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Jumia As A Driver Of Growth For SMEs In Nigeria

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Jumia As A Driver Of Growth For SMEs In Nigeria

…Starting a business is no easy feat

Olushola Okunlade Writes

Jumia, the number one online shopping site in Nigeria has made profitable market opportunities to increase the rate of SME creation.

This increases the total number of SMEs in the country, which increases job creation and income per capita. The contributions of SMEs to employment and the country’s gross domestic product (GDP) are by no means trivial.

Over the years, Nigeria’s leading e-commerce platform, Jumia, has helped several vendors get online, reduce and, in most cases, eliminate some of the costs associated with running their business.

The platform has connected over 10,000 SMEs and business owners to millions of consumers in Nigeria. Before the advent of Jumia, vendors relied on multiple stores and shops across the country to scale their businesses and increase their reach. Today, vendors can sell their products to consumers anywhere in the country and have them delivered conveniently. Asides from this, vendors can also save on operating expenses such as staff salaries since online sales require fewer hands to run. 

There is a lot of research, planning, and capital that goes into it. It often feels like there are 1,000 things to do at the same time. New small business owners are often faced with this reality, but, over the years, Nigeria’s leading e-commerce platform, Jumia, has helped several vendors get online, reduce and, in most cases, eliminate some of the costs associated with running their business.

The platform has connected over 10,000 SMEs and business owners to millions of consumers in Nigeria. Before the advent of Jumia, vendors relied on multiple stores and shops across the country to scale their businesses and increase their reach. Today, vendors can sell their products to consumers anywhere in the country and have them delivered conveniently. Asides from this, vendors can also save on operating expenses such as staff salaries since online sales require fewer hands to run.

Small and Medium-Scale Enterprises represent about 90 per cent of businesses and more than 50 per cent of employment worldwide. According to the World Bank, formal SMEs contribute up to 40 per cent of national income (Gross Domestic Product) in developing countries.

It is certainly no exaggeration that SMEs play a major role in most economies, particularly in the context of developing regions. If you look around, chances are high that you can mention 10 SME owners without thinking too much about it. This comes as no shock since unemployment is a hard nut to crack in many African countries. Even so, the SME sector continues to accommodate many youths who struggle to turn their side hustles into actual businesses.

The visibility Jumia provides sellers on its platform is the major prerequisite most businesses today need to grow and prosper. Vendors have benefited from Jumia because they now have more revenue to invest in their businesses. The platform has also helped vendors market their products to specific target markets, thereby saving vendors marketing costs while increasing their customer base.

Onyinye, Tunde, and Bukola, who are long-time beneficiaries, prove that Jumia stands for the advancement of SMEs as they share their experiences as business owners selling on Jumia. For Onyinye Ejide, it has been a story of tremendous growth with Jumia, as the platform has helped expand his variety of merchandise. From selling just two phone brands in 2012 to several electronic devices thanks to accessing easy and reliable online sales on the platform. In addition, the platform also ensures that every vendor can increase sales and profit. Tunde Olaniyan of Danami Fashion House verified this when he spoke with Jumia about how over 80% of the sales from his business come from Jumia.

According to Tunde, “As a fashion house, we make different kinds of clothes for men and women. We started six years ago, and today we are bigger and better with 80% of our sales coming from Jumia”.

As a business owner, wife, and mother, CEO of Purple Linings Ventures, Bukola Ogundijo has been able to balance out her responsibilities and conveniently sell her products thanks to Jumia. She has been selling home appliances and fashion items on Jumia since 2014, which has helped her provide more for her family. 

“I can sell to people in Kaduna, Abuja, and Portharcourt, and this has really increased my sales. Jumia has been very helpful in managing my business because I don’t need to worry about warehousing or delivery. From my living room with my smartphone in hand, I can attend to customers while taking care of my family”, she said.

Delivery of goods can also be one of the many headaches of running a business, but Jumia helps solve this with its fast and reliable logistics network, giving vendors one less thing to worry about.

The testimonies from Onyinye, Tunde, and Bukola prove Jumia’s influence on SMEs over the past decade in Nigeria and further strengthen the notion that E-commerce presents opportunities for small businesses in Nigeria to grow and reach new heights.

