A few weeks ago we talked about the business opportunity for retail in Kenya and identified some reasons why it’s a fertile ground for retail investment. We looked at two overarching trends of the day: the era of supermarkets and malls and competitive forces of international brands coming into the country.

Today we’ll look at some of the technologies Kenyan retailers are using to support their development and growth.

Mobile Network And Online Shopping

It’s an opportunity to buy at the comfort of their homes for Kenyans. Unfortunately, this was not a welcome idea in the nation a few years ago. This led to the ultimate closure of some of the premier online shopping companies in the country such as Kalahari and Mocality. However, today, with the improved mobile network and internet connectivity, Kenyans are comfy to this idea.

Safaricom Ltd is a leading mobile network operator in Kenya, which was formed in 1997 as a fully possessed subsidiary of Telkom Kenya. Vodafone Group Plc of the United Kingdom attained a 40% stake and management responsibility for the company in May 2000. It employs over 1,500 people mainly in Nairobi and other big cities, in which it operates retail outlets. Currently, it has nationwide dealerships to ensure consumers across the nation have access to its products and services.

A good number of online shopping sites have come up and the industry is now valued at more than $10 million. Industry leaders have taken note of this and are coming up with online strategies to boost their sales. Companies such as Bata, Nokia, Samsung and LG are now partnering with online retailers such as Bid or Buy and Jumia to retail their products to the masses. In addition, supermarket chains such as Naivas are now banking on the internet to offer their products.

Assortment

Assortment is becoming an important driver of retail success in the country. All the major retailers are incorporating new sections in their malls. For instance, it is now possible to buy ready-made meals, perishable goods such as grocery and meat in supermarkets.

In a bid to retain their incomes and remain competitive, grocery retailers in Kenya continued to widen their non-grocery product portfolio, mainly in modern retail outlets, to include homewares, apparel, footwear, consumer electronics, home furnishings, and kitchen and cooking appliances; thereby offering a variety of products to their customers over and above grocery items. Many people who shop in the supermarkets are the middle class who want things done fast. As a result, supermarkets are doing the best to ensure that they have everything stacked in their stores.

Driven by “one-stop-shopping “, in addition to offering customer convenience, grocery retailers used floor space to accommodate a variety of products aimed at rising sales revenues and maintaining customer loyalty. Retailers are also joining hands with other brands to provide their customers with the best services. A good example is the partnership between Nakumatt, the biggest supermarket in Kenya and Clarks, a global fashion brand.

Big Data And Analytics

Globally, big data is changing the way businesses run. All the major supermarkets in the country offer their customers loyalty cards where one gains points whenever they shop. In exchange, the retailers pick the customer data which is found in the national ID cards. As a result, they are able to analyse the customers and their trends which they use to tailor services to them. Big data is also established through the use of online and mobile modes of payments, which also give the retailers the data they require to make projections and analyse their clients. With this data, retailers will be able to make competent predictions and customers can expect to benefit from the massive deployment of the systems.

With the growing retail space, retailers can expect massive competition, which might force others out of the market. The real benefit of the retail war will be felt by the customers. This is already starting to manifest with many retailers now offering their own branded items which come at a discount. Developers will also benefit through the development of applications and platforms to aid buying and selling of goods in the retail malls.

The challenging and promising opportunities along with the changing landscape of exciting trends encourage Retailers and Investors equally to invest in making Kenya the next big thing in retail.