E-Business
Konga Has Grown 8 Times Over, Prince Ekeh Tells CNN
Konga, Nigeria’s foremost e-commerce giant, has made significant strides which have positioned it as the clear leader in Nigeria’s highly competitive e-commerce market. The foregoing was disclosed by Prince Nnamdi Ekeh, co-chief executive officer of Konga, in a chat with Cable News Network (CNN), global news medium, last week.
Prince Ekeh was speaking to CNN Marketplace Africa on the sidelines of the first Creative Africa Exchange weekend held in Kigali, Rwanda from the 16th-18th January 2020.
The Konga CEO was one of the speakers at the event which brought together over 1500 participants from 68 countries and over 250 exhibitors.
He disclosed that Konga’s omni-channel structure which sees it taking a percentage of the retail outlay in the online (formal) and offline (informal sector), self-owned tech-driven logistics solution, Kxpress through which it handles deliveries to customers as well as external parties, state-of-the-art regional warehousing facilities which enables it retain inventory in diverse states and locations in Nigeria as well as sound knowledge of the Nigerian business terrain are factors that have placed the company in front.
‘‘Konga is best positioned as the leader in the Nigerian e-commerce market. We are not just an e-commerce company but we run an omni-channel model with over 30 physical stores spread across Nigeria. So, we are closest to the people. Also, we are seeing huge growth in the business and in our customer base. Between last year and this year, the business grew by almost eight times,’’ he enthused.
Equally important, the Harvard alumnus based the foregoing on Konga’s strategic business ideals. Prince Ekeh affirms that the company is run efficiently and with transparency and integrity.
‘‘The key is growing your revenue while being able to manage your costs. That is the only way for sustainable growth. In the last year, we have been able to grow revenue by eight times but we have also been able to reduce our costs by 65%. That is quite huge.’’
Sharing his thoughts on how Konga is creatively resolving the challenge of logistics which has hobbled other players in the market, Prince Ekeh noted that the company had relied on its deep understanding of the Nigerian terrain – a factor which he emphasized has distinguished Konga in the marketplace.
‘‘The starting point for us was identifying the problem. There is a huge problem in Nigeria where the informal market is so huge, so massive; in fact, almost 98% of the market. This means that people don’t have access to quality products; they don’t have access to quality after-sales services.
‘‘So, we identified this problem when we came into the market. What we hold ourselves on is integrity and making sure that we are supplying quality products and as quickly as possible. We had to look internally and invest in a logistics platform for ourselves. So, we built a logistics platform working with franchisees in local areas. If you understand the dynamics of local villages in Nigeria, most people know each other. As long as we had the name and the phone number of the person who requires the product, someone in the local village knows that person. So we partnered with local people and empowered them to deliver to the last mile for us.
‘‘Today, we have built Kxpress, our logistics platform, to the point where we are not only delivering for Konga but for other partners. That’s where you begin to add value because not only Konga has that problem. A lot of people have the same problem. People who sell on social media have that problem too. So, we are building a platform not just for ourselves but for the entire industry. With that, we are able to scale much quicker.’’
Quizzed by the CNN’s Eleni Giokos on Konga’s expansion plans, Prince Ekeh disclosed that the goal is to dominate Nigeria, which the company has all but achieved, before expanding to other African countries.
‘‘Nigeria is one of the largest markets in Africa. We are looking at consolidating in Nigeria and ensuring our customers get the best services and then rolling out across Africa. If you are able to scale to the point where you can solve a lot of the problems in Nigeria, it makes it easy to take on other markets outside Nigeria. Definitely, Nigeria is the focus for now. That’s where we started and that’s where we hope to scale and once that is done, we can begin to expand to other African markets.’’
Continuing, he stated: ‘‘We have a lot of things going on. We are also adding a lot of business units. We recently launched our travel business in February 2019 and also have a Central Bank of Nigeria-licensed mobile money platform called KongaPay. We also have KXpress, our logistics business. We are a platform and as a consumer, we want to connect you to all these different services we provide. We also plan to roll out a lot more services so that our customers stay within that platform as we continue to grow the customer base.’’
Incidentally, there has been a lot of talk about foreign players such as Amazon and Ali Baba eyeing a share of the potentially money-spinning Nigerian e-commerce market. However, Prince Ekeh welcomed the development, even as he held that no one understands the Nigerian market better than Konga.
‘‘I love the competition because the market is huge. Competition is good. It keeps you on your toes. I mean, Nigeria has over 200 million people and the informal market is still like 98%. That means, all the big players in the market are only sharing just like 2% of the potential of the industry. As the formal market grows, we also see the pie growing which means more revenue for all of us. I think the market can still accommodate more players.
‘‘I should know my market better than anyone else. The funny thing is, when the foreign players come into the market, they face exactly the same problems. They face the crazy Lagos traffic; they face the bad roads and bad infrastructure. So, we all have to face the same problems; which we have experienced all our lives, so it’s a bit easier to adapt and just like what we did with the logistics problems, it’s easier for us to find those innovative solutions,’’ he disclosed.
