ISRAEL ONYEKWERE
Strategic partnerships form an integral part of businesses today — and with good reason. Their importance has become more than just a wise business move but a necessity for sustainable growth. As aptly described by the age-old adage, “Two heads are better than one,” the concept underscores the profound significance of collaboration, especially in the realm of e-commerce.
At its core, building strategic partnerships provides companies with leeway to leverage the complementary capabilities of like-minded institutions — granting small, medium, and large organisations alike the access they need to expand to new markets, harness avant-garde infrastructure to meet overarching goals and targets, as well as a safety net to reduce risks. In the vast landscape of e-commerce, where competition is fierce and consumer expectations continue to evolve, success is not just about having a great product or a sleek website anymore.
It is about forging strategic partnerships that amplify strengths, drive sustainable growth, and address consumers’ needs. The digital realm is evolving at breakneck speed, and in this ever- changing landscape, collaboration emerges as the linchpin for success.
For Nigeria, there is a crucial need for collaboration, even though there are very few prominent e-commerce companies currently operating.
In Nigeria, the current e-commerce spending is estimated at $12billion and is projected to reach $75 billion revenue per annum by 2025.
However, COVID-19 pandemic contributed to the growth of e-commerce platforms as consumers rapidly moved to online shopping to navigate the restrictions and lockdown which created opportunities to acquire new demographics online as more brands compete for their attention to retain customers.
As competition continues to increase in the new digital world where shopping journeys are compressed and making purchase easier than ever, one would ask why it is important for marketers to partner with e-commerce platforms to leverage first party data to drive growth and visibility.
Partnering with e-commerce platforms depend on some entrepreneurs, not everyone needs that. The secret to success in every business is to focus on your strength, pay others or leverage their partnership in the area you’re weak. That complements your effort towards achieving success.
There is no doubt that the big e-commerce businesses have rich data sets spanning the entire lifecycle of the customer journey. Africa’s e-commerce unicorn, Jumia, some few years ago, boasted of a growing 7 million active customer base. Smart advertisers not only go where the audiences are, but also base media buying decisions across several data sets.
With the rise of social commerce, it is important for brand marketers to begin to pay attention and also partner with e-commerce website to promote brands not only on the shelves but also on line, while considering data control privacy.
A recent study conducted by IBM’s Institute for Business Value revealed that 54% of executives view strategic partnerships as critical for their organisation’s digital transformation efforts. In addition, a report by Kearney, a global consulting firm, highlights that well-executed strategic partnerships can create sustained value for both brands and consumers.
As these statistics highlight the impact of strategic partnerships: How can E-Commerce platforms leverage collaborative initiatives to meet evolving consumer needs?
Take the case of Jumia Nigeria, the leading pan-African e-commerce platform. Since its inception, Jumia has been at the forefront of innovation, continuously striving to enhance the shopping experience for millions of customers across Nigeria. Yet, in an industry marked by rapid evolution and ever-changing consumer preferences, staying ahead requires more than just ingenuity – it demands collaboration.
In recent years, Jumia Nigeria has embarked on a journey of strategic partnerships, forging alliances with a diverse array of stakeholders ranging from local businesses to global brands.
These partnerships have not only expanded Jumia’s product offerings but have also enriched its ecosystem, offering customers unparalleled choice and convenience. A good reference point is its partnership with leading manufacturers and brands like Adidas, Infinix, Oraimo, Binatone, Haier Thermocool, Diageo, and Nivea. These brands have official stores on Jumia where consumers can get easy access to their favourite products, and the brands offer special promotions to reward their consumer base for their loyalty.
Another strategic move by the company to further enhance customer satisfaction is its partnership with Mastercard and Providus Bank to introduce the Jumia Mastercard, an innovative payment card that elevates the shopping experience of its customers. Through this partnership, the company introduced a customer reward system which will serve to multiply purchasing power and foster lasting customer loyalty on Jumia’s platform throughout the year.
With these partnerships, Jumia provides customers with access to the latest products while enabling the company to expand its market presence and attract new customers.
In another thoughtful partnership, the company partnered with Starlink to deliver Starlink’s satellite terminals and kits in Nigeria and Kenya, deepening broadband connectivity in African communities. Through this partnership, Starlink was able to harness Jumia’s elaborate delivery network to expand its reach in Africa.
Companies such as Jumia understand that building strategic partnerships is not just about the numbers; it is about creating a powerful ecosystem of collaboration that fuels mutual growth and customer satisfaction. When done right, partnerships forged will transform the e-commerce landscape and empower customers. Together, companies can rewrite the rules of success and create a future where strategic partnership can be a cornerstone for business growth.
