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Business Day Live: African Variety is Challenge to Global Brands

In their analysis of how to crack the African market, BDL say that companies’ modern strategies for marketing may be just the beginning, and that new strategies may need to be developed. Speaking to Michael Woods of business consultants Aperio, they garnered a few insights into what has worked in the past.

The one size fits all approach does not work with African consumers … (who) are looking for locally relevant brands that they can connect with.

The retail environment in Africa is highly fragmented. Modern retail in most markets is only just beginning. Companies that make routes-to-market critical in their strategy usually are successful in Africa.

The article also quotes the McKinsey report which says consumer-facing industries are expected to grow by $400bn by 2020. The report offers the interesting view that the large cities are not necessarily the best targets

Cities offer the best opportunity. But companies may be wise to bypass high-profile megacities, such as Cairo, Johannesburg, and Lagos for mid-tier cities like Abidjan and Rabat (that) are more accessible, have less competition and offer better profit margins.

To read the full article, please click here.