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Jumia’s Positioning For Growth

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Jumia

New strategy shows Jumia is well positioned for growth in Nigeria

strong optimism exists with new focus on cost discipline and return to e-commerce fundamentals

Olushola Okunlade Writes

Before e-commerce came to Africa, Nigeria was one of the nations described as a ‘cash-based’ economy. Until recently, most business transactions for goods and services were carried out by face–to–face negotiations in open markets with payments through cash or cheques.

The culture adopted by most Nigerians was to inspect goods, negotiate physically, and, if satisfied, pay. The effect of this commerce culture was that most individuals were forced to travel within and outside the country to purchase goods and services carrying physical cash.

Over the years, e-commerce adoption has grown year-on-year, with more Nigerians willing to trust online shopping. Also, in the post-pandemic era, people now rely more on shopping for items online that can easily be easily delivered. This demand has made it even more important for e-commerce companies like Jumia to step in and fill the gap by providing innovative trading opportunities for thousands of sellers to connect with millions of consumers in Africa.

Jumia continues to navigate Africa’s business environment, where a  myriad of regulatory, logistic, socio-cultural, and technological challenges exist. Every country where Jumia operates has a unique environment. Notwithstanding, the company has built an innovative multi-purpose platform that empowers small businesses and consumers in the continent.

What Does the Future Hold?

The dust is now settled on the leadership changes in Jumia, which has seen several market watchers predicting a new lease of life in the company. Following the recent announcement from the company, it is important to analyse its third-quarter 2022 financial report and the new strategy from the management team to see what the future holds.

The third quarter of the year saw Jumia record substantial revenue and gross profit growth, according to the company’s financial earnings report. The most recent statistics show that $50.5 million was generated in revenue in Q3 2022, an increase of 6% from the $47.6 million reported in Q2. This also represents an 18.4% increase from the $42.7 million reported in the same period last year.

Interestingly, Jumia’s acting CEO, Francis Dufay, laid out the new business strategy for the company during the Q3 2022 earnings call, stating that the recent focus on cost discipline and return on investment speaks to an ever-increasing need to make the company profitable in the near future. Results for Q3 showed more encouraging signs that the company is on the right path.

He further stated that the company intends to bring more focus to the core business, allocating capital, resources, and teams to main areas and projects with attractive returns on investments and clear ecosystem benefits. Jumia will deemphasise or cease projects and ventures that do not meet such criteria. In line with the above, the company will scale back First Party grocery offerings in geographies where this category remains sub-scale. In addition, Jumia Prime will be paused indefinitely from the 1st of January 2023 as the company looks to focus more resources in other areas of the business.

It is important to note that the company plans to keep logistics open to third parties only in the countries where they have strong assets (Nigeria, Ivory Coast, Morocco). The e-commerce opportunity in Nigeria remains vast with a very young population and growing middle class. Hence, this new focus will further strengthen the company’s hold in its biggest market.

Going forward, the company is looking to continue strengthening its foothold in all the countries where it is currently operational. However, this is likely to come with changes to its operating model. In a statement released by Francis Dufay, Acting CEO of Jumia, “We have a clear focus for the next chapter of our journey and are taking decisive action to support our path to profitability. We will bring more focus to the business, directing our efforts and resources to projects and activities that deliver tangible value to our consumers, sellers and broader ecosystem participants. We are also enforcing tighter cost discipline and driving efficiencies across the full structure while enhancing the fundamentals of our core e-commerce business to drive user growth.”

The company is showing greater willingness to constantly invest in Nigeria and has stated it would be making some adjustments in its organisational setup in the coming weeks. Allocating more people and resources to its marketplace, tech, and in-house logistics platform are some of the strategies expected to enhance future success.

Clearly, there is strong optimism that this new strategy will continue to deliver value to Jumia’s consumers in Nigeria. The company is on the right path to profitability through growth and optimization.

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Jumia Empowers Rural Communities In Nigeria Through E- Commerce

