Growth of E-Commerce Gives Rise to Sophisticated African Digital Consumer

 

After scouring the store for a new pair of sneakers, Paballo Molahlehi finally lands on the one that catches her attention. She stares at it excitedly, swooning over the fresh pair of purple Reeboks. “It’s precisely the one I was looking for, I knew I was going to find it here” she nods as she adds the shoes to her shopping basket. Thrilled with her latest addition to her growing sneaker collection, she navigates her way to the pay point. Molahlehi is doing all this while reclining comfortably on her couch, enjoying the convenience of online shopping. “I stopped going in-store after discovering online shopping. It makes more sense because my purchases get delivered to me for free, and I usually get discounts.”

Molahlehi is among Africa’s growing middle class who have money to spend and whose shopping habits have changed. With the surge of internet penetration on the continent, many Africans are easing into the habit of shopping online. According to a McKinsey’s Lions go digital report, online shopping could account for up to 10% of retails sales (with a value of around US $75 billion) by 2025, as more Africans gain access to the internet.

The increasing access to the internet is seeing a rapid emergence of e-commerce sites eager to tap into the continent’s growing online consumerism. The likes of Nigeria, Kenya, and South Africa are at the forefront of this evolution. Companies such as Jumia, a Lagos-based online retailer, are dipping their finger in almost all major markets on the continent, cutting themselves an enviable piece of every pie. Jumia is also among Africa’s best-funded e-commerce sites, having raised US $150 million in funding in 2014.

As more people take to the internet to do their shopping, the demand for devices such as smartphones also increases. The 2017 Accenture Digital Consumer Survey finds that in countries such as South Africa, smartphone acquisition increased from 52% in 2016 and 63% in 2017. Some of the more technologically advanced nations like Kenya and Nigeria boast a smartphone uptake of more than 44% and 30% respectively. Across the continent, the number of smartphone users saw a nearly twofold increase, reaching more than 226 million. This spike in smartphone penetration is steering a digital revolution on the continent, exposing users to the endless opportunities the internet provides.

Click through the below slideshow for a look at some of the top e-commerce platforms in Africa that are reaping the benefits of the booming internet penetration on the continent.

Created using Visme. An easy-to-use Infographic Maker.

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