Online Shopping In Kenya - Debugging The Myths, Knowing What Works

Online Shopping In Kenya – Debugging the Myths, Knowing What Works!Moses Kemibaro!

December 05, 2014!

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Online Shopping In Kenya Consumer Insight Reja Workshop 2014

East Africa Manager @ Goal.com 2014 Founder @ Dotsavvy since 2002 Producer @ PIVOT East 2013 Sales Director @ InMobi 2012 Founder @ Dealfish (OLX KE) 2010/11 TechBlogger @ MosesKemibaro.com

Moses Kemibaro

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3! Kenya’s Internet & Mobile LandscapeKey Drivers Behind Online Shopping Adoption!

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The Online Shopping Digital Roadmap

01!Acquire!

02!Onboard!

03!Engage!

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67%smartphone!

sales in kenya as!a percentage of !all new phones !

inexpensive !androids !driving!sales !

32.2M mobile subscribers for 79.2% penetration!

22.3M internet users for 53% penetration !

Broadband Internet is 2.9M users!

99% of Internet usage in Kenya is mobile!

Source: Communications Authority Kenya Q4 Sector Statistics!

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0.8M!

4.2M!

1M!

3.5M!

5M+! !!

SOCIAL MEDIA USERS !!IN KENYA!!

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IPSOS 2013 Research Internet Consumption In Kenya

Social Media Is LOVED In

Kenya!!

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IPSOS 2013 Research Internet Demographics In Kenya

Core Demographic!

Core Demographic!

Core Demographic!

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Google 2013 Key Categories Search Trends In Kenya

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SimilarWeb.Com Top 50 Websites In Kenya /1

OLX!

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Jumia!

Safaricom!

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Amazon!

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Opera Mini Top Mobile Sites In Kenya (Feb 2014)

OLX!

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DISTIMO’s Oct 2014 Free Android Apps Leaderboard /1

OLX!

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DISTIMO’s Oct 2014 Free Android Apps Leaderboard /2

Jumia!

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Game Changing Inexpensive Android Devices

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Is Equitel A Game Changer In The Making?

Estimated 400K+

subscribers with zero

marketing! !

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Kenya Online Shopping Data Insights /1

26.2M Number of Mobile Money In Users In

Kenya – Safaricom’s M-Pesa has 12.8M

Monthly Active Users (MAUS)

9.7M The Combined

number of credit cards and debit

cards in Kenya in 2013

Kes 4.3B Estimated size of e-commerce

in Kenya by C.A. of Kenya

US$ 49.7 Average transaction value for combined credit card & debit

card holders in Kenya in 2013. Kes. 1.5T transaction value in 2013. Kenya recorded 0.22 cards per inhabitant in 2013.

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Kenya Online Shopping Data Insights /2

182% Increased average

revenue per user (ARPU) that Safaricom sees when

users upgrade from feature phones to

smartphones

3.1M Smartphones that are active on the

Safaricom network as of November

2014

May 2015 Expected launch of Safaricom M-

Pesa API in Kenya with 2nd

Generation

50% The percentage of mobile device market share that

smartphones have in Kenya as of November 2014 – Up from

30% in November 2014 according to GFK research

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Jumia Kenya Black Friday 2014 Insights

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21! Online Shopping In Kenya PioneersWhere It All Started…!

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Mamamikes /1

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MamaMikes /2

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Kenya Airways

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Kenya Airways /2

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Kenya Airways 2013/4 E-Commerce Revenues

US$ 49.4M! !

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I&M Bank E-Commerce Integration

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PesaPal E-Commerce Integration

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29! Kenya’s Online Shopping HeavyweightsLeaving Waves In Their Wake!!

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Equity Bank & PayPal E-Commerce Integration

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Kenya’s Airways JamboJet

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Smart Baby /1

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Smart Baby /2

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Smart Baby Facebook

82,198 Likes !

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FabGuru /1

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FabGuru /2

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FabGuru Facebook

157,741 Likes !

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OLX Kenya

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OLX Kenya Facebook

615,021 Likes !

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Jumia Kenya

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Jumia Kenya Facebook

916,070 Likes !

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Cheki Kenya

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Cheki Kenya Facebook

55,841 Likes !

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Chandarana Supermarkets

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45! Key Insights On What Works In KenyaKenyans Are A ‘Peculiar’ Lot With Online Shopping – Therefore, Read The Signs!

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ONE!The majority of

transactions for online shopping in Kenya are done ‘offline’ via cash on delivery and mobile money (and especially

via Safaricom’s M-Pesa). Fears of fraud deters card-based

transactions!

TWO!Social Media and

digital advertising is major factor in driving awareness and sales for online shopping websites in Kenya.

Social media in some instances the only

platform some vendors use to sell online!

THREE!Mobile devices are by far the preferred and predominant channel for online shopping for

most consumers meaning that brands have to have mobile compatible websites and/or mobile apps!

FOUR!Increased smartphone penetration in Kenya

as a result of inexpensive Android

devices has become a major driver of Internet

uptake leading to increased online sales!

Key Insights About Online Shopping In Kenya

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moseskemibaro!

@moseskemibaro!

[email protected]!

Thank You!Lets Talk Some More…!