Rwanda, Jan 21 – Jumia Rwanda has closed its online shop Jumia Market Place so it can concentrate on its online food delivery platform.
According to New Times, the Managing Director of Jumia Food Albert Munyabugingo, told New Times that the platform was closed in order to understand the local market better before re-launching it.
According to the local daily, most of the shops that had been accredited to the platform sold imported products such as electronics and garments, a section of clients found it cheaper to import from markets abroad. Using the past as a lesson, the firm says that it is studying the market and mulling a new strategy to return to it, this time more sustainably. Among the opportunities that it seeks to tap into are the popularity of Made-in-Rwanda products.
The MD also said the quality of products on the platform in comparison to those offered on competing international e-commerce platforms, such as eBay, also led to the closure.
At the moment, people can buy from E-bay and have the products delivered. Most people questioned why they should use local shops which are selling products that are also imported. If its a phone, one can import from abroad, Mr Munyabugingo was quoted saying.
He also noted that Market Place was not as successful as we wanted it to be partly because when we began, the Made-in-Rwanda products had not become as popular. But since last year, there has been effort to develop local products. Going forward, market place is likely to be more successful when it returns to the market.
Before making any kind of decision, we analyze the market thoroughly to understand what is relevant and needed in the market. You cannot supply what people do not need. He added.
Reports by the daily indicate that Jumia Foods, the food delivery platform has however been well received in the local market with officials, saying that they have noticed a 20 per cent monthly growth in sales and clients retained.
By Yvonne Kawira