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In the rapidly evolving landscape of global e-commerce, Nigeria’s e-commerce market is rapidly growing and is projected to generate a revenue of US$7,627 million by the end of 2023, making it the 39th largest e-commerce market globally. Over the past few years, Nigerian consumers are increasingly turning to online stores for their shopping needs, and the industry has seen tremendous growth. At the forefront of this change in consumer behaviour is Jumia. After years of operation in 11 African countries and becoming the biggest player in the Nigerian e-commerce market, Jumia launched a report titled “E-Commerce in Rural Areas,” outlining a series of critical lessons that have revolutionised how the company reaches consumers in the most remote corners of the nation. It sheds light on the company’s journey, offering valuable insights into the power of community engagement, strategic partnerships, and the empowerment of local entrepreneurs. Acknowledging the significant influence that e-commerce can have on Nigeria's economy, Jumia launched the JForce program, which takes a grassroots approach by involving individual sales consultants within local communities. This approach has yielded 43,000 local sales consultants who play a crucial role in driving consumer education and unlocking potential of rural entrepreneurship. Amidst a 40% unemployment rate, Jumia's JForce initiative is a transformative force, generating employment opportunities and empowering individuals financially. For many, it has become a vital source of income and stability, offering hope in the face of challenging economic conditions. Notwithstanding the growing internet penetration in Nigeria, there is still a large percentage of Nigerians who do not have access to smartphones. In rural areas where digital literacy is limited, JForce representatives foster trust through personalised interactions and word-of-mouth marketing. This strategy has been a significant driver of the e-commerce market by enhancing accessibility. The success of JForce activations plays a crucial role in acquiring new consumers and raising brand awareness in remote regions. The goal is to bridge the digital divide, allowing rural customers to break free from geographical constraints and access various products. Furthermore, reaching out to potential customers in remote regions may require a more resourceful approach involving strategic investments in logistics. As part of its commitment to accessibility and inclusivity, Jumia established over 250 pickup stations and forged partnerships with trusted logistic partners to facilitate product delivery to secondary cities and rural areas. The strategic placement of pick-up stations across various towns ensures that even the most remote corners of Nigeria are accessible, consequently revealing untapped markets. Although Nigeria's logistical challenges have often hampered economic development in remote regions, Jumia's partnership with these local logistics providers addresses this issue to stimulate growth and development within the sector. Such partnerships foster acceptance and adoption of e-commerce, particularly among customers familiar with these local businesses. By leveraging the capabilities of local logistics providers, the company has optimised its last-mile delivery, resulting in enhanced cost-effectiveness and efficiency for all stakeholders involved. Jumia's expansion into rural regions has had a remarkable effect on women entrepreneurs, making it an inspiring aspect of their endeavours. In a country where gender inequality has been a persistent issue, witnessing a significant rise in the participation of women in business represents a notable step forward in the economic landscape. This growing involvement of women entrepreneurs fosters inclusive growth and symbolises progress in promoting gender empowerment. The commendable statistic that over 50% of Jumia Nigeria's sellers are women illustrates a transformative shift in the business environment, emphasising the promotion of economic inclusivity and empowerment of women. As this trend continues, it holds the potential to contribute significantly to Nigeria's overall economic growth and development. The success of Jumia's E-Commerce expansion in remote regions in Nigeria reaffirms the company's commitment to empowerment, accessibility, and preparedness for sustained growth. The report highlights a critical takeaway - that businesses can play a pivotal role in driving Nigeria's journey towards sustainable and equitable economic growth by embracing inclusivity and forging strategic partnerships. As the nation navigates economic challenges, Jumia's approach, in the long run, may serve as a blueprint for creating economic opportunities and positively impacting local communities.

Rashidat Okunlade Writes

In the rapidly evolving landscape of global e-commerce, Nigeria’s e-commerce market is rapidly growing and is projected to generate a revenue of US$7,627 million by the end of 2023, making it the 39th largest e-commerce market globally.

Over the past few years, Nigerian consumers are increasingly turning to online stores for their shopping needs, and the industry has seen tremendous growth. At the forefront of this change in consumer behaviour is Jumia.

After years of operation in 11 African countries and becoming the biggest player in the Nigerian e-commerce market, Jumia launched a report titled “E-Commerce in Rural Areas,” outlining a series of critical lessons that have revolutionised how the company reaches consumers in the most remote corners of the nation. It sheds light on the company’s journey, offering valuable insights into the power of community engagement, strategic partnerships, and the empowerment of local entrepreneurs.

Acknowledging the significant influence that e-commerce can have on Nigeria’s economy, Jumia launched the JForce program, which takes a grassroots approach by involving individual sales consultants within local communities. This approach has yielded 43,000 local sales consultants who play a crucial role in driving consumer education and unlocking potential of rural entrepreneurship. Amidst a 40% unemployment rate, Jumia’s JForce initiative is a transformative force, generating employment opportunities and empowering individuals financially. For many, it has become a vital source of income and stability, offering hope in the face of challenging economic conditions.

Notwithstanding the growing internet penetration in Nigeria, there is still a large percentage of Nigerians who do not have access to smartphones. In rural areas where digital literacy is limited, JForce representatives foster trust through personalised interactions and word-of-mouth marketing. This strategy has been a significant driver of the e-commerce market by enhancing accessibility. The success of JForce activations plays a crucial role in acquiring new consumers and raising brand awareness in remote regions. The goal is to bridge the digital divide, allowing rural customers to break free from geographical constraints and access various products.

