Posts Tagged ‘SKU’

How to Spot Signals of Local Purchasing Patterns in the Market

np-md-mohamed-kanuThis photograph is taken from a regular news item from a Liberian newspaper announcing the opening of a new petrol station in the town of Ganta. What caught my attention is the size of the LPG cylinders being promoted. On the left is the 6kg and on the right is an even smaller size that I’ve yet to see elsewhere – the 6kg one has been spotted in the lower income side of Jakarta, and in the markets of Abidjan, and Nairobi.

What it tells me is that purchasing power in the local market is not only a little less than a major capital city, this is probably a tier 2 city, but also that its a cash intensive market where incomes are more likely to be the volatile cash flows from commercial activities in the informal sector.

The lumpsums available for LPG aren’t going to be as large as to afford the standard 13kg size, but it doesn’t preclude people from purchasing these smaller sizes more frequently. That is, we cannot assume total consumption volumes to be less than larger cities where larger sizes are more popular. On the other hand, the micro size on the right seems to hint at the possibility of LPG being more popular than traditional fuels such as kerosene, charcoal, or firewood.

These small sizes also signal a fragmented, informal market where small pack sizes and sachets are popular.