Coca-Cola Considers Use of Robots for Ads Creation

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Coca-Cola Considers Use of Robots for Ads Creation

World famous brand, Coca-Cola is considering the use of Artificial Intelligence (AI Bots) in creation of its global advertisements. The company is known for creating some of the best works in the advertising industry.

The brand’s global senior digital director, Mariano Bosaz while speaking at the Mobile World Congress in Barcelona on Tuesday, said he wants to get a better feel on how brands can use artificial intelligence because he’s interested in swapping in robots for humans that crank out ads.

Bosaz said, “content creation is something that we have been doing for a very long time—we brief creative agencies and then they come up with stories that they audio visualize and then we have 30 seconds or maybe longer. In content, what I want to start experimenting with is automated narratives.”

In theory, Bosaz thinks AI could be used by his team for everything from creating music for ads, writing scripts, posting a spot on social media and buying media. “It doesn’t need anyone else to do that but a robot—that’s a long-term vision,” he said. “I don’t know if we can do it 100 percent with robots yet—maybe one day—but bots is the first expression of where that is going.”

Bosaz isn’t alone in envisioning human-less creative. AI is already being used to create commercial music and jingles and publishers like the AP are experimenting with using robots to write copy.

He noted that while bots and data may not be able to write an entire script, they are capable of putting together the first 5 seconds of a commercial or the end of a spot because “you always have the same closing” in Coke ads, where an image of the brand’s logo flashes across the screen with a tagline.

In terms of Coca-Cola’s interest in AI for media buying, Bosaz said that Coke already buys ads programmatically but that it’s “far from” putting more than half of its media budget into programmatic.

Coca-Cola is also looking for ways to use programmatic technology to fulfill eCommerce sales through tactics like subscriptions, though Bosaz didn’t say exactly what that may entail.

Right now, Coke sells though third-party retailers like Amazon and Tesco, vending machines and a small portion of sales come from direct-to-consumer programs like Share a Coke.

(Marketingedge Nigeria)

CNN Brand Perception Plummets as Revealed in Recent Survey

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CNN Brand Perception Plummets as Revealed in Recent Survey

A recent survey conducted by YouGov indicates that CNN, which President Trump has included among media outlets that create ‘fake news’ now trails Fox News and MSNBC in brand perception. The study also revealed that CNN and MSNBC had a large drop in brand perception as compared to Fox News.

The study also revealed that only Fox news have scored a neutral mark, with equal positive and negative while both CNN and MSNBC are registering negative marks.

fox-news-cnn-msnbc

CNN’s dilemma started in August of 2016, when it showed a steady decline in brand perception. However, the marks revealed steep drops during mid-October period and was at its lowest during the Election day itself.

Notable news at that period when CNN’s decline happened was the Anderson Cooper interview of Melania Trump on the issue of Donald Trump’s ‘Access Hollywood’ recordings.

During the period, when a North Carolina Republican office was firebombed, CNN had suggested that it was Trump’s rhetoric which incited the incident. Conservative-leaning media blasted CNN for their insinuation.

YouGov Survey stats
YouGov Survey stats

After the Election, CNN was hit by a fake news scare back in late November when a tweet has gone viral that the network has broadcasted pornography in place of “Anthony Bordain’s Parts Unknown” show.

One observation is that the constant Trump bashing may have taken its toll on CNN.

The President’s consistent labeling of CNN for their relentless criticism as ‘fake news’, may have had a bigger impact on the network as opposed to what CNN President Jeff Zucker’s assertion that the President’s battering of the network has only inflicted small damage to the network’s consumer perception.

These incidents made an impact, further eroding the brand perception of the network. CNN has been struggling to get a full recovery since then.

MSNBC on the other hand dropped from mid-October to the end of the year. Fox News also registered a drop in brand perception from early June up till Thanksgiving. Both however did not register the steep drop that CNN had. The decline of all the three networks during the period may indicate that viewership may have been saturated with the coverage of the Election period.

Respondents for the survey were asked: “If you’ve heard anything about the brand in the last two weeks, through advertising, news or word of mouth, was it positive or negative?”

