Jumia Company

Company Background

Jumia is an ecommerce company that was launched in Nigeria in June 14 2012 by Tunde Kehinde and Raphael Afaedor in collaboration with rocket Internet. They duo started “Kasuwa” in May 2012 which is a small ecommerce company and after getting the backing of rocket Internet and subsequently Africa Internet Holdings, they transformed it to Jumia. Jumia is now in 5 other African countries including Egypt, morocco, Kenya, Uganda and ivory coast. Jumia is now the largest online ecommerce site in Nigeria providing more than a hundred thousand SKU’s. They sell a wide variety of products from books to electronics to books, clothes, furniture, mobile phones etc. Jumia got $50 million in funds from Millicom, JP Morgan and Summit Partners. Last year, JUMIA was the first African company to win a World Retail Award as “The Best New Retail Launch of the Year” an award that was previously won by the likes of Niketown, Woolworths, Zappos and ASOS. The site now has 200,000 unique visitors every month and has a million registered customers. It is currently the 20th most visited site in Nigeria according to Alexa.com and has gone up 378 places in global websites ranking this year. It claims to control up to 70% of the online ecommerce market in Nigeria, a fact its competitors strongly dispute. Jumia’s biggest competitor is konga, which is also an ecommerce company in Nigeria but without presence in other African countries.

For practicality, this paper is going to focus more on Jumia Nigeria, its business model and also analysis all the factors that made it successful and describe its current strategy and future strategies (that could be implemented to ensure expansion, growth and leadership protection) using technology tools coupled with strategic digital business approach learned through out the course.

Business Model

Jumia’s key partners include the suppliers and manufacturers of all the products it sells, it is not a producer or manufacturer of any product or content. Rather it serves as the intermediary between manufacturers and producers, and the final customer. They provide to wholesalers in rare occasions through its “bulk sale” program. It also has a network of sellers who sell on the its platform, Jumia gets a small margin on all sells carried out by network sellers through its “Jumia Market place” program. Publishers are also its important partners especially local ones. Jumia’s key activities include selling of products online, logistics for delivery, warehousing and also promotion of network sellers. Its main value proposition is price, security, variety and convenience. Its customer segments is mainly the mass market using the Internet. As for its cost structure, it relies on economies of scale