Christina Hawley, Jumia: "More than 50 percent of orders are made through mobile devices"

Jumia is part of the African Internet Group (AIG), which promotes ecommerce development in various markets. How has Jumia been supported by AIG in its ecommerce quest?

Entrepreneurship is AIG’s passion. We understand that building great companies means unifying four key elements: team, concept, technology and capital. We support our companies not only financially, but also by boosting their success and growth with our experts. AIG’s network of companies is present in 26 countries across Africa and includes Jumia, Kaymu, Hellofood, Lamudi, Carmudi, Zando, Jovago, Lendico and Easy Taxi.

Recently, Jumia has raised USD 150 million in a funding round to expand business operations in other African markets. Which market do you see as the most interesting for Jumia’s business operations and what is your strategy for expansion in the region?

The Nigerian market was the most promising to Jumia for two reasons: Nigeria has the highest population in Africa and is the continent’s largest internet-wired population. Nigerians adapted quickly to online shopping, greatly increasing demand for Jumia in a very short amount of time. We have taken the insights from Nigeria and expanded into 9 different countries, all of which are showing double digit growth. Our customers expect the same quality of services as anywhere else in the world, such as quality products, good price and excellent delivery. So, we created vendor networks and built up our own infrastructure to achieve this high level of services and build trust with customers. We have adapted to our markets.

Are there any impediments to Jumia’s expanding process across borders in Africa in terms of logistics or regulation?

Jumia’s most challenging factors are the infrastructure and logistic systems when delivering goods. If you want to transport a product from point A to B in places like the US, Europe or China, there are many options. Conversely, moving products around almost any African nation can be a big challenge. Even when options do exist, they often to not meet the level of customer service we want to give. So, we have set up our own delivery fleet in all of our countries. This investment in infrastructure means that we are well positioned to help new brands enter the African market for the first time.

Can you provide some figures as to how much of Jumia’s sales are made mobile or online?

Unlike a traditional market, when African consumers come online, they come online in all channels very quickly. More than 50% of orders are made through mobile devices. We handle customer service issues through WhatsApp, including order confirmation and order delivery. When the African consumer comes online, they expect merchants to be able to communicate with them through Facebook, Instagram and on the phone. Our local customer service team has a very active presence on social media and WhatsApp with our customers, who consistently make more mobile purchases over online purchases. In the next 5 years, we expect to see a 30% increase of the internet users in our targeted countries, much of that coming from tablets or phones.

Could you identify some traits of the Nigerian customers in terms of shopping behavior/preferences and eventual similarities with or differences from other customers in markets where Jumia is active? What are the preferred payment methods and delivery options, depending on the markets Jumia is active in?

Jumia is now active in nine countries in Africa. Shortly after the successful launch in Nigeria in 2012, Jumia expanded to growing markets in Egypt, Morocco, Kenya and Ivory Coast. In 2014, Jumia expanded to Uganda, Ghana, Cameroon and Tanzania. We came to this conclusion very fast: people in Africa have the same, if not higher, expectation of service as customers in America or Europe. Flexible payment methods are very important for us and, as such a huge percentage of our business is still undergone via cash on delivery. We are bringing the consumer online but, for many of them, there is a lack of trust when it comes to internet businesses. The cash on delivery option gets over this barrier. In addition, we are working with our investors, MTN and Millicom (Tigo brand), to offer our customers mobile money options. The ecommerce sector in Africa needs to work hard to build trust with customers. This is our first priority in every new country we enter.

What are the most popular delivery options and payment methods, in the eyes of the Nigerian customers?

The most popular payment option in Nigeria is cash on delivery. Because of the customer’s inherent lack of trust, our clients need to see the item physically, even try it sometimes, before paying. We are constantly building trust. In Nigeria, we noticed that we were not getting into the very small villages, where mobile penetration is below the average of the country. So, we built an offline salesforce. We gave our salesforce 3G phones and a catalogue to a man and he goes to the smallest villages in Nigeria to show the products. The customer is now able to order through the mobile app or by calling customer service and the product is delivered to that person’s home, with the pay on delivery option.

Moreover, for new retailers investing in the African market, the top priority is to go online! Africa is a market that will adapt to any type of online communication faster than anywhere else. The issue in Africa is the supply chain. There are almost no offline channels to meet consumer demand. While in the US you have roughly 400 consumer per offline retail outlet, in Africa you have about 60,000. Offline has struggled to overcome the infrastructure, logistics and political issues that happen in Africa. The online medium lets you jump over many of the hurdles and allows you to grow quickly with lots of flexibility.

What are the top 3 product categories that sell best in Jumia stores?

TV sets, tablets and smartphones are often in the top 5 of the best-sellers. Health and fashion products like shoes and watches are also products that Africans like to buy. In Nigeria, for example, the top 5 categories are: smartphones, mixers, notebooks, tablets for kids and TV sets.

About Christina Hawley

Christina Hawley joined Jumia after working three years at McKinsey & Co in the consumer goods and ecommerce practice. At McKinsey, Christina worked for FMCG and retailers in South America and Africa. Previous to McKinsey and her MBA at INSEAD, Christina worked in business development and marketing in New York and London.

About Jumia

Jumia is part of Africa Internet Group (AIG) (formerly Africa Internet Holding), a leading Internet group, owned by three global experts in ecommerce and African markets: MTN, Millicom (Tigo) and Rocket Internet.