Africa has enormous potential for e-commerce development
The success of Jack Ma, CEO of Alibaba, encourages more and more Chinese, mostly young people, to take their chance on e-commerce. To them e-commerce seems to be a sector where everything is possible.
Over the past 20 years, e-commerce has experienced frenzied development in China and has greatly changed the way Chinese buy. At a time when e-commerce is quite developed in the country, it still represents a novelty on the African continent and a mode of consumption unknown to most Africans. Young Chinese talent thus see important opportunities in this fairly recent business sector.
Young Chinese entrepreneurs dream to replicate Alibaba's success in Africa
Founded in 2015, the Chinese online commerce company KiKUU has launched a website allowing its African customers to make purchases. After several years of development, the company has achieved great success and has become the largest cross-border e-commerce company in Africa. The number of online orders can reach up to 20,000 per day. African countries have great needs for textile products, clothing and household appliances. Using the company's platform, African customers can find such products online.
Taking into account the importance of e-commerce in China’s economy those days, Africa has enormous potential for e-commerce development. The African market has seen strong growth in smartphones sells. Consequently, by 2025 the number of Internet users will reach 600 million in Africa, and users of smartphones will exceed 360 million. A vast market anyone would be foolish to ignore.
To conquer this potential market, KiKUU is committed to offering its customers a better shopping experience through expanding its sales network. Parcel delivery is indeed problematic in Africa due to the weakness of the logistics network. Faced with this logistic issues, the company has established its own supply chain in some African countries. In general, African customers receive their orders within 17 days. The company's business now extends to six countries in Africa, namely the Democratic Republic of Congo, Cameroon, Tanzania, Ghana, Uganda and Nigeria.
Buying on ecommerce e-store is far from the norm for most Africans, but such websites are doing well as more customers are becoming used to this new way of ordering and buying products online. Thus, more young Chinese entrepreneurs are attracted by Africa and its opportunities.
Chinese entrepreneurs have created many similar companies such as Chinese giants like JD.com and Dianping.com, and are trying to replicate their successes in Africa. They have been so successful so far that in the future surely their rivals will be most likely Chinese.