Adopting the Cyber Monday culture in Africa

With the buzz and discounts witnessed on Black Friday sales, savings are still far from over. Cyber Monday kicks off today, with more deals and discounts for consumers across e-commerce platforms. How are Africans adopting the Cyber Monday frenzy? Wole Faroun, CEO of Netplusdotcom, joined CNBC Africa to shed light on this growing trend. Faroun highlighted the evolution of Black Friday in Nigeria, stating that it has transformed into a month-long sales period for many retailers, particularly online startups. The tradition of offering discounts during these sales events has become a significant part of annual sales for e-commerce platforms in the country. In 2020, Black Friday and Cyber Monday contributed 6.2% of the total annual online sales in Nigeria, reflecting a trend seen in other parts of the world like the US, where Cyber Monday recorded sales of $10.8 billion, the largest online sales figure in history. The UK followed closely behind with a successful Cyber Monday week. Faroun predicts that this year's Cyber Monday sales are likely to match last year's levels due to the lasting impact of the pandemic, which accelerated the shift to digital channels for transactions. He expects a 10% to 15% increase in sales compared to the previous year. Faroun also addressed the challenges of online sales, particularly trust and payments. He emphasized the importance of building consumer confidence in online transactions and highlighted the innovation of payment technologies to ease concerns and facilitate secure online purchases. One significant hurdle to online growth in Nigeria is the issue of last-mile delivery. The country's vast population and lack of well-mapped residential areas pose a challenge for delivery companies to locate customers and ensure successful deliveries. This logistical challenge often requires multiple calls and coordination to ensure the accurate delivery of products. Despite these obstacles, startups in Nigeria are actively working to solve the last-mile delivery problem, which is crucial for the advancement of online sales and transactions in the region.