What it takes to succeed as an e-commerce business in booming township economy
- The township economy is becoming more competitive as big retailers move in for a slice of the pie
- It's no wonder says Yebo Fresh's Lerato Ramollo - the township economy is worth over R260 billion already
The township economy is becoming more competitive as big retailers move in to capture a slice of the market.
Online shopping service Yebo Fresh is active in more than 25 of South Africa's townships.
"We tackle a market that most consider too challenging to operate in" the business proudly proclaims.
Bruce Whitfield chats to the company's commercial director, Lerato Ramollo.
It's no wonder there's a lot of movement in this retail space considering the township economy is worth over R260 billion as it is, she says.
A recent report by Rogerwilco estimated that about 5.2% of South Africa's GDP is attributed to township retail so, really... no wonder we're seeing a lot of retailers moving into that space.Lerato Ramollo, Commercial Director - Yebo Fresh
We're there as well to ensure that the businesses that hold up this economy flourish and thrive.Lerato Ramollo, Commercial Director - Yebo Fresh
Is there still room for the old-school township vendors? Whitfield asks.
Whether they survive or not depends on how agile and innovative these smaller businesses are, Ramollo says.
We're on a mission to empower these businesses like the spaza shop owners, restaurants... What we've learnt as a business is that we need to learn through our customers.Lerato Ramollo, Commercial Director - Yebo Fresh
The old ways of forcing down an approach, a formal approach, really doesn't work. The way we work on our business model is very much still inspired by the township retailers themselves. If you look at our core reason for existence, it's to circumvent the cumbersome supply chain in this area.Lerato Ramollo, Commercial Director - Yebo Fresh
Scroll up to listen to the interview with Ramollo
Source : Sethembiso Zulu
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