MENA Platforms Use Social Commerce to Entice Connected Consumers
In the eCommerce market in Egypt, two retail formats coexist.
On the one hand, large companies provide dependable service and a vast selection of items. Still, they have limited appeal outside a narrow group of primarily urban customers already used to buying online.
On the other side, there is a network of smaller shops that do business via social media platforms that is less structured. And although these retailers appeal to a more extensive customer base, they may need to be more reliable and challenging to expand.
Ahmed Atef, the company’s CEO and co-founder, told that when the Kenzz eCommerce platform debuted in the nation earlier this year, it did so intending to overcome the limits of the two current models.
“We’re building a reliable eCommerce [platform] that is closer to the masses,” he said, trying to explain that the firm intends to deliver the very same reliability of the larger established players while “capitalising on this hype of engagement on social media and social interaction.”
Competing With Industry Giants
To build an eCommerce experience that offers major online retailers’ selection, competitive pricing, and dependability, Kenzz purchases items directly from manufacturers.
Since Atef stated, the timing has worked to the firm’s advantage in this regard, as the company has been establishing commercial partnerships when Egyptian manufacturers and importers are increasingly riding the digital transformation wave.
In recent years, he noted, factories and supply-side firms established a generation ago have been transferred to the descendants of their original owners, who are more receptive to selling online.
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“They see the vision, and they know that this is the right time to [adopt] these channels,” he explained, adding that this has helped the Cairo-based firm to secure better trading terms.
With a product portfolio and pricing range designed to compete with Amazon, Souq, and Jumia, Kenzz distinguishes itself by targeting the underserved mass market outside Egypt’s major cities and constructing a nationwide network of distribution partners.
Kenzz, according to Atef, can expand its reach without jeopardising its trustworthiness by collaborating closely with partners with an established presence in their respective locales.
“We’re relying on these partners in a hybrid model. We’re not owning […] the last-mile delivery, but we’re owning the quality of it, so we’re just capitalising on whoever is experienced to do this in these exact cities,” he explained.
Acknowledging Social Commerce
In addition to emulating the scalability and dependability of the eCommerce business model, Kenzz seeks to leverage the organic development and widespread appeal of social commerce.
Atef cited, for instance, the site’s group-buying option, which enables users to order many products and send them to the exact location.
When buying on the Kenzz website, visitors are presented with two prices: one for solo purchases and a discounted one for group purchases. If they elect to believe in a group, they are provided with a link they may publish on social media to assist them in assembling the required number of individuals.
“I’m a believer in capitalising on social engagement and social media for eCommerce. However, in the past period, there were a lot of [social commerce models] that depend on B2B2C [business-to-business-to-consumer],” Atef said, explaining that existing social commerce models are bogged down with unnecessary middlemen.
Kenzz’s features, such as group purchasing, are designed to capitalise on Egyptians’ affinity for social commerce while delivering the efficiency of direct-to-consumer sales.
In addition, this approach functions as a type of word-of-mouth marketing, according to Atef, since it encourages consumers to share savings with their friends and family.
“Because you know who is the best out of your friends or family that will love this or be attracted to this [product],” he explained, “it’s even better than any performance marketing, which lowers our cost of [customer] acquisition.”
Kenzz further customises its service for the mass market by using a payment system that begins with cash on delivery.
According to Atef, the fact that many Egyptians prefer to see a thing in person before making a purchase has impeded the growth of eCommerce. Consequently, Kenzz first focused on cash-on-delivery to introduce digital payment methods after gaining user confidence.
