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Konga, Samsung unite to halt grey products

By , ITWeb
Nigeria , 18 Mar 2020
Konga has inked a deal with Samsung to tackle the penetration of grey products into Nigeria's e-commerce market.
Konga has inked a deal with Samsung to tackle the penetration of grey products into Nigeria's e-commerce market.

Nigerian e-commerce firm Konga has inked a deal with global Original Equipment Manufacturer (OEM) Samsung, to expand access to genuine Samsung products within the West African country’s e-commerce space, while drastically reducing the penetration of grey products in the market.

In a statement released to the media, Konga is expected to deploy its network of stores across Nigeria and its online platform to make genuine products available.

Specifically, the products to be carried by Konga include latest devices from Samsung Mobile including mobile phones, tablets, smart wearable devices and a wide range of accessories.

Also on the Konga platforms are those manufactured by Samsung Electronics including TV sets, home theatres, refrigerators, wall ovens, cookers, microwaves, washing machines, air conditioners, dish washers, vacuum cleaners, air purifiers, smart home gadgets.

Vice President, Konga Retail, Kalu Johnson, said: “We are delighted. This partnership with Samsung affords Konga huge leverage in reaching more shoppers with genuine products across the Samsung Electronics and Samsung Mobile categories. Indeed, it is an opportunity to put more of these exciting appliances, devices and gadgets at the reach of millions across our online channel and vast network of offline stores.”

Remi Ogunsan, Head of Consumer Electronics at Samsung, West Africa, added: ‘‘We are leveraging on the extensive retail presence that Konga has to ensure that customers have more access to our products that are not relatively everywhere. So, this partnership is to ensure that products that are currently being supplied by TD is available to the public.

“Konga is a major additional channel for us to grow and get to more customer touch-points. Konga is a nationwide platform so that is what we are also looking for; more coverage to reach our customers.

‘‘In fact, through Konga, we are confident of reducing the penetration of grey products in the market which usually happens when the products are not available in all locations. So, to a large extent, the more we make the products available to certified channels such as Konga, grey products will naturally die. So far, we have been able to reduce the penetration of grey considerably even in 2020 and this partnership with Konga will also strengthen that to ensure that we take grey out of the market.’’

Coronavirus impact

On the impact of the coronavirus pandemic on stock outage, Ogunsan disclosed that effective measures have been put in place to forestall this development.

She revealed that one of the strategies that Samsung has deployed is the siting of assembly plants in major hubs around the world.

One of these is almost nearing completion in Lagos, Nigeria.

‘‘Technology Distributions Ltd. is setting up a KD factory and they are currently in civil works right now. They have all the equipment and will be going live very soon. So, we have that plan with TD already and they are pushing it so that before the first half of this year is over, it can start full operations. So, we have that plan in place,” said Ogunsan.

Head of Information Technology and Mobile at Samsung, West Africa, Adetunji Taiwo said: ‘‘This partnership with Konga means we are going to be getting more reach. Konga is one of the leading online retail channels we have in Nigeria. So, obviously, it means that we are partnering with a major brand that allows us to reach our customers much more conveniently, much better and easier.

According to data released in 2019, from Picodi.com, an e-commerce platform that provides discount coupons for online stores, Nigeria ranked second in the overall use of smartphones for e-shopping, with 62% of transactions recorded.

In October 2019 ITWeb Africa reported that according to information from the Central Bank of Nigeria, from January to June 2019, a total of 187.7 million transactions were carried out.

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