5. US (You & me)
Good News & Cross Border eCommerce
What Country
Risks & Tips
Case Study: Cool Stuff
Our Vision
6. TEST:
1. Offline before online
2. Find Price Point > Target market
1. Rival the French Revolution
Be Excellent at Execution
2. Think Prius
Be Hybrid
THE EXPERTS SAY:
MY TWO CENTS:
9. REALLY SMART PEOPLE SAY:
African e-commerce market:
US$ 8 billion in 2013
US$ 50 billion in 2018*
Population: will surpass the 1.5
billion by 2026
2 billion 15 years later**
Mature internet users
Improving payment solutions
Affordability of data
Improved Platforms
Economies of Scale
GEARING
10. Cross border B2C ecommerce market
Global consumer goods trade
Source: Ali Research
12. CROSS-BORDER ECOMMERCE: SOUTH AFRICA
INTERESTING:
30% of Nigerian consumers purchase from SA.
Top locations for goods export for South Africa are;
China (8.3%), US (8.1%), India (7.8%) and the UK (7.2%)
27.1% US (3RD most visited: Amazon.com)
14.6% Europe
84.3% SA 200 Billion USD Imports
into China by 2020
86 Billion in 2016**
International CrossBorder
Trade 1 Trillion USD by
2020
43% YoY growth rate
20. How Big is eCommerce in Emerging African
Nations?
oDigital: Domains, Digital, Apps,
oInternational Imports: eBay, Amazon, Alibaba
oOrdering Sites: Larger orders made via websites
oPeripheral Movements: Classified & Realestate Listing Sites
oBill Payment: Mozambican’s pay for products & services in SA
oFlight Tickets:
oDomestic Facebook: Selling Groups, Pages, Page Services/Whatsapp
oInternational Facebook: Cross-border Orders via FB Pages & Ads
oDomestic E-Commerce Players: Compra.co.mz , Jumia
21. CASE STUDY: BEFORWARD MOZAMBIQUE
Perceptions:
Don’t trust online retail
You can’t sell expensive things online.
Want to touch and
Will never send their money
40. CASE STUDY: REVIEW
Website & Personalization
Simple Communications - Whatsapp
Simple Payment – Bank Transfer
Offline Marketing – Massive Billboard Campaigns + Tire Covers
• 20 Different Massive Companies could have done this from Japan –
Kept on developing, personalizing & investing.
• Zambia: Partnerships & Rollup Banners in Telco Offices – Order in-store
• Why cheaper? 100% upfront payment.
41. WHATS COOL:
• Didn’t need investment
• Are not a digital company
• Are not losing money
• Probably, were always profitable
• Active Worldwide
• Persistence: Solving increasingly more pieces of the problem –
Complete Solution.
• Completely localized/agile
42. THE LESSON:
Consumers are willing to
trade comfort for
lower price.
If you make them feel as comfortable. ;-)
44. What Compra.co.mz Does?
Who?
Online retailer looking to simplify business in Africa.
What?
Allow Retailers and Brands to Sell Online effectively and simply
• Domestic retailers
• Cross-border retailers
Why?
Love creating solutions and simplicity.
45. HOW WE MITIGATE RISKS:
• Use local suppliers
• Use Third-party suppliers (which are either expensive, unreliable or
terrible.)
• Vehicle isn’t working today
• Not answering calls
• Business shut down
• 3PLs don’t have an automated calculator – Get individual quotes.
• Market Sophistication:
• SEO – Jumia & OLX (World-class competitors & previous market entrants)
• Super powerful
46. HUMANS ARE NOT RATIONAL BEINGS:
Complex Tech
Retail or
Mozambican Network
Marketing experience
Capital raising
Zero suppliers
Payments: No local currency payments
No Experience:
47. TIPS & OPPORTUNITIES:
Angola: Know a General
Malawi: Sell Nshima (pap) really cheaply
Somalia: World’s first Online AK47 marketplace