Jumia Strikes Back: New Strategy Takes Aim at Temu and Shein

Under pressure from investors and mounting Chinese competition, Jumia is revamping its strategy to reclaim its footing in Africa’s e-commerce scene. With rivals Temu and Shein expanding aggressively, Jumia is responding by partnering with Chinese merchants and setting up a 70-member team in Shenzhen, China, to expand its product catalog. Furthermore, CEO Francis Dufay aims to rebuild investor trust after years of losses, targeting break-even by 2027. He has also slashed operational costs by exiting unprofitable markets and reducing the company’s headcount. While Jumia eyes expansion, it has acknowledged that structural and macroeconomic hurdles persist, including logistic challenges and limited internet penetration. Nevertheless, Jumia is betting big that a renewed focus on local relevance, leaner operations, and deeper supplier networks will help turn its fortunes around in Africa’s booming digital marketplace.

Nairametrics