Jumia Plans to Grow Despite Rising Competition from China’s Temu, Says CEO
Africa-focused online retailer Jumia expects to grow its orders by up to 25% this year while continuing to cut costs, CEO Francis Dufay told Reuters.
The company is facing growing competition from Chinese e-commerce giant Temu, which entered Nigeria in December, but Dufay believes the African market is large enough for multiple players.
Jumia has been working hard to become profitable by reducing its workforce, stopping food and grocery deliveries, and cutting unnecessary expenses in logistics.
Despite Temu’s big spending to gain market share, Jumia is staying focused on its expansion into new cities and rural areas.
Last year, Jumia had 6 million customers across nine African countries, including Nigeria, which has the continent’s largest population.
Reuters quoted Dufay as saying, “Even if Temu takes some market share, there’s still plenty of room for us to grow.”
Jumia also aims to reduce its pre-tax losses by up to one-third, bringing them down to between $65 million and $70 million this year, according to Reuters.
The company remains confident in its ability to compete and expand, even as new global players enter Africa’s growing e-commerce sector.
Credit : Reuters