The Nigeria unit of Coca-Cola co. recently claimed that there had been a threefold increase in their e-commerce sales during this year after virus-induced lockdowns stimulated a change in consumer habits in Africa’s most populous country.
According to its chief executive officer, Coca-Cola saw a rapid rise in online sales of its products after Africa’s largest economy joined the global trend of imposing movement restrictions on people to contain the spread of the virus.
For e-commerce penetration in the company, the starting one month of Covid-19 was the pivot point. The CEO also has more than tripled the e-commerce business that they have in their portfolio.
Due to a largely youthful population with an average age of 18 and increased data penetration, Nigeria has been seen as a frontier for growth in e-commerce.
And according to Statista, the usage of smartphones is poised to rise almost fourfold to 140 million by 2025 which is huge. According to the CEO, currently, e-commerce orders as a proportion of sales are still in the single-digit; however, their ambition is to scale it to double-digit and make it a massive significant channel of choice for their consumers. They are also partnering to help the trend grow, and the public will see more of that coming through in their strategy.
According to Olajide, due to high inflation and unemployment rate, there has been a lot of eroded disposable income. The company is starting to see sales return in 2021 and probably match the pre-covid period as the economy improves.
Coca-Cola has adjusted its prices and has smaller, more value-based pack sizes to cater to consumers with low disposable income. This had helped to recover the sales this year after they got knocked in 2020 during the worst economic contraction since 1991 due to measures to contain Covid-19.