Africa’s online retail market predicted to reach an 11-digit dollar value in 2020
CAPE TOWN, South Africa, May 28, 2020/ -- DHL (www.DHL.com) acquires a stake in their strategic partner company, Link Commerce, in
support of growing e-commerce in Sub-Saharan Africa and other global
emerging e-commerce markets; Africa’s online retail market predicted to
reach an 11-digit dollar value in 2020.
DHL Express
today announced its minority stake acquisition in Link Commerce, the
UK-based e-commerce firm that helped the logistics company develop its
hugely successful DHL Africa eShop platform (www.Africa-eShop.dhl).
Hennie Heymans, CEO of DHL Express sub-Saharan Africa, says that the
acquisition demonstrates the company’s commitment to growing e-commerce
on the continent. “Acquiring a stake in Link Commerce – the company
behind the MallforAfrica.com platform – shows our tremendous support of
e-commerce in Africa. It also positions us to realize our ambitions of
growing the eShop offering globally, and work on the scalability of the
platform when the opportunity arises.”
”DHL’s investment in Link
Commerce is a perfect fit. With the DHL investment we are now able to
grow faster by leveraging the amazing shipping network DHL has built
globally. This will help us expand our white-label turnkey B2B eCommerce platform and provide online shoppers with the ability to shop more and
get more at great shipping rates fast.” said Chris Folayan Founder and
CEO of Link Commerce and Mall for Africa.
Just over one year on from its initial launch, the DHL Africa eShop (www.Africa-eShop.dhl) continues to see massive growth in sub-Saharan Africa. Heymans notes that the DHL Africa eShop has consistently outperformed
expectations since its launch. “The platform was developed in
partnership with Link Commerce and initially launched in 11 African
countries in April 2019. It was an immediate success, gaining around
5,000 subscribers within the first six weeks. Today, DHL Africa eShop is live in 34 countries across Sub-Saharan Africa with tens of thousands
of users across the continent.”
The DHL Africa eShop offers
African consumers unprecedented access to international retailers via an easy-to-use platform, with great convenience, speed and reliability.
“DHL Africa eShop enables African customers to shop directly from over
200 US- and UK-based online retailers, with purchases delivered directly to their door, by DHL Express.”
Heymans adds, “Online buying
behaviours and product mixes have evolved quite significantly since the
onset of COVID-19. Some of the most popular items on the platform now
include productivity and communications devices to support remote
working, home and kitchen appliances, entertainment gadgets and health
related products, in addition to the historic orders of fashion and
beauty products. Consumer interests have shifted towards goods that are
harder to source locally. With brick-and-mortar retailers in many
regions operating at reduced capacity, consumers have turned to online
shopping to acquire the goods they need. It’s been great to see eShop
providing vital online shopping access during this time, with impressive growth coming from countries like Nigeria, Ghana, Rwanda, Angola,
Uganda and Kenya during the various stages of lockdowns, and with South
Africa back on board to access e-commerce, we are thrilled for our users to be able to use service offering once more.
Assurance for
delivery has become a top priority for consumers,” says Heymans. “
Basket sizes have also increased, as shoppers seek to get all of what
they need immediately, rather than to space out their orders. Online
shopping supports the ultimate level of social distancing – connecting
consumers to everything they need at a click of a button.
Heymans explains that while the e-commerce market in Sub-Saharan Africa has
been largely overlooked by international retailers in the past, it
currently offers some of the biggest opportunities for rapid growth in
the world.
E-commerce is proving to be one of the most important
and fastest-growing market sectors in Africa. A report published by
Rapid B2C forecasts that Africa’s online retail market will reach an
11-digit dollar value in 2020, while another report by the McKinsey
Global Institute estimates that this value could potentially reach $75
billion by 2025.
“These growth predictions, coupled with the
incredible demand and quick uptake of the DHL Africa eShop offering,
confirm that this acquisition is the right move to ensure DHL Express is geared for continued growth,” adds Heymans.
As part of the
acquisition, Heymans has been made a board member of London-based Link
Commerce Ltd. “We have no doubt that deepening our partnership with Link Commerce in this way will take both companies, as well as e-commerce on the continent and new markets across the globe, to new heights. I am
honoured to take on this new role as part of DHL’s growth strategy.”
“ At Link Commerce our strategy is to help businesses grow and provide
shoppers globally with access to US and UK online retailers like never
before. DHL’s investment in the company gives us that edge we need to
expand rapidly globally and access to products like never before,” said
Chris Folayan, Founder and CEO of Link Commerce Ltd.
With
operations across 51 markets in Sub-Saharan Africa, servicing customers, efficient delivery is an important factor for DHL Express. “Our
strategic investments in innovative technology and connectivity across
the region, are all aimed at promoting global trade and ensuring that
businesses and individuals across the continent can leverage global
opportunities,” Heymans concludes.
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About DHL – The logistics company for the world:
DHL (www.DHL.com) is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world”.
DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 63 billion euros in 2019. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. Deutsche Post DHL Group aims to achieve zero-emissions logistics by 2050.
- Link: DHL Africa eShop
- Link: DHL
- Link: Link Commerce Ltd
- Link: Source 1
- Link: Source 2