6 Dominant Workplace Trends You Are Likely To Witness In 2017

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6 Dominant Workplace Trends You Are Likely To Witness In 2017
If you recently began your career as an HR professional, then knowing these useful workplace trends will help you stay ahead in the competition. This year is going to set new rules of workplace that you need to know in order to
The job market seems to grow in this year and provide equal opportunities for both employees and job seekers. Being an HR professional, you will also witness the huge demand for the flexible working environment.

Followings are some worth-noticing workplace trends of 2017, read out all of them thoroughly.

1. The Popularity Of Part-Time Jobs Will Increase

When it comes to the workplace trends of 2017 then it is the first trend which you will have to kick off with. You will find lots of employees opting for part-time jobs. This trend will also allow companies for controlling the increasing labor costs through hiring more part-time workers. Being an HR professional you will be involved in hiring part-time workers.

2. millennial Will Get High-Level Positions

It is another worth-knowing trend, which you should go through. As many baby boomers are about to get retirement so that is making a way for millennial to get higher positions in the companies. It is important to know that employees of every age group have to adapt to the flexible working style of this millennial generation.

3. Transformation Of Office Environment For Employees

It has also succeeded to become one of the prominent workplace trends of 2017. The traditional workplace environment will replace with highly advanced workplace environment. It will properly eliminate the distractions which also affects the performance of employees at the workplace. Working in this kind of high-class environment will also increase the productivity of employees.

4. The Rise Of Automation In All Industries

Yes, the automation will replace the traditional ways of accomplishing tasks at the workplaces. Companies will start depending on machines to get things done more precisely. Almost every industry will opt for automation in this year and it also has some bad outcomes such as a decline in the skilled laborers all across the world.

5. Companies Will Focus To Develop The Skills Of Employees

It is another workplace trend, which will get popularity in this year. In this competitive and highly advanced corporate world, companies have to make their employees adapt to latest technologies. In this regard, you will witness companies encouraging and helping employees to do tech related short courses. It means that you should also get ready for it as your company will also help you in this regard.

6. The Arrival Of Generation Z At The Workplaces

In this year, you will definitely witness the arrival of generation Z at the workplaces. Because of this specific development, the values of the workforce will start evolving gradually in this year. Companies will have to ensure working environment that is an ideal one for generation Z. If any company fails to accommodate this specific generation then it may go against of it.

These above-mentioned trends are some prominent workplace trends of 2017, which businesses will follow in order to get constant success and stand apart from the competitors. Being a new HR professional, getting to know about these specific trends will benefit you in various ways.

(JarusHub)

Massilia Motors becomes Sole Distributor Of Mitsubishi Vehicles In Nigeria

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Massilia Motors becomes Sole Distributor Of Mitsubishi Vehicles In Nigeria
L-R: Deputy Managing Director of Kewalram Chanrai Group, Mr. Victor Eburajolo; Managing Director of Massilia Motors Limited, Mr. Thomas Pelletier; and Deputy Managing Director of Massilia Motors Limited, Mr. Kunle Jaiyesimi at a Press Conference to announce the coming together of CFAO Motors and Kewalram Chanrai Group to form Massilia Motors Limited as the sole distributor of Mitsubishi vehicles in Nigeria at an event held at Mitsubishi showroom, Victoria Island, Lagos

By Daniels Ekugo

Massilia Motors Limited has been appointed as the sole distributor of Mitsubishi vehicles in Nigeria, following the coming together of CFAO Motors and Kewalram Chanrai Group for this purpose.

Massilia Motors Ltd. will provide customers with Mitsubishi passenger cars, SUVs, pick-ups vans, spare parts and after-sales services across Nigeria. The head office located at 4A Ijora Causeway, Ijora Lagos is a major after-sales hub with a fully equipped workshop and qualified technicians.

The company’s vision is to become Nigeria’s leading automotive distributor with delivery of world class customer service. In addition, Massilia Motors Ltd. is set to ensure effective talent management that will result in motivated and customer oriented employees.

The modern flagship showroom of the company on Adeola Odeku Street, Victoria Island and the new Mitsubishi Motors website are steps taken to show the company’s commitment to revitalize the brand’s image in Nigeria.

