Konga has been tipped to break the shopping record of China’s online supermarket, Alibaba, despite the stiff competition from rival, Jumia, which holds the Black Friday record in Nigeria. Alibaba recently smashed its record for the largest single-day shopping sales ever recorded worldwide with a revenue of $38 billion.
The $38 billion sales by Alibaba’s online supermarket was generated on it’s Singles’ Day (November 11, 2019) which is similar to the Black Friday operated by Konga and Jumia. This is a significant growth compared to the $30.8 billion the company generated in its 2018 sales.
Such sales are possible on a single day because a date or period is set aside to slash prices of goods and products, selling at a lower or discount price compared to the initial market price. The Black Friday is a global sales culture among e-commerce companies but Alibaba’s Singles’ Day is the biggest shopping event in the world.
Why Konga is tipped ahead of Jumia
Though the timeframe that it would take Konga to achieve such feat wasn’t stated, the African representative of IEEE-World Forum on Internet of Things (IoTs), Chris Uwaje, projected Konga would be the Nigerian e-commerce company to attain such staggering figure recorded by Alibaba.
“One day – very soon -, Konga will smash the e-commerce biggest day-sale record. If you follow the strides recorded by Konga within the past 18 months, you will agree with me that it’s only a matter of time before Alibaba’s Singles Day sales record is within reach,” Uwaje said in a report by Nigerian Communications Week.
IEEE is the world’s largest technical professional organisation dedicated to advancing technology for the benefit of humanity.
While speaking on the calibre of those managing Konga, Uwaje said, “Konga boasts arguably the best brains in technology in Nigeria, even more than any bank in the country. This is due to its cutting-edge team of engineering talent at its disposal.”
He attributed this to the managerial support and investment of Zinox Group, the ICT company that acquired Konga in 2018.
It’s an (im)possible ambition
Recording such a feat might seem far-fetched but it’s not impossible. However, the e-commerce business in Nigeria is constrained by trust issue, the culture of traditional shopping among Nigerians and limitation as regards shoppers’ locations.
Also, despite the increase in smartphones and internet users, not many are fans of online shopping because it is dragged by disappointing deliveries which don’t reflect what is advertised online. So Nigerians still prefer to visit physical stores or brick and mortar supermarkets that is visible to them. These issues have made the e-commerce business unprofitable in Nigeria despite having a huge untapped customer base.
Also, unlike Alibaba, which is a global e-commerce platform despite being a Chinese online supermarket, Konga’s and Jumia’s customers on Black Fridays are majorly Nigerians. Besides, Konga and Jumia operate separately outside Nigeria. This means other African operations owned by Jumia operate independently from that of Nigeria.
The current eCommerce spending in Nigeria is estimated at $12 billion and is projected to reach $75 billion in revenues per annum by 2025. This means Alibaba made half of Nigeria’s e-commerce future revenue in a single day. So, it’s a herculean task that Konga shouldn’t even worry itself over.
Konga has Jumia to compete with
Both companies run Black Friday sales. According to a report, Jumia’s Black Friday had the highest sales in 2016 compared to that of Konga. Jumia recorded about 295,000 total black Friday sales which accounted for N7 billion sales in Nigeria while for Konga, Nigerian e-commerce recorded N3.5 billion sales on 155,000 orders.
The competition between Konga and Jumia is visible for those who have been tracking the growth of both companies. They both lay claim to being the largest e-commerce business in Nigeria. Though the merger of Yudala and Konga seem to have given Konga a better positioning in the Nigerian market, Jumia takes it in Africa generally.
While figures for the 2017 and 2018 sales are not readily available, the figures in 2019 might be pushed by the high prices in the traditional market. However, looking at the performance of both e-commerce companies in 2016, Konga has a mountain to climb if it is to beat the Alibaba’s record because it’s yet to surpass Jumia. Alibaba will keep dragging the goal post forward. However, if there’s any e-commerce company likely to close the gap, it will be Jumia.
But note that while Alibaba does its own discount price shopping in a day, Konga and Jumia operate about four Black Fridays in a month. So, to achieve the feat by Alibaba, both Jumia and Konga will have to reduce their Black Friday to a day and ridiculously slash their prices.
Trailed by unhealthy rivalry
Apart from competing to become the first profitable e-commerce company in Nigeria, Jumia and Konga have always been at each other’s jugular for years. In order to secure the e-commerce marketplace beyond Nigeria, Jumia’s parent company, Rocket Internet, bought and registered Konga-related domain names in ten countries.
This move by Jumia infuriated Konga, and the latter threatened to take Rocket Internet to court, stating that registering all Konga-related domain names would cripple the company, affecting its expansion plans when the decision to embark comes.
The domain names Jumia bought
- Konga.cd for Cote D’Ivoire
- Konga.cm for Cameroun
- Konga.ly for Libya
- Konga.mu for Mauritius
- Konga.ma for Morocco
- Konga.mw for Malawi
- Konga.sc for Seychelles
- Konga.sh for Saint Helena
- Konga.co.ke for Kenya
- Konga.co.za for South Africa
Shagaya, in a letter in 2014, described the German’s decision as a “Destructive foreign competition in the internet industry.” According to Shagaya in the letter, Rocket Internet had been trying to take down other local startups that operated in the same market where its (Rocket Internet) subsidiaries were operating.
