Background
Jumia, often dubbed “the Amazon of Africa,” is an online marketplace that operates in several African countries. Founded in Lagos, Nigeria in 2012, Jumia aimed to become the continent’s premier online retail platform. However, Africa’s diverse and complex consumer landscape presented unique challenges.
Challenge
Unlike Western or Asian markets, Africa is incredibly diverse in terms of languages, cultures, economic conditions, and infrastructural development. To effectively tap into this market, Jumia needed to understand various consumer needs, behaviors, and the logistical challenges specific to each region or country.
Jumia heavily invested in market research and developed robust information systems:
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Localized Surveys:
Jumia conducted localized surveys to understand specific shopping habits, payment preferences, and delivery expectations in different countries. -
Mobile First Strategy:
Recognizing that a large portion of African internet users access the web via mobile devices, Jumia developed a mobile-friendly platform and invested heavily in its mobile app. -
Payment Solutions:
Market research revealed a general mistrust of online transactions. To address this, Jumia introduced “Cash on Delivery” in many regions and developed JumiaPay, a secure payment platform. -
Logistics Solutions:
Due to infrastructural challenges in many African cities, Jumia established its own logistics arm, tailoring delivery solutions to each country’s unique challenges, from bustling urban centers to remote areas. -
Engaging Local Sellers:
To ensure a diverse and relevant product range, Jumia engaged with local sellers, offering them training and insights derived from their market research.
Outcome:
By 2021, Jumia had established operations in 14 African countries, serving millions of customers. Their data-driven, customer-centric approach allowed them to not only introduce online shopping to a vast number of Africans but also continually adapt and innovate based on the insights they gathered.