Detailed reply. Thanks for the lecture.
Why do I think this sub was for us in TC Radar?
By the way, lots of yada yada and blah blah with no solid facts or actual numbers to make sense of the mumbo jumbo he wrote
And just when i thought they or he would explain their Business Development Strategy, this wan went to type this thing?.
Well, this is how things go bad, when people cant swallow criticisms, who cares about whether he had a cushy job in the UK, others did so wats new?.
Who doesnt know E-commerce is a long term game?, Investors know thats why they put money in it no? But you give them a YOY growth report that gives them confidence, the issue we have seen is that the mindset, culture, drive, operations isnt like a Startup, everyone is cushy and relaxed, hence if they were thinking like a Growing company would, then we would have seen a leaner more aggressive marketing structure ( more geared to offline, less billboards, less emails and more focused on partnerships and strategic partnerships like malls), leaner and financial operations and more foward focus for customer service.
But well, i would like to see the so called numbers he claimed.
Again, this country has been facing economic crunch but if we can give Shoprite 400 million dollars in 2015 alone, i see no reason we cant do same for Konga meaning they might need to open a Large store.
Offline conversion to online is quite slow and gradual hence if you cant increase your marketing staff with a Marketing programme.
The Basic Law of Customer Acquisition is : Provide Value for Customers and be where they will be.
Nigerians care about price and speed, if they cant match those 2 then they better rethink their strategy not this verbose diarrhoea i just read.
kinda sums up radar, I should frame up this comment on my wall.
He he, all na opinion. That some haven’t sold meat pie before can’t be proved.
Thanks for the numbers @Freshboi_Ekundayo, I believe this is the insight behind Yudala’s crushing numbers. Someone already said they have 1million customers, compared with Konga’s 184k.
I used to be in real estate and while doing research for my ex-employer, I came across a publication - I think BusinessDay - that talked about the numbers for ShopRite within 18months of launching in Ikeja. It was massive.
So, is it safe to conclude that the online + offline marriage is the best eCommerce experience?
For Now…Absolutely.
From phillips consulting they classify only 36 million middle income Nigerians online( Those who earn above 100,000 and have great access to the internet).
NBS says 60 million middle income families in Nigeria as at Q1 2016.
NCC says at least 90 million internet users and 110 million mobile numbers connected growing at over 25% monthly.
CBN has 28 million BVN Numbers in its Database as at Q1 2016…
From this numbers your addressable market may range to from 30- 60 million middle income earners and say less than 10 million online willing to shop and this numbers are also shared by your competition who are now so many in niche and fragmented products eating your marketshare BUT you have a whopping 100 million people yet to be untapped( not willing to shop online, not connected to the internet, hyperlocal, illiterate, used to offline lifestyle) meaning they are OFFLINE.
So i suggest they learn from Even Amazon who are going offline to get people online and Target.
Build a Mega Store where people can go shopping, they buy directly n can ship to their homes by dashboards at the store even by offering Same Day delivery or can cash out and get better discounts online.
From Shoprites Annual report 400 million dollars from Nigeria alone is an amount that i would not glance over, hence they would need to hire Strong and i mean Strong Retail Managers to manage the business poaching from Walmart and others if need be to set up say a Konga Retail Group.
But well what do i know…
Post has been removed from LinkedIn.
I think the PR dept or one of the Kinnevik guys on the board cautioned him.
Probably Kinnevick but the internet remembers
Yeah i know…and once dey enter like the 800 pound gorilla its gonna be interesting.
Reminded me of one Jason. There was nothing to defend. The numbers are the numbers and running business is not beans.
“Experts” and “Non-experts” including those who know so much as nothing in business will have their say, I.e. Commentaries.
The fundamental flaw is for any analyst to compare Konga or any other Nigerian business with others not operating in Nigeria. The fundamentals are very different and so not worth the comparison.
Having said that, Shola should have resisted the ‘baits’ to ‘holla’ back. Sorry I couldn’t resist the pun.
TIL Shola = Trump
Pun intended.
We would all be successful in business if we just remembered this 24/7. Business isn’t personal, subjective or fluffy…“The numbers are the numbers”
That right there is the key to running a soulless corporation.
I think your response was a bit extreme. In case you don’t know, focusing on the numbers can drive you to make soulful decisions that are beneficial for the customers and staff alike, but not vice versa.
A company that focuses on numbers with no soul is more likely to succeed than a company that focuses on soul and no numbers.
Obviously we don’t want cold companies, but sales are the truth and the numbers are the numbers. Who Soul epp with no cash in the bank?
When you invest or use your hard earned money to buy shares, you don’t think about the soul, your priority is the numbers, everything comes after that. That is my point.