To win in the 21st century digital business, you must invest to control and influence demand. What are your plans to do just that? Facebook can open any digital business it wants in the world because it has demand ( billions of citizens within its Facebook planet).
If you do not understand that fundamental construct, you will struggle on your scaling playbook. No idea is really new and the web has removed information asymmetry to a large extent, making it possible for users to discover products and services. So, the playbook changes from who supplies the product to who can I discover easily.
As Facebook moves into the Nigerian ecommerce, with the demand it has, expect new vistas of growth for the social media empire.
Again, what is your strategy to control and influence demand in your digital venture? I have a video.
In the digital age, what matters is not who controls supply, but who controls demand. Supply is largely infinite as there are many ways to get to the web, and because it is infinite, users congregate to platforms to help them navigate and make sense of the web.
In 1980, before the digital age as we have it today, the most powerful people in media were newspaper publishers. They were the people you needed to reach to get your message to the world. They decided what everyone read on the dailies and they were powerful. They controlled supply and by controlling supply, they shaped everything including advertising.
Facebook Inc has launched an ecommerce business on its own planet – the Facebook. And when that happens, expect a huge level of dislocation in the ecosystem. Yes, “Facebook has unveiled a new marketplace in Nigeria, a buying and selling point where people can search, buy and sell items in their local communities. According to a statement released Wednesday by the social media platform, Nigeria has become the latest African nation to join the market where South Africa, Ethiopia and Kenya are already trading.”
“Sellers and merchants are responsible for complying with all applicable laws and regulations. For high-value items (example: watches, luxury bags), consider requesting a certificate of authenticity or proof of purchase.
“If you’re not satisfied with an item’s condition or have doubts about its authenticity, you can decline to complete the purchase. If the seller offers to ship the item rather than exchanging it in person, keep in mind that you may not have the opportunity to verify the item before completing your purchase.
“If you are meeting, ensure this is in a public place. Don’t invite buyers or sellers into your home. Before going to the agreed location, tell a family member or a friend the exact location where you will meet, bring your cell phone, and consider asking another adult to come with you.
Jiji, OLX and other classified portals will experience a new dimension of competitive attacks. If people are already on Facebook and Facebook can offer them what you are offering, how do you expect them to leave Facebook for you? Every player in the marketplace must have an answer on this Facebook’s moat!
After the latest WhatsApp terms and conditions upgrade, I noted here that Facebook was planning to use WhatsApp as a clearing house for Facebook.com since WhatsApp has one thing other platforms do not have: phone numbers. Those phone numbers are verified and secured with biometrics which means once Facebook can sync WhatsApp backend to Facebook.com, its community and marketplace can allow people with WhatsApp accounts to buy, pay and checkout with minimal fraud! Sure, mess up and Facebook will give out your phone, not email address! Your phone is linked to your National Identity Number (NIN), and suddenly, there is no hiding place.
So, Facebook Nigeria Marketplace is here, and WhatsApp pay will be overlaid on it, making it possible that payments can happen at scale. This is a huge challenge ahead for ecommerce companies especially those running marketplaces. Even Jumia and Konga may not be smiling right now!
But I have laid out a strategy in Harvard Business Review: do not pursue a frontal response, go through the flank by collaborating with Facebook since it is not likely you will thrive if you want to go against it head-on.
Yet, at the end of all, customers will be better service because they will get many things free, and fraud will drop, since Facebook has your WhatsApp-linked phone and integrity will be deepened. But what I am not sure is this: if there would be other marketplaces in Nigeria except Facebook by 2024!
Facebook has unveiled a new marketplace in Nigeria, a buying and selling point where people can search, buy and sell items in their local communities.
According to a statement released Wednesday by the social media platform, Nigeria has become the latest African nation to join the market where South Africa, Ethiopia and Kenya are already trading.
To access the platform, users can simply tap on theMarketplace icon or visit www.facebook.com/marketplace to browse and search for items, sort based on distance or category.
Head of Public Policy for Anglophone West Africa, Adaora Ikenze said the move further underscores Facebook’s commitment to boost local trading and help create local communities of buyers and sellers.
“The launch of Marketplace in Nigeria further highlights our ongoing efforts in helping to boost buying and selling in Nigeria and connecting communities.
“This comes at a crucial time as the effects of the COVID-19 pandemic continue to impact people and businesses, and with many people buying and selling on Facebook, this will provide people with a convenient destination where they can discover new products, shop for things they want or find buyers for the things they are ready to part with.”
Shedding more light on how the Facebook marketplace works, it stated that when a seller lists an item on it, they create a public listing that could be seen by anyone on the social media platform.
This includes people on Marketplace, News Feed, Facebook search, Facebook Groups or search engines.
“Sellers can simply take a photo of an item, enter a product name, description and price, confirm their location, select a category, and post,” she stated.
Providing tips for buying and selling on the platform, she explained: “Items, products or services sold on Facebook must comply with our community standards, as well as the commerce policies.
Facebook founder and properties
“Sellers and merchants are responsible for complying with all applicable laws and regulations. For high-value items (example: watches, luxury bags), consider requesting a certificate of authenticity or proof of purchase.
“If you’re not satisfied with an item’s condition or have doubts about its authenticity, you can decline to complete the purchase. If the seller offers to ship the item rather than exchanging it in person, keep in mind that you may not have the opportunity to verify the item before completing your purchase.
“If you are meeting, ensure this is in a public place. Don’t invite buyers or sellers into your home. Before going to the agreed location, tell a family member or a friend the exact location where you will meet, bring your cell phone, and consider asking another adult to come with you.
“If the value of the item you intend to buy or sell requires a significant amount of cash, you might consider using a person-to-person payment method.”