Payroll Support Program: FG pays 101,567 beneficiaries first-month salary
The President announced thousands of beneficiaries received their first monthly payment from our Payroll Support Program.
President Muhammadu Buhari has announced that 101,567 beneficiaries, drawn from 16,253 businesses, received their first monthly payment from the Payroll Support Program yesterday.
This information was disclosed in a tweet by the official Twitter handle of the President.
I am pleased to announce that 101,567 beneficiaries drawn from 16,253 businesses today received their first monthly payment from our Payroll Support Program. The program is a @SurvivalFund_ng Covid-relief initiative to support qualifying MSMEs with staff salaries for 3 months.
— Muhammadu Buhari (@MBuhari) November 18, 2020
The President also disclosed that the program is an initiative by the Federal Government of Nigeria to ensure that Nigerian MSMEs survive, as the Federal Government supports qualifying MSMEs with staff salaries for 3 months.
Why this matters
The stimulus package would go a long way to assist businesses in averting massive job loss or a crash of the business enterprise. The fund is expected to place affected businesses, which are beneficiaries of this fund, on the path of survival and sustainable growth.
What you should know
In July, Nairametrics reported that the Federal Government had announced plans to roll out a N2.3 trillion stimulus package and survival fund for Micro, Small and Medium Enterprises (MSMEs) to stay afloat amid the economic challenges imposed by the pandemic.
The stimulus package, which is under the National Economic Sustainability Plan (NESP), includes payroll support for three months and guaranteed off-take schemes, among others.
A month ago, Nairametrics reported that 70,000 businesses in Nigeria had been shortlisted from the 432,000 businesses that applied for the Payroll Support from the Federal Government’s Survival Fund Grant Scheme.
Development Bank of Nigeria disbursed over N150 billion in 3 years
52% of loans disbursed by Development Bank of Nigeria in 2019 were to youths and women-owned businesses.
Development Bank of Nigeria has disbursed over N150 billion since 2017 through twenty-seven (27) participating financial institutions, impacting close to 100,000 MSMEs through the process.
This is according to a disclosure by the Government of Nigeria, as seen by Nairametrics.
What you should know
A verified tweet by the Government revealed that in 2019, 52% of the loans disbursed by the Development Bank of Nigeria were to youths and women-owned businesses.
#DYK 52% of loans disbursed by @DevBankNG in 2019 were to youths and women-owned businesses. Since 2017, the Bank has disbursed more than N150 billion through 27 Participating Financial Institutions (PFIs), impacting close to 100,000 MSMEs: https://t.co/DD6bn1t8u2
— Government of Nigeria (@NigeriaGov) November 17, 2020
What they are saying
The Government of Nigeria tweeted “#DYK 52% of loans disbursed by @DevBankNG in 2019 were to youths and women-owned businesses. Since 2017, the Bank has disbursed more than N150 billion through 27 Participating Financial Institutions (PFIs), impacting close to 100,000 MSMEs.”
Why it matters
The recent disclosure is in line with the present regime’s drive to diversify the economy and expand opportunities for youths and women, bridging the social exclusion gap, and ensuring prosperity for all.
The efforts by the Development Bank of Nigeria complements other social programmes introduced by the government and targeted towards Youths and Women, such as the Special Grant to Rural Women, Nigeria Youth Investment Fund, National Young Farmers Scheme, amongst others.
FG commences disbursement of N20,000 special grant to rural women
Special grant project will see over 700,000 women empowered with N20,000 each.
The Federal Government has commenced the disbursement of the N20,000 special grant to women in rural areas of Gombe state.
This is according to a verified tweet by the Federal Ministry of Humanitarian Affairs, as seen by Nairametrics.
Recall that Nairametrics had earlier reported the flag-off of the special grant project for rural women, initiated by the Federal Government, which will see over 700,000 women empowered with N20,000 each.
What they are saying
Commenting on the latest development, the verified tweet reads thus:
“MAKE GOOD USE OF THE CASH GRANT”– Umar Faroq tells Rural Women.
“The HM @FMHDSD @Sadiya_faroq has urged rural women in Gombe state to use the one-off cash grant given to them by the federal government to improve the lives of their families.”
MAKE GOOD USE OF THE CASH GRANT- Umar Farouq tells Rural Women.
The HM @FMHDSD @Sadiya_farouq has urged rural women in Gombe state to use the one-off cash grant given to them by the federal government to improve the lives of their families. https://t.co/W2y9x3mzyE pic.twitter.com/ZdGZ3fXhOy
— Federal Ministry of Humanitarian Affairs (@FMHDSD) November 12, 2020
What you should know
The rural women’s programme was introduced in 2020 by the Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development as part of President Muhammadu Buhari’s social inclusion and poverty reduction agenda.
It includes the realization of the national aspiration of lifting 100 million Nigerians out of poverty in 10 years.
The Grant for Rural Women is designed to provide a one-off grant to some of the poorest and most vulnerable women in rural Nigeria.