MrsTwrite:
Every business has its ups and down, and if there's no proper management anything bad can happen.

Even with proper management, you don't expect jumia to be up there expecially that the biz involves transportation of goods.

phemmyfour:
Even with proper management, you don't expect jumia to be up there expecially that the biz involves transportation of goods.

ok.

UbanmeUdie:


WhatsApp female CEOs in Lekki and different red light district areas have hijacked online retail business from Jumia.

Nothing last forever.

Thumbs up to all female CEOs.

WhatsApp female CEOs. Please what does that mean

No wonder why they stopped giving vouchers, and are now charging for delivery,unlike before delivery was free,except they tagg the item free delivery now,
Delivery fee now applies to both pick up station and doorstep
I hope they overcome this trying times,because they are just too valuable to exit Nigeria,konga is just thrash!!

olisefom:
Nigeria business terrain isn't an easy place to run a business.

You come up with a business idea, and boom...everyone rush and follow up. Unfortunately, they can even do it better than you do.

Jumia paved the way for online market place in Nigeria, but as it stands, they are being poached big time.

The reason for their decline is not necessarily competition. The major factor is the reduction of the purchasing power in big african economies where they operate, ie Nigeria, ghana and Egypt.

Also, jumia has spent lots of its resources on growth and expansion. This hasnt yielded positives. In short, the business isnt structured for profitability.

Money no de to do online shopping .....

Wealthoptulent:
Hmm 419 too much on Jumia now.
Boys dey BOMB there steady.. same boys shouting new Nigeria po ssible but dey chase investors

How do you mean when you use the term "bomb"

dondodo:
Like and share if you believe obi is coming to reclaim our mandate

Wake up bro you're dreaming.

Jiji boxed jumia to the corner.

nlfpmod:
By Tinashe M Tmukogo:



https://twitter.com/tmukogo/status/1692191844262883719?s=20




https://techcabal.com/2023/08/16/jumia-shares-fall-on-q2-results/

There are a lot of assumptions that were made which turned out to be false. Firstly, you come into the Nigerian market thinking you have a 200 million people market when in actual sense you are a 20 million market.

Secondly, e-commerce is not a an order business, its a reorder business so of the actual sense they had less than 5 million potential customers who will reorder products from them on a regular.

Thirdly, there was the problem of not selling things for the price they are worth, just to entice customers, that alone is a finance hemorrhage.

Fourthly, management issues, the former owners owned the property their head office in Dubai was and charged exorbitant rent to the company. The cost of renting their warehouses in 5 years could build ultramodern warehouses for them. Of course Nigerians are not blind, they too want to take advantage of the system, they cut deals with landlords inflating prices of facilities to as high as 400%. As usual they are used as scapegoats.

Fifthly, the logistics nightmare of moving goods in Nigeria is a big barrier to profitability of the company.

omoadeleye:
Ordering online is just a flex because you get to sit down at home while your items are brought to you.

But, now that things are cost, i will just do the more than 200 meter walk first then scout every market to buy my items at affordable prices.

A Weaving machine that was quoted 86k on jumia, I bought it 45k at the market with transport less than 5k, I save 36k

fineboynl:
.this one na buhari oh. Not just tinubu. It got really bad during buhari second term.

Jumia couldn’t maintain it office rent in most states. They now operate from dilapidated buildings. From a delivery car to delivery with motorcycle.

Even konga has increased price for shipping to about 200%. Imagine ordering something of 4k and paying 3.5k for delivery. I stop using konga and other people as well. And i see them folding up soon.

You are right bro. Jumia delivered my 32inches tv with bike. I was shocked 🤕
Well Jumia is still doing great with most delivery fees. Even the tv was delivered without any fee. Concerning Konga delivery fee I don't know if it's now very expensive but the tv I ordered from them came without any delivery fee.

All orders were placed by me this month

Svoboda:


The reason for their decline is not necessarily competition. The major factor is the reduction of the purchasing power in big african economies where they operate, ie Nigeria, ghana and Egypt.

Also, jumia has spent lots of its resources on growth and expansion. This hasnt yielded positives. In short, the business isnt structured for profitability.

Well, your reasons can't be discarded.

But just assume that they are the sole online market- place in those economies you mentioned. Do you think the results would have been the same?

