This initiative is aimed at addressing the economic challenges faced by Nigerian consumers, particularly as inflation keeps rising, added to the depreciation of the naira. 

The new brand promises to provide affordable, essential food items such as sardines, rice, flour, and canned fish, all carefully sourced to offer high quality at lower prices.

While Mangrove is not yet officially launched, it has already garnered attention from distributors through its website. In cutting out the middleman, TradeDepot hopes to offer consumers an alternative to the “brand tax”—the premium often associated with well-established food labels. With rising food costs, this move is timely, as it seeks to deliver savings directly to the consumer.

“We used to simply distribute for brands,” says Onyekachi Izukanne, CEO of TradeDepot. “Now, we’re integrating backwards into the supply chain by producing our products and bringing them directly to the market.”

Mangrove’s pricing model is a huge contrast to popular brands in the market. For example, its sardines are priced at ₦1,050, way cheaper than the widely recognised Titus sardine, which retails for ₦1,450. This price reduction could make a big difference for low-to-middle-income families, providing them with a chance to buy more food or save for future needs.

This move into manufacturing places TradeDepot in a strong position within Nigeria’s food sector, especially as consumers face a 34.8% inflation rate. 

TradeDepot is not stopping at shifting towards food production with Mangrove, but also expanding its role in the market by cutting out middlemen. This strategy, combined with its large retail network, could make the company a potential acquisition target for larger FMCG companies.

TradeDepot’s new path, however, brings added complexities. Unlike before, when the company focused on last-mile distribution, the shift to manufacturing and importing means that production delays or missed schedules could drive up costs. 

Per TechCabal, a former FMCG executive, speaking anonymously, highlighted these issues: “When they were only concerned with last-mile distribution, they could source products locally. But now that they are manufacturing and importing, every extra day outside schedule incurs additional costs.”

Again, TradeDepot’s transition into manufacturing positions its competitors—other wholesalers and distributors—as prospective customers. Izukanne explains, “Our biggest competitor is the wholesaler in the market. They can cut corners in ways we can’t and have a different cost structure.”

TradeDepot’s deep knowledge of the FMCG sector and its large distribution network give it a competitive edge. The company leverages data to advise manufacturers on the best distribution strategies, helping to streamline logistics and ensure more efficient market entry. 

Added to this, TradeDepot has secured exclusive distribution rights for well-known brands such as Unilever and Prime Hydration, a beverage brand co-owned by Logan Paul and KSI. These exclusive deals further reiterate its major role in the FMCG sector.

In response to its expanded operations, TradeDepot has adjusted its logistics model, now relying more on third-party providers to handle distribution. This change allows the company to focus on its core business of connecting manufacturers to retailers while scaling more efficiently.

TradeDepot’s adoption of manufacturing stands in contrast to other startups in the B2B e-commerce space, such as OmniRetail, which has diversified into fintech. 

With the launch of Mangrove, added to its focus on manufacturing and exclusive distribution, TradeDepot is ensuring direct value to both its customers and partners, rather than venturing into unrelated sectors.

No doubt digital technology is redefining manufacturing, distribution and retailing which in turn reflects on our day-to-day living.

There have been and will continue to be shifts in the way several sectors of the economy operate as the rising emergence of B2C and B2B e-Commerce platforms in Nigeria typifies how digital technology is driving the marketplace.

After the Industrial Revolution of the 18th century, Technology Revolution energised by information and communication technology or digital technology, is another big wave that has had an unmatched impact on the world’s social and economic landscape in the 21st century.

At present, e-Commerce is helping manufacturers, distributors and the retail segment of the Nigerian economy to reach their customers faster, deepen market penetration and reach remote locations more easily.

Adewale Opaleye, CEO of Alerzo, a B2B e-Commerce platform, said his company’s mission is to empower the nation’s $100 million worth retail segment through digital products by equipping them to run as profitable and sustainable businesses.