Speaking at the event, the Managing Director of Massilia Motors, Mr Thomas Pelletier said: ”The Massilia advantage is that we do not only sell cars, we consider our customers as stakeholders and provide solutions tailored to their needs. From counselling on the best product for each use to establishing a maintenance plan, we follow the customer through the product life cycle to ensure good value and a longer life span”.

A complete range of Mitsubishi vehicles is now available with compact cars, sports utility vehicles and pick-up trucks with renowned models such as the Pajero or L200.

The Japanese car manufacturer, Mitsubishi Motors is known for the reliability and ruggedness of its products. With Massilia Motors Ltd, the brand aims to exceed customers’ expectations, thanks to skilled technicians trained according to the manufacturer’s requirements, the expansion of its authorized dealer network and provision of service centres nationwide.

About CFAO

CFAO is a front-ranking specialized distributor and preferred partner of major international brands, serving the high-potential equipment & services, healthcare and consumer goods markets in Africa and the French overseas territories.

The Group is active in 39 countries, including 34 African countries and 7 French Overseas Territories. It employed 12,370 people at end-2015.

In 2015, CFAO generated consolidated revenue of €3,435.7 million and recorded recurring operating income of €269.2 million.CFAO is a subsidiary of TTC (Japan).

(PMnewsNigeria)

SMART INSIGHTS TO SOCIAL MEDIA MARKETING

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SMART INSIGHTS TO SOCIAL MEDIA MARKETING
Social media is a term for internet enabled platforms where social actions or activities are carried. Such activities may include creating, sharing or exchanging information related to interests, careers, ideas etc. For instance, Twitter is a social site designed to let people share short messages or “updates” with others. Facebook, in contrast is a full-blown social networking site that allows for sharing updates, photos, joining events and a variety of other activities. Pinterest and Instagram are biased towards photo updates while newer sites like periscope and snapchat tend to work more for  people who love short video messaging.

Leveraging the power of content and social media marketing can help elevate your audience and customer base in a dramatic way. But getting started without any previous experience or insight could be challenging.

In order to succeed with social media marketing, it is important that you understand the fundamentals. This will help you build a lasting foundation for your brand to thrive.

Here are some important things you need to know when marketing on social media

LEARN TO LISTEN
Success with social media and content marketing requires more listening and less talking. Read your target audience’s online contents and join discussions to learn what’s important to them. Only then can you create content and spark conversations that add value rather than clutter to their lives.

Social media is about community building. Learn to create value for that community, that is how they will in turn pay attention to you. But first , you have to listen and understand what they really love talking about

ITS NOT ALWAYS ABOUT NUMBERS

It’s good to have thousands of followers on your social media networks but partaking in aggressive and spammy practices will surely hurt your brand. Growing REAL followers organically is a gradual process and one that is more consistent when you have a systematic approach to your contents.

Having a lot of followers does not necessarily set your brand apart as a thought leader or define it as the best in that industry. Having a clear brand definition and goals will get your brand farther as opposed to accumulating followers all over using questionable tactics.

PATIENCE ! PATIENCE ! PATIENCE !

It is very important to be patient especially when you are marketing on social media. Often times, it is difficult to get the right audience with the right  message at the right time but planning contents around the needs of your target audience will surely help you grow in time.

NEVER UNDESTIMATE THE POWER OF INFLUENCERS
Spend time finding the online influencers in your market who have quality audiences and are likely to be interested in your products, services and business. Connect with those people and work to build relationships with them.

If you get on their radar as an authoritative, interesting source of useful information, they might share your content with their own followers, which could put you and your business in front of a huge new audience.

NEVER FIGHT WITH A CUSTOMER

It’s always a great idea to transfer “old school” marketing principles to “new school” marketing. One of those principles is this: the customer is always right.

If one of your customers takes to social media to complain about the quality of your product or service, avoid getting into an argument. That’s because you can’t win.

Instead of arguing, take steps to make the customer happy. That’s Customer Service 101. Or, simply direct the conversation off of social media so that there is less visibility.

