limited physical presence (if I presume correctly), how can their overheads in a country where the cost of living is relatively low, possibly swallow up their strategy? I still don't get it.


Cost of living has relatively little to do with it, actually. Perhaps only to the extent that certain business inputs, such as human resources, would be low cost. Any business thrives or dies based on revenue. Most internet business models still have not grasped the concept of revenue generation. It has to be sufficient revenue to sustain the business, and even turn a profit for the investors! After the first, even second, round of funding has been depleted, how do you "keep the lights on"?

Groupon and DealDey, I would hope, generate revenue primarily from fees and advertising. Whether or not it is sufficient revenue remains to be seen. I would not be surprised if there is also a sourcing / retail logistics element on the back end also.
Re: Is Mocality Really Closing Down? Why? by bros12345: 9:51am On Feb 16, 2013
they are closin on 28th. Pope wil resign on 28th. Are they connected?
Re: Is Mocality Really Closing Down? Why? by bigx(m): 9:55am On Feb 16, 2013
naijacutee:

But Dealdey is copying Groupon too... are they at risk?

Very much, a lot of factors militate against that business model like inbox weariness also a typical business owner would want to maximize profit not minimize it, and the daily deals structure doesn't benefit the average business, it attracts bargain/price hunters not loyal & repeat customers.
Re: Is Mocality Really Closing Down? Why? by bigx(m): 9:57am On Feb 16, 2013
[quote author=naijacutee]As a web company with a limited physical presence (if I presume correctly), how can their overheads in a country where the cost of living is relatively low, possibly swallow up their strategy? I still don't get it.

A daily deal website needs a ground crew to canvass companies for deals, I think I remember when they came out that they where looking for agents in various parts of the country, that's major running costs.

1 Like

Re: Is Mocality Really Closing Down? Why? by zenatta: 10:10am On Feb 16, 2013
Tinyemeka: .

Bottomline: They didn't do sufficient advertising.

Oh they did...thank goodness you were spared the sight of sad looking,seemingly reluctant boys who held up banners for them in Ikeja.

1 Like

Re: Is Mocality Really Closing Down? Why? by chinnyonwu(m): 10:17am On Feb 16, 2013
What are these geeks talkin about? What are the geeks talkin about?
Re: Is Mocality Really Closing Down? Why? by Gombs(m): 10:25am On Feb 16, 2013
...Never heard of em....I hope dey reconsider sha!
Re: Is Mocality Really Closing Down? Why? by Nobody: 11:10am On Feb 16, 2013
naijacutee:
Do you really think internet penetration is the problem? If so, how are sites like Jumia, Konga and Dealdey able to survive if this is the issue? How is @Gidi-Traffic able to gain such great recognition time and time again?
I think Dual core gave a more implicit explanation.
The said coy spends a sh*t load on advertising and they target the wrong medium. Imagine spending millions of Naira Advertising on Lag buses. How many Nigerians would have the time to respond to such ad's in a country where internet accessibility is still very poor.

They probably would have done better if they did most of their advertising online.
Maybe sensitisation programs and workshops would have done them a little more good just the way GNBO did theirs.
I think the company shot themselves in the foot by adopting a wrong business strategy eventhough their business model is still very viable.

1 Like

Re: Is Mocality Really Closing Down? Why? by AZeD1(m): 11:35am On Feb 16, 2013
Brand_new:
I think Dual core gave a more implicit explanation.
The said coy spends a sh*t load on advertising and they target the wrong medium. Imagine spending millions of Naira Advertising on Lag buses. How many Nigerians would have the time to respond to such ad's in a country where internet accessibility is still very poor.

They probably would have done better if they did most of their advertising online.
Maybe sensitisation programs and workshops would have done them a little more good just the way GNBO did theirs.
I think the company shot themselves in the foot by adopting a wrong business strategy eventhough their business model is still very viable.
I'm with you bro. I think the company wanted to run before learning to crawl. Nigeria is not ready for large scale online businesses such as Amazon and Ebay
Re: Is Mocality Really Closing Down? Why? by damola1: 11:36am On Feb 16, 2013
Overhead cost and ads cost are the 2 main factors.
Re: Is Mocality Really Closing Down? Why? by naijacutee(f): 11:39am On Feb 16, 2013
Brand_new:
I think Dual core gave a more implicit explanation.
The said coy spends a sh*t load on advertising and they target the wrong medium. Imagine spending millions of Naira Advertising on Lag buses. How many Nigerians would have the time to respond to such ad's in a country where internet accessibility is still very poor.

They probably would have done better if they did most of their advertising online.
Maybe sensitisation programs and workshops would have done them a little more good just the way GNBO did theirs.
I think the company shot themselves in the foot by adopting a wrong business strategy eventhough their business model is still very viable.

Very insightful!
Re: Is Mocality Really Closing Down? Why? by egift(m): 11:44am On Feb 16, 2013
Are they selling the Domain Name - Am will to buy. (Domain only)
Re: Is Mocality Really Closing Down? Why? by Dream1: 11:57am On Feb 16, 2013
The reason Dealdey works very well is because it is owned by E-motion. A major player in the Nigerian advertising market. They control about 40% of physical ad space on the island. This gives them an avenue to use some of that to their advantage. They also had to work up to where they have reached thus far. The first ad i ran with them, they demanded only about 10-15% commission. Now, they want almost 50% cos they now control that market. Dealdey also do a lot of online ads which targets the right people i.e people that already have internet access. I still doubt very must that Dealdey are making a massive profit but they will be able to survive based on their Sister company's strengths.
Re: Is Mocality Really Closing Down? Why? by remmyz(m): 12:25pm On Feb 16, 2013
naijacutee: Yes, I got an an e-mail stating that as well.



Do you really think internet penetration is the problem? If so, how are sites like Jumia, Konga and Dealdey able to survive if this is the issue? How is @Gidi-Traffic able to gain such great recognition time and time again?

Dnt forget that konga, jumia and the likes are still very young compared to mocality. i think what brought down mocality was that they were dolling out money before making profits and they dnt have a good business model. you cn imagine them paying btw 70 naira and 150 naira to people for registering a verified business.

In 2 years time, if kinga and jumia still stay afloat, then i will believe Nigerians are ready for online business else........

1 Like

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