To this end, the role of tech-driven B2B e-Commerce platforms is especially profound in their support for manufacturers, distributors and retailers by enabling efficient Factory-to-Retail distribution for food and consumer goods companies, thereby helping to bridge disruptions in the supply chain.

Manufacturers and business owners no longer have to wait for customers to walk to the shelf or market stall to buy products, as they are daily meeting buyers and prospective users of their goods and services on the digital space, providing them convenience and uptaking positive user experience.

Through working with fintech companies, payment solutions and financial services providers, B2B e-Commerce companies impact on the national economy by deepening financial inclusion and bridging the gap for the unserved and underserved.

Effective from May 1st 2022, Akubuiro will lead further expansion of TradeDepot’s services across more key cities in Nigeria and Ghana, and drive growth across English-speaking West Africa.  

Akubuiro comes into the role with extensive experience in the FMCG sector, having spent over a decade leading and delivering commercial success for some of the most in-demand consumer goods brands on the continent.

Before joining TradeDepot as Commercial Director in July 2020, Akubuiro had previous roles at FMCG manufacturer Hayat Kimya Nigeria and Coca-Cola Hellenic Bottling Company, where he designed, oversaw and supported the implementation of various sales and growth strategies to drive revenue and meet sales objectives.

This experience will be leveraged to deepen relationships with key stakeholders in the retail sector and drive profitability in TradeDepot’s commercial operations.

In recent years, TradeDepot has built a reputation as the supply partner for Africa’s retail ecosystem, leveraging its data, technology and robust logistics operations to get consumer goods from leading manufacturers into the hands of retailers that can sell them.

Via its ShopTopUp platform, the company also provides credit lines to fund inventory purchases for retailers, enabling increased sales, higher margins and other value-added services for all parties.

With active operations in 15 key cities across Nigeria, Ghana and South Africa, and an innovative merchant platform, TradeDepot takes the pressure off everyone else in the retail value chain by making it easier for manufacturers and distributors to get their products into more than 100,000 retail stores, and for retailers to access the inventory and financial services they need to run successful businesses.

According to Onyekachi Izukanne, CEO and co-founder of TradeDepot, “Chidi brings a wealth of experience that will be invaluable on our mission to make life easier for retailers across Africa. In his short time with us, he has made many valuable contributions that have put us in a stronger position to achieve our objectives and I am looking forward to working more closely with him to drive more success and profitability across the board.”

Chidi Akubuiro, Managing Director for West Africa (English-speaking) at TradeDepot, said, “TradeDepot has been at the cutting edge of innovation in Africa’s retail space for a long time and I am thrilled by the opportunity to support the delivery of more prosperity across the value chain. Our ecosystem is ripe with opportunities and I am confident that we can continue to deliver the solutions to realise these opportunities.”

The African Cup of Nations is on and memes were flying regarding the big name casualties of the tournament. African football powerhouse, Ghana was dumped out of the tournament at the group stage after losing to debutants, Comoros Islands. “What is a Comoros?” “Trouble be like Comoros” were some of the trending hashtags on twitter.

In the midst of the fun and banter, something caught my attention: a retweet popped up on my timeline of a tweet by @ajalayemi. It was something different from the flow of things in space.

The author of the tweet is based in Ibadan. His tweet was about branding by Alerzo Limited, a business-to-business e-commerce platform delivering goods with vans and buses.

He was fascinated by what he saw and decided to do some little search about the company.

From his findings, Alerzo’s business model was designed to make business seamless for informal retailers. Unlike the Kongas and Jumias that connect sellers to customers, Alerzo is connecting informal retailers to direct supply from manufacturers.

An informal retailer is that woman with the small shop on your street who sells almost everything. Yoruba call them “gbogbo lowo”, meaning “I sell all you need”.

These sellers are forced to close their shops when going to the market to restock. Some of them lose customers in the process.

ALSO READ: Top 10 eCommerce websites in Nigeria to watch in 2022

The stress of frequent market trips also takes a toll on them both mentally and physically. So what Alerzo service implies is that instead of market trips, they simply pick up their phones to restock, or order via Alerzo app and get their stocks delivered at their shops.

