Implicit Assumptions commonly held about Informal Markets

Mozambique

Woman owned and managed informal retail in Mozambique via Twitter

  1. “Informal Economy” always means illegal, shadowy, gray.
  2. High volume of low value cash transactions imply poverty, ignorance, lack of sophisticated money management.
  3. Operating with a lack of infrastructure and institutions implies ignorance, lack of ambitions and aspirations, and motivation.
  4. Lack of cash implies lack of purchasing power – particularly in rural settings.
  5. Lack of formal retail markets and packaged consumer goods implies lack of knowledge, information, and choices.
  6. Lack of competition, due to all of the above.
  7. Entering markets where informal retail dominates will be a cakewalk.
This entry was posted in African Consumer Market, Assumption filter, Biashara Economics, Business, Consumer Behaviour, Emerging Markets, Informal & Flexible, Mama Biashara, Marchés africains, Marketing, Perspective, Prepaid Economy & Informal Sector, Retail in Africa, Rural Economy, Strategy, Sub Saharan Africa and tagged , , , , . Bookmark the permalink. Trackbacks are closed, but you can post a comment.

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