With the surge of internet penetration in Africa, the shopping habit is slowly changing. According to a report made by McKinsey’s Lion go digital, online shopping could account for up to 10% of retail sales by 2025. As more African gain access to the internet, this value is approximated to be $75 billion.
An increase in internet access will see these e-commerce giants in Africa to the next level. Nigeria, South Africa, Kenya are at the forefront of this evolution. Jumia is taking over the African market by cutting a good piece of pie for themselves. Jumia raised US $ 150 million in funding in 2014, and now it among the known e-commerce giants in Africa.
E-commerce in Africa
Since the start of the e-commerce platforms, there as been an up sale of smartphones. A survey conducted by Accenture Digital Consumer in 2017 found out that in countries such as South Africa, smartphone acquisition increased by 11% in 2017. Some of the more technologically advanced countries in Africa, such as Kenya and Nigeria, boast a smartphone uptake more than 43% and 30%, respectively. The number of smartphone users has dramatically increased across the continent to a number of more than 226 million. An increase in smartphone acquisition and access to the internet has opened doors for African youths to the World’s endless opportunities that the internet provides.
This article discusses in detail the big African e-commerce giants that are reaping the benefits of internet penetration.
Jumia is one of the giant African e-commerce sites blazing the trail of internet penetration in Africa. Their mission statement and ethos are to connect African consumers and entrepreneurs to do business together better.
The system is made in a way that bypasses the middle man. The platform links African companies, businesses with their potential market.
Since its’s launch in Nigeria in 2012, the site spread its wings to 23 other African countries. It has over half a million sellers since it started back in 2012 in Nigeria. Jumia has proved to be a hub for services and products spanning across the retail, talent recruitment, concierge, and the hotel, food, hospitality, and catering industries. Jumia has also been a great employee to many African youths with different expertise ranging from IT, web development, sales, and marketing.
Takealot, a South Africa online retailer, is convenient and user friendly. The site was established in 2002 and has been in operation since then. It is well-known for its variety of products in entertainment.
Takealot hard work and focus on the customers’ satisfaction, and the provision of the latest products in the market, coupled with up-to-date product specifications, gives it an edge in the market.
Nasper, Africa’s biggest digital companies, invested US $69 million in April 2017, thus boosting Takealot stake by 53.5%. Earlier in 2014, the retailer received US $100 million investment from Tiger Global Management (TGM).
Kilimall, Kenya’s largest online shopping, launched in 2014. Since then, it has managed to make big strides, thus penetrating the African market. It has also established in other African countries such as Uganda and Nigeria. Their retail customer base is soothing that it continues to boom, especially in this Covid-19 period.
Kilimall deals with almost everything. However, it is well-known for electronics such as phones, computers, among others. The famous brands include Samsung, Philips, Huawei, and Lenovo. They also deal with other goods such as clothes, health and beauty products, and books. They have a 7-day return policy on their premium range of goods. This makes it one of the favorite sites to shop at.
The African e-commerce platforms are doing a lot that you can’t believe, keeping in mind that the internet covers only a small segment of Africa, and the number of individuals having access to phones is way less.