Facebook’s push into online market business play has been gaining ground in developing countries. With the Marketplace, the social media giant is giving people more enticement to get on board its platform, thereby expanding its ad-revenue strength.
Before now, OLX and Jiji were popularly known for this marketplace business model, where people can showcase items, sell and buy from each other. In April 2019, Jiji acquired OLX in Nigeria and other African countries to consolidate its market strength.
Facebook’s launch of Marketplace means the Nigerian space of online community retail market will once again, get competitive. But with its massive number of users, the social media giant has an edge.
After my Harvard Business Review article on Monday on Value Capture, many in our community have been asking me about how to capture value. Join me at 4.30pm WAT at the Hub hub.tekedia.com as I discuss value capture on a topic I have titled “The Google’s Ad-Currency Devaluation and Your Strategy To Capture Value”. This is a webcast and you can comment during the cast.
During the times of Ogbeni Rauf Aregbesola as the Governor of the state, infrastructural development was prioritised for rapid socioeconomic development in all the political zones. In 2018, Governor Gboyega Isiaka Oyetola, after serving under Ogbeni Rauf Aregbesola as the Chief of Staff, vowed to continue the infrastructural drive of his former leader. With this promise, our analyst notes that Governor Oyetola is expected to walk his talk.
This informs analysis of the awarded and proposed projects for completion within 3 years. “The project prioritization exercise threw up a wish list of 524 projects,” the State Government said in its Infrastructure Plan for 2019 to 2021. A document from the State Bureau of Public Procurement shows that a number of projects, especially the construction of fire service stations in some towns and cities, were awarded between March and November 2018.
From the two documents, our analyst mined and analysed 162 projects awarded and proposed between 2018 and 2019. Majority of the fire service stations are expected to be completed in 2021. Some have been completed while some are at between 75% and 95% completion rate.
Road constitutes more than half of awarded and proposed infrastructure
Examination of the infrastructure classifications and core solutions indicates strong alignment. With this, our analyst notes that it could be concluded that the assessment carried out by the state government reflects in what it has awarded and proposed to do within the period. Out of 162 projects [tangible infrastructure] found by our analyst 104 were road projects. More than 73% of these projects are rehabilitations. Fire and safety projects are 11. All the fire and safety projects are proposed as construction. One security project proposed would be done within rehabilitation solution category.
Out of the 23 electricity projects, 30.7% would be done within provision category, purchasing facilities and installation. Of the same electricity projects, 21.7% would be done through rehabilitation and, extension and repair. Our analyst also discovered that the state government would be mapping some areas as Government Reservation Areas in select towns and cities. The current government also intends to continue urban renewal projects of the last administration. According to one of the documents used by our analyst, urban renewal projects are at gentrification stage. Gentrification is a process of changing the character of a neighborhood through the influx of more affluent residents and businesses.
Our check indicates that Governor Oyetola presented N152.7 billion budget, tagged: ‘Budget of Hope’ in 2019, was lower than the N179.2billion budgeted for 2018. To fulfill his promise of continuing with the previous administration, infrastructure development got a big chunk of allocation.
In 2020, a national newspaper reported that monarchs in Ede Federal Constituency commended the State Governor, for spreading infrastructural development across the state. The Ogiyan of Ejigbo Oba Omowonuola Oyesosin and the Timi of Ede, Oba Munirudeen Lawal gave the commendation when Governor Oyetola was inaugurating the rehabilitated 20km Ejigbo-Ara-Ojo-Ede road; 2.1km Ede township roads; and flagged off 3.8km Ejigbo township roads. Oba Omowonuola described the governor’s infrastructural interventions as non-discriminatory.
“I have never seen a Governor like you. You have done well for us. You have fixed one of the roads giving us a headache. This road had become a death trap before your intervention. During the raining season, some portions of the road looked like fish ponds,” he said.
Also, Timi of Ede, Oba Munirudeen Adesola Lawal, thanked Oyetola for all he has been doing in the State and especially for strengthening the fortune of the town. Timi said: “The entirety of Ede has sent me to thank you for this great favour that we have received from you. We wish you peace in your government, strength and good health to govern us on in continuum because we desire to see more good works
Source: Osun State Projects Awarded, 2018; Osun State Infrastructure Plan, 2019; Infoprations Analysis, 2021
Exhibit 2: Core Solutions on the Infrastructure [percent]
Source: Osun State Projects Awarded, 2018; Osun State Infrastructure Plan, 2019; Infoprations Analysis, 2021
Revisiting Fire Incident Management Strategy
Meanwhile, the state government needs to revisit its strategy on fire incident management. Several reports have indicated that the state is one of the states in the western region where fire incidents occurred most between 2019 and 2020. During this period, Osogbo, Ile-Ife, Ilesa, Modakeke and Ede had more fire incidents than other towns and cities, according to a number of newspapers’ reports. Before this period, in 2018, valuables worth N1.61bn were consumed by fires with 13 lives lost. The losses were N1.54bn and three deaths in 2019.
Gas-related activity, electrical energy and textile-related material have largely been adduced as causes of fire incidents in Osogbo. The newly procured state-of-the-art firefighting trucks donated by the Federal Government should be deployed to the critical areas. Constant training, retraining and upskilling of personnel of the fire service agency should be pursued vigorously by leveraging the location of the Federal Fire Service Training School for the South West Zone, which was relocated from Lagos state to the state in 2019.
With the award of the new fire service stations, the state government is ready to end incessant fire incidents. However, the number of fire fighters needs to be increased. Competent hands need to be trained and added to the existing workforce in the agency.
Exhibit 3: Location of Proposed Fire Service Station and Completion Status
Source: Osun State Bureau of Public Procurement Agency, 2018-2019; Infoprations Analysis, 2021
