Background:
Founded in 2012, Jumia, often referred to as the “Amazon of Africa,” is an online marketplace catering to multiple countries across Africa. The company sought to tap into the rising internet penetration, the vast population, and an underserved market that lacked robust e-commerce infrastructure.
Challenge:
Unlike global giants like Amazon or Alibaba, which cater to regions with well-established infrastructure and internet connectivity, Jumia faced unique challenges in Africa, such as diverse languages, a predominantly cash-based society, logistical challenges, and varying levels of consumer trust in online shopping.
Solution:
- Logistical Innovations: Understanding that many areas lacked formal addresses, Jumia set up local hubs and used local entrepreneurs for deliveries. They also integrated various methods like “Jumia Express” for faster delivery and “Jumia Pay” to address the payment preferences of the local market.
- Local Engagement: Instead of a one-size-fits-all approach, Jumia focused on local engagement, from adapting their website to local languages to employing local customer service representatives to handle inquiries and complaints.
- Building Trust: Realizing the reservations many African consumers had towards online shopping, Jumia introduced measures such as offering cash on delivery as an option, ensuring high-quality customer service, and establishing a physical presence in some places for pick-up and inquiries.
- Diverse Product Offering: To cater to the diverse African market, Jumia became more than just an e-commerce platform. They expanded their offerings to include Jumia Food (food delivery service) and Jumia Travel (travel booking service).
Outcome:
Jumia’s tailored approach paid off. As of 2021, the company operates in 11 African countries and has over 6.8 million active consumers. By addressing the specific challenges of the African market environment, Jumia solidified its position as a leading e-commerce platform in the region.