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Nigerians spent up to $ 1.82 billion buying fashion items online in 2020. Consumers in the country spent more on clothing last year than any other e-commerce category, according to a PayU report.
Fashion overtook travel and mobility at the top of consumer spending during the year. Other categories of spending related to online shopping include electronic gadgets, video games, food, and digital music.
In 2020, Nigerians spent a total of $ 8.06 billion on e-commerce products, a 6% increase of $ 480 million from the $ 7.58 billion spent in 2019.
More fashion, less travel
Fashion sector revenue has slightly exceeded travel over the past year, accounting for 22.6% of the total $ 8.06 billion spent by Nigerians on e-commerce sites. Covid-19 lockdowns and curfews have forced many more people to shop online, leading to increased e-commerce spending among consumers.
Nigerians spent $ 1.82 billion on online fashion products in 2020, 44% more than the $ 1.25 billion recorded in 2019.
Just behind fashion, travel amassed the second-highest spend at $ 1.79 billion, contributing 22.2% of total e-commerce revenue. The travel sector recorded the highest spending in 2019 ($ 3.13 billion), but the sector suffered from Covid-19 mobility restrictions and travel bans which lowered revenues by 42.9 billion. % to $ 1.7 billion in 2020.
As part of the larger e-commerce industry, the travel and hospitality industry includes all payments made on online platforms for booking flights and hotel reservations such as Travelstart, Wakanow and Hotels. .ng.
Electronic gadgets ($ 1.34 billion) and video games ($ 1.21 billion) were the only other two item categories to record up to $ 1 billion in consumer spending in 2020. With more people at home for longer periods of time, the demand for gadgets, including laptops, has increased. , phones and PlayStation for easy remote working, learning and entertainment.
Lily: “People spend more on comfortable gadgets for working from home†-Morgan Mierke, Director of Logitech W / Africa
Likewise, it also pushed consumer spending on food and personal care to $ 484.3 million, up 59.6% from $ 303.4 million in 2019.
Nigeria leads Africa in e-commerce
Nigeria remains Africa’s largest e-commerce market with 76.7 million online shoppers, followed by 22 million from South Africa and 13 million from Kenya.
There are more opportunities than ever for online and omnichannel merchants across Africa. This is especially true for fashion, beauty, electronic gadgets and digital merchants.
Nigeria’s 50% adult population, or 107 million, has played a key role in boosting e-commerce spending in the country. Nigeria’s 15-54-year-old population dwarfs South Africa’s 32 million and Kenya’s 28 million. Therefore, the number of online shoppers is expected to be much higher.
However, it is not that Nigerians are spending more than their African neighbors. South Africa, for example, spent more than $ 3 billion on e-commerce platforms in 2020, with an average of $ 136.4 per buyer. This is more than the Nigerian average of $ 105.1 spent by each consumer.
For context, South Africans and Kenyans have greater purchasing power due to higher minimum wages of $ 205.9 and $ 193.54 respectively.
Fashion was the sector with the highest consumer spending in 2020 in Nigeria, Kenya and South Africa, and PayU predicts that consumer spending in each of these markets could reach $ 2.27 billion, respectively, 1 , $ 48 billion and $ 504 million by the end of 2021.
Featured Image Credit: Jumia food
