Zuzela Aims To Connect Spaza Shops With Distributors
Zuzela Aims To Connect Spaza Shops With Distributors. Zuzela is a Port Elizabeth based business-to-business (B2B) ecommerce start-up that connects spaza shops or micro-retailers in South Africa with brands and distributors on a sales app. Zuzela is making it easier for spaza shops to purchase products at affordable prices — increasing product visibility and price transparency in townships. The start-up was founded by Trevor Myburgh.
Zuzela works with brand owners and suppliers, ranging from Premier Milling, Albany Bakery, Simba, Twizza, and Henties Juice, to local wholesalers. They also supply meat and fresh produce, and are in negotiation with national cash and carry distributors. It is often too expensive to service informal markets directly, and the market is mostly covered by national, local cash and cash distributors, and large wholesalers. Large FMCG companies have strong working relationships with cash and carry distributors and wholesalers, and breaking into this market takes time, resources, and education.
Some larger spaza shops or superettes (small supermarkets) have strong relationships with upstream wholesalers, and some are vertically integrated into the wholesale network. The start-up employs a sales force and has divided Port Elizabeth into nine sub-zones. Each zone leader is responsible for customer acquisition, education and training. “It’s very important to get users comfortable with the app,” Myburgh told The Supply Chain Lab. The zone leader is also responsible for activating the customer’s e-wallet — enabling traders to order cashless from suppliers. Zuzela is currently focusing on servicing Port Elizabeth in the Eastern Cape but considering national expansion.
Products on the platform are organised by suppliers, and informal traders can place their order on the app, collect their goods, or receive delivery directly from suppliers and brand owners. Suppliers charge a delivery fee ranging from R30 to R100 and also set a minimum order value to qualify for delivery.
Traditional trade is estimated to contribute around 35 percent of total grocery sales in South Africa, with 50 percent of South Africa’s urban population living in townships. Spaza shops and townships remain undeserved and were historically ignored by the consumer goods sector as low in value and difficult to service.
