Nigeria’s e-commerce market is rapidly transforming, driven by a connected youth and growing adoption of online shopping. The arrival of international players intensifies competition, creating both challenges and opportunities for the local economy.
Three weeks after its launch in Nigeria, Temu, the Chinese online retailer, has reached the top of downloads on Android and Apple Store. This dazzling success is based on a targeted marketing campaign, combined with an attractive offering of low-priced products, imported directly from China. By adapting its services to local needs, notably with payments in naira and home delivery, Temu has captured the attention of Nigerian consumers.
A strategic offensive by Chinese leaders
Temu’s arrival is part of a broader strategy by Chinese e-commerce giants, such as Shein, Aliexpress and TikTok Shop, which are seeking to alleviate increasing restrictions in Western markets. After its launch in South Africa, Temu chose Nigeria as its second market in Africa, thus consolidating its presence on the continent.
To conquer Nigeria, Temu relied on a spectacular launch strategy, supported by massive advertising investments. In 2023, the company was Meta’s top advertiser, with nearly $2 billion spent on ads. This approach has allowed it to not only outperform established local and international players, but also increase advertising costs for its competitors.
A model that shakes up the local ecosystem
Temu’s main strength is its direct shipping model from manufacturers in China. By cutting out middlemen, the company offers a wide range of products at ultra-competitive prices, appealing to consumers in a market where price sensitivity is high and brand loyalty low.
However, this model poses major challenges for the local economy. Low-cost imported products are putting increased pressure on local platforms like Jumia and weakening small Nigerian businesses, particularly in the fashion and design sectors, which are still booming.
Reactions and challenges for the future
Temu’s arrival in Nigeria arouses divided opinions. While consumers welcome access to varied and affordable products, analysts are concerned about the long-term impact on local businesses. Some experts are calling on the government to take inspiration from countries like Indonesia and Vietnam, which have introduced taxes and customs duties to protect their local markets against e-commerce giants.
Measures such as imposing conditions on foreign companies, such as the creation of local jobs or the installation of production centers, could help limit the impact on the local economy while benefiting from foreign investment.
A market with high potential
The Nigerian e-commerce market, estimated at $8.53 billion in 2024, is expected to reach $14.92 billion by 2029, with a compound annual growth rate of 11.82%, according to the E- study. commerce in Nigeria Market Size & Share Analysis (2024-2029) from Mordor Intelligence. This rapid progression reflects the growing adoption of online shopping by Nigerians, supported by a young and connected population.
However, for this expansion to truly benefit the local economy, a balance must be found between opening up to international players and protecting local capacities. Temu’s rise highlights the rapid transformations in e-commerce in Nigeria, while raising crucial questions about how to preserve a sustainable economic ecosystem.
Samira Njoya
Published by Sèna DB de Sodji
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