eTail eKasi

etail ekasi using Spaza shops as access points

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MSI

Access Points @ Spaza Shops

Why Spaza Shops

• In Townships informal retail visits outnumber formal visits 5 to 1• Formal retailers are located far and transport cost expense.• Formal retailers long queues at check-out tills.• According to Bureau for Market Research, Informal retail turnover in 2004 was R52bn of which R32bn

was made up of retail sales from 750 000 informal outlets like Spaza shops.• Growth for formal retailers is in Townships and Spaza shops online shopping access points will speed-

up that process.• Consumers shopping habits are changing and embracing technology.• marketers will have an opportunity to control the quality and price of their brands.• A platform for marketers to engage with consumers in Townships online.

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Spaza shop is an informal convenience shop business in South Africa, usually run from home, selling everyday small consumer goods. These approximately 100 000 Spaza shops in South Africa and 40 000 Spaza shops in Gauteng alone. eTail eKasi intends to use Spaza shops as access points for Shoppers to shop online.

What is eTail eKasi

• Access point for Township consumers to shop online for groceries.

• 64.8% of SA household do not have access to internet. (2011 census report)

• A digital platform for marketers/wholesalers that allows relevant interaction and engagement.

• Marketers/Retailers will pay a monthly rental fee to use eTail eKasi as their marketing channel.

A Spaza Shop pop-up show rooming internet access point for Township and Rural Area consumers to shop online for groceries (FMCG). eTail eKasi will be located inside Spaza Shop yard with 3 chairs for customers, a table, Two sales persons with a laptop and a Smartphone Tablet to assist customers to shop online. eTail eKasi will cover specific regions/sections in Townships and Rural areas and will only do home delivery for groceries not less than 10 items. We do not deliver frozen, chill goods or eggs.

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• Groceries/ products purchase online via eTail eKasi will be delivered on the customer doorstep (house) for free the next day during working hours. • Payments for goods purchase on eTail eKasi will be electronically.

Target Market Lower End (LSM 2-6)

Buying Habits• The buyer of products in most cases at Spaza

shops is a child because parents have no time due to work commitments.

• LSM 2-6 market segment spend 40% of their monthly salary on basic food.

• Informal retail visits outnumber formal retail visits 5 to 1

• Don’t have access to credit facilities and have to borrow money from friends and family, the most common reason for borrowing is to buy food.

• Large proportion of grocery shopping is done in bulk at month end at Shoprite.

• UCT Unilever Institute of Strategic Marketing Research view link: www.theredzone.co.za/our-big-story/197-in-sa-we-have-a-calabash,-not-a-pyramid-understanding-the-survivors

• LSM 2 -6 market segment shopping have a stable income and shopping habits are regular.

• LSM 2 -6 market have their favorite brands but cost comes first.

• The lower end, majority market is worth R225bn

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Population Stats • According to 2011 Census report 80% of SA

population are African(Black) living in Townships (LSM 2-6) & earn R5000 or less a month

• 60 % of SA population is under the age of 35, meaning 29.6% of SA population is aged between 0 - 4 years and a further 28.3% is aged between 15-34 years. Acording to Census 2011 report

• Gauteng comprises the largest share of the South African population. Approximately 11,3 million people (22,4%) live in this province.

• total SA population = 51.77 million(15.5% up)• Number of household 14.45 million(up 29%)• 51.3% female• Total number of employed 13.18 million• Average annual household income: R 103,204(was

48,385)• Average black household income: R 60,613(was R

22,522)

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MSI

These approx 25 High Schools in the three targeted areas (Evaton, Palm Springs and Orange Farm) and during the 1st phase will work with 5 High Schools located in those areas, each High School will have a team of four learners whose sole task will be to drive the awareness campaign for eTail eKasi in and around schools, homes and neighborhoods where their school is located.Each school will have a team of four learners. Their task will be to select six viable Spaza shops located in and around their section and implement eTail eKasi in that area and also to enlist the support of their peers and the community. Each eTail eKasi access point @ Spaza Shop will have two learners and they will rotate days of their location.

eTail eKasi Execution plan : 1

In Townships Children between 10-18 years old frequently visit Spaza shops, because their parents have no time due to the fact that their workplaces are located too far.eTail eKasi is the brain child of High School learners in my neighborhood and its sole purpose will be to develop entrepreneurial spirit among High School learners.

Yahclick Voxtelecom is a Satellite internet access broadband package, it’s mission is to fast track economic development by connecting underserved / unserved communities with internet connectivity.

Yahclick Voxtelecom in partnership with eTail eKasi will give people living in Townships and Rural Areas an opportunity to experience online shopping at the Spaza shop around the corner in their neighbourhood.

Please bear in mind eTail eKasi execution plan one is to create an appetite for consumers in Townships and Rural Areas to crave for internet access.

eTail eKasi market penetration strategy with Yahclick Voxtelecom will offer the first ten customers of eTail eKasi free internet access in regions/sections we operate, in return they will each recruit ten customers to purchase goods worth R200 online using eTail eKasi a month and if they recruit 20 customers they will get R20 per customer and free satellite internet access for one year.

In five years the number of household in the LSM 2-6 market segment with internet access will grow and wholesalers who don’t sign-up with eTail eKasi will be left behind and loss market share.

eTail eKasi Execution plan : 2

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A New Face Of SA Wholesalers Please view: http://myschoolidea.blogspot.com