Online retail store Jumia rides on internet penetration
By Ronald Owili
The retail business in Kenya is one that is competitive with numerous chain stores in the country.
The market is yet to be fully tapped, and any player entering the market needs to curve a niche for themselves.
The growing ICT industry it seems is providing enormous opportunities for e-commerce, thus Jumia, an online retail store offers customers an online shopping experience where they buy items and pay on delivery.
With up to 50,000 items available on the site, the firm’s Managing Director Parinaz Firozi says it has also partnered with local SMEs who wish to expand by listing their products on the site.
The retail business is one that can be describe as competitive with the few chain stores in the market keen to consolidate their market and even illustrate dominance.
But it seems none is wishing to take advantage of the perceived ICT growth in the country given that the country has 21.2 million internet users with penetration standing at 52.3% according to Communications Authority of Kenya.
With this growth though, e-commerce in the retail segment is yet to pick up Kenya.
Online retail store Jumia sees opportunity with Kenya being the region’s tech hub.
Managing Director Parinaz Firozi says ever since setting up base in Kenya a year ago, the uptake in month-on-month sales has been impressive with up to 50,000 items on sale.
But what separates Jumia from the pack given the rapid expansion by that physical chain. Firozi says the firm has also rolled out the online marketplace which targets SME in the country.
However, Firozi adds that Jumia has been able to deal with issues of trust for its clients which was a challenge.
Currently the firm receives up to 500,000 visitors on a monthly basis