DHL launches e-commerce APP to target African e-commerce market

According to media reports earlier, DHL, which is 100% owned by deutsche post group, launched an e-commerce APP called DHL Africa eShop, which provides retail goods from the UK and the us to African consumers.

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It is reported that the APP has been connected to more than 200 Anglo-American retailers, including Amazon UK station, Amazon United States station, Apple, GAP, 6PM, categories covering fashion, clothing, shoe bags, makeup, home, books and so on. After placing an order, consumers will directly use DHL’s logistics for delivery, including payment methods such as PayPal, Visa,Mastercard and Wallet Balance.

Currently, the app only covers 11 African markets: South Africa, Nigeria, Kenya, Mauritius, Ghana, Senegal, Rwanda, Malawi, Botswana, sierra leone and Uganda.

Hennie Heymans, CEO of DHL Express sub-saharan Africa, said the DHL Africa eShop app will provide convenient and fast access for African consumers to connect with brands. It’s not hard to tell that eShop is more like just serving as a technology interface, linking African consumers and global retailers.

DHL AfricaeShop is understood to operate using Link Commerce, a white-label service from startup

It is worth noting that this is not the first time DHL has partnered with MallforAfrica. In July 2018, MallforAfrica and DHL jointly launched an e-commerce platform, mainly to help selected African artisans, the goods sold to DHL’s 220 distribution countries. Among them, DHL is responsible for distribution and MallforAfrica provides e-commerce infrastructure.

This time, DHL plans to focus on e-commerce. Why is a logistics company so bullish on Africa when the e-commerce markets of southeast Asia and the Middle East are hot?

DHL has accumulated many years of experience in the layout of African logistics, which can be facilitated by major retailers. So what about the overall overview of the African e-commerce market?

According to the Statista report of the International Research Institute, the total revenue of the African e-commerce market in 2017 was $16.5 billion, with the market projected to reach $29 billion by 2022 and an annual growth rate of even 40% per cent over the next 10 years.

According to the McKinsey global institute, the value of e-commerce in Africa’s leading economies will reach $75 billion by 2025.

So far, from the newly launched jumia to Konga, Nigeria’s biggest e-commerce site, to Kilimall, Africa’s second-largest, it’s platform on the sale of goods are the main value for money, brand market has yet to be developed.

That may be what DHL sees. Starting from the demand of African consumers for global brands such as the United States and the United Kingdom, the cross-border e-commerce in Africa is a virgin territory. Keefe, general manager of Jumia Asia Pacific, said that branding must be the future development trend in Africa, and it has been gradually highlighted at this stage.

Brand is indeed a trend for the African market, but if DHL ignores the consumption capacity and market demand in Africa, it may not be that easy to operate.