Jumia Sees 18% Growth in Black Friday Orders Amid Currency Headwinds
E-commerce giant Jumia achieved a significant milestone during its 2024 Black Friday campaign, generating 2.6 million orders, an 18% increase compared to the previous year, despite operating in two fewer markets. The campaign saw discounts ranging from 20%-70% across categories like phones, fashion, and lifestyle, appealing to Africa’s price-sensitive consumer base.
Customer Engagement Drives Growth
- 1.8 million customers participated in the campaign, a 9% increase over 2023.
- Jumia utilized over one million catalogues and thousands of community radio campaigns to reach both new and existing customers, boosting engagement.
While the company didn’t disclose the total value of orders, the campaign’s success comes as a positive development after a challenging third quarter, where the Gross Merchandise Value (GMV) remained flat at $162.9 million.
CEO Optimistic About Growth
Jumia CEO Francis Dufay expressed confidence in the company’s trajectory, saying:
“We have the right strategy and the right team in place to drive e-commerce adoption and serve the growing African consumer base while moving towards profitable growth.”
Currency Challenges Impact Metrics
Currency devaluation in key markets like Egypt and Nigeria has created headwinds for Jumia’s financial performance in USD terms.
- On a constant currency basis, GMV increased 33% year-over-year.
- However, in reported currency, GMV grew by only 2%, reflecting the impact of currency volatility.
Navigating the Macroeconomic Landscape
Jumia’s performance highlights its ability to adapt to Africa’s challenging macroeconomic environment, characterized by devaluation and reduced consumer spending power. The success of its Black Friday campaign underscores the enduring appeal of discounts and the company’s ability to leverage marketing strategies to maintain growth.
Outlook
As Jumia continues to navigate economic volatility, its focus on aggressive growth strategies and increasing customer engagement will be critical. The Black Friday results provide a positive signal as the company works to solidify its position in Africa’s evolving e-commerce landscape while striving for profitable growth.