e commerce opportunities in frontier markets.v4
TRANSCRIPT
Drivers behind the Emergences of Sub-Saharan Africa’s Emerging Markets
KENYA
SA
CHINA UAE
MOZAMBIQUE
Analysing - Options
| The BIG Question:
A. Is it better to have a larger market-share in a smaller country?
I. Is it better to have a generic market or niche?
II. How niche is your market going to be?
| Background:
Zambia, Mozambique, East Africa, W.Africa – Sierra Leone, Europe, SA
& Moz.
• Missions & Social Work
• 2009 - Founded Change the World Trust
• 2013 – Thesis on eComm
• Oct 2014 - Founded Compra.co.mz
# If you build something meaningful, the result will
always be the same.
| A Story
Why? • Pro-active market - Ready in two years.
• Start-up in eCommerce in Southern Africa.
• Booming – Mozambique was well on it’s way to becoming the most attractive investment destination in Africa
| The market bottomed out;
• Political unrest,
• Kidnappings,
• Major scandals,
• War & refugees,
• Economic crises,
• Donor funds frozen,
• Human rights abuses & assassinations,
• Major inflation,
• Cost of living sky-rocketing .
• Some investors froze until 2017.
• Oil & Gas investments delayed
| Practical Examples of Unexpected
Events • 2015 – Market fluctuations
• Sometimes weekly changes in prices
• Vendors unable to supply updates efficiently and us unable to efficiently upload modifications – Resultant unhappy clients.
• 2016 – Worsening market conditions result in massive decline in retail.
• Vendors reducing stock.
• Price uncertainty.
| WHAT CHANGED IN 1 YEAR?
• Lower valuation
• Harder fundraising
• Harder market
• Smaller market
• More price pressure.
• Higher pressure to break-even sooner.
| What this meant for us?
• Break-even sooner – Less sexy – More basics.
• Monetise alternative business services
• Cost saving
• Exploring NEW Categories
• Innovate – How are we doing that?
| Lessons - IDEOLOGY
• Merge
– with the Status quo. Compromise.
• Listen,
– Clients, suppliers & observers.
• Expect
– To be wrong.
| Lessons - PRACTICALLY
• Leverage partners.
• Handful of clients.
– Get a handful of clients before you begin.
• Don’t be afraid of adapting to local appetite,…
– Even if it is not pure ecommerce.
| Example 1 : JUMIA & COD
• Essentially turning the platform into an ordering service and NOT a purchasing one.
• Thereby reducing efficiency and cost-savings but increasing sales.
Learning:
If you want to succeed, it may mean a hybrid business and not pure ecommerce.
| Example 2: Online Liquor Retailer
• Has shop & warehouse
• Does deliveries 24 hours
• Has telephone operators telling clients that they are the Director to gain trust and buy-in.
| Example 3: Classifieds Engagement
MOBO Free - Classifieds in Sub-Saharan Africa
• Hired youth in schools to promote the “Forum” feature as a way to increase engagement on the platform, boost SEO and grow market.