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Jumia Nigeria: from Retail to Marketplace
By: Ramon Casadesus-Masanell, Namrata Arora
Founded in 2012, Jumia Nigeria, a startup effort by Germany-based Rocket Internet, aimed to become an African Amazon. The company entered the nascent market and immediately enjoyed an uptick in…
- Length: 24 page(s)
- Publication Date: Oct 17, 2017
- Discipline: Strategy
- Product #: 718401-PDF-ENG
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Founded in 2012, Jumia Nigeria, a startup effort by Germany-based Rocket Internet, aimed to become an African Amazon. The company entered the nascent market and immediately enjoyed an uptick in consumer spending fueled by the strength of Nigeria's oil-based economy. By 2016, however, Jumia's growth had begun to taper, hindered by plummeting oil prices, the subsequent economic downturn, and the pressure of Nigeria's limited retail ecosystem. In addition, Jumia's inventory-intensive retail model required significant infusions of capital that, in the face of a deteriorating economy and the company's inability to show a profit, was becoming increasingly difficult to obtain. Considering all this and looking to the success of the Amazon and Alibaba marketplace models where third-party sellers largely carried inventory costs, the Board had made a drastic decision: Jumia would shift from an online retail model to a marketplace model. They also made it very clear that a failure to properly implement this transition could mean the end of investor support for Jumia. Senior management wondered how they would meet the challenges ahead. While Amazon in the US and Alibaba in China had found success with the marketplace model, they wondered if Jumia would be able to do the same. Was this the right model for the very different Nigerian environment? Would vendors, many of whom already had retail operations in the country, choose to sell through Jumia? How could Jumia continue to provide the same high quality customer service on which the company's success had been built while switching to a marketplace model in which parts of this critical aspect would now be in the hands of third parties?
Learning Objectives
The case explores strategy making in the difficult (but opportunity rich) institutional context of Sub-Saharan Africa. The case presents a frictionless e-commerce business model and then describes the many frictions that had to be overcome by Jumia given the African setting.
Oct 17, 2017 (Revised: Oct 6, 2022)
Discipline:
Geographies:
Africa, Nigeria, South Africa
Industries:
E-commerce industry, Retail trade
Harvard Business School
718401-PDF-ENG
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- January 2021 (Revised March 2021)
- HBS Case Collection
Jumia's Path to Profitability
- Format: Print
- | Language: English
- | Pages: 30
About The Author
Ramon Casadesus-Masanell
Related work.
- Faculty Research
- Jumia's Path to Profitability By: Ramon Casadesus-Masanell, Pippa Tubman Armerding and Gamze Yucaoglu
IMAGES
COMMENTS
JumiaPay Transactions reached 3.0 million in the fourth quarter of 2023, up 41% year-over-year. 45% of Orders placed on the Jumia platform in the fourth quarter of 2023 were completed using. JumiaPay, compared to 31% in the fourth quarter of 2022. This increase was mostly attributable to.
The case opens in September 2019 as Sacha Poignonnec and Jeremy Hodara, co-founders and co-CEOs of Jumia, the leading Pan-African e-commerce platform, are contemplating the company's path to profitability in the aftermath of a fragile investor sentiment, as the company announced two internal issues in August 2019. The case chronicles the founding and expansion of Jumia and the iterations of ...
The document outlines Jumia's online marketing plan for the third quarter of 2015. The plan's goals are to be the most professional e-commerce site in Egypt and the preferred reference for technology goods. Key elements of the plan include analyzing competitors like Souq and Nefsak, identifying Jumia's strengths and weaknesses in a SWOT ...
Jumia reports First Quarter 2022 results . Continued growth acceleration in Q1 2022 . Orders increased by 40% year-over-year. GMV increased by 27% year-over-year . Revenue increased by 44% year-over-year . Lagos, May 17, 2022 - Jumia Technologies AG (NYSE: JMIA) ("Jumia" or the "Company") announced today
Jumia Technologies AG, with registered offices at Skalitzer Strasse 104, 10997 Berlin, Germany, was founded in 2012. Below, Jumia Technologies AG and its affiliates is also referred to as "Jumia", the "Company" or the "Group". The Group operates the leading pan-African e-commerce platform.
