A report by Swedish investment firm Kinnevik AB on its investments in E-commerce startup Konga, revealed that even though Nigeria boasts a population of 180 million, Konga has just 184,000 active customers.
Is the market big enough to sustain an e-commerce business? Take a look at the thread below.
This is really sobering stuff. In a country of 180m people, Konga has only managed 184,000 active customers pic.twitter.com/sV6BiLvCyn
— tyro (@DoubleEph) July 27, 2016
After 4 years, so that's adding 45,000 per year. Sears was doing 100,000 orders per day in 1901 in America when their population was 70m 🙁
— tyro (@DoubleEph) July 27, 2016
Please let's not over-intellectualise this thing. (Trust, COD, systems etc) Sometimes there isn't an actual market for a service.
— gidimeister (@gidimeister) July 27, 2016
I think that's the big problem. We never get money 🙁
— Allen (@oged07) July 27, 2016
the customer segment is fundamentally middle class. If your mc is rel small and/or shrinking, you have a massive problem.
— gidimeister (@gidimeister) July 27, 2016
Saw this tweet about the number of people earning 200K/month, afraid catch me na. thought I was grounded in reality
— Allen (@oged07) July 27, 2016
You are saying exactly what Andrew said.
— gidimeister (@gidimeister) July 27, 2016
abeg let us fashi. This is a poor country. We still need yeast in our Africa rising story.
— gidimeister (@gidimeister) July 27, 2016
Based on the fact that only 0.5% of Nigeria’s population (1,000,000 people) earn N200,000 a month and above, and the minimum wage is N18,000 a month, how many E-commerce businesses can thrive in this environment, particularly in a time of recession? Time to face reality perhaps.
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