Competition pushes businesses to incorporate digital market

The digital market is continuing to gain momentum in the country creating an upturn in E-commerce enterprises across the board altering not just the retail market but also business in general.

Online retail is a vast and thriving industry at the moment the question however is if e-commerce in Kenya is still at its formative years, why should be holding conversations on retail disruption? In this day and age everything from clothing, electronics and even food has gone online.

The growing middle class coupled with the need to shop conveniently is pushing the buyers to seek for outlets where they can buy genuine products at their own convenience without much struggle.

Statistics shared by Communications Authority of Kenya show that the e-commerce market in Kenya was worth around Ksh.4.3 billion in 2014. The internet penetration of 82.6% and 35.5 million users depicts Kenya as one of the African countries best placed for digital commerce growth this is backed up with the fact that approximately Sh3billion in mobile transactions occur in the country each day.

Last month Brett King, the co-founder and CEO of Moven, a New York-based mobile banking, pointed out that many businesses are likely to fail and cease to exist by 2023 if they don’t embrace the changing markets trends.

This therefore makes it inevitable for online retail trends to be observed in order to keep up with this diverse market.

It is important to note that those who shop via their mobile phones spend approximately sixty six percent more than those who shop directly at the store these are the kind of trends that as a retailer you should keep up with.

According to smart insights half of all retail spending customers 2 billion of those customers are millennials and working towards gaining them as part of your target audience could improve your prospects.

Most digital transactions in Kenya are assumed to take place via smart phones. The mobile experience in the country continues to improve with most Kenyans who were once barred from the formal banking system finding a safe way to get goods and services through their mobile phones. With the stabilizing of convenient payment methods such as M-pesa, Pesa pal and many others continue to cement the fact the online shopping is taking shape within the country.

You can note that so many people are opting to purchase items from the comfort of their homes because of the convenience it provides. The online platform is not without flaws because various factors such as shipping details, extra charges are to be considered but there are ways to work around the said flaws.

However with the uptake of the e-commerce market what does this spell out for the physical shops? They should incorporate an online platform to compliment their physical address because in as much as the online market is creating its niche once in a while people like to go into shops and get what they are looking for. In lieu of this manufacturers and distributors should start watching closely and see if battling for shelf space in stores will still be relevant in an approximated time frame of 10 years. It is hard to state that we can predict the future but as the current trends continue to emerge we will be able to see where the shopping industry headed.

In an important factor or us to note is that Kenya’s e-commerce market is in a position to reflect major growth as time elapses. This projected growth is due to the expansion of mobile internet performance and as people continue to adapt to the endless possibilities presented through digital transactions.

 

 

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