On how Konga is adding value and transforming lives, Ekeh took pride in giving others an opportunity like the one he was privileged to have.
‘‘Luckily, I was privileged to go to school abroad. I returned and I had access to funds. What keeps me up is how do I provide the same opportunity to people under me. In a way, I am doing that with Konga. I will give you an example. We have a seller that started off selling on our platform. She had a small shop in Balogun Market in Nigeria, which is a huge market, but like with very tiny shops. So, she was struggling at that point in time. She started selling on our platform and today, she has about 13 stores and her children now school outside the country. That’s huge and all we have done is just provide her a platform to sell her products. She has access to the whole of Nigeria.’’
Ekeh, who stated that Konga is a technology company, described Africa as the new frontier of prosperity in the 21st Century, even as he threw some light on the trends shaping commerce in the current age.
‘‘I think Africa has so much opportunities. It was Jack Ma who once said that Africa has the potential to become the next China but what we need is great minds to come in to the continent and invest in businesses and look for innovative ways to solve African problems.
‘‘When you look at Africa, we tend to skip trends. Africa skipped the Personal Computer trend and went straight to mobile. So, I feel like Africa might skip the e-commerce trend and go to social commerce. We see a lot of people buying products from Instagram, from Facebook, from various social platforms. And at Konga, our goal is not only to be an e-commerce platform. Our goal is to be an engine for commerce and trade in Africa. As much as our focus is e-commerce with physical stores, we are also venturing into social commerce. Anywhere we find our consumer, we try to play in that space as much as possible,’’ he concluded.
By Reuben Kalu.
In the vast expanse of the digital realm, Google looms large, an omnipresent force shaping the way we navigate, search, and conduct business online.
From its humble beginnings as a search engine to its current status as a multifaceted tech behemoth, Google has entrenched itself deeply into the fabric of the internet.
Its influence is undeniable, its reach unparalleled, and its ubiquity seemingly inescapable. But can you truly run an online business without Google?
The answer, in today’s digital landscape, is a resounding no. You have no choice.
Google’s dominance extends across multiple facets of the online world, making it virtually impossible for businesses to thrive without engaging with its ecosystem.
From search engine optimization (SEO) to online advertising, email services to analytics, Google’s suite of products and services permeates every aspect of the online business landscape.
Attempting to operate without Google is akin to swimming against a relentless tide, fighting an uphill battle fraught with obstacles and limitations.
At the heart of Google’s influence lies its search engine, the gateway through which billions of internet users navigate the vast expanse of online content. .
Google’s search algorithms wield immense power, determining which websites rank prominently in search results and which languish in obscurity.
For businesses seeking to attract organic traffic and expand their online presence, optimizing for Google’s search algorithms is not merely advisable—it’s imperative.
But Google’s influence extends far beyond search. Consider Google Ads, the company’s advertising platform that enables businesses to reach targeted audiences through paid search, display, and video advertising.
With billions of searches conducted on Google each day, Google Ads provides unparalleled reach and visibility, allowing businesses to target potential customers with pinpoint accuracy.
Attempting to compete in the online advertising arena without leveraging Google Ads is akin to entering a battle unarmed—a futile endeavor destined for failure.
Moreover, Google’s suite of productivity tools, including Gmail, Google Drive, and Google Workspace, has become indispensable for businesses seeking to streamline their operations and enhance collaboration.
With seamless integration across devices and platforms, Google’s productivity tools offer unparalleled convenience and efficiency, empowering businesses to work smarter, not harder.
Attempting to eschew Google’s productivity suite in favor of alternative solutions is not only impractical but also unwise, depriving businesses of the tools they need to succeed in today’s fast-paced digital landscape.
Furthermore, Google Analytics stands as the gold standard for web analytics, providing businesses with invaluable insights into their online performance and audience behavior.
From tracking website traffic and user engagement to analyzing conversion metrics and customer demographics, Google Analytics offers a comprehensive toolkit for optimizing online marketing strategies and driving business growth.
Attempting to gauge online performance without leveraging Google Analytics is akin to flying blind, devoid of the critical data needed to make informed decisions and drive meaningful results.
But perhaps the most formidable aspect of Google’s influence lies in its role as a gatekeeper of information and access.
With billions of users relying on Google’s platforms and services each day, the company wields immense control over the flow of online traffic and the dissemination of information.
For businesses seeking to connect with customers and expand their reach, Google’s dominance presents both a tremendous opportunity and a formidable challenge.
Attempting to circumvent Google’s influence and establish an online presence independent of its ecosystem is a Herculean task, fraught with uncertainty and risk.
In essence, attempting to run an online business without engaging with Google is akin to swimming against a relentless tide, fighting an uphill battle fraught with obstacles and limitations.
While alternative platforms and solutions exist, none possess the ubiquity, reach, and influence of Google’s ecosystem.
To thrive in today’s digital landscape, businesses must embrace Google’s dominance and leverage its suite of products and services to their advantage. You have no choice.
In conclusion, Google’s pervasive influence permeates every aspect of the online business landscape, making it virtually impossible to escape its grasp.
