The Kenyan smartphone market continues to experience substantial growth and it is easy to see why. The combination of a strong economic climate and increasing internet and mobile connectivity has created a favourable competitive landscape which has brought more brands and cheaper devices to the market. This whitepaper explores these trends and based on an original survey of 576 Kenyan smartphone users delves further into how consumers in this market are using and choosing their smartphone devices.
3. OWN WAREHOUSE OWN DELIVERY FLEET OWN CALL CENTER
END TO END
CUSTOMER FOCUS
Putting the customer first.
FLEXIBLE PAYMENT FREE PICK-UP POINTS FREE 7-DAY RETURNS
4. AFRICA’S #1
ONLINE
RETAILER
2014 – Our year of Hypergrowth2013 – Jumia wins world retail awards
Best new retail launch of the year
Orders Shipped
Orders Shipped
+900%
5. AFRICA’S #1
ONLINE
RETAILER
2015 – The trend continues2013 – Jumia wins world retail awards
Best new retail launch of the year
Dec-14 Jan-15 Feb-15 Mar-15 Apr-15
Orders shipped
+100%
6. Become the launch pad for
brands existing in or entering Africa
WHERE WE
ARE HEADING
One stop shop for brands
Africa-wide network and distribution
Largest online and offline retailer
7. THE KENYAN
ECONOMIC
LANDSCAPE
Economic Growth
• 73% of all internet users in
LSM8+
5.7%
‘13 ‘14 ‘15
5.3%
6.5%
• 3rd fastest growing
economy in the world
LSM 5-7:
29%
LSM 8-11:
17%
LSM
12+:5%
LSM 1-2:
13%
LSM 3-4:
36%
Middle Class
10. INCREASING
COMPETITION
Competition among device makers is the single
biggest factor driving the growth
• New entrants
• Cheaper models by incumbents
# brands capturing 70% of market
% smartphone sales under $100 in MEA
5%2013 20%2014
2011 4 2015 7
12. When did people
buy their first
smartphone
4% 35% 54% 7%
2004
- 2007
2008
- 2011
2012
- 2014
2015
FIRST SMARTPHONE
7%
20%
24%
49%
LAST SMARTPHONE
Less than 6
months ago
6 months
– 1 year
ago
2 years +
1 – 2 years
17. KEY TAKEAWAY
With Telcos
#JumiaMobileWeek + Airtel: Free 6GB credit for
all phones
With app companies
Pre-install relevant apps
With retailers
6 top brands + Jumia.co.ke, who invests in
marketing & delivers to customer on brands’ behalf
Quality is king. Kenyans are willing to switch brand
loyalty if they can find better features and service at a
cheaper price elsewhere. Brands must get creative to
win the price war through partnerships.
Notas do Editor
3 year average: 5.5%
3rd fastest growing economy worldwide