Jumia calls for pitch, shortlists 4 agencies for finals
To effectively tackle the consumer backlash and other negative brand effects of Citron report on its brand reputation, Jumia has called for a pitch to select an agency to help arrest the situation as many partners are alleged to be withdrawing their merchandise.
An inside source at Jumia confirmed to MARKETING EDGE that four agencies have been shortlisted for the final pitch which is scheduled to hold next week. The source, however, did not mention the shortlisted agencies.
According to the source, no share price or valuation has been given but there was speculation that Jumia could be valued at 1.5 billion dollars despite the fact that it reported a loss of 170 million Euro in 2018.
Marketing intelligence also revealed that stakeholders and staff of Jumia have been agitating as the brand continues to drop in shares since the fraud allegations by Citron. It has been a lingering crisis of sorts for Jumia.
Recall that Jumia has been having crisis shortly after its listing on the New York Stock Exchange. The e-commerce company was given a 1 billion dollar valuation in 2016, but Jumia continues to offer a range of online goods in different segments of the market.
According to a BBC Africa Business report, however: “The inconsistent quality of the products Jumia sells and delivery challenges it faces have often made the company a target of criticism on social media. Its biggest selling point, however, is the acceptance of mobile money payment across the continent where few people have credit or debit card.”
In documents filed in New York, Jumia warned it could not guarantee achieving or sustaining profitability in the future, citing challenges such as robbery at its Kenyan warehouse which saw merchandise worth 560,000 dollars stolen.
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