Founded in 2012, Jumia Nigeria, a startup effort by Germany-based Rocket Internet, aimed to become an African Amazon. The company entered the nascent market and immediately enjoyed an uptick in consumer spending fueled by the strength of Nigeria's oil-based economy. By 2016, however, Jumia's growth had begun to taper, hindered by plummeting oil prices, the subsequent economic downturn, and the ...
Abstract. Founded in 2012, Jumia Nigeria, a startup effort by Germany-based Rocket Internet, aimed to become an African Amazon. The company entered the nascent market and immediately enjoyed an uptick in consumer spending fueled by the strength of Nigeria's oil-based economy. By 2016, however, Jumia's growth had begun to taper, hindered by ...
Abstract. The case opens in September 2019 as Sacha Poignonnec and Jeremy Hodara, co-founders and co-CEOs of Jumia, the leading Pan-African e-commerce platform, are contemplating the company's path to profitability in the aftermath of a fragile investor sentiment, as the company announced two internal issues in August 2019.
Continued usage growth and accelerating monetization Orders increased by 35% year-over-year GMV increased by 21% year-over-year Revenue increased by 42% year-over-year LAGOS, NIGERIA / ACCESSWIRE / August 10, 2022 / Jumia Technologies AG (NYSE:JMIA) ("Jumia" or the "Company") announced today its financial results for the second quarter ended June 30, 2022. Results highlights for the second ...
Growing monetization and reducing losses Gross Profit increased by 22% year-over-year Operating loss decreased by 41% year-over-year FY2023 Adjusted EBITDA loss expected to decrease by up to 50% vs FY2022 LAGOS, NIGERIA / ACCESSWIRE / February 16, 2023 / Jumia Technologies AG (NYSE:JMIA) ("Jumia" or the "Company") announced today its financial results for the fourth quarter and full year ended ...
jumia maroc - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Jumia's marketing strategy focuses on effective presentations using engaging backgrounds to capture audience attention. The presentation highlights Jumia's key features like online shopping and payments to promote its e-commerce platform in French-speaking markets.
Jumia Cote d'Ivoire wants to be the reference number 1 e-commerce company in Ivory Coast, keeping its leading position by opening a service adapted to the needs of its customers. With the growing trend of e-commerce, jumia.ci has to find constantly innovative solutions to maintain its competitive edge.
Jumia is a Pan-African technology company that is built around a marketplace, logistics service and payment service.The logistics service enables the delivery of packages through a network of local partners while the payment services facilitate the payments of online transactions within Jumia's ecosystem. It has partnered with more than 100,000 active sellers and individuals.
CONFERENCE CALL AND WEBCAST INFORMATION. Jumia will host a conference call today, February 16, 2023 at 8:30 a.m. U.S. Eastern Time to discuss Jumia's results. Details of the conference call are as follows: US Toll Free: 888-506-0062 International: 973-528-0011 UK Toll Free: 0800 520 0845 Entry Code: 431353.
Jumia - GTM to Marketplace model Case - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. 1) Jumia Nigeria currently operates an online retail model but is considering transitioning to an online marketplace model to better serve customers in the growing Nigerian e-commerce market.
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Jumia Marketplace Pitch. 1. Marketplace YOUR SHOP ON JUMIA KENYA. 2. JUMIA - the leading ecommerce mall in Africa. 3. Part of the leading internet group in Africa. 4. TRANSFORMING AFRICAN RETAIL 12 COUNTRIES 600 MILLION CONSUMERS UGANKDEAN YA ! 2012! 2500 EMPLOYEES.
Abstract and Figures. In this paper, we present the results of an analysis of Jumia and Konga, (the two biggest E-Commerce stores in Africa) to highlight personalization techniques they ...
commerce in Kenya. This will be made possible by analysis of the Jumia company which has been operating in Kenya for the last for the last five years with the tremendous growth and been preferred by most of the consumers in the country. It will demonstrate how different reviews conducted previously were of additional value to the current research.
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View Insider related Regulatory Filings: Forms 3, 4 & 5. View Document Grouping descriptions
5. Proven at scale. JumiaPay was built as the payment arm of Jumia, the leading pan-African e- commerce marketplace. Our payment technology and user experience have been tested, optimized and proven at scale. Customers with at least one valid transaction TPV1 Transactions1 LTM Active users2 4.8m $282m 12.8m 2.7m JumiaPay provides quick, easy and secure payments built for success Note 1 For the ...
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