From search engine optimization to online advertising, productivity tools to web analytics, Google’s ecosystem encompasses a vast array of products and services that have become indispensable for businesses seeking to succeed in the digital age.
While alternative solutions may exist, none possess the ubiquity, reach, and influence of Google’s ecosystem.
To thrive in today’s digital landscape, businesses must embrace Google’s dominance and leverage its suite of products and services to their advantage.
You have no choice.
E-Business
Hydrogen Hosts Catalyst Workshop, Highlights Resilient Business Models for Fintech Startups
As part of its mission to empower African businesses with tools needed to thrive, garner admiration, and foster global acclaim, leading payment solution company, Hydrogen Payment Services Company Limited (Hydrogen), recently partnered with the Co Creation Hub (CcHub), to host the latest edition of the Catalyst workshop in Lagos.
The discourse addressed the potential risks and opportunities for startups and saw experts advise participants on the need to develop resilient business models that would scale across different economic climes.
Moderated by Miracle Ezechi, Digital Marketing Manager, Hydrogen, the panel session addressed dominant issues about the theme: ‘Adapting Fintech Business Models to Economic Climes: Flexibility, Agility and Customer-centricity’.
Mr. Emeka Awagu, Chief Technology Officer, Hydrogen, who spoke as a panellist, addressed the issue of customer-centricity, which according to him, is key to Fintech growth.
He advised startups to listen to customer demands and understand their needs in order to develop the right solutions that will lead to long term market viability.
“Innovation is key for startup growth. However, understanding customers’ needs and change in behaviour will help any startup to innovate better.
“Startups must be flexible and agile to develop solutions with high interoperability and processing speed, and they must be ready to learn from startups that have failed,” Awagu said.
With an estimated 61.07 percent of startups failing, the participants stressed the need for prudence.
“Statistically, a staggering number of startups fail, often due to financial mismanagement. Hence, founders must prioritise understanding and maintaining a healthy the Cost-to-Earnings ratio.
“It is not just a number, but a pivotal indicator of a company’s financial health as well as being a key attractiveness determinant for investors,” Awagu added.
On his part, Ina Alogwu, the Group Director, Digital Transformation, ARM HOLDCO, who also spoke as a panellist at the session, stressed the need for startups to develop sustainable products and solutions that will help them remain competitive in an environment that is faced with harsh economic realities.
“Many startup businesses fail within their first five years, however upcoming startups should not be discouraged, rather develop a culture that will encourage them to understand the reasons for failure and learn from mistakes.
“Startups should not be too rigid with their solutions and should be ready to accept changes that will drive innovation,” Alogwu stated.
Hydrogen will be deepening its economic impact series with a webinar planned for Thursday, April 25, even as businesses across Africa continue to face an array of challenges, ranging from inflation and currency fluctuations to rising operating costs.
Themed ‘Navigating Economic Challenges: Strategies for Sustainable Growth,’ the webinar will delve into key areas critical for businesses to not only survive but thrive in the face of economic adversity. Register using this link – https://bit.ly/Hydrogenwebinar.
Esteemed panellists for this event include Taofik Odukoya, CEO, Vanguard Pharmacy, and Okechukwu Odimgbe, Chief Financial Officer, Hydrogen. The session will be moderated by Nnenna Sam-Obioha, Ecosystem Orchestrator, Hydrogen.
Dexude, a leading edtech platform with operations in Nigeria, has announced that it has been awarded the prestigious Business Finland TEMPO funding.
Charles Emembolu, founder of Dexude,
This significant funding injection marks a pivotal moment in Dexude’s journey towards transforming education through its AI-powered, live-first, expert-led, and community-driven platform.
The Business Finland TEMPO funding is specifically designed to support startups and SMEs aiming for international growth by building their expertise and solutions into international success stories in innovative ways.
Dexude’s commitment to innovation, coupled with its vision to enable a billion learners worldwide, aligns perfectly with the objectives of the TEMPO funding.
Commenting on this milestone achievement, Charles Emembolu, founder of Dexude, remarked, “We are incredibly honored and excited to receive the Business Finland TEMPO funding. This funding is not only a validation of Dexude’s mission to reinvent education but also a testament to the hard work and dedication of our team. With this support, we are poised to accelerate our efforts in democratizing access to quality education and empowering learners across Nigeria and beyond.”
L-r; Kelvin Chikezie, co-founder of Dexude; Kashifu Inuwa Abdullahi, Director-General/CEO of the National Information Technology Development Agency (NITDA); and Charles Emembolu, founder of Dexude
Kelvin Chikezie, co-founder of Dexude, added, “Securing the Business Finland TEMPO funding is a significant milestone for Dexude. It underscores our commitment to leveraging technology and innovation to revolutionize the way people learn and grow. We are grateful to Business Finland for believing in our vision, and we are excited to embark on this next chapter of Dexude’s journey.”
Dexude is on a mission to redefine education by providing learners with access to influential experts and thought leaders, live interactions, and a vibrant community-driven learning experience.
Through its platform, Dexude aims to break down barriers to learning and empower individuals to pursue their passions and unlock their full potential.
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