E-Business
Unveiling 2023 Holiday Shopping Trends in Nigeria: A Comprehensive Overview
By Reuben Kalu
The holiday season is not only a time for celebration and festivities but also a peak period for shopping, both online and offline.
Reuben Kalu, Marketing and Business Development Expert
In Nigeria, the dynamics of holiday shopping have evolved over the years, influenced by changing consumer behavior, technological advancements, and economic factors.
As we delve into the trends that will shape the 2023 holiday shopping season in Nigeria, it becomes evident that the landscape is evolving, presenting new opportunities and challenges for both retailers and consumers.
- Rise of E-Commerce:
The past few years have witnessed a significant surge in online shopping, and this trend is expected to continue in 2023.
With the proliferation of smartphones and improved internet connectivity, more Nigerians are opting for the convenience of shopping from the comfort of their homes. E-commerce platforms are likely to experience a spike in traffic as consumers seek a hassle-free shopping experience during the holiday season.
- Increased Mobile Shopping:
Mobile commerce is set to play a pivotal role in holiday shopping trends. As smartphone penetration continues to grow, consumers are increasingly turning to mobile apps and websites to browse and make purchases.
Retailers are responding by optimizing their online platforms for mobile users, offering seamless navigation and user-friendly interfaces.
- Influencer Marketing in E-Commerce:
Influencer marketing has become a powerful tool for brands to connect with their target audience. In 2023, we can expect to see an upsurge in influencer collaborations, especially in the context of holiday shopping. Social media influencers are likely to partner with e-commerce brands to create engaging content, share reviews, and promote exclusive deals, driving consumer interest and trust.
- Personalized Shopping Experiences:
Consumers in Nigeria are becoming increasingly discerning, seeking personalized shopping experiences that cater to their individual preferences.
In 2023, retailers are expected to leverage technology to gather and analyze customer data, providing tailored recommendations and personalized promotions.
This trend not only enhances customer satisfaction but also contributes to increased sales and brand loyalty.
- AI-Powered Recommendations:
Artificial Intelligence (AI) is set to revolutionize the holiday shopping experience in Nigeria.
AI algorithms will analyze customer behavior, past purchases, and preferences to generate accurate product recommendations.
This not only saves time for consumers but also enhances the likelihood of successful purchases, contributing to a more satisfying shopping journey.
- Virtual Try-Ons and Augmented Reality:
In the quest to bridge the gap between online and offline shopping experiences, retailers may incorporate virtual try-ons and augmented reality features.
This allows consumers to virtually ‘try on’ clothing, accessories, or even test home décor items before making a purchase. Such innovations enhance the overall shopping experience and reduce the uncertainty associated with online purchases.
III. Sustainable and Ethical Shopping:
As global awareness of environmental issues grows, consumers are increasingly making conscious choices in favor of sustainable and ethically produced goods.
This trend is expected to extend to holiday shopping in Nigeria, with consumers seeking eco-friendly products and supporting brands with transparent and ethical practices.
- Eco-Friendly Packaging:
Retailers are likely to adopt eco-friendly packaging options as part of their commitment to sustainability.
From recycled materials to biodegradable packaging, the emphasis on reducing environmental impact will be a key consideration for both online and brick-and-mortar stores.
- Support for Local Artisans and Businesses:
In 2023, there may be a surge in support for local artisans and businesses.
Consumers are likely to appreciate and seek out products that are handmade or produced locally, contributing to the growth of small businesses and fostering a sense of community.
- Payment Innovations and Financial Inclusion:
The evolution of payment methods has been a significant driver in shaping the shopping landscape, especially in emerging markets like Nigeria.
In 2023, we can expect continued innovations in payment options, making it easier for consumers to make purchases, even in regions with limited access to traditional banking services.
- Rise of Digital Wallets:
Digital wallets are gaining popularity in Nigeria, offering a convenient and secure way for consumers to make payments.
As the use of digital wallets becomes more widespread, retailers are likely to integrate multiple payment options to accommodate diverse consumer preferences.
- Installment Payment Plans:
To enhance affordability and cater to a broader consumer base, retailers may introduce installment payment plans.
This allows shoppers to spread the cost of their purchases over several months, making high-value items more accessible and promoting financial inclusion.
- Cybersecurity Concerns:
While the digitalization of holiday shopping brings numerous benefits, it also raises concerns about cybersecurity.
With the increase in online transactions, there is a growing need for robust cybersecurity measures to protect consumers’ sensitive information and ensure a secure shopping environment.
- Secure Payment Gateways:
E-commerce platforms will prioritize the implementation of secure payment gateways to safeguard customer data.
Encryption technologies and two-factor authentication will be integral to ensuring the confidentiality of online transactions.
- Consumer Education on Cybersecurity:
Retailers may take proactive measures to educate consumers about online security practices.
This includes tips on creating strong passwords, recognizing phishing attempts, and using secure networks for online transactions.
- Socially Driven Shopping:
The influence of social media on consumer behavior continues to grow, and this trend is expected to be amplified during the 2023 holiday season.
Social commerce, where consumers can make purchases directly through social media platforms, is likely to gain traction.
- Shoppable Social Media Posts:
Retailers may leverage shoppable posts on platforms like Instagram and Facebook, allowing users to explore and purchase products without leaving the app.
This seamless integration of social media and e-commerce enhances the overall shopping experience.
- User-Generated Content and Reviews:
User-generated content, including reviews and testimonials, will play a crucial role in shaping purchasing decisions.
