Nielsen: How online shopping in Nigeria has leapfrogged 5 years in 6 months

The landscape of retail shopping in Nigeria has undergone a profound transformation in the wake of the COVID-19 pandemic, with online shopping experiencing exponential growth and advancement. Ailsa Wingfield, Executive Director of the Global Intelligence Unit at Nielsen Global Connect, sheds light on the remarkable surge in online shopping for fast-moving consumer goods (FMCG) in Nigeria, stating that the sector has progressed by up to five years in just six months. This accelerated evolution is attributed to the restrictions and safety precautions imposed during the pandemic, compelling consumers to seek alternative methods to source products, particularly FMCG items. The convenience and safety offered by e-commerce platforms have become increasingly appealing to consumers, driving the shift towards online shopping. The trend of online shopping in Nigeria is further exemplified by the surge in new users embracing e-commerce platforms. Nearly a third of consumers who previously had not engaged in online grocery shopping turned to digital channels amidst the pandemic. This influx of new users signifies a significant shift in consumer behavior, with approximately 67% of these individuals making online purchases in the previous week. Moreover, the frequency of online shopping among these new users is noteworthy, as a substantial portion shops multiple times a week, while others make at least one weekly purchase. This increased frequency underscores the growing reliance on online platforms to fulfill daily essential needs and capitalize on attractive promotions and discounts. In the realm of seasonal shopping events like Black Friday and Cyber Monday, retailers have adapted their strategies to accommodate the rise of online shopping and ensure consumer safety. The extension of promotional periods, including Black Friday sales spanning over a week or even a month, has enticed consumers with online-exclusive deals and discounts. By fostering a secure online environment for shoppers to compare prices and access promotions, retailers have successfully transitioned traditional brick-and-mortar events to digital platforms, catering to the evolving preferences of consumers. Looking ahead, the sustainability of this e-commerce boom in Nigeria raises questions about the future of online shopping post-pandemic. While some consumers may revert to physical stores as restrictions ease, the data suggests a persistent trend towards omnichannel shopping. Research indicates that a significant majority of consumers plan to continue shopping both online and offline, reflecting a fundamental shift in retail dynamics. The bridge between digital and physical shopping experiences is likely to endure, with online platforms becoming integral to the consumer journey. Amid the surge in online shopping, pricing strategies and consumer preferences play a pivotal role in shaping the e-commerce landscape. Consumers, particularly during the pandemic, are inclined towards finding cost-effective deals and value offerings. The ability to compare prices across various online stores empowers consumers to make informed purchasing decisions and select products that align with their budget constraints. The flexible payment options, including cash on delivery, have expanded the accessibility of online shopping to a broader consumer base, contributing to the widespread adoption of e-commerce platforms. However, challenges such as the need for efficient delivery services remain critical for the sustained growth of online shopping in Nigeria. Consumer demand for expedited delivery, including same-day or next-day services, presents an opportunity for retailers and manufacturers to enhance their logistics capabilities. Addressing this aspect of the shopping experience can further streamline the online purchasing process and meet consumer expectations for swift and reliable delivery services. In conclusion, the burgeoning e-commerce landscape in Nigeria exemplifies the transformative impact of the COVID-19 pandemic on consumer behavior and retail trends. The rapid acceleration of online shopping, coupled with the influx of new users and evolving shopping patterns, signals a paradigm shift towards digital platforms. As the future unfolds, the synergy between online and offline shopping channels is poised to redefine the retail ecosystem, with e-commerce playing a central role in shaping the consumer experience.