1. State of Digital in Nigeria E-commerce Terragon 2015 - Quarter 1

2. Nigeria Total Population Source: Population: worldometers.info, April, 2015 Web: vanguardngr, 2014 Mobile: bizwatchnigeria, April, 2015 182, 798, 429 81, 000, 000 140, 275, 599 Total Mobile Internet Users Total Mobile Subscribers

3. Mobile Connections Source: Internet Users: NCC, Feb, 2015 Active social accounts: wearesocialsg, Jan, 2015 83,362,814 13.6 Million Internet Users Active Social Media Accounts 143,057,234 12.4 Million Active Mobile Social Accounts

4. Source: NCC, Feb, 2015 83,209,380 153,434 GSM Networks CDMA Networks Mobile Internet Users

5. NCC Internet Subscribers Data MTN 39,278,019 Globacom 18,184,587 Airtel 15,894,061 Etisalat 9,852,713 Source: NCC, February 2015.

6. E-commerce in Nigeria E-commerce in Nigeria commenced with: in 2012. Other ecommerce sites are Kaymu.com, Gloo.com, Supermart NG, olx.com and others. Source: Terragon Insight 2015

7. Top E-commerce sites & Ranking on Alexa Source: Alexa.com 6 8 986 553 34 17

8. E-commerce Trends in Nigeria Source: Punchng.com, July, 2014 From e-commerce to social commerce: E- commerce sites integrate social media platforms for more visibility. Multiple touch-points: Brands employ multiple touch-points where they can reach their target audience. I-Consumer: Mobile + connected: The proliferation of smart phones has made mobile the number one device used for online shopping. Reverse Showrooming: Nigerians compare prices in brick and mortar stores before buying online

9. About 6% of Nigerian netizens are not clear on what ONLINE SHOPPING IS

10. Close to 23% of Nigerians have never visited an online store

11. About 55% of Nigerian netizens buy products online at least, once a month

12. Jumia, Konga and Kaymu are the most visited online stores in Nigeria

13. Over 48% of Nigeria netizens say they have bought something after seeing it being advertised online

14. 72% of Nigerians netizens visit online stores to compare prizes or discover their latest stocks

15. Price and payment method are the most considered aspects by respondents before making a purchase online.

16. Computers & Mobile Devices are the most purchased products online

17. 46.2% of online shoppers are generally satisfied with purchases made online

18. Smart phone is the number one device used for online shopping Smart Phones: 76% Tabs: 8.6% Computers: 15.4%

19. 61% of Nigerian netizens are happy with their online shopping experience

20. Insights The adoption of smart phones has increased visits to e-commerce sites but patronage is still minimal. This maybe partly because a large percentage of Nigerians are not well informed about online shopping and they nurse uninformed perception about dangers attached to online shopping. Nigerians are afraid of carrying out transactions online. As much as payment on delivery is available, some Nigerians are not ready to adopt online shopping, they will rather walk into a brick and mortar store to make purchase. As much as respondents understand what online shopping is, they have refused to adopt it as a major channel for buying the products they need. Smart phone is the number one device used in making purchases online. Shoppers prefer using smart phones over tablets and desktop computers. According to the respondents, smartphones is the most purchased item on e-commerce sites in Nigeria.

21. Recommendations E-commerce sites should run integrated campaigns that would reflect its online and offline benefits. E-commerce sites needs to get more personal with online shoppers. The only time e-commerce site representatives call online shoppers is when they are about to complete a purchase. 90% of e-commerce Ads should be target at mobile phones. Finally, other creative and strategic ideas that will increase adoption of online stores, like creating free internet shopping zones and employing e-commerce trends like: Segmentation and Targeting should be employed to identify best customers. Introduce cutting edge mobile payment methods like Apple Pay in Nigeria. Create content that gets eyeballs and build loyal customers. Adopt great storytelling in e-commerce.

22. APPENDIX

23. Overview of Respondents

24. % of Respondents Others: 2.6% 72.2% Male 25.2% Female 2.6%

25. 50 and Above Most of the respondents are between 18 and 24, followed by 25- 35. Other respondents are, below 18, 36 – 50 and 50 and above. 48.4% 33.8% 8.4% 0.9% 8.5% Below 18 18 – 24 25 – 35 36 – 50

26. Questionnaires were administered electronically via Twinpine mobile Ad network over two weeks on high traffic mobile sites. The purpose of the survey is to measure the adoption of retail shopping in Nigeria as well the perception of netizens towards online shopping. Terragon also wanted to deduce the devices shoppers used whenever they are shopping online. We placed banners on high traffic mobile sites. Whenever users clicked on the banner, they will land on the questionnaire page, answer the questions and submit the form. Online stores and E-commerce was used interchangeably to conduct the survey