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Timing matters in making ecommerce jump in Africa

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Many businesses are in danger of falling behind by ignoring ecommerce. Digital Planet CEO NEIL WATSON urges business to add an online sales channel before it’s too late.

Think ecommerce in Africa is still lagging behind the rest of the retail world? Think again. The success of relatively new online retailers such as Zando and Konga is proving that the continent is more than ready for online shopping. Take JUMIA, the Nigerian online shopping platform that was started in 2012. Less than three years later, the business employs 1 000 people and has warehouses in eight other countries.

Once, having an ecommerce channel may have been optional for business, but with each passing year and new set of figures, it becomes clearer that this is no longer true. The recent DHL Shop the World report highlighted the high growth potential of emerging markets in ecommerce. McKinsey highlights that the African ecommerce market is accelerating after a slow start and could soon account for 10 per cent of all retail sales.

Is time running out for retailers who haven’t yet made the leap to online platforms? The evidence certainly seems to say so. Some online players in South Africa are growing faster than brick-and-mortar shops, which means they are cannibalising traditional retail. For retailers, online platforms are becoming increasingly compulsory not just as additional sales channels, but to ensure that ecommerce players don’t end up eating their lunch.

The most important part of ecommerce is investing at the right levels at the right time. This differs depending on the kind of product you’re offering and how comfortable consumers are purchasing your product online.

For IT sellers, for example, the market is mature enough that it may already be too late. There are too many online players fighting for a piece of the pie.  Unless you have a big brand, an innovative concept or a lot of marketing spend, it will be hard to get above the crowd.

On the other hand, some markets such as fashion apparel are just beginning to mature. Players like Mr Price have invested tens of millions in building their online brand, ensuring that they are at the forefront and will be directing the market in South Africa.

Once you’ve determined that it’s time for you to build your ecommerce store, you then need to look at investing the right amount for the next three to five years. It can be tricky to invest at the right level. In large organisations, we often see an over-investment in technology when the market doesn’t warrant it. Investing too heavily too early means you may never see a return on investment.

The later you engage in online retail, the more developed the market will be, which has both advantages and disadvantages. A more mature market means that technology is more mature and there are skills available.

The downside is there will already be more competitors and it will be more expensive to establish yourself as a brand. You’ll also be learning while everyone else already understands the market so you could suffer reputational damage. Finally, the skills will be there, but will be much more expensive.

For most companies,  it’s better to start too early than too late. This will give you scope to experiment so that when the market arrives, you’ve learned your lessons and can take advantage without huge marketing investment and reputational risk.

Once you’ve determined the right time to make the leap, the real work starts. From the planning stage to the fulfilment stage, there is a lot that goes into a successful ecommerce channel. Customer service, logistics, reverse logistics, warehousing, marketing and many other specialised areas need to be considered. Most businesses do not currently have skills to tackle it on their own and would be advised to seek outsourcing partners who do have those skills on hand.

One thing is certain when it comes to ecommerce – it’s not a question of whether to explore online platforms but when. South African customers may have been slow to start transacting online, but we’ve reached the tipping point for ecommerce.

Cars

Auto rivals team up for connected car demo

Rivals BMW, Ford and Groupe PSA, maker of Peugeot and Opel cars, have teamed up with the 5G Automotive Association (5GAA), Qualcomm Technologies and Savari for Europe’s first live demonstration of C-V2X direct communication technology operating across vehicles from multiple auto manufacturers.

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The live demonstration also featured a live showcase of C-V2X direct communication technology operating between passenger cars, motorcycles, and roadside infrastructure. C-V2X is a global solution for vehicle-to-everything (V2X) communication in support of improved automotive safety, automated driving and traffic efficiency.

The demonstration exhibited the road safety and traffic efficiency benefits of using C-V2X for Vehicle-to-Vehicle (V2V) collision avoidance, as well as Vehicle-to-Infrastructure (V2I) connectivity to traffic signals and Traffic Management Centers (TMC). C-V2X was operated using real-time direct communications over ITS spectrum and demonstrated its ability to work without cellular network coverage, and underscores its commercial readiness for industry deployment as early as 2020. Superior performance and cost-effectiveness compared to other V2X technologies, along with forward-compatibility with 5G, make C-V2X direct communications a preferred solution for C-ITS applications.

Six demonstrations were shown including: Emergency Electronic Brake Light, Intersection Collision Warning, Across Traffic Turn Collision Risk Warning, Slow Vehicle Warning and Stationary Vehicle Warning, Signal Phase and Timing / Signal Violation Warning and Vulnerable Road User (pedestrian) Warning. The vehicles involved included two-wheel e-scooters provided by BMW Group, and automotive passenger vehicles provided by Ford, Groupe PSA, and BMW Group, all of which were equipped with C-V2X direct communication technology using the Qualcomm® 9150 C-V2X chipset solution.  V2X software stack and application software, along with roadside infrastructure, were provided by industry leader, Savari.

C-V2X is globally supported by a broad automotive ecosystem, which includes the fast growing 5GAA organization.  The 5GAA involves over 85 global members comprised of many leading automakers, Tier-1 suppliers, software developers, mobile operators, semiconductor companies, test equipment vendors, telecom suppliers, traffic signal suppliers and road operators.  