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Dangote Boosts Abuja Trade Fair

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World Water Day: Dangote, Others Make Case For GroundWater Protection

Olushola Okunlade Writes

The Dangote Group has been described as a significant premium player as over 300 corporate exhibitors are participating in the 17th Abuja International Trade Fair (AITF) that is expected to be declared open by President Muhammadu Buhari on Friday.  

Speaking to newsmen, the Director-General of the Abuja Chamber of Commerce and Industry (ACCI), Ms. Victoria Akai said: “As a member of ACCI, the Dangote Group further strengthens the position of ACCI in implementing business activities and advocating for business-friendly policies.

”The DG said the Dangote-ACCI partnership is strategic and geared towards showcasing made-in-Nigeria products, which will help inform prospective exporters about the available opportunities and processes.  

Ms. Akai said the company had been a significant sponsor of the Abuja International Trade Fair, including this year’s Trade Fair. In the same vein, the President of ACCI, Dr. Al-Mujtaba Abubakar, told newsmen that the theme for this year’s exhibition: “Creating an Export Ready Market through SMEs Digitization,” offers a wide range of opportunities for Small and Medium Enterprises to ginger their performance, and especially in relation to the non-oil sector.  

He said: “The Abuja International Trade Fair, since its inception, has served Nigeria as a trusted global trade destination and a potential market for over 50,000 consumers.”

The 17th AITF is scheduled to hold between Friday, September 30 and Sunday, October 9, 2022, at ACCI Abuja International Trade Fair Complex.  

The Dangote Group’s Executive Director of Government and Strategic Relations Engr Mansur Ahmed said the partnership with ACCI offers the company the opportunity to display its numerous innovative products while contributing its quota to the Nigerian economy through Trade Fairs and expos.  

He said the President of the Group Alhaji Aliko Dangote is passionate about developing the Nigerian economy, exporting made-in-Nigerian goods, earning foreign exchange, and creating jobs for the populace. Engr Ahmed said the company is desirous of entering into any strategic partnership that will set the country on the path of rapid growth and development.  

Aside government, the Dangote Group is the second biggest employer of labour in Nigeria.  

A statement by the Corporate Communications Department of the company said a special help desk has been set up at the company’s pavilion to respond to queries while urging participants to leverage the numerous innovative products which include the: Dangote Fertiliser, Dangote Sugar, Dangote Cement, Dangote Salt, and lots more.  

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PhotoNews: LCCI President Visits Association Of German Chambers Of Commerce And Industry (DIHK) In Berlin, Germany

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LCCI President Visits Association Of German Chambers Of Commerce And Industry (DIHK) In Berlin, Germany

Olushola Okunlade Writes

The President of the Lagos Chamber of Commerce (LCCI), Dr. Michael Olawale-Cole, CON, has paid a courtesy visit to the Association of German Chambers of Commerce and Industry (DIHK) in Berlin, Germany.

Asiwaju Dr. Michael Olawale-Cole, CON met Mr. Heiko Schwiderowski, Director of the Africa section of the Association of German Chambers of Commerce and Industry (DIHK) during a courtesy visit to the Association of German Chambers of Commerce and Industry (DIHK) in Berlin, Germany on Thursday, September 28, 2022.

LCCI President Visits Association Of German Chambers Of Commerce And Industry (DIHK) In Berlin, Germany
President of the Lagos Chamber of Commerce (LCCI), Dr. Michael Olawale-Cole, CON, and Mr. Heiko Schwiderowski, Director Africa Section of the Association of German Chambers of Commerce and Industry (DIHK) during a courtesy visit to the Association of German Chambers of Commerce and Industry (DIHK) in Berlin, Germany on Thursday, September 28, 2022.
LCCI President Visits Association Of German Chambers Of Commerce And Industry (DIHK) In Berlin, Germany
President of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Michael Olawale-Cole, CON, and Mr. Edgar Zedler Head of Regional Affairs NUMOV/ German Near and Middle East Business Association during a visit to the Association office in Berlin, Germany on Thursday, September 28, 2022.

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The Impact Of E-commerce On Supply Chain

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The Impact Of E-commerce On Supply Chain

….as Jumia leads the fast and reliable digital market hub

Olushola Okunlade Writes

The rise of E-commerce and the digital marketplace has changed the composition of consumers buying behavior and expectations, as consumers now expect fast, free shopping and competitive pricing.