KNOW YOUR ANALYTICS

How many people did you reach on Facebook this week? How many tweet impressions did you generate this month?

If you can’t answer those questions, it’s because you’re not studying your analytics.

It’s important to review your analytics regularly because you’ll see what types of posts and tweets generate the most engagements. That way, you can focus on what’s successful in future social media campaigns.

BE READY TO EVOLVE AS SOCIAL MEDIA EVOLVES

Do you think you know all that there is to know about social media? Think again.

Even if you’ve “arrived” at the current state of social media right now, you can be sure that it will evolve with technology over the next year. Social media strategies that work today might not work in 2017.

That’s why it’s a good idea to always be learning about social media marketing best-practices on a regular basis. That way you can be better informed.

Do you need Social Media Marketing for your business? or want to get certified as a Search Media Marketer?, 

Contact us or Register for our Digital Marketing courses to acquire the requisite skills.

Kindly call us on +2348069766133  to join the next training session…

(theideapress)

Netflix boss predicts mobile operators will soon offer unlimited video

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Netflix boss predicts mobile operators will soon offer unlimited video

Netflix head Reed Hastings predicted Monday that mobile carriers will soon offer data plans that give users unlimited video streaming to meet the rising popularity of watching TV and movies on mobile devices.

“Ten to twenty years from now all the video you view is going to be on the Internet,” he said at the Mobile World Congress, the phone industry’s largest annual trade fair.

“I think screens today are really stunning, you can see all the depth right in front of you. The beautiful thing is you can watch it on the move.”

While watching video on mobile devices via Netflix and other streaming sites is growing, data caps imposed on plans by mobile operators act as a barrier to users wanting to watch a video on the go.

Carriers offer unlimited data caps but they are usually very expensive.

But Hastings said he believed mobile carriers will eventually create a two-tear system where video data is unlimited to meet the growing demand for watching TV series and movies on mobile devices.

“What we are going to see I think is a number of companies pioneering new ways of offering services to the consumers where it is unlimited video data but it is limited to say one megabit speed,” he said.

“So it is a slower speed but you get unlimited data on that and that turns out to be very efficient on network so an operator can offer unlimited viewing.”

Netflix started streaming TV in the United States nearly a decade ago and has now launched in almost every country.

It ended 2016 with nearly 94 million subscribers, adding five million outside the United States in the last three months of the year.

Nearly half — 47 percent — of Netflix users are now outside the United States, a proportion expected to increase as it adds more customers.

Mobile video traffic is forecast to grow by around 50 percent annually through 2022, to account for nearly three quarters of all mobile data traffic, according to a forecast by Sweden-based telecommunications operator Ericsson.

(guardian.ng)

MTN, Lumous target one million Nigerians with electricity solution

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MTN, Lumous target one million Nigerians with electricity solution

The mobile electricity solution is a unique innovation that combines the efficiency of the mobile revolution with reliable solar energy to provide modern electricity to Nigerians through an affordable pay-per-use functionality and simple installation.

Information and Communications Technology firm, MTN and Lumous Mobile Electricity Services have developed an innovation targeted at solving the electricity challenge of about one million residents of Nigeria this year.

The mobile electricity solution is a unique innovation that combines the efficiency of the mobile revolution with reliable solar energy to provide modern electricity to Nigerians through an affordable pay-per-use functionality and simple installation.

Speaking on the rationale behind the partnership, MTN Nigeria Chief Executive Officer, Ferdi Moolman, said the MTN and Lumos partnership was poised to scale clean and affordable, off-grid power across Nigeria.

“With the backing of OPIC and Power Africa, MTN and Lumous plan to bring electricity to over one million Nigerians this year. The solar technology of Lumous and the easy payment process with MTN airtime provides a seamless customer experience for Nigerians looking for modern clean electricity.

“We have always ensured that our subscribers constantly enjoy our innovative products and services, as we continue to engage them at their passion points with life-enriching experiences. Now everyone can enjoy 24/7 access to noise-free, fume-free reliable electricity, every day for as low as NGN150 per day”. We believe that this solution will help to improve the lives of our subscribers especially because it empowers them to do more for less with electricity at their convenience and pace”

To the CEO and Co-Founder, Lumous Global, Davidi Vortman, the firm is excited about this major milestone, which will accelerate growth in Nigeria and improve the lives of millions.