Furthermore, reaching out to potential customers in remote regions may require a more resourceful approach involving strategic investments in logistics. As part of its commitment to accessibility and inclusivity, Jumia established over 250 pickup stations and forged partnerships with trusted logistic partners to facilitate product delivery to secondary cities and rural areas. The strategic placement of pick-up stations across various towns ensures that even the most remote corners of Nigeria are accessible, consequently revealing untapped markets.

Although Nigeria’s logistical challenges have often hampered economic development in remote regions, Jumia’s partnership with these local logistics providers addresses this issue to stimulate growth and development within the sector. Such partnerships foster acceptance and adoption of e-commerce, particularly among customers familiar with these local businesses. By leveraging the capabilities of local logistics providers, the company has optimised its last-mile delivery, resulting in enhanced cost-effectiveness and efficiency for all stakeholders involved.

In the rapidly evolving landscape of global e-commerce, Nigeria’s e-commerce market is rapidly growing and is projected to generate a revenue of US$7,627 million by the end of 2023, making it the 39th largest e-commerce market globally.

Over the past few years, Nigerian consumers are increasingly turning to online stores for their shopping needs, and the industry has seen tremendous growth. At the forefront of this change in consumer behaviour is Jumia.

After years of operation in 11 African countries and becoming the biggest player in the Nigerian e-commerce market, Jumia launched a report titled “E-Commerce in Rural Areas,” outlining a series of critical lessons that have revolutionised how the company reaches consumers in the most remote corners of the nation. It sheds light on the company’s journey, offering valuable insights into the power of community engagement, strategic partnerships, and the empowerment of local entrepreneurs.

Acknowledging the significant influence that e-commerce can have on Nigeria's economy, Jumia launched the JForce program, which takes a grassroots approach by involving individual sales consultants within local communities. This approach has yielded 43,000 local sales consultants who play a crucial role in driving consumer education and unlocking potential of rural entrepreneurship. Amidst a 40% unemployment rate, Jumia's JForce initiative is a transformative force, generating employment opportunities and empowering individuals financially. For many, it has become a vital source of income and stability, offering hope in the face of challenging economic conditions.

Notwithstanding the growing internet penetration in Nigeria, there is still a large percentage of Nigerians who do not have access to smartphones. In rural areas where digital literacy is limited, JForce representatives foster trust through personalised interactions and word-of-mouth marketing. This strategy has been a significant driver of the e-commerce market by enhancing accessibility. The success of JForce activations plays a crucial role in acquiring new consumers and raising brand awareness in remote regions. The goal is to bridge the digital divide, allowing rural customers to break free from geographical constraints and access various products.

Furthermore, reaching out to potential customers in remote regions may require a more resourceful approach involving strategic investments in logistics. As part of its commitment to accessibility and inclusivity, Jumia established over 250 pickup stations and forged partnerships with trusted logistic partners to facilitate product delivery to secondary cities and rural areas. The strategic placement of pick-up stations across various towns ensures that even the most remote corners of Nigeria are accessible, consequently revealing untapped markets.

Although Nigeria's logistical challenges have often hampered economic development in remote regions, Jumia's partnership with these local logistics providers addresses this issue to stimulate growth and development within the sector. Such partnerships foster acceptance and adoption of e-commerce, particularly among customers familiar with these local businesses. By leveraging the capabilities of local logistics providers, the company has optimised its last-mile delivery, resulting in enhanced cost-effectiveness and efficiency for all stakeholders involved.

Jumia's expansion into rural regions has had a remarkable effect on women entrepreneurs, making it an inspiring aspect of their endeavours. In a country where gender inequality has been a persistent issue, witnessing a significant rise in the participation of women in business represents a notable step forward in the economic landscape. This growing involvement of women entrepreneurs fosters inclusive growth and symbolises progress in promoting gender empowerment. The commendable statistic that over 50% of Jumia Nigeria's sellers are women illustrates a transformative shift in the business environment, emphasising the promotion of economic inclusivity and empowerment of women. As this trend continues, it holds the potential to contribute significantly to Nigeria's overall economic growth and development.

The success of Jumia's E-Commerce expansion in remote regions in Nigeria reaffirms the company's commitment to empowerment, accessibility, and preparedness for sustained growth. The report highlights a critical takeaway - that businesses can play a pivotal role in driving Nigeria's journey towards sustainable and equitable economic growth by embracing inclusivity and forging strategic partnerships.

As the nation navigates economic challenges, Jumia's approach, in the long run, may serve as a blueprint for creating economic opportunities and positively impacting local communities.

Jumia’s expansion into rural regions has had a remarkable effect on women entrepreneurs, making it an inspiring aspect of their endeavours. In a country where gender inequality has been a persistent issue, witnessing a significant rise in the participation of women in business represents a notable step forward in the economic landscape. This growing involvement of women entrepreneurs fosters inclusive growth and symbolises progress in promoting gender empowerment. The commendable statistic that over 50% of Jumia Nigeria’s sellers are women illustrates a transformative shift in the business environment, emphasising the promotion of economic inclusivity and empowerment of women. As this trend continues, it holds the potential to contribute significantly to Nigeria’s overall economic growth and development.