This demanding delivery schedule challenges traditional logistics and supply chain models, and companies are now forced to adjust their strategies to provide the low-cost and on-demand delivery service that consumers now demand.

Technological advances in many aspects of our lives have resulted in buying, selling, and other forms of transactions being executed online. Once the consumer makes an online purchase, the work begins to transport the products from the seller to the consumer – and that’s where the logistics sector comes into play.

Statista claims that the logistics sector is one of the pillars of global trade, valued at more than 5.7 trillion euros.

In Nigeria, the logistics and supply sector is growing exponentially. According to the 2018 Logistics & Supply Chain Industry Report, Nigeria’s logistics industry was worth 250 billion naira ($696 million) as of 2018, which represents an increase of 50 billion naira ($140 million) from 2017 statistics. This value has increased over the years. The industry is currently expanding because of improved aviation and rail infrastructure, stronger international relations, expansion in the manufacturing and export industries, and continuous e-commerce growth.

E-commerce and the Supply Chain Sector

The Impact of E-commerce on Supply Chain

The supply chain links numerous parties and organisations, including consumers, enterprises, merchants, financial, and information flows. To deliver high-quality services and products, managing various groups and activities requires a method that can effectively and efficiently integrate interactions among the entities, particularly when organisations use resources from different regions of the world.

The supply chain has grown more adaptable and effective as a result of e-commerce. It has given businesses fresh and creative ways to connect with consumers. E-commerce also has made it possible for companies to offer goods directly to consumers instead of through conventional retail channels.

The increase in e-commerce adoption has made logistics services a necessary component of daily living in Nigeria’s major commercial cities. Access, cycle time, dependability, and cost of logistics are directly impacted by the state of the available infrastructure and the degree of integration. High-performance government agencies, funding, and industry expertise are also essential. Therefore, logistics is a primary marker of economic advancement as represented in trade facilitation and company competitiveness.

How E-commerce is Revolutionising the Supply Chain Sector

The Impact Of E-commerce On Supply Chain

E-commerce has several advantages in the supply chain sector. Firstly, it offers real-time data on inventory levels and order status. This lowers the possibility of stockouts or overstocks by helping businesses to make better decisions about when to produce or order products.

Collaboration between businesses and their suppliers and consumers is also made simpler by e-commerce. For instance, a business can quickly place orders and submit estimates to suppliers. This lessens the amount of paperwork required and helps to speed up the ordering process.

A company like Jumia in the supply chain sector, through e-commerce, connects vendors with consumers across a broad delivery area. As a result, local vendors and international brands can effectively reach more consumers across the country using the platform. In addition, consumers’ shifting preferences, lifestyles, and behaviours have led companies like Jumia to introduce quick commerce to make online shopping more convenient than ever before.

With speed and convenience becoming more important than ever, Jumia opened its logistics services to third parties. Its logistics network smoothly connects hundreds of logistics partners across Nigeria, from small business owners to significant logistics service providers. It offers merchants the advantage of a distributed and scalable logistics service and gives consumers quick access to the products they desire.

What Does the Future Hold for Logistics?

The Impact Of E-commerce On Supply Chain

Technology remains a strategic imperative for supply chain organisations. In the next three to five years, we will see an increase in the adoption of digital supply chain technologies, including those that improve human decision-making.

It is predicted that the future of the supply chain sector will be defined by data, analysed by artificial intelligence, and driven by machines. Gartner has predicted that by 2023, AI techniques will be embedded across 50% of all supply chain technology solutions.

Already, Jumia Logistics is leading the forefront, as the company has invested in machine learning and several data science techniques. This has helped to offer more precise delivery times based on multiple factors, and even to predict the ideal routes that delivery agents can rely on to meet their targets. Consequently, online consumers will have better experiences on the mobile app with greater certainty about the progress of their orders from purchase to delivery.

Furthermore, the company’s move into drone delivery with its recently announced collaboration with Zipline, the world’s largest instant delivery service, is another game changer for the industry. Using the latest instant logistics technology, Jumia will be able to offer consumers living in rural or remote areas on-demand delivery of the products they need.

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