The news of the acquisition of Nigeria’s largest mall, Konga by Zinox Group, has been received with mixed feelings from industry watchers who believe that the development though promising, could threaten consumers’ choices and e-commerce business in the country.
The deal basically meant good for the sector with the ultimate goal of raising its profile in the country especially now that global sales in the industry are expected to hit $4.5 trillion by 2021.
Weighing in on the development, President of Bervidson Retail Group, Mr. Joseph Ebata, who described the move as a smart one and a promising market for consumers noted however that such could just be the arrival of a single retail player powerful enough to be a monopoly.
According to him, acquisition could be a faster, cheaper, and generally more efficient shortcut to growth for companies of any size and the risk is smaller while the financing is easier.
Ebata said, “For Zinox Group, this is a major enhancer even for its other businesses combined with a lot of benefits. It is a win for the consumers. Considering the ownership information technology power and background, you can expect a very robust and stable platform with improved service delivery to customers.
“However, without a monopoly policy enforcement, there may be reduced customer choice and price competitiveness in the long run.”
He added, “The latest development has caused the IT giant to gain market share immediately and the market influence that comes with it. One key implication is that the company, now with a formidable market share can more confidently make pricing and other business decisions rather than merely respond to what others are doing. This is also where the challenge lies ahead for the consumers.”
Ebata thus encouraged the firm to harness the full value of the acquisition by building a formidable people power and best practice retailing, and experience made possible only by well-skilled professional, and highly motivated employees.
“The new ownership must immediately invest in the delivery of the right customer experiences that will guarantee customers’ repeat businesses, loyalty and advocacy. It is also the most potent way to fight customers’ attrition,” he said.
Meanwhile, the Head of Corporate Communications at Zinox Group, Gideon Ayogu, has confirmed that there would not be any change of name as regards the deal. Konga will maintain its brand name but as subsidiary under the group.
On competition with Yudala owned by the son of the group’s chairman, Leo Stan Ekeh, he said, “There are no plans of a merger with Yudala or any other company. It must be stated clearly that the group is clearly different from Yudala. They operate differently,” the spokesman said.
He, however, assured shoppers and merchants on the platform of new initiatives which would improve the average customer experience and put more money in their pockets.
“Consumers should expect a much-improved experience in terms of delivery, assortment of products and of course, better customer service,” he said.
This post was syndicated from This Day