Scangroup signs up 8,000 SMEs on online platform

Marketing services firm WPP Scangroup #ticker:SCAN has signed up more than 8,000 small businesses on its e-commerce platform Goby which helps firms to sell their merchandise online.

The service is part of the Nairobi Securities Exchange-listed firm’s efforts to offer more digital services to diverse away from its traditional communications and advertising offerings.

“Goby is WPP Scangroup’s e-commerce platform launched early this year to enable small and medium sized businesses to help them build, manage and grow their businesses online,” the company says in its latest annual report.

“The platform has more than 8,000 signed up merchants so far in its launch in Kenya, with a plan to launch across Africa in the coming months.”

The platform automates the process of creating virtual stores, allowing users to add product images and prices. Besides virtual display of products, the platform has other value-added services such as tracking orders and broadcasting marketing messages to clients.

Scangroup charges Goby users a monthly fee of Sh300. The company sees the Covid-19 pandemic accelerating the uptake of e-commerce which offers convenience to consumers.

The company’s other digital offering is Optimus, an automated marketing service that helps clients acquire and retain customers. The service is being used by banks, insurance businesses and telcos across Africa, Scangroup said.

“Technology is reshaping all industries and there is a digital disruption happening in our industry too. The group has adapted by integrating the digital thinking in the traditional capacity,” the company said.

“The group believes that the future is in technology and data driven marketing however, it may take some time for complete adaptation by local clients.”

Scangroup says the economic contraction from the Covid-19 pandemic is hurting advertising spending on its mainstay media buying business across radio and television.

The company says it has enough cash to ride out the pandemic.