“There’s huge potential here [in Nigeria]. There are 200 million people in Nigeria and 50 million people have access to the internet so within the next five years we should see a huge growth in that [e-commerce] sector,” Sanaz Etebarian, chief executive officer of the popular online shopping site in Nigeria, DealDey.com, told CNBC Africa on Wednesday.
She further explained that online shopping has a number of advantages that retail outlets do not offer, such as they have a larger market reach than a single outlet store, lower prices due to low overhead costs as well as being more convenient.
“All the online companies are delivering your items to you and they have price guarantees just like you have abroad so it really boils down to price and convenience,” said Etebarian.
“The middle class is a growing sector of the population and they’re young, they’re internet savvy, they’re price concise too so they can do their research online easily so they’ll know if they’ve got a good or bad deal.”
On the other hand, Etebarian stated that the more expensive clothing brands such as Hugo Boss would not be prepared to go online as consumers prefer to go to a retail outlet before they spend money on luxury items.
“I don’t think bigger more expensive brands are ready to go online because you’re parting with a lot of money. For people like Hugo Boss, the retail experience is much nicer as you want to go to a nice shop,” she said.
“If you’re going to pay a lot of money for a suit at Hugo Boss for example, you want to go and try it on to make sure it looks and feels good before you part with that kind of cash.”