Food and Drink Internet Retailing in Nigeria

PROSPECTS

Sales driven by promotional activities for Jumia Party

Jumia Food launched the online alcoholic drinks platform Jumia Party in late 2017, which enables consumers to place an order and have it delivered within the hour. There is also an incentive of free delivery for any order above NGN10,000, with consumers also able to pay upon delivery.

Young adult professionals support sales

The growing number of young adult professionals in paid employment with busy working schedules and a lack of time, particularly in cities such as Lagos, is supporting the development of food and drink internet retailing. Many white collar workers in urban areas are struggling to find the time to shop for groceries and so food and drink online sales in current terms are expected to continue to rise over the forecast period.

Economic recovery is crucial to growth

The survival and growth of food and drink internet retailing will be heavily linked to the state of the economy. In 2018, the country’s economy was sluggish, with this somewhat hampering the stronger growth of the channel as disposable incomes were not high enough to support leisure activities such as parties, which are the main drivers of sales.

COMPETITIVE LANDSCAPE

Supermart continues to lead the channel

In 2018, Supermart continued to lead food and drink internet retailing thanks to a strong brand identity and consumer trust as a result of an efficient delivery service. It has built a strong base of customers who are making repeat purchases, particularly young adult professionals with busy schedules.

Strong competition from other retail channels

Food and drink internet retailing is still an emerging channel in Nigeria and is facing strong competition from other channels such as modern and traditional grocery retailers, in which local consumers are accustomed to shopping. Drinks.

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