Jumia: Consumers now use e-commerce for daily needs

The role of e-commerce in Nigeria has experienced a significant shift, with consumers now relying on online platforms for their daily essential needs. The COVID-19 pandemic in 2020 acted as a catalyst for the growth of the e-commerce industry, leading to a surge in online shopping for essential products. Massimiliano Spalazzi, the CEO of Jumia Nigeria, highlighted the trends and challenges faced by the industry in a recent interview on CNBC Africa. Spalazzi discussed the impact of localized lockdowns and curfews in Nigeria, which, despite disrupting supply chains and logistics, accelerated the adoption of e-commerce by consumers. The pandemic, instead of being a hindrance, became a driving force for e-commerce platforms like Jumia, enabling consumers to access essential goods and services conveniently. Essential products such as FMCG groceries and home appliances witnessed a surge in demand as people shifted towards online shopping. One interesting trend highlighted by Spalazzi was the increasing adoption of non-essential products like fashion on e-commerce platforms. While traditionally, consumers used online platforms for electronics and appliances, there has been a steady growth in everyday categories like fashion, beauty, and home products. This shift indicates a change in consumer behavior as more people prefer the convenience of buying their daily needs online. The e-commerce model relies on offering competitive prices to attract consumers while ensuring profitability for vendors. Jumia aims to provide the best prices to customers, leveraging the advantage of online comparison and a lower cost structure for vendors operating on the platform. The continuous offering of deals and promotions serves to keep consumers engaged and loyal to the platform, creating a win-win situation for both customers and sellers. Logistics emerged as a crucial component of the e-commerce ecosystem, with Jumia investing in building its logistics infrastructure to meet the growing demand for online deliveries. By expanding their reach and offering logistics services to external clients, including small businesses and individual sellers, Jumia has strengthened its position as a key player in the Nigerian e-commerce market. The seamless connection between customers and sellers facilitated by efficient logistics has been instrumental in driving the growth of the industry. Spalazzi emphasized Jumia's commitment to expanding its footprint across Nigeria, with plans to increase the number of pick-up stations to over 300 in the coming year. The platform aims to become a one-stop destination for consumers, offering a wide range of products and services at competitive prices. Additionally, Jumia seeks to provide opportunities for vendors and partners to grow their businesses by leveraging the platform's extensive reach and customer base. As the leading e-commerce player in Nigeria and Africa, Jumia recognizes the vast potential for growth in the region. The company remains focused on enhancing the shopping experience for consumers, expanding its product offerings, and creating value for its partners. With technology and innovation at the core of its operations, Jumia envisions a future where e-commerce transforms the retail landscape in Nigeria, catering to the evolving needs of consumers and businesses alike.