the deal wrote:murchr wrote:@deal, how long is that sustainable for YU, how many free simcards and and bonus airtime will they give inorder for people to shop at Nakumatt? Secondly, the target marget for Nakumatt is the higher middle class, does this segment really care about getting free simcards or bonus airtime? If u ask me, those who are super excited at getting free sim cards and the bonus airtime are of the low end market who might find it a task to even set foot in Nakumatt because of 1. Location, 2. The feeling that stuff is expensive there.
If anything, its Uchumi that has really reaped from using tech remember they were the first to sell airtime and introduce payment of bills on their tills. Its Uchumi that has the highest transactions of MPESA, its in Uchumi where u can get a bus ticket to Bungoma. That is why they survived. And I believe they are setting up in the rural areas. Even in UG
Goosh you don't understand Uchumi, 75% of Uchumi's branches are in Nairobi, 50% are in the upmarket residential areas i.e sarit, langata road, westlands etc...Nakumatt can be found Downtown Nairobi i.e Ronald Ngala Branch...who shops there? common people, Remember one of their most grossing branches was Nakumatt Downtown unfortunately it was razed down...it was 24 hours who was shopping there? Common folks...If you critically look at it Nakumatt's model is to operate at both the high end and low end of the market...its more like the Shoprite Model!
More innovative ways from Nakumatt....
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Kumar added that other than the local market, the Nakumatt looking at the Diaspora, where users abroad can make purchases for their family and friends back in Kenya and the products would be delivered to them.
The retailer recently partnered with Mastercard and plans to re-issue the Nakumatt smart cards with a multi-currency MasterCard prepaid loyalty card"
http://www.standardmedia...lls-out-online-shopping
If 75% of Uchumis are in Nairobi and 50% upmarket areas, what about Nakumatt? let me guess...90%?
You forgot to mention that there is Uchumi Agakhan walk, Uchumi in Umoja, Uchumi Buru, another on Jogoo rd, Nrb west, Rongai,(note, residential zones where u shop and walk home). Uchumi has branches in Meru, Karatina, Nakuru, Embu, Kericho, Eld. So maybe you need to check on those numbers, mini uchumis do exist.
What Nakumatt is trying is to capture the lower mkt segment playing catch up, but whether they will get it is a story for another day. We might never know. My take is Naivas and Tuskys have won the hearts of that market segment in a big way
On the diaspora marketing..personally speaking I dont know If i can shop for my parents in this way, what guarantee do I have that they will get what I want them to get? maybe there are those who can, but i'd rather send money. I wonder how Babawatoto and Mamamikes are doing in that market. Nakumatt has had an online shop for as long as I can remember, but I cannot name anyone who uses it.
Note: Am not saying that Uchumi has better business than Nakumatt but am saying that they compete for the same crop of people
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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