The success of Jumia’s E-Commerce expansion in remote regions in Nigeria reaffirms the company’s commitment to empowerment, accessibility, and preparedness for sustained growth. The report highlights a critical takeaway – that businesses can play a pivotal role in driving Nigeria’s journey towards sustainable and equitable economic growth by embracing inclusivity and forging strategic partnerships.

As the nation navigates economic challenges, Jumia’s approach, in the long run, may serve as a blueprint for creating economic opportunities and positively impacting local communities.

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Airtel Nigeria Appoints Kemi Ariyo And Dhillon Hermanpreet As Directors

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Airtel Nigeria Appoints Kemi Ariyo And Dhillon Hermanpreet As Directors

Rashidat Okunlade Writes

Leading telecommunications service provider, Airtel Nigeria, has announced the appointment of two directors to join its executive leadership team.

The company named Kemi Ariyo as the new Director of Information and Technology and Harmanpreet Singh Dhillon as Director of Network Transformation and Planning.

According to Airtel, both appointments are set to bring about a new era of innovation and growth within the business.

Speaking on the recent appointments, Chief Executive Officer, Airtel Nigeria, Carl Cruz, said the notably experienced Kemi Ariyo will play a pivotal role in driving Airtel Nigeria’s digital transformation efforts and the company is pleased to elevate an excellent female leader within its ranks to the position.

On his part, Cruz stated that Mr. Harmanpreet will spearhead the telecom giant’s network transformation initiatives, geared towards strengthening its infrastructure and ensuring steady services for subscribers.

“We are thrilled to welcome Kemi and Harmanpreet on board. Their in-depth expertise and experience will be invaluable in driving our technological transformation and delivering exceptional experiences to our over 60 million users. We are confident that, with their experience and expertise, Airtel will continue to innovate and stay ahead while developing cutting-edge solutions to meet the evolving needs of our customers,” Cruz said.

Airtel Nigeria Appoints Kemi Ariyo And Dhillon Hermanpreet As Directors

Kemi Ariyo

Harmanpreet Singh Dhillon, the company revealed, brings an impressive background experience of over 23 years in the telecommunications industry and a passion for driving technological advancements.

Previously, he had served in various capacities across different organizations, including Vodafone, Nokia, Huawei, and was Chief Technology Officer at One Airtel in Karnataka, India, where he was responsible for leading the technology strategy, forecasting, expansion, operations, cost optimization, and capex planning for the networks team.

Kemi Ariyo also brings years of cross-industry and cross-continental career experience across the IT value chain with a track record of providing technical solutions geared towards service efficiency, customer experience, and business profitability.

Her contribution to Airtel started from her days as a Business Operations Analyst, under the management service at IBM, where she moved into several leadership roles until she fully joined Airtel in 2017.

Recall that Airtel recently completed the first batch of staff promotions for its financial year 2023/24. This promotion cycle saw the elevation of no fewer than 20 employees into senior leadership roles, out of whom three were women, and one out of these women was elevated to a vice president position.

 

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Airtel Nigeria Partners Top Device Manufacturers To Drive 5G Adoption

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Airtel Nigeria Partners Top Device Manufacturers To Drive 5G Adoption

Rashidat Okunlade Writes

Airtel Nigeria has announced its partnership with renowned manufacturers of 5G-enabled devices. The partnership is in line with Airtel’s commitment to enhance innovation, improve customer experience, and drive the adoption of 5G technology to transform various aspects of customers’ daily activities.

According to the Chief Commercial Officer of Airtel Nigeria, Femi Oshinlaja, the strategic partnership is not only to increase access to the latest technological advancements but also to encourage consumers to take advantage of the vast potential of 5G connectivity.

“Our partnership with leading 5G device manufacturers like Samsung, Tecno, and Infinix is a testament to Airtel’s commitment to providing our customers with access to the latest technological advancements. We believe that through this partnership, consumers will not only gain awareness about the potential of 5G but also access devices that enable them to fully embrace the benefits of this transformative technology,” he said.

A notable highlight of this partnership is the exclusive data package provided for users of the Samsung Galaxy Z Fold 5. For just 2000 naira, customers can enjoy a generous 10GB of data, allowing them to explore the vast potential of 5G connectivity.

Airtel’s partnership with smartphone manufacturers has also enabled the introduction of the lowest-priced 5G device in Nigeria such as the Samsung A14 5G, Samsung’s flagship fold and flip 5, Infinix Hot 30 5G, Tecno Camon 201 and Tecno Spark 101.

 

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