The global wave of digitization has reshaped commerce, revolutionizing how businesses operate and how customers interact with products and services. Across the world, online booking, sales, and e-commerce platforms have become the backbone of modern retail operations. However, in Ekiti State, the integration of digital tools in shopping malls remains a major challenge.
This digital lag formed part of the crux of discussions at Cloud Connect 2024, an annual tech summit organized by Alluvium, a Nigeria-based technology firm, held at the Zone Arena, Gbagada, Lagos. The event brought together tech leaders to explore ways in which digitization could unlock the potential of small and medium enterprises (SMEs) across Africa.
A stroll through shopping malls in Ado Ekiti, the state capital, reveals the prevalence of conventional retail practices. Popular retail hubs like ABUAD Shopping Mall, Ceci Supermarket, Staleg Mall, NAO Supermarket, and Dominion Mall operate predominantly offline. While some have adopted technology for payment systems and security measures, fully integrated e-commerce platforms are largely absent.
Interestingly, some businesses have begun leveraging social media platforms like WhatsApp, Instagram, and Facebook to showcase their products. However, these efforts fall short of the sophistication seen in fully functional e-commerce websites or apps. The result is a fragmented approach to digital commerce, with retailers relying heavily on in-person transactions and word-of-mouth marketing.
Despite a noticeable increase in internet access across Nigeria, smaller cities like Ado Ekiti face challenges with reliable and affordable connectivity. This hinders both businesses and customers from embracing digital platforms. Different interactions with customers at these malls shows how eager and expectant many tech-savvy customers are, to buy their products without needing to visit in-person. They expressed that they still turn to platforms like Jumia, Konga, Jiji etc often incurring higher delivery costs for products that could be sourced locally from these Malls.
Adding to these challenges is a lack of technical know-how among business owners and customers alike. The unfamiliarity with digital tools and skepticism about online payment systems perpetuate mistrust, leaving many hesitant to adopt e-commerce solutions. For many businesses, the perceived complexity and cost of setting up and maintaining an online platform further discourage digital transformation.
Another factor limiting e-commerce adoption in Ekiti is cultural preference. Many residents value the tactile experience of in-person shopping, where they can physically inspect items before purchase. This preference for brick-and-mortar shopping reduces the urgency for businesses to invest in online alternatives.
Yet, the advantages of digitization cannot be overstated. E-commerce provides an opportunity for businesses to expand their customer base beyond their immediate geographical locations. Imagine residents of towns like Omuo, Oye, Otun, Ilogbo, Ikoro, and Efon shopping conveniently from their homes and having goods delivered to their doorsteps. Such a model not only boosts customer satisfaction but also fosters loyalty.
Digitization also streamlines operations, reduces overhead costs, and enhances profitability. Data analytics from digital platforms can provide valuable insights into customer preferences, enabling businesses to make informed decisions.
Recognizing the transformative potential of digitization, the Ekiti State Government must take proactive steps to modernize its retail market. Efforts such as the proposed business district at Atikankan Area of Ado-Ekiti should include incentives for businesses that adopt e-commerce, such as grants and tax breaks. Infrastructure improvements, particularly in power and internet connectivity, are also critical.
Development partners and stakeholders committed to Ekiti’s economic growth must play an active role. Organizing training programs for business owners and consumers can bridge the digital literacy gap. Public education on the benefits and safety of online shopping can help dispel fears and shift cultural perceptions.
Technology providers must also step up by offering cost-effective, user-friendly e-commerce solutions tailored to small businesses. Collaborations with tech firms like Alluvium can yield plug-and-play platforms that require minimal technical expertise, empowering even the smallest retailers to join the digital revolution.
While the road to full digitization in Ekiti State’s shopping malls may be fraught with challenges, the potential rewards far outweigh the hurdles. By addressing infrastructural, educational, and cultural barriers, stakeholders can unlock the immense opportunities digital commerce offers. In doing so, they will not only transform the retail sector but also contribute to the overall economic development of Ekiti State.
The future of retail in Ekiti lies in the hands of visionary leadership, innovative partnerships, and a willingness to embrace change. The time to act is now.