Access Point in Spaza Shops

1. etail ekasi using Spaza shops as
access points
email: myschoolidea@gmail.com
Twitter:@myschoolidea
MSI
Access Points @
Spaza Shops

2. Why Spaza Shops
• In Townships informal retail visits outnumber formal visits 5 to 1
• Formal retailers are located far and transport cost expense.
• Formal retailers long queues at check-out tills.
• According to Bureau for Market Research, Informal retail turnover in 2004 was R52bn of which R32bn
was made up of retail sales from 750 000 informal outlets like Spaza shops.
• Growth for formal retailers is in Townships and Spaza shops online shopping access points will speed-up
that process.
• Consumers shopping habits are changing and embracing technology.
• marketers will have an opportunity to control the quality and price of their brands.
• A platform for marketers to engage with consumers in Townships online.
email: myschoolidea@gmail.com
Twitter:@myschoolideaMSI
Spaza shop is an informal convenience shop business in South Africa, usually run from home, selling
everyday small consumer goods. These approximately 100 000 Spaza shops in South Africa and 40
000 Spaza shops in Gauteng alone. eTail eKasi intends to use Spaza shops as access points for
Shoppers to shop online.

3. What is eTail eKasi
• Access point for Township consumers to shop
online for groceries.
• 64.8% of SA household do not have access to
internet. (2011 census report)
• A digital platform for marketers/wholesalers that
allows relevant interaction and engagement.
• Marketers/Retailers will pay a monthly rental fee
to use eTail eKasi as their marketing channel.
A Spaza Shop pop-up show rooming internet access point for Township and Rural Area consumers to shop
online for groceries (FMCG). eTail eKasi will be located inside Spaza Shop yard with 3 chairs for customers, a
table, Two sales persons with a laptop and a Smartphone Tablet to assist customers to shop online. eTail eKasi
will cover specific regions/sections in Townships and Rural areas and will only do home delivery for groceries
not less than 10 items. We do not deliver frozen, chill goods or eggs.
email: myschoolidea@gmail.com
Twitter:@myschoolideaMSI
• Groceries/ products purchase online via eTail eKasi will be delivered on the customer doorstep (house) for free
the next day during working hours.
• Payments for goods purchase on eTail eKasi will be electronically.

4. Target Market Lower End (LSM 2-6)
Buying Habits
• The buyer of products in most cases at Spaza
shops is a child because parents have no time due
to work commitments.
• LSM 2-6 market segment spend 40% of their
monthly salary on basic food.
• Informal retail visits outnumber formal retail visits
5 to 1
• Don’t have access to credit facilities and have to
borrow money from friends and family, the most
common reason for borrowing is to buy food.
• Large proportion of grocery shopping is done in
bulk at month end at Shoprite.
• UCT Unilever Institute of Strategic Marketing
Research view link: www.theredzone.co.za/our-
big-story/197-in-sa-we-have-a-calabash,-not-a-
pyramid-understanding-the-survivors
• LSM 2 -6 market segment shopping have a stable
income and shopping habits are regular.
• LSM 2 -6 market have their favorite brands but
cost comes first.
• The lower end, majority market is worth R225bn
email:myschoolidea@gmail.com
Twitter:@myschoolidea
MSI
Population Stats
• According to 2011 Census report 80% of SA
population are African(Black) living in Townships
(LSM 2-6) & earn R5000 or less a month
• 60 % of SA population is under the age of 35,
meaning 29.6% of SA population is aged between 0 -
4 years and a further 28.3% is aged between 15-34
years. Acording to Census 2011 report
• Gauteng comprises the largest share of the South
African population. Approximately 11,3 million
people (22,4%) live in this province.
• total SA population = 51.77 million(15.5% up)
• Number of household 14.45 million(up 29%)
• 51.3% female
• Total number of employed 13.18 million
• Average annual household income: R 103,204(was
48,385)
• Average black household income: R 60,613(was R
22,522)

5. email: myschoolidea@gmail.com
Twitter:@myschoolidea
MSI
These approx 25 High Schools in the three targeted areas (Evaton, Palm Springs and Orange Farm) and
during the 1st phase will work with 5 High Schools located in those areas, each High School will have a
team of four learners whose sole task will be to drive the awareness campaign for eTail eKasi in and
around schools, homes and neighborhoods where their school is located.
Each school will have a team of four learners. Their task will be to select six viable Spaza shops located
in and around their section and implement eTail eKasi in that area and also to enlist the support of their
peers and the community.
Each eTail eKasi access point @ Spaza Shop will have two learners and they will rotate days of their
location.
eTail eKasi Execution plan : 1
In Townships Children between 10-18 years old
frequently visit Spaza shops, because their parents
have no time due to the fact that their workplaces
are located too far.
eTail eKasi is the brain child of High School learners
in my neighborhood and its sole purpose will be to
develop entrepreneurial spirit among High School
learners.

6. Yahclick Voxtelecom is a Satellite internet access broadband package, it’s mission is to fast
track economic development by connecting underserved / unserved communities with
internet connectivity.
Yahclick Voxtelecom in partnership with eTail eKasi will give people living in Townships and
Rural Areas an opportunity to experience online shopping at the Spaza shop around the
corner in their neighbourhood.
Please bear in mind eTail eKasi execution plan one is to create an appetite for consumers in
Townships and Rural Areas to crave for internet access.
eTail eKasi market penetration strategy with Yahclick Voxtelecom will offer the first ten
customers of eTail eKasi free internet access in regions/sections we operate, in return they
will each recruit ten customers to purchase goods worth R200 online using eTail eKasi a
month and if they recruit 20 customers they will get R20 per customer and free satellite
internet access for one year.
In five years the number of household in the LSM 2-6 market segment with internet access
will grow and wholesalers who don’t sign-up with eTail eKasi will be left behind and loss
market share.
eTail eKasi Execution plan : 2
email: myschoolidea@gmail.com
Twitter:@myschoolideaMSI
A New Face Of SA Wholesalers Please view: http://myschoolidea.blogspot.com