The idea sounded novel to me. I’ve not heard or seen such in Nigeria. At that point, I decided to do some digging about the company. Alerzo started off in Ibadan almost two years ago as a brainchild of the son of an informal retailer.

In one of his interviews, the Chief Executive Officer of Alerzo Limited, Adewale Opaleye said he witnessed first hand the ordeals of his mother who went through a lot to keep her retail business going while managing the family.

He saw the gap that could be bridged by ecommerce technology and decided to make it a reality in Nigeria.

Alerzo is not the only company offering this type of service, there are others like Omnibiz, TradeDepot. Their services are already being enjoyed in other parts of the South West, North West and North Central.

Apparently, I’ve been missing a growing trend, just like many of my readers right now. Thousands of retailers are already enjoying the ease and convenience of ecommerce. Improved lifestyle, increase in profit and savings are the immediate benefits that come with the service.

On a broader scale, these platforms with their services will spike huge business activities in the digital space in the next few years. This is due to the fact that informal retail is a multimillion dollar business in Nigeria.

Imagine the economic benefits Nigeria will derive from bringing just 50% of those retailers into the digital economy space.

The increasing rate of mobile phone adoption in Nigeria makes this a possibility. In 2021, the number of mobile internet users in Nigeria amounted to over 101.7 million, with over 32% using smartphones.

The rate of smartphone usage is increasing and many of these sellers can afford the cheaper versions. As a matter of fact, many informal retailers have tech savvy children who indirectly hijack their phones for games and internet surfing.

With the help of these young ones, they can easily make their orders and get them delivered.

For all tech enthusiasts, this is an interesting trend to watch. There are reports of millions of dollars investment by external investors in the B2B ecommerce platforms.

This shows the faith and belief that the model can work in the country.

From all indications, there are interestings times ahead for informal retailers in Nigeria thanks to a new wave of innovators opening up the market to new possibilities.

Victor George, a tech enthusiast, writes from Lagos

To propel the country towards attaining a vibrant digital economy, the federal government unveiled a roadmap in the form of a National Digital Economy Policy and Strategy (NDEPS) 2020 to 2030.

Led by the Ministry of Communication and Digital Economy, government agencies such as National Information Technology Development Agency (NITDA), Nigerian Communication Commission (NCC) have been formulating policy directions towards a vibrant digital economy for Nigeria.

Achieving a digital economy however goes beyond policies. To spark digital activities and generate traffic needed for the desired growth, more businesses, especially in the retail sector, have to transit online.

At the forefront of this transaction is e-commerce. With 58 online marketplaces in the Nigerian e-commerce space, activities in the business-to-consumer segment of the market have been remarkable.

While the B2C segment gained acceptance, the informal retail sector which is an integral part of Nigeria’s economy was hitherto left behind.

In the last three years, innovative e-commerce brands like Alerzo, TradeDepot, Omnibiz have taken up the challenge of bringing the $100 billion Nigerian informal retail market into the growing digital community. As evident in advanced markets, bringing hundreds of thousands of retailers online tends to have a ripple impact on the development of the economy.

By their business models, B2B e-commerce platforms are a chain of activities that open up economic opportunities such as job creation, financial inclusion and technology advancement.

An industry innovator and expert, Adewale Opaleye, who is the Chief Executive Officer of Alerzo Limited, explained that through their activities, B2B e-commerce platforms allow local retailers to improve their businesses and become profitable and thus encourages them to hire more staff to support their production and/or distribution activities. Beyond this, he explained that there are far reaching impacts of these platforms combined to drive overall growth of the economy. “B2B e-commerce or digital platforms enable hundreds of SMEs across Nigeria to run profitable and sustainable businesses, benefiting from the economics of digitization to achieve a significant increase in their activity level. This facilitates economic development in Nigeria by allowing many entrepreneurs (retailers) to embark on new innovative projects. 

