Global consumer research firm Nielsen has tipped Kenyan retailers to go online, where about one out of every four consumers browse for products and services.
The Nielsen Consumer Confidence and Spending Intentions survey released this week says there is a huge gap in retail e-commerce space yet a quarter of Kenyans use social media to find out about fast moving consumer goods brands.
Bryan Sun, managing partner for Nielsen East and South Africa says retailers need to realise that to meet consumers’ need for speed and convenience will only be underpinned by innovation.
The most successful retailers will be those who adapt to changing needs and demand for products and shopping experience.
The opportunity for growth is inspired by “on the go lifestyle” of Kenyans which creates the need for speed, whether it is the consumption experience (ready to consume), shopper experience (proximity and efficiency) and engagement experience, driven by a two-way interaction and easy-to-use apps.
“By keeping an eye on the future, retailers will find pockets of growth and truly leverage Kenyans growing demand for greater ease, utility and suitability to meet consumers’ shifting needs and fluctuating confidence levels,” said Mr Sun.
The retail space has thrived through traditional (dukas and table tops) and modern stores (supermarkets) with the sector experiencing a double-digit growth every year, the survey said.
It notes that modern trade stores grew by 36 stores in the last quarter of 2017 to 660 in the period as the number of traditional stores and specialist outlets increased.
“Existing modern trade is gaining shoppers and spend from traditional trade. Mid-term growth is particularly evident in Nairobi, 17 per cent growth year-on-year, which accounts for 36 per cent of sales. However, rural trade cannot be ignored, as it still accounts for more than two-thirds of consumer purchases.”