Shopping Smart In The Face of a Looming Recession

Monday, September 28, 2020 / 05:50 PM / By OpEdby Olukayode Kolawole / Header Image Credit: Financial Express

Covid-19 pandemic has leftthe world in dire straits by causing a recession from which global economieswill have to wait till 2022 for recovery. The World Bank 2020 Global EconomicProspect, June 2020, forecast that the pandemic will plunge all countries intothe worst recession in history. The United States' economy slipped intorecession due to the coronavirus crisis. Canada, Germany, France and Japan haveall been dealt with strong economic blows. Bringing it home, Nigeria's Ministerof Finance, Zainab Ahmed recently said Nigeria is heading towards recessionunless the country achieves a very strong Q3 economic performance.

The implication is thatbusiness leaders have to navigate shattered expectations and continueduncertainties. For the government, big spending is required to stimulate theeconomy, but while at it, shrewdness should be the keyword. Funding gaps mustbe identified to prevent all sort of wastage.

This model applies toconsumers as well. The downside, however, is that many unemployed Nigerians,who have lost their livelihood during the crisis are broke, don't have enoughmoney, and spend the little they have on the basic essentials. The lucky oneswho still have a job tend to take cost-cutting measures by reducing expensesand unnecessary spending.

Therefore, Nigerians todaylook for the best bargain on every naira and kobo spent and this is wherecost-effectiveness of online marketplace can be of help. Though many still havetheir reservations about online shopping, it is fair to say that eCommerce isgaining more patronage by the day in Nigeria. Platforms such as Jumia, Konga,Jiji, showcase a variety of products from their stocks and various stores.Customers have thus availed the opportunity of browsing to select productsaccording to choice and latest trend.

Onlinemarketplace not only provides an unlimited array of products, but they alsooffer lower prices. There are several options available to compare prices fromdifferent stores and manufacturers. E-retailers also offer discounts ondifferent products. Going for online shopping can be a cost-saving move at thistime. Mind you, lower price on eCommerce platforms doesn't translate to lesserquality. It is part of eCommerce strategies for competition. For instance,Jumia often informs sellers on their platforms on the need for competitivepricing. "We are always informing our sellers on why they need to provide valueto customers with competitive pricing. What customers want especially at thisperiod is best deals at affordable prices. They will go for products that helpthem save more, and one of the advantages of online stores like Jumia is toprovide a wide range of assortments to customers at the best market pricespossible," said Operating Officer, Jumia Nigeria, Omolola Oladunjoye.

Those who bank on publictransportation for their daily work and business routine would agree that thefares have increased on virtually every route, especially in commercial hubslike Lagos. This is largely due to the limited number of passengers a bus orand tricycle can carry per trip. Hence, the convenience of eCommerce can helpsave the cost of transportation and associated traffic stress. Online shoppingprovides you services from the comfort of wherever you are with mobile internetwithout the worry of working hours. eCommerce platforms run their logisticsnetworks that cover transportations and delivery of your products even at alesser cost when compared to present-day public transportation fares.

What you want to avoidlike a plague, for now, is compulsive shopping. While physical stores haveassistants that can lure you into buying what you don't need or want to buy, suchdistractions or pressure are not present at online stores. You shop at yourpace and don't need to think twice before logging out if you can't find whatyou need. Added to this is the discrete shopping experience. Online shoppingprovides you with the privacy that protects your choice from the public,especially on sensitive products. Product packaging is done in a way that eventhe delivery agent can't identify what's in the package.

As we all embrace the new normal and itsbiting economic realities, native knowledge requires frugal spending. A leewayout for businesses and customers alike especially will be to leverage thedigital offerings such as eCommerce.