The 2016 Online Shopping Survey

Online retail (or e-retail) is a segment of the retail industry that is experiencing steady growth in Nigeria, driven by several factors such as the high demand for mobile phones with internet access, and the increasing desire for convenience while shopping.

In recognition of these trends, Phillips Consulting Ltd. (“PCL”) carried out a survey in 2014 to determine the adoption of online shopping and the performance of local online retailers in satisfying the needs of their growing customer base in the country. The survey revealed that “despite the increasing depth of internet penetration in Nigeria, users do not appear to use it exhaustively for online shopping”. Online retail was described as still being in its infancy, with the large majority of consumers preferring traditional retail, mainly due to concerns about the security of their personal data online, and the satisfaction of being able to see, touch and sample products in-store. Respondents also complained about the sometimes inaccurate description of products on retailers’ sites, inefficient delivery processes and mistrust of online payment methods.

The report provided several suggestions that would potentially help to increase the adoption of online shopping among Nigerians, such as the development of mobile apps to facilitate shopping on-the-go, reduced internet subscription costs by service providers to improve internet access and penetration, and the implementation of effective marketing and advertising campaigns to detail the benefits of online shopping to consumers.

With this 2016 edition of the Online Shopping report, PCL aims to identify any changes in consumer behaviours and shopping patterns, measure the growth of the online retail sector (if any), and determine the impact of any of the above-mentioned recommendations, in the period between the administration of the two surveys.

The results of this survey, along with the comparisons of the trends contained in our 2014 report, are presented here.