Jumia Technologies AG (NYSE:JMIA) Q3 2022 Earnings Call Transcript

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On your second question, towards the balance between marketing and growth, if I get it correctly. Very interestingly, we have many success cases in the group of countries that have been able to manage very, very good levels of efficiency and marketing spend, while building up new categories and building growth for the whole business and a very healthy — with very healthy economy. So we don’t really see a balance between growing and spending in marketing. It’s more about doing the right thing, spending it on the right channel with the right level of efficiency. Having said that, for Q4, we reiterate our guidance on marketing spend. And we — and of course, marketing spend remains part of the strategy. And I may have to answer your third question.

Lamont Williams: No, that’s it. Actually, can I — just a follow-up question on the assortment. You talked about there’s some gaps in assortment and you’re going to move back into consumer electronics. Are there any other categories where you might see some gaps in an assortment that you could give a little bit more detail on?

Francis Dufay: Very good question. So as we mentioned, we — I mean, it — we want to open that both country-by-country, geography-by-geography and it what makes sense for the business. We need that kind of level of granularity. When you look country-by-country, the overall — I mean, the big picture is that our core categories are more or less the same across the board, and that’s why we know that we have very good customer traction, and we can have healthy economics, and we know it for a fact. That’s electronics, including food, TV, computing, consumer appliance, home categories, fashion and beauty. These are the bread and butter categories of Jumia e-commerce in general. And across those categories, we see that in all countries are not at the same level of development, and we’re trying to do the right decision country-by-country, category-by-category, distributor-by-distributor, brand-by-brand to improve our assortments and get the supply.

These are really the basics. We want to win at this stage. Of course, there are ways to go more deeper to expand into new categories. I mean, I can give you an example. Last year, I recorded great progress on building the category of agricultural inputs, agricultural tools and insurance. This is just an example. We’re open to into new categories. But really, at this stage, we just want to make sure we get the basic rates.

Lamont Williams: Okay. Great. Thank you.

Operator: There appear to be no further questions in queue. I would like to turn the floor back over to Francis for any closing comments.

Francis Dufay : Thank you. So I would like to thank all of you for joining the call today. We will be very much looking forward to sharing with you more progress on our planning three months. Thank you very much.

Operator: Thank you, ladies and gentlemen. This does conclude today’s conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.

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