Retailers may actively encourage customers to share their experiences, creating a sense of community and authenticity around their brand.
As we anticipate the 2023 holiday shopping season in Nigeria, it is evident that the landscape is evolving, driven by technological advancements, changing consumer preferences, and a growing emphasis on sustainability.
Retailers who embrace these trends and adapt their strategies accordingly are likely to thrive in this dynamic market.
From the rise of e-commerce and personalized shopping experiences to the emphasis on sustainability and socially driven shopping, the holiday season presents a myriad of opportunities for both consumers and businesses alike.
As we embark on this festive season, let us celebrate the spirit of giving and innovation that defines the holiday shopping trends in Nigeria.
Reuben Kalu is a Marketing and Business Development Expert
Visa, global payment services giant, has announced plans to establish a data centre infrastructure in Nigeria.
Andrew Torre, Visa’s regional president for central and eastern Europe and Vice-President Kashim Shettima
According to a statement by Stanley Nkwocha, senior special assistant to the president on media and communications (office of the vice-president) on Friday, Andrew Torre, Visa’s regional president for central and eastern Europe, the Middle East, and Africa, spoke during a courtesy visit to Vice-President Kashim Shettima at the presidential villa in Abuja.
“This is in addition to its investments of over $1 billion in the country, including a substantial technological partnership with @moniepoint to foster digital payment solutions, a $200 million investment in Interswitch, and a partnership with @thriveagric to empower smallholder farmers and enhance food security in Nigeria,” the statement reads.
During the meeting, Torre said the plan to establish the data centre infrastructure aims to bring new technologies into the Nigerian market that would bolster the nation’s growing digital economy.
“Visa has been making investments and will continue to make these investments in Nigeria,” he said.
Responding, Shettima welcomed Visa’s expansion efforts, assuring the delegation that the partnership between Visa and the Nigerian government would continue to flourish.
The vice-president commended the company for investing in ThriveAgric, noting that President Bola Tinubu’s administration is deeply committed to repositioning the agriculture sector, which remains a top priority in its 8-point agenda.
“Nigeria is where the action is. Of the 10 fintechs in Africa, about eight are in Nigeria, with moniepoint as the newest addition,” Shettima said.
“Agriculture is key to the 8-point agenda of the present administration. President @officialABAT is really keen on repositioning the agriculture industry here, and we have to invest in technology, we have to invest in modernisation.”
On January 23, Moniepoint, a Nigerian fintech company, announced it secured investment from Visa to support the growth of small and medium enterprises (SMEs).
Andrew Torre, Visa’s regional president for central and eastern Europe and Vice-President Kashim Shettima
Federal Capital Territory Administration (FCTA) has approved N242.8m for the procurement of a Microsoft 365 licence for its Internal Revenue Service (FCT-IRS) as part of efforts to digitise the service’s operations.
Mr Michael Ango, acting executive chairman of FCT-IRS, disclosed this after the FCT Executive Committee meeting chaired by Mr Nyesom Wike, the minister of FCTA, in Abuja on Wednesday.
Ango said that the FCTA was making significant investments in technology to enhance revenue generation and collection.
“So, this is also one of those investments in technology that the FCT is undertaking.
“The licence, if procured, will enhance our ability to move most of our manual processes into automated processes.
“It will enhance our ability to communicate within our offices,” he said.
The executive chairman added that the move would also reduce the use of paper and ensure better record-keeping through the storage of information and documents in the cloud.
According to him, “The licence will essentially enhance our operations and assist us in generating revenue for the development of the FCT under Wike’s leadership.”
Rack Centre, West Africa’s Tier III Carrier and Cloud neutral data centre, has welcomed Olla Cloud Service, a new private cloud service by Olla Systems Limited, a leading provider of innovative technology solutions, to its facility.
Hosting at Rack Centre, Olla Cloud Service runs on a state-of-the-art, cloud-enabled infrastructure for enterprise applications across diverse platforms, including mission critical application, web applications as well as containerised applications using Kubernetes.
Lars Johannisson, CEO, Rack Centre, welcoming Olla Systems, noted that the partnership with Olla Systems Limited would reflect the company’s commitment to providing African businesses with high- quality cloud computing services.
He noted that Olla Systems would enjoy Rack Centre’s 13.5MW data centre campus facility, designed to meet the highest international standards and offering scalable solutions to Hyperscalers, Enterprises, and Cloud service providers.
As part of its commitment to sustainability, the facility is equipped with energy-efficient systems, advanced cooling technologies to mitigate environmental impact and an optimally-designed feature to handle high-density workloads with precision.
According to Johannisson, “With Olla Cloud Service hosting at Rack Centre, clients will experience fast performance and low latency, enabling businesses in Africa to access world-class cloud computing services within a secure and compliant local infrastructure.”
Also speaking, Olusola Adenuga, chief executive officer, Olla Systems Limited, expressed enthusiasm about hosting at Rack Centre, noting that Olla Cloud remains a groundbreaking private cloud solution for businesses.
While highlighting the benefits of the partnership between Rack Centre and Olla Systems, Adenuga disclosed that “subscribing to Olla Cloud Service is cost-effective to customers because of its local currency payment advantage.”
She also noted that the partnership between the duo, provides businesses the opportunity to meet regulatory requirements of data residency, while enjoying world-class infrastructure as a service (IaaS) locally.
“Other benefits of hosting with Olla Cloud include: 24/7 support, unparalleled performance, scalability and agility.” she added.
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