2024-07-16 22:05:23
Jumia raised her head. After hundreds of millions of dollars in recent years, the ecommerce leader in Africa, now in eleven countries on the continent, is now recording an increasing change. The new boss. New strategy. Refocusing on certain activities seems to bear fruit.
“Go back to the basics”, we often say in high sports, especially when we are in bad shape. This is the strategy adopted by Francis Dufay, leading the Jumia team for two years. Some food deliveries, the departure plan and the reduction of logistics costs to refocus on what makes Jumia successful, sometimes called Amazon Amazon… that is to say online business.
« For a very long time, we copied and pasted in Africa an e-commerce business known throughout the world with home deliveriesexplains Francis Dufay, CEO of Jumia, The truth is that our customers on the computer are customers who don’t have much money and are very price conscious. »
It is this analysis that allowed Francis Dufay to adapt the Jumia strategy: « It is very important to have a lot of access. It goes through the renewal points where customers come to pick up their packages. This is significantly cheaper. It costs a few dollars less than home delivery, so it’s a delivery model that suits us well and is very suitable for our products. », explained the CEO of Jumia.
San strategy.Mirza
With your round points, leave the last mile for the Jumia delivery people. A profitable strategy, according to Jean-Michel Huet, partner in the consulting firm Bearing Point and specialist in e-commerce: ” What doesn’t work is that it has a real cost to go and find this last kilometer, with the risk of not finding the right address, so in addition, there is a risk of customer dissatisfaction. Switch to alternate locations save on logistics costs. And then I think you can strengthen customer confidence in using Jumia ».
Giga-store in Lagos
Another change in Jumia is in the middle of products. An example is the city of Lagos where, in recent weeks, the logistics platform has been moved to a large warehouse of 30,000 square meters. ” It allows us to be more productive and save moneyFrancis Dufay continues, it gives us a platform where we can do a lot of development. With this new warehouse, we can significantly increase volumes, double or even triple our operations in Nigeria. We can approach the future with confidence because we know that we will have the power to do the best job in the country. ».
The financial results are there. The loss of 8 million dollars in the first quarter of 2024 is far from 28 million at the same time last year. Jumia is still not profitable, but it is back to growth.
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