Market Trends of Nigeria E-commerce Industry
Growing Penetration of Internet is Expected to Drive the Market Growth
- The growing Internet penetration in Nigeria has been a significant driver of the e-commerce market in the country. With increasing internet access and smartphone usage, more Nigerians can now connect to online platforms and engage in various e-commerce activities. According to Nigerian Communications Commission (NCC), In November 2022, the number of 3G/4G mobile broadband subscriptions in Nigeria was 88.3 million.
- The Internet has provided Nigerians convenient access to various products and services. As a result, online shopping has gained popularity, and more people are now purchasing goods and services through e-commerce platforms. This has led to the growth of local and international e-commerce businesses in Nigeria.
- The demand for online shopping has prompted the establishment and growth of e-commerce platforms in Nigeria. Companies like Jumia, Zikel Cosmetics, and SLOT Systems Limited have emerged as major players in the Nigerian e-commerce market, offering diverse product categories and facilitating secure transactions.
- The rise of internet penetration has also spurred the adoption of digital payment solutions in Nigeria. Mobile payment systems, such as mobile wallets and payment apps, have made it easier for Nigerians to make online transactions. This has further fueled the growth of e-commerce, as people now have convenient and secure ways to pay for their purchases online.
- E-commerce allows businesses to reach a larger customer base beyond physical store locations. With the Internet, Nigerian e-commerce businesses can market their products or services nationwide and globally. This has provided small and medium-sized enterprises (SMEs) opportunities to expand their reach and compete in the digital marketplace.
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Consumer Electronics Application Segment is Expected to Hold Significant Market Share
- Consumer electronics play a significant role in the Nigerian e-commerce market. The demand for consumer electronics products has grown steadily as Nigerians embrace technology and seek to meet their digital needs.
- E-commerce platforms have become popular avenues for Nigerians to purchase consumer electronics products. These platforms offer many options, including smartphones, laptops, televisions, home appliances, audio systems, and more. Customers can compare prices, read reviews, and make informed purchasing decisions conveniently from their homes.
- Mobile subscriptions provide Nigerians with access to the internet, allowing them to browse e-commerce platforms and engage in online shopping activities. With mobile devices and internet connectivity, consumers can conveniently explore and purchase consumer electronics products from their smartphones or tablets, regardless of their physical location. According to NCC, MTN was the leading mobile operator in Nigeria in February 2022, with a market share of 37.9 percent. From January 2019 to February 2022, the market share of Nigeria's major carriers remained relatively steady, with MTN leading the way, followed by Globacom and Airtel, each with approximatly 28 percent.
- E-commerce has enabled Nigerians to access the latest consumer electronics products, including those that may not be readily available in local brick-and-mortar stores. Online retailers often stock various brands and models, allowing consumers to choose products that meet their needs and preferences.
- E-commerce provides a convenient shopping experience for consumers looking to buy consumer electronics. Nigerians can browse products, compare features, read customer reviews, and make purchases with just a few clicks. Online platforms also offer various payment options, including cash on delivery, mobile wallets, and bank transfers, making the buying process seamless.
- E-commerce has facilitated the growth of the market for tech accessories and peripherals in Nigeria. Customers can easily find and purchase phone cases, chargers, headphones, gaming accessories, and more to enhance their consumer electronics experience. Online retailers often stock various accessories, catering to different device models and brands.
