App simplifies trade between Tanzania, China
What you need to know:
- In this discussion with The Citizen, the Kikuu e-commerce chief executive officer, Mr Jerry Xu explains more:
INTERVIEW. A Chinese products are increasingly becoming a household name in Africa as a whole and in Tanzania in particular. In the endeavour to cut on costs and allow Tanzanians to purchase quality products directly from Chinese manufacturers, a new Smartphone App – known as Kikuu – has been set up.
In this discussion with The Citizen, the Kikuu e-commerce chief executive officer, Mr Jerry Xu explains more:
What is Kikuu?
Though the name sounds African, there is no real meaning to it. Kikuu is simply an application on Smartphone that enables African consumers to shop Chinese products online. It is simply a platform that links the African buyers to Chinese sellers. It is a business to consumer platform that allows African buyers to buy quality products from China at affordable prices.
Why should a Tanzanian buyer go for Kikuu?
With this platform, they get a variety of products in line with their preferences. They also save time and the transaction also comes with a return policy. What they are required to do is to simply log in to the App and choose the type of product that they need – complete with its description and price which is quoted in Shilling. Upon logging in, they will select one out of a collection of women’ clothing, luggage and bags, men’s clothing, electronics, accessories, homes and garden as well as jewellery and watches.
How does one pay for the product?
One can simply effect payments through Tigo Pesa, M-Pesa and Airtel Money. They can also pay via K-Pay which is an online wallet. With K-Pay, one need to open the online wallet and deposit some cash therein and upon purchasing, we will simply deduct the amount from the account.
A person who holds a K-Pay account can simply transfer money from any of the mobile phone money transfer platforms (Tigo Pesa, M-Pesa and Airtel Money) to the K-Pay.
How long does it take for you to deliver the product?
Basically, it takes between 10 and 15 days for us to deliver the products to the buyer after he/she effects payments. We deliver the products directly to where the client is. We also give a 7-day hassle-free return policy.
When did you open your offices in Tanzania and are your achievements so far?
We have been in Tanzania since September 15, 2015 with the opening of an office at Harmoni Building which is located along the Muhoro/Congo Street in Kariakoo. During the time, we have employed 20 people in our various departments. We have also managed to serve over 35,000 members (clients) who make about 1,000 orders every day. We work with about 300 Chinese suppliers who supply over 97,000 commodities.
Does a buyer pay for the shipping costs?
No. Both, shipping and government taxes are included in the price that we quote in the product and therefore, Dar es Salaam residents do not pay anything more than what they see on the quotations. Otherwise, those in upcountry locations do contribute towards the costs of transporting the products from Dar es Salaam to where they are.
Are you competing with Tanzanians who own shops in Kariakoo and in other places?
I don’t think we are competing. The traders still import in large volumes and we are only complementing on what they do. Out target is to fill the gap between customers’ preferences and what is available in the market. We do so in the belief that by importing in bulky, it is not easy for the traders to meet the buyers’ requirements regarding the products’ designs.
Currently, Tanzania and China are in the process of building the Sino-Tanzania logistic centre at Kurasini in Dar es Salaam which will offer space for various Chinese manufacturers to sell their products here.
The aim is to turn Dar es Salaam into a regional hub of Chinese products so that instead of traders in Tanzania and from neighbouring countries to travel all the way to China, they should now be able to source all their preferred Chinese products right here. Will that affect your business in any way?
I don’t think it will have any impact. Kikuu is an e-commerce platform and will remain so. When that happens, we will be very happy because getting local suppliers is also part of what we have in our plans.