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"Let’s also be honest here. Jumia didn’t succeed because it was “African”. Jumia owes part of its success to a marketplace that doesn’t believe in domestic bran

by deesep 7y ago

"Let’s also be honest here. Jumia didn’t succeed because it was “African”. Jumia owes part of its success to a marketplace that doesn’t believe in domestic brands. It’s heavy lifting to build a successful local brand, because you’re viewed suspiciously." I live in Ghana, and I don't shop on Jumia[1] because i don't believe in domestic brands. It's a ridiculous claim. This[2] is a local brand that has made 10,000+ successful sales via Jumia. The major challenge of doing E-commerce in Africa is that excluding some affluent parts, many towns and cities don't have functioning address grids. It's a complete mess and one requires the use of landmarks and long descriptions to locate places. Jumia representatives always call to ask for directions to your location. If they get lost, you could have them give the phone to anyone nearby who is familiar with the neighborhood. You can then have the stranger direct them(Jumia delivery reps) to your location. It may be unconventional, but works. I and millions of people who shop on Jumia do so cause it's convenient and provides a needed service. Until a few days ago, I had no idea it's a German company and its founders are french. Calling it an African company when it's not may be deceptive, but please don't say it's successful because Africans don't love local brands. [1] - https://www.jumia.com.gh/ https://www.jumia.com.gh/ [2] - https://www.jumia.com.gh/white-label-woven-kente-fabric-6-yards-multicolour-67916.html https://www.jumia.com.gh/white-label-woven-kente-fabric-6-ya...

externalreality 7y ago
You shop on Jumia because it's convenient. It's also convenient for foreign interest to setup an Amazon like business to skim millions off the top of an economy that can scarcely afford it. The point is, Jumia is not good for Ghana, a domestic company would create more jobs and keep hundreds of millions of dollars of wealth from leaving the country. Its not about whether or not you get your 1st world products delivered on time, its about pulling yourself out of the 3rd world and Jumia is not helping you with that. Many people forget that when Japan first started producing cars they were so bad at it some models didn't even operate in the rain. Or that American steel, originally, was supremely subpar to British steel. Its about doing whats best for the country - and having some foreign entity control a good portion of the commerce in the country (especially when it is so easy to build your own) is not a good idea for an emerging economy. Remember, also, that Jumia will have the same control over market that Amazon does which is immense power and why the United States is considering limiting Amazon's power over the market. Basically, if Jumia begins to not only control the market but participate in the market as well it will be bad for these small nations.
- chias 7y ago
  I know this is not your intent, but your tone comes across as fairly patronizing in this comment. There may be a point to be made in what you wrote, but I suspect that as-is it will do more to put people on the defensive than to convince them of views they don't already have.
  - externalreality 7y ago
    Sound advice but when you read a comment the tone is generally dictated by whether you agree with the comment or not, since voice inflection is absent. I do agree, you have to word thing more carefully in the absence of voice inflection.
- deesep 7y ago
  Jumia does have competition from home grown African companies. A good example is [1]Hubtel. The difference between Jumia and its competition is funding. They managed to reach a billion dollar valuation thanks to funding rounds from AXA, a french insurance company and Goldman Sachs. There are very bright developers here who have awesome ideas but getting access to funding can be very difficult. That said, technology is helping Africa leapfrog. M-PESA is a service that allows people send money from their phones. It's widely used and developed in Kenya. I believe in producing what i consume and consuming what i produce but it will be impossible to shut out foreign investment while we build our own. [1] - https://hubtel.com https://hubtel.com
  - externalreality 7y ago
    Forgive me if I sound as if I am against foreign investment. I am not. The degree of control that something like Jumia, a foreign entity, would have over these emerging economies is what is troublesome.
    - drivingmenuts 7y ago
      So, you want foreign investment, but local control? Then, why, as an investor, invest? Is there some way to guarantee a return, or are you just expecting investors to toss their money in the wind and hope for the best?
kevinventullo 7y ago
I'm curious, what is your take on addressing systems such as Google's Plus Codes?
- deesep 7y ago
  Never heard of it. I just looked it up. I am am weary of always feeding googles manufacturing process with my behavioral data so turn of location services on my phone. Probably why i never saw it on google maps. I know about What3words though. [1] "Nearby places have similar codes, and the code structure allows grouping areas together. The code gives the equivalent of the street name and number. Additional information like floor, suite, etc. can be provided as per the local convention. " I love it and will look into it. in 2017 The Ghanaian government rolled out a digital address system called [2]GhanaPostgps. Unfortunately it hasn't gained widespread adoption. The app was rushed, not properly tested. I think they've fixed some of the bugs, but most people just haven't warmed up to it. To force widespread usage, the government wants to make it mandatory for residents to provide a their GhanaPostgps address when applying for certain services. So i guess it will take some time but eventually most people will use it. Digital address systems will help accelerate economic progress. Everyone knows that. But some people don't trust the government so very reluctant to give out too much detail about themselves. We are told to pay a little bit more, and to tigthen our belts a little bit more, yet parliamentarians magically unite when it's time to increase their salaries. If people believe their hard earned monies aren't being mismanaged by corrupt politicians, they would gladly contribute. I am aware that Nigerias postal service makes use of What3words. So digital address systems will eventually become widespread in Africa -If done right. [1] - https://plus.codes/developers https://plus.codes/developers [2] - https://ghanapostgps.com/ https://ghanapostgps.com/
amolo 7y ago
>I and millions of people who shop on Jumia do so cause it's convenient and provides a needed service. Until a few days ago, I had no idea it's a German company and its founders are french. Calling it an African company when it's not may be deceptive, but please don't say it's successful because Africans don't love local brands. Speak for yourself. African brands are loved by Africans but are not treated the same on such platforms. Go to Jumia and see this Jumia Express madness. Basically a dumping zone for class C Chinese goods. Is that what you like buying? Says alot about your mentality. I hope you are not an entrepreneur.

