New Product Introductions in Informal Markets


“What’s new?” I asked Peter who runs this mari mari shop in a makeshift market just yards from Nairobi’s famous Kibera, and he proudly showed off the various features of this television set cum DVD player that can run on a small battery if need be. Yours for just $100. Don’t miss the bright pink amplifier on display or the rest of the ‘shiny shiny’ that Peter brings from the wholesalers in the Central Business District.

China made goods flood the informal markets across rural Africa while mainstream media turns itself inside out wondering how they’re doing it, so easily, so cheaply and so well, even as global brands and well meaning social enterprises struggle to get their life changing products to market.

For a sure signal of the emerging global ‘middle class’ and their aspirations, just take a careful look at what entrepreneurs like Peter are stocking for sale. Unsold inventory is a luxury he cannot afford and will work to minimize risk when it comes to new products and innovation. The Chinese manufacturers know this so they offer good on commission to the wholesale shops, leaving stock on display and returning to visit weekly to collect cash and check up on what’s moving fast and what isn’t of interest to customers like Peter.

Warranties? Return policy? Customer service? That’s the tradeoff the informal economy makes in return for affordable luxuries.

This entry was posted in African Consumer Market, Assumption filter, Base of the Pyramid, Consumer Behaviour, Design, Emerging Markets, Indigenous & Traditional, Informal & Flexible, Innovation Planning, Kenya, Marketing, Perspective, Prepaid Economy & Informal Sector, Strategy, Technology, urban and tagged , , , , , . Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

Post a Comment

Your email is never published nor shared. Required fields are marked *

You may use these HTML tags and attributes <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*
*