Currently worth around $13billion (about N4.01trillion), experts in the
Nigerian financial service sector have estimated that Nigeria's e-
commerce market value could rise to $50billion (N15.45trillion) over
the next decade.
A recent report by London based Economist Intelligence Unit (EIU),
identified industry giants, such as Jumia, Konga and Jiji, as leading
the African charge to boost the continent's growth of online,
technology based retail business.
The report, which highlighted countries and metro regions in Africa
with the biggest potential for e-commerce growth, as well as the
trends and developments in the market, also noted that Nigeria's three
main online retailers; Jumia, Jiji and Konga, serve a mass-market
clientele.
The EIU report valued Jumia (a leading online retail platform) at
$1billion; the company operates in 10 other African countries.
Analysts at FBN quest believe the growing appetite for mobile data
usage as well as increased network coverage has increased the
potential of Nigeria's e-commerce market.
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"Based on data from the Nigerian Communications Commission
(NCC), mobile network coverage is currently estimated at 77per cent
on the basis of 185million as the country's population. However,
internet data penetration via GSM is lower, at 50per cent. The
potential impact of a thriving e-commerce market is improved trade
activity as it provides a cost-effective method of connecting producers
and merchants directly to customers, "the analysts stated.
However, the analysts pointed out that the e-commerce industry has
also witnessed reduced patronage due to increased pressure on
household pockets in the current downturn.
They added: "We expect a token return to positive territory for GDP as
a whole this year. Our GDP growth projection for 2017 is 1.6 per cent
year-on-year (y/y). Nevertheless, for e-commerce to attain its full
potential, infrastructural issues as well as e-fraud challenges need to
be tackled."
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The analysts also revealed that Konga now leads the industry
following its expanded operations by launching a groceries segment.
"Konga, its major competitor, has expanded operations by launching a
groceries segment. This is similar to models established in the UK
such as Sainsbury's and Tesco. However, logistics challenges across
the country could threaten the shopping experience as delivery of
products may be delayed."
According to Konga, the e-company has a customer pool of 750,000.
However, there are only 200,000 active customers. The number of
active customers fluctuates with seasonalities. We note that the rural
population accounts for only 10% of its total active customers. This
could be directly correlated to low internet penetration in rural areas as
well as modest income levels, "they added.
The EIU had in its report pointed out that Nigeria's e-commerce giants
have penetrated Nigeria's inner cities and rural areas, serving people
effectively.
For instance, it noted that Jumia is able to deliver to less accessible
places, where sourcing goods from shops or stalls is not as
straightforward.




http://fawoleblog..co.ke/2017/08/currently-worth-around-13billion-about.html?m=1

Lol...you know our people don't have time to wait for ten years