Africa Business Communities

Manufacturers tap into growing customer base with e sales

Manufacturing companies in Kenya are embracing online platforms to sell their products as they seek to cut distribution costs, spread their services and increase customer base. The companies are setting up the sales platforms that allow customers to buy their products at a click of a button directly from them rather than through intermediaries.

Most of the firms turning to online sales have over the years relied on traditional channels of distribution that involve several intermediaries. But with costs rising and companies seeking to make the most out of their products, it has become prudent for the firms to use mediums that effectively reach out to many customers, without involvement of middlemen.

The online sales platforms, thus, provide this convenience since even those in diaspora can access the products. The entrance of the manufacturers into the online sales sector, mainly dominated by firms in the service industry and resellers, is expected to up competition as e-commerce takes root in the East African nation.

In the trade, the companies are banking on the success of mobile money and e-payments and wide adoption and use of internet, where, according to Communication Commission of Kenya, about 20 million Kenyans have access. The wide spread use of the internet has been attributed to low costs and high speed, with most people, over 90 percent, accessing the essential service on their mobile phones. Top among the manufacturing firm to embrace online sales in the East African nation is shoemaker Bata.

The multinational, which has several shops and distributors across the East African nation, has rolled out an online service dubbed Bata Home, which allows customers to buy shoes online. “This is a service that allows customers the freedom to buy shoes from the comfort of their home or office, by accessing our website,” said the company in a brief.

On the website, customers can make selection of the shoes they want and thereafter pay online using mobile money or credit card. The online catalogue contains shoes for ladies, men and children. One can only buy a maximum of three pairs. The company thereafter delivers the shoes to the customer at their doorsteps.

And as expected, the service targets Kenyans in Diaspora, who may like to buy shoes for their friends and family in Kenya. Mathew Muthuri, an online marketer in Nairobi, observes that manufacturing companies are turning to online trade because of their wider reach.

“The online platforms offer them wider distribution outlets that traditional distribution channels cannot offer them. They reach to thousands of people both in Kenya and beyond at once,” he noted. Manufacturing companies in the country, unlike their counterparts in service industry, have been reluctant to embrace online platforms.

While companies in the service sector allow customers, for instance, to buy bus and air tickets and book for accommodation online, Kenyans cannot buy for example cooking oil online. Muthuri observed this state of affairs is changing gradually as e-commerce takes root in Kenya.

“As people shift to shopping online due to widespread internet use, manufacturing companies have no choice but to conform if they want to reach more customers and boost their sales,” he explained. The marketer further notes that the growing Kenya’s Diaspora community, which has a big business potential cannot be ignored.

“We have seen banks reaching out to Kenyans in disapora through mobile and internet banking services. The service industry has done the same. The manufacturing industry can therefore not stay put and continue to rely on traditional channels that are being outpaced,” he said. Other companies in the manufacturing sector that have embraced online sales include book publishers as they seek to strengthen distribution channels and increase their profit margins.

The publishers are targeting readers who want to access books through Kindles and those who can buy the books in PDF format.

www.batakenya.com

 

 

 

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