Nigerian e-commerce company Konga.com has morphed from a business that does e-commerce, to a business that helps local businesses and global partners do e-commerce in Africa too.
"We started off selling stuff to Nigerians," said Simdul Shagaya founder and CEO of Konga online shopping on the first day of the eCommerce Africa Confex at the Cape Town International Convention Centre this morning.
According to Shagaya, the company was established in 2012 and its first order was for lipstick. An order the company got wrong. They soon realised that just populating the African market with meaningless "stuff" was not actually what Africa needed, he confessed. "So we moved on from selling stuff to helping other Africans sell stuff and helping companies from other countries sell stuff in Africa," going on to describe Konga.com as an operating system for commerce rather than just a conventional online retailer.
Discussing how to launch businesses in Africa, he likened the Africa e-commerce marketplace to the process of growing a baobab tree. "If you want things to happen quickly, grow a banana tree. But if you want create something like a sturdy baobab, you have to be patient. This is true for e-commerce in Africa. Things just take time here," he said. Shagaya highlighted the importance of remaining consistent over the extended period of time it takes to experience success in Africa. "Africa is neither a marathon, nor a sprint. It is actually a marathon of sprints."
When working in Africa, partnerships with the right people are essential, added Shagaya. "Nobody can do Africa alone. You need partnerships." These partnerships make everything from getting a foot in the door to the logistics of running your operations much easier," he continued.
Localising is essential, noted Shagaya, from the product to the price; you have to make it appeal to an African consumer if you want an African market to pay attention to what you have to say.
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