Vortman said: “Having the backing of institutions such as OPIC and Power Africa provides a vote of confidence in our plans and helps spread our service across Nigeria”

Explaining how the Lumous Mobile Electricity Service powered by MTN works, CEO at Lumous Nigeria, Yuri Tsitrinbaum said, “This electricity is generated by home-size solar power systems installed in our customers’ homes and\or businesses. It comes in a new type of solar panel and indoor unit that allows customers to purchase electricity as a service on demand using their MTN mobile phone. Upon deployment, the subscriber loads airtime onto the SIM (embedded on the system) to activate the platform and enjoys uninterrupted power supply”.

The MTN-Lumous solar solution uses a large solar panel linked to an indoor storage unit that allows customers to access significant amounts of power on demand day or night. The service is provided on a lease to own basis and the cost is spread over a five year term, payable in affordable instalments via mobile phone from an MTN account. Customers receive a full product repair service during the lease period providing peace of mind and quality assurance.

Existing users include small businesses, residential users, small businesses schools, healthcare facilities, community buildings among others.

(guardian.ng)

Dangote Tomato signs deal with farmers in Sokoto, Gombe

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Dangote Tomato signs deal with farmers in Sokoto, Gombe

The Dangote Tomato Processing Company, Kadawa, Kano state has concluded arrangement to purchase fresh tomatoes from farmers in Gombe and Sokoto States.

The company had already signed an agreement with Tomato Growers Association for the procurement of the commodity from the two states.

The Managing Director of the company, Alhaji Abdulkarim Kaita, said on Tuesday that the company found it necessary to go into the agreement following the non-availability of the commodity in Kano and other neighbouring states that produced it in large commercial quantities.

He noted that the CBN anchor borrower programme had adversely affected tomato the production this irrigation season, especially in Kano State where many farmers shifted to wheat and rice production.

He said, “The wheat and rice loans given to farmers this year have affected tomato production in the state.

“This is the reason why the product is still costly as a big basket which was between N400 and N500 last year, is now N3, 000 in the market.

“So we cannot buy it at the present price.

“When the price was between N400 and N500, we used to buy from farmers at N1, 200 per basket.”

He said that the company would continue to monitor the situation until it was satisfied that the commodity was available to enable the factory resume production.

“If we resume production now, the commodity will be scarce and once it is scarce, the price will go up. This is what we don’t want for now,’’ he said.

On why the company did not give farmers loan to produce the commodity as it did in the past, Kaita said that out of the 100 farmers that benefited from the loan, only 20 of them were able to repay the facility.

He said, “So we cannot give them another loan now since most of them have yet to repay the earlier loan they enjoyed.”

He said that as soon as the commodity was available for processing, the factory would resume normal production.

He said, “We are ready to resume production because all our machines are in good condition and ready for operation.”

(punchng)

How Telecom Investments Is Driving Nigeria’s e-Commerce Growth

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How Telecom Investments Is Driving Nigeria’s e-Commerce Growth

Nigeria’s e-commerce sector is escalating with thousands of websites offering consumers alternative choices. Instead of walking  down to mammy markets, shops, supermarket or shopping malls, consumers can in the comfort of their rooms use laptops or mobile handsets and make purchases from e-commerce sites with the goods delivered at their homes.

The surge in e-commerce in the past five years has made Nigerians to start making flight bookings, payment of utility bills, online shopping and other business transactions on the web. Today, online retailers are taking over from the traditional malls people are accustomed to.

Electronic retailers (e-retailers) tend to create a shopping experience for customers without having to visit the mall physically. Barely two years since indigenous online retailing started in Nigeria, names like Jumia, Konga, GTBank’s SME Marketplace Gloo, Jiji, Rytedeals, Mall for Africa and hundreds of others are gathering fame for their online retail efforts.

