Aurèle Simo is the founder of Toovendi.com, a free online classifieds platform launched in Cameroon and accessible in Ivory Coast and the Democratic Republic of Congo. A former employee of Jumia and Afrimalin, he now shares his vision of e-commerce in French-speaking sub-Saharan Africa.
Can you describe your activities?
I worked at Jumia and Afrimalin, two major players in e-commerce in French-speaking Africa. I held the positions of sales manager for Cameroon and digital marketing manager for the Afrimalin group, respectively. I decided to launch my own platform in April 2018, Toovendi.com.
This platform connects sellers and buyers to make good deals. Launched in Cameroon, it is now operational in Ivory Coast and the DRC, and we are continuing our rollout with the ambition of being present in 15 countries in French-speaking sub-Saharan Africa.
In parallel with these activities, I launched a training academy for digital professions called Griotys Digital Academy. We are still in the launch phase in Cameroon and would like to expand the project to the sub-region.
What is Toovendi.com's business model?
In terms of our business model, unlike Jumia or Afrimarket, we have chosen to launch a free advertising platform. This means that sellers can list their products online for free, and when buyers search for products online, on social media, and on search engines, they can be put in direct contact with the sellers on the platform. We do not take any commission on sales or account creation fees. Our revenue comes from the purchase of advertising space and sponsored ads.
I chose this business model because I understood that, on the African continent in general, many people still do not understand how online sales work. From registration to product listing and even the act of purchasing, it can all seem very complicated to people, which is a barrier to the development of e-commerce. Given this situation, I decided to start with an easy-to-access free classifieds site, which we can then develop into a real marketplace. I think that attitudes still need to change before marketplaces can develop on the continent.
For the time being, the platform is not yet profitable, and we are continuing to invest, but we need to rely on the data and analysis of the traffic generated by our platform: the number of visitors is constantly growing and the return rate is very high. These are two fundamental parameters in this growth phase.
How do you differentiate yourself from the competition?
In terms of competition, we want to differentiate ourselves by developing our platform and going beyond classified ads. I can't comment on this at the moment. The first step with Toovendi was to bring the platform to life and make the brand recognizable to internet users. Between now and 2020, we will be developing new features and new services.
What are the challenges facing e-commerce in Cameroon and more broadly in French-speaking Africa?
E-commerce in Cameroon and French-speaking Africa in general is a very promising sector. I encourage many young people to get involved in online sales, provided they choose the right business model, one that suits our environment and our realities. This is one of the main challenges.
We must also pay attention to the investments made in this e-commerce platform. This is one of the reasons why e-commerce players choose to launch on the continent and are then forced to cease their activities. I believe that the success of e-commerce players is not solely determined by the state of the market, which is still very immature in our countries. If we look at the players who have ceased their activities in the region, such as Cdiscount, Africashop, Afrimarket, and Yatoo in Côte d'Ivoire, they have all made significant investments to develop their activities in markets that are still very small, where a certain sales threshold for profitability cannot be reached. This is particularly due to the low internet penetration rate. This is a crucial issue if you want to stay in the market. In my opinion, future entrepreneurs who want to get started need to invest in line with the market and the realities.
Despite these financing difficulties, I remain convinced that e-commerce has a very promising future.
Afrimarket and Yatoo.ci have announced the cessation of their activities. In your opinion, is Jumia too powerful a competitor?
Jumia has managed to stand out, notably thanks to its recent IPO in New York, which enabled it to raise nearly $200 million, but its activities are also experiencing difficulties and struggling to reach profitability.
Jumia has a lot of cash and is investing heavily to expand its activities. The group is also carrying out many operations on the ground that are helping to change attitudes towards e-commerce. This change in attitudes and awareness of the opportunities associated with e-commerce are factors that will determine the development of the sector.
These "successful" models need to hold their own and continue to exist in the market. Little by little
,
the market will take shape.
You attended the launch ceremony for the national e-commerce strategy in Cameroon. What was it about?
The Cameroonian Ministry of Trade, in partnership with the Commonwealth, decided to bring together e-commerce players operating in the country to discuss and develop a national strategy to contribute to the sector's development. The public authorities have decided to study this still-new market in order to understand the needs of internet users as well as those of companies wishing to develop their online activities. As online commerce project leaders, we were able to report on the issues we encounter on a daily basis. New laws are expected to be introduced in 2020 to protect online shoppers. This strategy will help structure and promote the growth of the sector in Cameroon.
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