Despite the rapid growth in e-commerce, Nigeria is still far behind in terms of revenue generation and integration of online shopping culture, compared to other markets such as the United States and Japan, an expert has said.
Speaking at a Harvard Business School (HBS) Alumni meeting held in Lagos at the weekend, the Chief Financial Officer at Konga, Shola Adekoya, said the e-commerce sector was still at a very early stage of growth in Nigeria.
E-commerce is still at the very early stage, he said, adding ,we are far behind a lot of countries. There are still a lot of brick and mortar stores around.”
According to reports, the sector had been projected to worth $13 billion by 2018. Currently, the leading online stores achieve about $2 million worth of transactions per week.
Earlier, at the meeting, which was supported by First City Monument Bank (FCMB), a senior lecturer at Havard, Jose Alvarez, had given a presentation titled: “Retailing Revolution: Will Your Brick And Mortar Store Survive.
According to Alvarez, the online revolution was irreversible, adding that physical stores would continue to struggle to break-even. He said surviving the digital onslaught, however, will determine how physical retailers can effectively use the key assets – technology, inventory, people, space – of their business and maximise returns.
He also detailed the sleek dynamism of online retailers like Amazon, and how they were able to operate on a lower operating cost base and capital, compared to physical retailers who, usually, find it complex to adjust to seismic changes in the ecosystem.
The Chief Executive Officer (CEO) of FCMB, Mr. Ladi Balogun, who also doubles as the President of the HBS Alumni Association in Nigeria, said his bank’s involvement with the event was geared towards promoting learning and its expectations in Nigeria; to make sure that we can support, not only our customers, but the broader business community; to improve their knowledge and skills in running businesses.
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