Through this article which is entirely dedicated to the Jumia Technology Company and its shares we offer you the opportunity to learn more about this asset and the issuing company. In fact, to assist you with the preparation of comprehensive analyses of this share’s trends we will examine the activities of this company and its principal sources of income as well as provide information on its major competitors on the market and examples of some recent strategic partnerships implemented by this company. We will also examine in detail the factors you should take into account for a fundamental analysis of Jumia’s share price.
We would suggest that you particularly monitor the international expansion strategy conducted by Jumia with the aim of expanding its presence in other countries. The group notably targets certain African countries. It should in fact be remembered that the Jumia Group currently markets its products and services in 13 of the 54 African countries.
In the same way, it is also recommended to monitor partnerships and commercial alliances that Jumia may implement with strategic partners with the objective of lowering its costs or in order to facilitate the supply of its products at a lesser cost.
The general boom in the online sales sector also has an impact on the Jumia group’s activities. This notably concerns the security implemented on the company’s websites and is aimed at reassuring possible consumers that are still reticent concerning this type of purchase.
It is of course also important to take into account here the high competition in this activity sector. We would also particularly note the online competition which is more direct, as well as the competition from local companies with ‘bricks and mortar’ shops.
The protection of the sites operated by the Jumia Group, particularly against hacker attacks is also a significant point of consideration regarding certain investors which have indicated certain weak points in the system. We would therefore closely follow any operations implemented by the group to solve these problems.
Finally, you should also pay careful attention to the results published by the Jumia Group, notably the annual and quarterly financial results. These results should be systematically compared to the analysts forecasts and the objectives fixed by the Jumia Group.
To go further and enable you to better identify the future challenges of the Jumia Technology Company, we will now provide a detailed presentation of this company and its activities as well as its sources of income.
The group Jumia Technologies AG is a German company that is specialised in the e-commerce activity sector.
More precisely, this company operates an online marketplace that enables African consumers to buy and sell merchandise. Through its online sales platform, the Jumia brand sells various products including dresses, leggings, skirts, tops and polo shirts, belts, watches, sunglasses, health products, and beauty products as well as a whole range of children’s products and accessories.
At present, the Jumia Company employs nearly 4,170 people around the world, the majority of which are in Germany.
To successfully complete your analysis of the Jumia share price you will also need to know about its activity sector and the major competitors in this sector. We therefore now offer you the opportunity to learn more about this company’s principal adversaries as follows:
Firstly, DHL is a company specialised in the transport of parcels and mail, it is owned by the Deutsche Post Group, a direct adversary of Jumia. DHL is in fact one of the largest logistics companies worldwide and operates in over 220 different countries including many on the African continent. It also operates a platform that is directly accessible from Africa.
Another of Jumia’s major competitors is the eBay Group, an American online brokerage company that sells products through online auctions. This company is probably the best known brand in this sector and a true phenomenon that also offers its African clients the opportunity to purchase fashion items online.
Another serious competitor of Jumia is the Chinese group Alibaba, again specialised in the online sales of a large range of products and which also targets the African continent. Alibaba uses retail and wholesale online sales platforms and generates even higher revenue than that of Amazon.
The final major competitor to Jumia is none other than the web giant Amazon, quoted on NASDAQ and part of GAFAM. Previously specialised in the online sale of books Amazon has become a giant in the world of online commerce and sells its various products at distance worldwide in direct competition to those of Jumia.
Of course, the Jumia Group does not only have adversaries on the markets. It often implements strategic partnerships with other companies and large groups. Here are details on two particular examples:
In 2018 the Jumia Group signed a strategic partnership agreement with the French Carrefour Group. The advantages for the Carrefour Group in this case are clear. This large French company specialised in retail sales can thereby strengthen its presence in Africa and although it already owns and operates certain subsidiaries on the African continent this partnership has enabled it to jump to the next level in terms of size.
Another advantageous partnership implemented by Jumia was with Edenred, a specialist in payment solutions. This partnership was in fact through Jumia’s subsidiary, Jumia Travel, an online hotel reservation portal in Africa. In fact, Jumia Travel chose the payment solutions of Edenred Corporated Payment with the objective of using an instantaneous digital payment solution that was simple and secure for its hotel chain through single use virtual debit cards.
Now that you are familiar with Jumia and its economic and sectoral environment, we propose to take a closer look at its main strengths and weaknesses. It is indeed essential to know the strengths of this company to boost its growth as well as its weaknesses that can hinder its evolution and development.
Let's start our analysis of Jumia's advantages and disadvantages by summarising the main strengths of this company in its market and in relation to the competition:
While the Jumia Group seems to have many advantages and strengths, it is also important to be aware of its main weaknesses which can be a real hindrance to its growth and cause its share price to fall on the stock market. Here are its main weaknesses:
As you can see, Jumia has almost as many strengths as weaknesses. But above all, you should use these arguments as part of your fundamental analysis of the stock, looking at each publication and event in the light of the group's ability to cope with or benefit from it.
The Jumia Group mainly exercises its activities in Africa although the company is actually based in Germany. Through its online sales platform this company operates in Algeria, Morocco, Tunisia, Kenya, Egypt, Uganda, Senegal, Ghana, South Africa and the Ivory Coast. Although the company currently employs nearly 5,000 people directly it actually works with nearly 100,000 more indirectly on the African continent.
The Jumia Group was created in 2012 through an investment by Rocket Internet, MTN and Millicom. It raised nearly 300 million Euros in 2016 through MTN, Rocket Internet, AXA, Goldman Sachs, Orange and the CDC Group. In 2018 Pernod Ricard also entered into its capitalisation followed by MasterCard in 2019 which invested nearly 50 million Euros in this company.
To be able to best anticipate the future movements in the Jumia share price, you should complete several distinct types of analyses, notably a technical analysis which uses stock market charts of this asset and a fundamental analysis which is based on the study and interpretation of news, events and publications that could impact the company. A comparison between the results of these two analyses will enable you to best interpret the signals obtained for your trend forecast.
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