The world has indeed begun to adapt to the new normal, with the Covid-19 pandemic increasing the demand for mobile data services and the reliance on efficient internet service for virtually everything, including shopping for essential and non-essential items, health, education, religion, transport, etc.
A recent study on consumer spending, carried out by Mastercard, has buttressed this point. According to the survey, over four out of five (81 percent) Nigerian consumers are shopping more online since the onset of the pandemic.
The survey said data, apparel, beauty products and FMCG (fast-moving consumer goods) have seen the highest surge of online activity. More than 90 percent of Nigerian consumers said they had purchased data top-ups online while 64 percent shopped more online for clothing, 56 percent for beauty products, with gifts, books and groceries tying equally at 51 percent each.
The survey, which was carried out online, sampled a total of 7,500 respondents across nine markets. There were 1,000 respondents each from South Africa, Nigeria, Kenya, UAE, KSA and Egypt, while Ghana, Cote d’Ivoire and Tanzania had 500 respondents each.
With fewer opportunities to browse in the store or on the high-street, it is now inevitable that social media platforms have become key to finding the most attractive products and offers, with 71 percent and 64 percent of respondents saying they had discovered new sellers through Facebook and Instagram, respectively. In fact, 78 percent of typical in-store bargain hunters said they spend hours searching different sites to find the best deals.
When it comes to paying for goods or services online, speed is a deciding factor for Nigerian shoppers, with 79 percent quoting this as a major consideration when choosing a business to buy from.
Read also: Covid-19: E-commerce Business Opportunities for Millennial Entrepreneurs in Africa
The rise of virtual experiences over the past few years and more so in the last few months has seen people change the way they consume entertainment contents and learn new skills. In fact, 87 percent of Nigerian consumers said they were using the downtime as a positive learning experience. More than half of the respondents (61 percent) said they had taken a virtual cooking class, 59 percent learnt to manage their health and get medicines online, 29 percent have been mastering a new language and 35 percent have been learning to dance online.
Fifty-one percent of respondents have been educating themselves on Do-It-Yourself (DIY) projects, and just over a third (38 percent) said they have been learning how to film online.
“There’s no doubt that the way we live and shop has drastically changed as a result of the pandemic. With the surge in online shopping in Nigeria, businesses need to optimise their operations to ensure they consistently deliver convenient, enjoyable and secure transaction experiences to their customers,” said Ebehijie Momoh, senior vice president, Mastercard West Africa.
“At Mastercard, we are leveraging our network, insights, technology and partnerships with fintechs, banks and other key players across Nigeria to support businesses as they make the most of this new reality,” Momoh said.
Industry experts say with the rapid rise in online spending activities, consumers also need to be aware of the associated risks.
The company recently rolled out its patented tokenisation technology across the region. Tokenisation encrypts consumer data by replacing card numbers with digital tokens. This prevents improper usage at any other location and provides additional security and peace of mind for consumers and merchants alike, resulting in higher approval rates while minimising online fraud.
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