Chinese e-commerce giant Temu has made a rapid entrance into Nigeria’s $13 billion online retail market, luring shoppers with ultra-low prices and freebies. However, while the platform is gaining momentum, local rivals Jumia and Jiji see no threat.

Since its Nigerian launch in November 2024, Temu has been aggressively courting customers with deep discounts, promotional giveaways, and promises of faster delivery. The company’s expansion strategy mirrors its playbook in other markets, where it has quickly become a dominant force by undercutting competitors on price and leveraging its direct-from-manufacturer supply chain model.

Jumia, Africa’s largest e-commerce platform, says it welcomes the competition. “We don’t see Temu’s entry as a bad thing; rather, it’s good for the industry,” said Robert Awodu, regional head of public relations & communication for Jumia’s Sub-Saharan Africa operations. “Since last year, we have been focusing on expanding into secondary cities and rural areas.”

Awodu said Jumia’s deep roots in Africa, with operations in nine countries, is a competitive advantage against nonresident firms like Temu.

“Ultimately, when the freebies end, people will seek out the option that provides them with the best value, even if it means going offline,” he said.

Anton Volianskyi, Jiji’s CEO, said Temu’s product categories don’t significantly overlap with Jiji’s core business.

“We don’t bid on very low-priced product categories; we don’t work in the same business model,” he said. “We mainly represent local sellers, meaning that you have a choice of goods and services you could order available today, bargaining price, and get it delivered within one day in most cases.”

Unlike Jiji, which specializes in vehicles, real estate, and services, Temu does not yet have a strong presence in these key segments. 

“We simply don’t feel the impact,” Volianskyi added. “In many of these categories, Temu doesn’t yet offer strong local value or trusted options.”

Yet, industry analysts say Temu could disrupt the market in a big way. The platform’s popularity has surged in Nigeria, climbing to the top of Google Play’s rankings, outpacing apps like WhatsApp, Opay, and ChatGPT, according to SimilarWeb, a web analytics tool. A recent report from Euromonitor International noted that Temu’s rapid growth has placed it among the world’s top 20 e-commerce brands—up from outside the top 100 in 2023.

Temu attributes its success to its direct-to-consumer model, which cuts out wholesalers and retailers to offer lower prices year-round. 

“We work with trusted logistics partners to ensure shoppers get their orders reliably and on time,” the company said in a statement to TechCabal.

Beyond aggressive pricing, Temu is leveraging consumer trend data to refine its offerings, a strategy that differentiates it from rivals like Amazon and Walmart. Its gamified shopping experience—featuring spinning wheels, countdown timers, and promotional challenges—has proven highly effective in attracting price-sensitive shoppers.

The rise of Chinese e-commerce platforms in Nigeria underscores a larger trend: the deep pockets and technological prowess of Chinese firms are reshaping Africa’s digital economy. Temu’s entry follows a broader push by Beijing to support emerging tech businesses, including a recently announced $138 billion government-backed fund to fuel innovation in AI, quantum computing, and e-commerce.

“If Temu sets up local operations in Nigeria, it could be game over for Jumia and other players in the space,” said Oluwatobi Akapo, a former business development manager at Jumia Nigeria.

However, Temu isn’t just battling local incumbents, it’s also up against Nigeria’s evolving consumer habits. The country’s e-commerce market is projected to double to $26 billion by 2030, driven by rising smartphone penetration and increasing internet access, according to Worldpay, a global payment processing company. Local knowledge, logistics infrastructure, and trust will be key differentiators in the long run.

“Jumia isn’t Temu’s only competition,” said Uchenna Uzo, a professor of marketing at Lagos Business School. “The real challenge is adapting to a consumer base that is price-sensitive but also values trust, speed, and reliability.”

Whether Jumia and Jiji can leverage their local expertise to fend off Temu’s low-price strategy remains to be seen. But one thing is certain: Temu has shaken up the market.