Nigerian entrepreneur
Sim Shagaya is running two hugely successful e-commerce sites – in a country
which is notorious for high internet costs, low connectivity, and constant
online scams.
Expected
to be the world’s most populous nation by 2050, Nigeria has a growing
middle-class and a thriving consumer sector. However, corresponding internet
growth has been hindered by poor infrastructure and, possibly even more
damagingly, by the country’s reputation for online scams. Many international
online companies don’t allow Nigerian access to their sites, and PayPal refuses
to operate there. So e-commerce entrepreneurs like Shagaya have to find
creative ways around the challenges.
In Shagaya’s case, when customers place their orders online, he sends out an
employee on a motorbike or a tuk-tuk to collect their payments. Shagaya’s two
sites – Konga.com, which is an online retail store, and DealDey.com, a daily
deal website like Groupon – are growing rapidly despite the challenges.
“In this country, we have a potentially massive market and one that will be, by
definition, mobile,” Shagaya tells webtrednsng.com. “The internet will be
almost purely mobile in nature in Nigeria; this creates huge opportunities that
cannot be ignored.”
With a lifelong passionate interest in technology, Shagaya started five
previous online ventures in Nigeria, none of which led to longterm success. “I
think a big part of it is getting the timing right,” he tells otekbits.com.
“But I learned something from each and every single one; there is not one of
those businesses that I didn’t learn a lesson from. You just have to keep
getting up, and have no ego. And be willing to fail again and again and again
and let the only constant about you be your stubborn willingness to just get up
again and again and again.”
Because Nigeria is not a manufacturing country, the market is at the edge of
the global supply chain. Building a strong logistics infrastructure, Shagaya
says, is essential for successful e-commerce in a developing country. He uses a
central distribution warehouse in Lagos, with two regional depots operating as
sorting centres, and is planning expansion into other areas soon.
“The
internet is an enabler of a business in Nigeria,” he says. “But you still need
an offline component and strong logistics, and you still need to be able to
have a physical presence in front of your customer so that the customer
believes you are real and here for the long-run.”
He believes that the key to success
in business is people and relationships. “Business is transaction with
individuals, not machines or assets,” he tells africanglobe.com. “Business is
people, and I sincerely want to make people happy. Customer service is our
North Star.”
This people-centric approach extends to his employees too, with a substantial
portion of his profits being shared with members of staff. “It has to be
collaboration on the fact that if this journey goes well, everyone shares in
the spoils,” Shagaya says. “What is the point if only one person does well?”
It was logistical efficiency and focus on customer service that drew the
attention of South African media conglomerate Naspers, who made a significant
investment in Konga.com in early 2013. Shagaya plans to use the funds for
offline marketing, improving logistics, investing in people and IT, and pushing
out more sorting centres to deliver more orders, more quickly and more
precisely. “The next wave of innovation will be disruptive in its fullest
sense,” he says. “It’s an exciting time.”
And his advice to fellow entrepreneurs? “I think the primary thing is hard
work. You have to be willing to work harder than you think you can; you have to
be willing to push yourself beyond the limits that you think you can physically
push yourself to,” says Shagaya. “I also genuinely believe, be good to people.
Be good to your investors and your friends and your family and those around
you, because when you’re good to people roads open and somehow goodwill comes
back to you. Build success by helping others be successful.”
Wise words indeed from this inspirational entrepreneur.
Culled from Emerging Stars
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