B2B platforms like Alerzo are also shaping the Nigeria narrative by showcasing the attractive investment opportunities to the world, while also reaching people in rural areas and giving them access to extensive catalogue of products and logistics. We also facilitate development and financial inclusion through digital payment platforms. For instance, Alerzo, through AlerzoPay, is contributing to the development of dematerialized payment solutions which are key to the success of e-commerce and an important asset for Nigeria when it comes to development prospects,” Opaleye explained. According to him, Alerzo directly employs more than 1,700 people in its operational chain.

The Federal government recently espoused the improving impact of e-commerce on the country’s economy, saying the current e-commerce spending in Nigeria has grown to  $13billion per annum and expected to hit $75billion in revenue per annum by 2025.

It also said e-commerce grew in Nigeria from 14% in 2019 to 17% in 2020.  The government has also expressed passion about the growing investment opportunities in the e-commerce value chain, which are capable of contributing significantly to the country’s Gross Domestic Product (GDP).

With increasing internet penetration riding on mobile smartphone adoption, the pillars for a vibrant digital economy are gradually falling in place.

At this point, it can be safely said that Nigeria’s digital economy plan is heading towards the right direction; thanks to innovative e-commerce brands facilitating needed activities.

As businesses set out for 2022, here are some trends to expect from players as they aim to take this important segment of e-commerce to the next level:

1. Increased Adoption Of B2B marketplace:

According to Adewale Opaleye, CEO Alerzo Limited, E-commerce in Nigeria is gaining momentum and the increasing rate of internet users in the country is expected to propel growth in the B2B marketplace.

“The necessary pillars needed for the culture to thrive are gradually falling into place. For instance, 50% of Nigeria’s population, that is 104.4 million, is connected to the internet.

Today, the majority of Nigerians access the internet with their mobile phones. With the increasing internet penetration, mobile phone users in the country and the National Economy Digital Policy and Strategy for Digital Nigeria by the Federal Government, we expect that more Nigerians will imbibe the ecommerce culture and the B2B market will definitely benefit from this trend,” he said.

2. Expansion to non-consumables:

Unlike the B2C e-tailing platforms, Nigeria’s online B2B marketplace is still dominated by platforms who service the FMCG segment of retailers.

Beginning from 2022, it is expected that the market will begin to open up to retailers dealing in the non-consumables to accommodate more high-earned product retailers, especially men.

3. Alerzopay:

As more retailers embrace the online marketplaces, it is expected that the major players will roll out in-platform payment solutions to create a one stop shop for their customers. A major player, Alerzo has said retailers can look forward to the launch of its fintech products, which will also help drive financial inclusion and saving culture among retailers in the country.

“we are building systems towards financial inclusion for our retailers through our soon-to-be-launched, Alerzopay platform. Through the platform, we aim to encourage a healthy saving culture and access to loan facilities. We envision our platform hosting financial inclusion initiatives that national and international organizations wish to roll out,” said the CEO.

4. Inroad to more cities:

B2B shopping brands are also expected to expand their reach and services to more cities  across the country. “We’re focused right now on growing our business by onboarding more informal retailers across the country. We want to expand into new markets as we believe our platform can empower more people across the country. Our strong presence in the South-West, and continued expansion to the North-West and Central consolidate our desire to grow in a sustainable manner and continue to serve those that are underserved,” said Alerzo CEO.

5. Social Impact Programmes:

One of the major ways brands endear themselves to customers is through social impact programmes in communities. For instance, Alerzo recently supported some burn survivors with funds through “Sebastine Foundation For Burn Survivors”.

While B2B marketplace deploy innovations to attract more retailers online, we can also expect them to creatively engage at the grassroot with social impact activities that will not only announce their presence, but also help them attract brand loyalty.

6. More Investors:

As at the end of year 2021, B2B startups in Africa attracted a cumulative $ 164.5 million in equity and debt financing. For a section of ecommerce that has lasted barely three years on the continent, this is remarkable. And from indications, 2022 might see more investors showing interest in this emerging trend

Victor George, a tech enthusiast writes from Lagos