BY LUKE MULUNDA
Larry Liu loves talking. And the marketing director of Kilimall Kenya knows too well that as a retailer, and more so an online one, you should do less talk and more clicks.
But he says talking a lot has not only enabled him grow the online retailer from a scrappy startup only two years ago to a regional e-commerce giant but, most importantly, it has helped him understand the fickle Kenyan market.
“When you are new, you have to make noise,” said Larry, the Chinese manager sent to Kenya to drive sales through Kilimall.co.ke. “In fact, you can’t stop talking in this business.”
Larry sits in the middle of a crowded office at the third floor of Lenana Towers, and with his mundane figure, it is not easy to pick him out from the army of workers tapping at their laptops tracking orders from clients or cranking marketing content for its social media pages.
“Asante,” he can often be heard thanking someone on phone in Swahili, and hangs up with, “Sawa sawa.” That’s how connected to Kenya he is, learning some bit of Kiswahili.
It’s been busy here at Kilimall lately, with strong marketing and media campaigns bringing in more shoppers online for its various products including affordable cellphones, tablets, TV sets and even fashion brands. Growth has been steady and there’s still more room for market share.
In Kenya, over 20 million people have access to the Internet and many of them are acquiring smart phones that can open websites with less than Sh10 worth of data bundles. This is the market that Larry and his team salivate for every waking moment as rivals like Jumia and lately, himall are vying for the same pie.
“We want to grow and reach more Kenyans. Our model of sourcing directly from manufacturers is really working for us,” he says. “It has enabled us to cut costs and pass on the saving to our customers by offering them quality but affordable prices at their convenience.”
Now there are plans to further expand its business. The company, which started its online retail business in Kenya in July 2014, has grown from less than 10 people to being the number two retailer site in the country employing more than 200 people, with lots of technology exchange in between. Larry says the company targets to grow its business fivefold over the next one year and double its staff.
Kilimall currently sells over 100 products. “Kenyans appreciate our products and prices and are voting strongly with their clicks,” said Mr Liu.
Kilimall’s strength is a rare combination of quality, affordable pricing and doorstep delivery of products. It is an edge in a market where price-sensitive customers are looking for bargains and convenience.
To enhance delivery, Kilimall has signed up Posta Kenya and G4S to ensure customers get their products wherever they are located in the country.
Just before the interview, Larry had just signed another delivery deal with Wells Fargo’s logistics and courier arm, Fargo Courier in a deal that literally takes the battle for online shoppers to the door-steps of Kenyans.
Under the partnership, Kilimall will use Fargo Courier for door-to-door delivery of various items to shoppers across the country to tap the growing e-commerce market. There is a growing number of shoppers from other towns outside Nairobi.
“The success of online retail will depend on ability to fulfill orders particularly on a door-to-door basis,” he said.
The products to be delivered by Fargo include high value electronic products that require safe and secure handling. “Consumers have different behaviour patterns,” said Larry. “While some want to pick from a collection point at their own time schedule, others prefer to wait for their delivery at home or in the office. This partnership is expected to meet the growing demand for flexibility on delivery.”
Fargo Courier, the logistics and courier arm of Wells Fargo Limited, has a nationwide network of over 100 locations, giving Kilimall access to remote areas that other partners could not reach. “Fargo Courier provides door-to-door services to most locations in the country and is well fitted to provide the support required by Kilimall online shopping mall, in meeting the increasing demand for door-to-door delivery,” Larry said during the signing of the partnership in Nairobi.
Fargo Courier has an automated track and trace system that will update buyers with real time details of their parcels on transit, said Larry.
Kilimall has developed a multi-channel retailing strategy that provides online shoppers with different options. Shoppers based in Nairobi have the option of ordering products and paying before or on delivery. They also have the option of pre-paying online and collecting from any of the two Kilimall shops – located on Ngong road and Bihi Towers in the city centre or Posta stores for those outside Nairobi.
“As the economy improves and more and more Kenyans get enlightened about quality and cost of products, we expect sustained demand of various products we stock and emerging tastes that would result in new products coming on board,” said Liu.
He said Kenyans should expect more tech-savvy and unique products and prices from Kilimall over the next one year. “We have done our survey that shows Kenyans are great consumers of new technologies and we will be introducing some high-tech products both for office and domestic use,” he said.
