As consumers become more familiar with e-commerce and shopping habits begin to transition to online platforms, especially with the pandemic; companies that understand the consumers and their changing needs/wants and behaviors can greatly succeed
E-commerce as a growing market in Kenya
E-Commerce is a rising market in Kenya that warrants significant attention as the revenue for this year (2022) is expected to reach $3,562 million. Current user penetration is expected to be around 40.3%, but by 2025 this number is set to grow to 53.6%. Understanding consumers' perceptions and usage patterns of these e-commerce platforms can unveil critical insights for companies looking to enter these markets.
Our Kasi Insight tracker Retail in Kenya - Ecommerce Intelligence Survey conducted in June of 2021 amongst 526 respondents, sets out to understand how online shopping performs in the country and how consumers engage with the market. The findings present valuable insights on mobile usage, online shopping platforms, and purchase behaviors, which together support the expected growth of this market.
Kenyans are shopping online, bargain is a must but not at the expense of quality
Following mobile money services, 56% of the respondents reported that online purchases are the second most conducted activity on their smartphones. Over half of the respondents use their smartphones for online shopping as opposed to instant messaging (49%) and entertainment (42%). This was the case across genders and age groups; with only a 3% difference being recorded for online purchases between males and females, while the top 3 activities remained the same across the board amongst different age groups (Baby boomers, Gen X, etc.).
Respondents were clear in showing the importance of quality and pricing when shopping online. 53% of respondents ranked quality as their top consideration when purchasing online, while 45% ranked price as their second most important consideration.
As expected, shopping events (i.e. sales), meet the best of both worlds for Kenyans. Good quality items being sold for cheaper prices hit the spot for our respondents as they eagerly wait for Black Friday sales. 58% have shopped during Black Friday sales and generally searched for clothing items however, noticeable differences follow between genders, with more males searching for electronic items and females for beauty care/cosmetics.
Amongst the big e-commerce platforms, Jumia is the leader
Our findings suggest that Jumia is the crowd favorite with 42% of respondents stating that it is their favorite and/or most used platform. This was a significant lead with the following being 11% for Kilimall, 7% for OLX, and 6% for Alibaba.
Jumia has met the needs and wants of the consumers, providing them with great deals during shopping events. Jumia’s 2021 black Friday event presented insane deals on electronic items such as smartphones due to their partnerships with companies, including but not limited to Huawei, Samsung, and Oppo. And also met the needs of the female shoppers with their partnerships with L'Oréal (Garnier) and other beauty and cosmetics brands. The success of the 2021 sale was notable, with Jumia reporting a 30% growth in the value of goods sold on its platform during black Friday.
E-commerce companies have a significant opportunity to grow in Kenya. While Jumia has the competitive edge at the moment, there is still room for change given the growing market. As consumers become more familiar with e-commerce and shopping habits begin to transition more to these online platforms especially with the pandemic; companies that understand the consumers and their changing needs/wants and behaviors can succeed greatly.
Our data intelligence platform can help you track these trends in consumer behaviors in Africa over time. This provides you with valuable insights that can help you or your business make fast data-driven decisions.
Contact our team today to explore how our consumer intelligence can empower your decision-making process. Win with confidence with Kasi insights https://www.kasiinsight.com/thehub
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