by deesep 7y ago

externalreality 7y ago

You shop on Jumia because it's convenient. It's also convenient for foreign interest to setup an Amazon like business to skim millions off the top of an economy that can scarcely afford it. The point is, Jumia is not good for Ghana, a domestic company would create more jobs and keep hundreds of millions of dollars of wealth from leaving the country. Its not about whether or not you get your 1st world products delivered on time, its about pulling yourself out of the 3rd world and Jumia is not helping you with that. Many people forget that when Japan first started producing cars they were so bad at it some models didn't even operate in the rain. Or that American steel, originally, was supremely subpar to British steel. Its about doing whats best for the country - and having some foreign entity control a good portion of the commerce in the country (especially when it is so easy to build your own) is not a good idea for an emerging economy. Remember, also, that Jumia will have the same control over market that Amazon does which is immense power and why the United States is considering limiting Amazon's power over the market. Basically, if Jumia begins to not only control the market but participate in the market as well it will be bad for these small nations.

chias 7y ago
I know this is not your intent, but your tone comes across as fairly patronizing in this comment. There may be a point to be made in what you wrote, but I suspect that as-is it will do more to put people on the defensive than to convince them of views they don't already have.
- externalreality 7y ago
  Sound advice but when you read a comment the tone is generally dictated by whether you agree with the comment or not, since voice inflection is absent. I do agree, you have to word thing more carefully in the absence of voice inflection.
deesep 7y ago
Jumia does have competition from home grown African companies. A good example is [1]Hubtel. The difference between Jumia and its competition is funding. They managed to reach a billion dollar valuation thanks to funding rounds from AXA, a french insurance company and Goldman Sachs. There are very bright developers here who have awesome ideas but getting access to funding can be very difficult. That said, technology is helping Africa leapfrog. M-PESA is a service that allows people send money from their phones. It's widely used and developed in Kenya. I believe in producing what i consume and consuming what i produce but it will be impossible to shut out foreign investment while we build our own. [1] - https://hubtel.com https://hubtel.com
- externalreality 7y ago
  Forgive me if I sound as if I am against foreign investment. I am not. The degree of control that something like Jumia, a foreign entity, would have over these emerging economies is what is troublesome.
  - drivingmenuts 7y ago
    So, you want foreign investment, but local control? Then, why, as an investor, invest? Is there some way to guarantee a return, or are you just expecting investors to toss their money in the wind and hope for the best?

kevinventullo 7y ago

I'm curious, what is your take on addressing systems such as Google's Plus Codes?

deesep 7y ago
Never heard of it. I just looked it up. I am am weary of always feeding googles manufacturing process with my behavioral data so turn of location services on my phone. Probably why i never saw it on google maps. I know about What3words though. [1] "Nearby places have similar codes, and the code structure allows grouping areas together. The code gives the equivalent of the street name and number. Additional information like floor, suite, etc. can be provided as per the local convention. " I love it and will look into it. in 2017 The Ghanaian government rolled out a digital address system called [2]GhanaPostgps. Unfortunately it hasn't gained widespread adoption. The app was rushed, not properly tested. I think they've fixed some of the bugs, but most people just haven't warmed up to it. To force widespread usage, the government wants to make it mandatory for residents to provide a their GhanaPostgps address when applying for certain services. So i guess it will take some time but eventually most people will use it. Digital address systems will help accelerate economic progress. Everyone knows that. But some people don't trust the government so very reluctant to give out too much detail about themselves. We are told to pay a little bit more, and to tigthen our belts a little bit more, yet parliamentarians magically unite when it's time to increase their salaries. If people believe their hard earned monies aren't being mismanaged by corrupt politicians, they would gladly contribute. I am aware that Nigerias postal service makes use of What3words. So digital address systems will eventually become widespread in Africa -If done right. [1] - https://plus.codes/developers https://plus.codes/developers [2] - https://ghanapostgps.com/ https://ghanapostgps.com/

amolo 7y ago

>I and millions of people who shop on Jumia do so cause it's convenient and provides a needed service. Until a few days ago, I had no idea it's a German company and its founders are french. Calling it an African company when it's not may be deceptive, but please don't say it's successful because Africans don't love local brands. Speak for yourself. African brands are loved by Africans but are not treated the same on such platforms. Go to Jumia and see this Jumia Express madness. Basically a dumping zone for class C Chinese goods. Is that what you like buying? Says alot about your mentality. I hope you are not an entrepreneur.