Beer as a symbol of aspirational consumption and upward mobility
I came across SABMiller’s recent presentation on their consumer market strategy and some of their infographics caught my attention. This one, for instance, not only shows the relative proportion of formal to informal alcoholic beverages prevalent in the market but also informs us that it costs 4 hours to buy a beer in Africa, compared […]
Why Indian FMCGs eagerly enter African Consumer Markets
This chart from that Neilson retail study on sales of Fast Moving Consumer Goods (FMCG) shows how Kenya’s retail sector is significantly more formalized than India’s. Given their decades of experience with their vast, informal markets, is it any wonder that India’s consumer brands find the East African market an attractive proposition? Their visibility in […]
Navigating the African Informal Retail Sector
Nigeria’s consumer market has captured global attention. A significant proportion of this emerging market opportunity is in the FMCG category. Due to historical reasons, 87% of this retail trade happens in the “unorganized” or “informal sector”. The market is highly fragmented and inefficient. Yet due to the nature of the informal economy, most of this […]
The true size of opportunity in Africa
The Africapitalist Foundation’s most recent issue of their Africapitalist Magazine has a cover story on the true size of opportunity in Africa. Readers familiar with my exploratory user research and insights from the prepaid economy and the informal sector will recognize the key point being made – that we must look beyond the obvious when […]
Labour saving African kitchen appliances: Market opportunity for product design and social innovation
After watching their Mamas spending hours over an open fire, sweating over the daily dish of ugali or nsima or fufu – the African kitchen’s favourite carbohydrate – inventors and innovators across the continent are taking the initiative to ease her burden with nifty, new kitchen appliances. While culinary details differ from region to region […]
How e-commerce leadership is driving innovative business in Nigeria
While it’s still under construction, there’s an unusual mall coming up in Nigeria. Reports say its aim is to combine the virtual and real shopping experience – retail outlets and shopping alongside with a bonded warehouse and ecommerce facilities. Nigeria’s retail opportunity has been garnering international attention; its economy surpassed South Africa’s last year to […]
Loyalty cards to incentivitize vaccinations – service innovation from Kenya
We most commonly tend to associate loyalty cards with grocery shopping at our local supermarket chain – swiping the card for the occasional discount on milk or eggs. Now this same concept is being used in an entirely different context in order to lower the barriers for rural Kenyan mums to invest in the time […]
African consumer market insight from Chinese flip flop manufacturer in Tanzania
This recent interview of the Chinese owner of a flip flop factory based in Tanzania offers some interesting insights into the mindset of the East African consumer. Trade in commodities has been the dominant feature of China-Africa relations over the past 20 years, but many traders, particularly those who arrived in Africa early, are now […]
The Trickle Down Effect of Luxury in Africa’s Emerging Consumer Markets
A very interesting snippet in the news caught my attention yesterday. Fokke de Jong, Suitsupply’s chief executive, described the African customer as informed. “They understand luxury, as in they understand the inherent quality of products — unlike what you might have seen some years ago in some emerging Asian markets where customers were simply associating […]
Informal trade is big business in Africa
On my way to Nairobi from Singapore a couple of years ago, I had the opportunity to observe first hand the phenomenon of informal trade between China and the African continent. The energy and excitement of the traders, laden with goods on their way back, was a palpable part of the inflight experience. Today, I […]
