State of Digital in Nigeria
E-commerce
Terragon 2015 - Quarter 1
Nigeria
182, 798, 429
81, 000, 000
Total Population
Total Mobile
Internet Users
140, 275, 599
Total Mobile Subscribers
Source:
Population: worldometers.info, April, 2015
Web: vanguardngr, 2014
Mobile: bizwatchnigeria, April, 2015
Source:
Internet Users: NCC, Feb, 2015
Active social accounts: wearesocialsg, Jan,
2015
83,362,814
Internet Users
13.6 Million
Active Social
Media Accounts
143,057,234
Mobile Connections
12.4 Million
Active Mobile
Social Accounts
Source:
NCC, Feb, 2015
Mobile Internet Users
153,434
83,209,380
CDMA Networks
GSM Networks
NCC Internet Subscribers Data
MTN
39,278,019
Globacom
18,184,587
Airtel
15,894,061
Etisalat
9,852,713
Source:
NCC, February 2015.
E-commerce in Nigeria
E-commerce in Nigeria commenced with:
in 2012. Other ecommerce sites are Kaymu.com, Gloo.com, Supermart NG, olx.com and others.
Source:
Terragon Insight 2015
Top E-commerce sites & Ranking on Alexa
6
8
17
34
553
986
Prime Advertising Channel To A Highly-Targeted Audience
Source:
Alexa.com
E-commerce Trends in Nigeria
From e-commerce to
social commerce: Ecommerce sites
integrate social media
platforms for more
visibility.
Multiple touch-points:
Brands employ
multiple touch-points
where they can reach
their target audience.
I-Consumer: Mobile +
connected: The
proliferation of smart
phones has made
mobile the number
one device used for
online shopping.
Reverse Showrooming:
Nigerians compare
prices in brick and
mortar stores before
buying online
Source:
Punchng.com, July, 2014
About
6% of Nigerian netizens are not clear on what
ONLINE SHOPPING IS
Close to
23% of Nigerians
have never visited an online store
55%
About
of Nigerian
netizens buy products online
once a
month
at least,
Jumia, Konga and Kaymu are the most visited online stores in Nigeria
Others
Kaymu
Konga
Jumia
40.30%
15.90%
51.40%
68.30%
48%
Over
of Nigeria netizens say they have bought
something after seeing it being advertised online
72% of Nigerians netizens visit online stores to compare prizes or
discover their latest stocks
Price and payment method are the most considered aspects by respondents
before making a purchase online.
Picture of Product
9.30%
Types & Features of Product
12.90%
Convenience of Shopping online
Privacy of Buying
Payment Method
Price
10.70%
5.30%
28.70%
30.40%
Computers & Mobile Devices are the most purchased products online
Others
Fashion & Accessories
3%
27%
Computers & Mobile Devices
Home & Office Appliances
49.10%
20.90%
17.40%
46.2% of online shoppers are
46.20%
generally satisfied with purchases
made online
36.40%
Yes
Sometimes
Never
Smart phone is the number
one device used for online
shopping
Smart Phones: 76%
Tabs: 8.6%
Computers: 15.4%
8%
61% of Nigerian netizens are happy with
30.40%
61.60%
their online shopping experience
Yes, Very Happy
Fair, it could be better
No
Insights
• The adoption of smart phones has increased visits to e-commerce sites but patronage is still
minimal. This maybe partly because a large percentage of Nigerians are not well informed about
online shopping and they nurse uninformed perception about dangers attached to online
shopping.
• Nigerians are afraid of carrying out transactions online. As much as payment on delivery is
available, some Nigerians are not ready to adopt online shopping, they will rather walk into a
brick and mortar store to make purchase.
• As much as respondents understand what online shopping is, they have refused to adopt it as a
major channel for buying the products they need.
• Smart phone is the number one device used in making purchases online. Shoppers prefer using
smart phones over tablets and desktop computers. According to the respondents, smartphones
is the most purchased item on e-commerce sites in Nigeria.
Recommendations
• E-commerce sites should run integrated campaigns that would reflect its online and offline
benefits.
• E-commerce sites needs to get more personal with online shoppers. The only time e-commerce
site representatives call online shoppers is when they are about to complete a purchase.
• 90% of e-commerce Ads should be target at mobile phones.
• Finally, other creative and strategic ideas that will increase adoption of online stores, like creating
free internet shopping zones and employing e-commerce trends like:
•
•
•
•
Segmentation and Targeting should be employed to identify best customers.
Introduce cutting edge mobile payment methods like Apple Pay in Nigeria.
Create content that gets eyeballs and build loyal customers.
Adopt great storytelling in e-commerce .
APPENDIX
Overview of Respondents
% of Respondents
72.2%
25.2%
2.6%
Male
Female
Others: 2.6%
Most of the respondents are between
18 and 24, followed by 25-
Below 18
8.4%
18 – 24
25 – 35
36 – 50
0.9%
33.8%
8.5%
48.4%
35. Other respondents are, below 18, 36 – 50 and 50 and above.
50 and Above
Questionnaires were administered electronically via Twinpine mobile
Ad network over two weeks on high traffic mobile sites.
The purpose of the survey is to measure the adoption of retail
shopping in Nigeria as well the perception of netizens towards online
shopping.
Terragon also wanted to deduce the devices shoppers used
whenever they are shopping online.
We placed banners on high traffic mobile sites. Whenever users
clicked on the banner, they will land on the questionnaire page,
answer the questions and submit the form.
Online stores and E-commerce was used interchangeably to conduct
the survey