Helen Anatogu, chief executive officer of iDEA Hub said the digital economy in Nigeria continues to thrive mainly attributable to: the huge youth population that is creating and demanding online content, emergence of e-commerce platforms that facilitate the procurement of services, demand for data services over voice service due to the increasing lifestyle effect of global social media platforms like

She said , “Facebook, Twitter, WhatsApp, Instagram, Snapchat, etc., the Cashless policy by the Central Bank of Nigeria (CBN) as well as promotion of financial inclusion strategy by CBN and Bankers Committee, especially licensing of mobile money operators” has propelled the rise of e-commerce in the country.

According to research, globally, retail trade accounts for 27 per cent of the world’s Gross Domestic Product (GDP. The retail sector also employs 17 per cent of the global workforce, which is about 800 million people. In the United States alone, one in every 10 people works in the retail sector.

With over 80 million Nigerians living in metropolitan areas, creating huge opportunities for formal retail to thrive, e-commerce has become a major driver of economic growth, job creation and wealth generation globally while in Nigeria, it is creating great opportunities for existing and new investors to take advantage of.

Digital technology is driving the internet market place. Virtual transaction means that businesses can be transacted from the remote corners of our homes enabled by the internet. The growing number of smartphones and other advanced devices is increasing the use of data-intensive applications, particularly video streaming, on mobile networks. This is resulting in an explosion of data traffic, with volumes forecast to grow at a CAGR of 49 per cent over the next five years.

According to GSM Association, the mobile industry continues to drive innovation across the world, with its impact felt in both developed and developing markets. Mobile has allowed individuals, companies and governments to innovate in new and unexpected ways, with consumers across the globe showing a ready appetite to adopt new technologies.

In Nigeria, affordable smartphones running on mobile broadband networks are bringing many individuals their first computing devices and first experience of internet access. This has encouraged the development of new services, applications and use cases that have rarely been seen in more developed western markets.

According to telecom experts, mobile is playing a central role in delivering digital and financial inclusion. The Nigerian Communications Commission (NCC) recently said the telecom operators have brought in about $68 billion direct investment into the industry, with much of the investments coming from mobile network operators (MNOs).

Just last week, executive chairman, MTN Nigeria, Mr. Phutuma Nhleko, disclosed that MTN Nigeria has invested $16 billion into its Nigerian operation. This investment is key in spurring Nigeria’s e-commerce explosion. For instance, MTN Nigeria through its investment in infrastructure has enhanced digital inclusion in Nigeria.

Nigeria’s largest mobile network is investing in infrastructure rollouts, securing telecoms and cable broadcasting spectrum licences in Nigeria. It is also diversifying into digital financial services to restore investors’ confidence as well as eyeing new revenue stream for expansion, with plan to list part of MTN Nigeria shares on the Nigerian Stock Exchange (NSE).

MTN Nigeria is the largest music distributor in Africa and has investments in mobile money and Africa Internet Holdings (AIG). Last year, it rebranded AIG companies into Jumia’s ecosystem. Kaymu is now Jumia Market, Jovago, Hellofood, Vendito, Lamudi, Everjobs, Carmudi and AIGX are now known as Jumia Market, Jumia Travel, Jumia Foods, Jumia Deals, Jumia House, Jumia Jobs, Jumia Card and Jumia Services respectively.

MTN is aiming to transform into a financial technology (FinTech) operator through mobile money, e-insurance, e-commerce, cloud business, web services and last mile banking. It is also working on tapping into Nigeria’s $21 billion Diaspora remittance market. MTN has embarked on a process of housing new revenue streams, particularly digital services, outside the core business.

This will allow for more agility and greater flexibility to accelerate growth in these areas. New revenue streams are expected to increase their contribution to revenue over the next 12-18 months. In Nigeria, the mobile operator has acquired pay TV broadcasting licence, 4G LTE and digital financial services.

Tolu Akinluyi, communications, media and technology executive at Accenture Nigeria said,  “The Nigerian government must create an enabling environment to foster sustainable growth and development of the telecom sector. It must encourage the industry to promote, build, incubate and partner in the development and realization of IT innovation hubs.”