Cellular modems will be key to the C-V2X deployment in vehicles to support telematics, eCall, connected infotainment and delivering useful driving/traffic/parking information. As C-V2X direct communication functionality is integrated into the cellular modem, C-V2X solutions are expected to be more cost-efficient and economical over competing technologies, and benefit from accelerated attach rates.  C-V2X direct communication field validations are currently underway in Germany, France, Korea, China, Japan and the U.S.

C-V2X currently stands as the only V2X technology based on globally recognized 3rd Generation Partnership Project (3GPP) specifications, with ongoing evolution designed to offer forward compatibility with 5G.  C-V2X also leverages and reuses the upper layer protocols defined by the automotive industry, including the European Telecommunications Standards Institute (ETSI) organization. C-V2X includes two complementary transmission modes: 

  • Direct communication as shown in this demonstration for V2V and V2I use cases
  • V2N network communication, which leverages mobile operators for connectivity and delivers cloud-based services, including automated crash notification (ACN, as mandated by eCall), hazard warnings, weather conditions, green light optimal speed advisory (GLOSA), parking spot location, and remote tele-operation to support automated driving, to name a few.

“This demonstration builds on the successful C-V2X showcase we organised with our members Audi, Ford and Qualcomm in Washington DC in April, said Christoph Voigt, Chairman of 5GAA.

“We are excited to witness the growing momentum behind this life-saving technology and to see our members working together to deploy C-V2X, and to make it hit the road as soon as possible.”  

“The BMW Group introduced the first C-ITS use cases already in 2013 with the market introduction of the BMW i3. Today most of envisaged C-ITS use-cases are already institutionalized. With the implementation of C-V2X, the BMW Group accomplishes the last set of the puzzle with a practical path to C-ITS showing quick benefits,” said Christoph Grote, Senior Vice President Electronics, BMW Group. 

“With its ability to safely and securely connect vehicles, along with its evolution into 5G, C-V2X is integral to Ford’s vision for future transportation in which all cars and infrastructure talk to each other,” said Thomas Lukaszewicz, Manager Automated Driving, Ford of Europe. “We are very encouraged by preliminary test results in Europe and elsewhere which support our belief that C-V2X direct communications has superior V2X communication capabilities.”

“We’re moving forward with seamless communication between cars and their environment for enhancing road safety, as well as our customers’ safety,” said Carla Gohin, Group PSA’s Vice President for Research and Advanced Engineering. “Following the first European C-V2X direct communications demonstration we hosted with Qualcomm Technologies last March, we’re pleased to work with leading automotive and technology companies today to highlight that C-V2X interoperability is a reality.” 

“This demonstration of interoperability between multiple automakers is not only another milestone achieved towards C-V2X deployment, but also further validates the commercial viability and global compatibility of C-V2X direct communications for connected vehicles,” said Enrico Salvatori, senior vice president & president, Qualcomm Europe and MEA. “We look forward in continuing to work alongside leaders in the automotive industry, like the 5GAA, BMW Group, Ford, Groupe PSA and Savari, to help advance the automotive industry’s shift towards a safer, connected and more autonomous future.” 

“As one of the V2X pioneers, our company is extremely pleased to continue to help enable the next step in the V2X revolution that we helped start back in 2008,” said Ravi Puvvala, CEO of Savari. “For the last year and a half, the Savari team has worked diligently alongside the dedicated C-V2X engineers in the 5GAA partnership. The resulting string of increasingly impressive demonstrations is continuing to convince the world that C-V2X will soon be deployed around the world.”

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Win a Poster Heater with Gadget and Takealot.com

This winter Gadget and Takealot.com are giving away three Poster Heaters, which look like posters but become heaters when you plug them in.

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Three Gadget readers will each win a unit, valued at R550 each. To enter, follow @GadgetZA and @Takealot on Twitter and tell us on the @GadgetZA account how many Watts the heater consumes.

What’s the big deal about these heaters? Many of us are struggling to keep the balance between soaring electricity costs and the need to keep warm this winter.

However, the recently launched Poster Heater by EasyHeat and distributed in South Africa by Takealot.com is not only one of the most cost effective electric heaters currently on the market, it is also easy to setup and use.

As the name indicates, it is a poster similar to one you would hang on a wall. But, plug it in and it turns into a 300 Watt heater. The Poster Heater isn’t designed to heat hallways or large rooms, but rather smaller ones like a bedroom or a baby’s nursery or a dressing room.

It uses radiant heating, which means that it heats up in a couple of minutes and the heat is directed at the objects or people around it, quickly taking the chill out of the air and providing a comfortable ambient temperature.

The other advantage of radiant heating is that it doesn’t dry out the air like infrared or gas heaters. Users also don’t have to worry about their children or pets getting too close to it because, even though it gets hot, it can be touched.

To enter the competition follow the steps below:

Competition entry details:

1. Follow @GadgetZA and @Takealot on Twitter. (We will ONLY be accepting entires via Twitter, so please don’t enter through the comments section of this article.)

2. Tell us on Twitter, via @GadgetZA, mentioning @Takealot in your posting, how many Watts the Poster Heater consumes.

cleardot.gif3. The competition closes on 31 July 2018.

4. Winners will be notified via Twitter on 1 August and Takealot.com will be in touch to organise delivery.

5. The competition is only open to South African residents.

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