BarrElChapo:


How do you mean when you use the term "bomb"

bomb (bombing) means yahoo
Or doing online yahoo yahoo hustling.
The word bomb derive from contact or contacting difference client online untill an unfortunate ediot respond to their sos

These results were pre Tinubu. The company model was to get sold for profit. But its 2019 IPO failed because American investors saw through the BS. They should just close the company

That still won't aid anything, jumia as a whole need total overhaul.

wittywriter:
Interesting expose.

Fixed.




Jumia should up their retail sales and franchise by creating promo brand ambassadors.



Wittyness

olisefom:


Well, your reasons can't be discarded.

But just assume that they are the sole online market- place in those economies you mentioned. Do you think the results would have been the same?

The results could have been different if they enjoyed monopoly. But the article never mentioned a highly competitive environment as a reason.

Remember, companies have gone under despite enjoying a monopolized business enviroment.

It may get worse. A lot of people's purchasing power has really dwindled. But Jumia also needs to revamp its quality assurance department. There a lot of substandard products on Jumia. Such thing also discourages people from buying on Jumia.

With their Shitty service and products, this was expected.

harmargedon:
As we were thought in economics, "Supply is generally considered to slope upward: as the price rises, suppliers are willing to produce more. Demand is generally considered to slope downward: at higher prices, consumers buy less".

tge analysis is not very correct

EmmaLege:


You are right bro. Jumia delivered my 32inches tv with bike. I was shocked 🤕
Well Jumia is still doing great with most delivery fees. Even the tv was delivered without any fee. Concerning Konga delivery fee I don't know if it's now very expensive but the tv I ordered from them came without any delivery fee.

All orders were placed by me this month

jumia dey try abeg...all my kitchen equipment na jumia ooo

They re the cause of their problems dont pity them one bit,they dont monitor vendors, they have harsh return policies(i.e giving you vouchers of 5k on an item of 30k), their commission for marketers is the most terrible, too many fake items on there, terrible shop abroad stores all fake e.g nike,Adidas,ralph all substandard(dubai,china) and most importantly they have the most expensive items on simple/basic products and the most ridiculous shipping fees.. if u dont believe go order fr indomie or spaghetti and see the final price..items they sell outside your window and they want u to pay extra 1k or 1500 for..

gabicon:


There are a lot of assumptions that were made which turned out to be false. Firstly, you come into the Nigerian market thinking you have a 200 million people market when in actual sense you are a 20 million market.

Secondly, e-commerce is not a an order business, its a reorder business so of the actual sense they had less than 5 million potential customers who will reorder products from them on a regular.

Thirdly, there was the problem of not selling things for the price they are worth, just to entice customers, that alone is a finance hemorrhage.

Fourthly, management issues, the former owners owned the property their head office in Dubai was and charged exorbitant rent to the company. The cost of renting their warehouses in 5 years could build ultramodern warehouses for them. Of course Nigerians are not blind, they too want to take advantage of the system, they cut deals with landlords inflating prices of facilities to as high as 400%. As usual they are used as scapegoats.

Fifthly, the logistics nightmare of moving goods in Nigeria is a big barrier to profitability of the company.

My experience why I STOPPED patronising them.

6. They and their retailers started selling a lot of fake products and passing it off as Original. They still charge you exorbitantly for the fake/substandard item. The annoying part is you can't even leave a review of a product on their site. It was possible in the past but last year i tried leaving a review on numerous items and it did not work.. I think this was a deliberate attempt to prevent bad ratings and reviews on products for obvious reasons.

7. Most of their products seem to be costlier when you compare same items from competitor retail sites.

8. Trying to reach their customer care became rocket science, you will call, mail, whatsapp till thy Kingdom come before you are attended too. It wasn't just worth the stress.

Still patronize their Jumia food arm though, still working fine for me. My two cents though.

julimax:
The last time Nigerian economy did well was 2015. Just before APC

And they say they are a progressive party. But they've only succeeded in making us poorer.

Anyways
Funniest video you'll see today

https://youtube.com/shorts/qGDXoykKIzc?feature=share

It is foolish to laugh when ur house is on fire

The quality of products sold on Jumia has badly depreciated. The customer service has worsened, trust is lower. You can’t expect better results.

They sell very poor quality items