It is pertinent to emphasize the need for progressive regulatory environment that acknowledges the importance of ICT as a major contributor to GDP and a major alternative to oil revenue as well as need for proactive policy to fast tract the explosion of e-commerce and innovation in the country.

Cross-border E-commerce Considered a Growth Rocket for Sub Saharan Africa Retailers

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Cross-border E-commerce Considered a Growth Rocket for Sub Saharan Africa Retailers

Highlights

  • Cross-border online retail predicted to grow at twice the rate of domestic e-commerce (CAGR: 25%) until 2020
  • Retailers can grow 60% faster with a premium service offering

DHL Express, the world’s leading international express services provider, has published research highlighting the significant growth opportunity for retailers and manufacturers with an international online product offering. The report – The 21st Century Spice Trade: A Guide to the Cross-Border E-Commerce Opportunity – looks in detail at the markets and products that offer the highest growth potential, the motivations and preferences of customers making international online purchases and the success factors for online retailers that wish to expand overseas. It focuses in particular on the opportunity for premium products and service offerings, with higher basket values accounting for a significantly higher proportion of orders in cross-border transactions.

The report reveals that cross-border e-commerce offers aggregate growth rates not available in most other retail markets: cross-border retail volumes are predicted to increase at an annual average rate of 25% between 2015 and 2020 (from USD 300 Billion to USD 900 Billion) – twice the pace of domestic e-commerce growth. Online retailers are also boosting sales by 10-15% on average simply by extending their offering to international customers. An additional boost comes from including a premium service offering: retailers and manufacturers that incorporated a faster shipping option into their online stores grew 1.6 times faster on average than other players.

“Contrary to what many retailers think, cross-border shipping is actually simple and retailers in Sub Saharan Africa are perfectly positioned to take advantage of international opportunities. ‘Brand Africa’ is something that has increased exponentially in popularity in recent years and it’s time for retailers to remove the boundaries and open up their business to seamless international trade. Often, retailers choose not to promote their businesses internationally, and worse yet, will turn down international sales interests due to the misconception that it’s too difficult to manage and deliver,” says Hennie Heymans, CEO for DHL Express Sub Saharan Africa.

“Globally, our experience is that virtually every product category has the potential to upgrade to become premium, both by developing higher quality luxury editions and by offering superior levels of service quality to meet the demands of less price-sensitive customers. The opportunity to ‘go global’ and ‘go premium’ is available to retailers in all markets and our global door-to-door time definite network is well-positioned to support retailers looking to develop a premium service offering or directly reach new international markets without  the need to  invest in distribution or warehousing. In Sub Saharan Africa, the opportunity for Intra Africa trade should not be ignored. ‘Going global’ does not only mean trading outside of the African continent, Africa is home to one of the world’s fastest growing middle class, with an appetite for quality products and services. There are also a number of trade blocs in place to support Intra Africa trade growth and retailers should take advantage of this captive market.”

The report is based primarily on research and in-depth interviews conducted by a leading global management consultancy, as well as more than 1,800 responses to a proprietary exporter survey of retailers and manufacturers in six countries. It casts a light on the evolving face of e-commerce, with both supply and demand becoming more sophisticated Manufacturers are increasingly taking advantage of e-commerce to move to direct retail models – bypassing the ‘middleman’ and offering their products online to the end customer – and expect to grow 30% faster in cross-border e-commerce than other retailer groups. Customers in many markets are also becoming more discerning, citing product availability and trust, as well as attractive offers, as the motivating factors for shopping with overseas online retailers.

The main challenges highlighted by consumers to cross-border purchases relate to logistics, trust, price and customer experience. At the same time, online retailers can take a number of relatively easy steps to identify, cultivate and service demand from abroad. The report noted that the e-commerce trend has given birth to a new eco-system of facilitators and off-the-shelf solutions (such as payment providers and programs that localize a website’s check-out experience for the visitor), helping retailers to adapt their offering to the digital world and to transact with customers in foreign markets. Global logistics partners can provide support in identifying the right trade-off between centralized and local warehousing and fulfillment, while fast, reliable and flexible delivery options can be an important tool in turning speculative interest into long-term customer loyalty.

(Proshare)

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