A matter of timing: seasonal opportunities
These stalls full of water pistols and balloons sprouted overnight a couple of days before the spring festival of Holi (March 13th 2017) – these vendors are neither local nor regulars in the market complex. They’re here to offer seasonal products and might even have been invited by the local shopkeepers to provide attractive temporary […]
As global firms (MNC) pull back from emerging markets, what does this mean for Africa?
Last week’s issue of The Economist drilled down deeper to cover the retreat of globalization – at least in the most visible form, that of the multinational brands dotting cityscapes around the world. The retreat of the global company, they trumpet, the end of Theodore Levitt’s vision. Credit Suisse takes a concise yet comprehensive look […]
The dangerous assumption that there’s no competition from the informal sector
In addition, the informal economy of open street markets still dominates 90% of retail in large countries like Nigeria and Kenya, meaning it’s a near safe bet there’s plenty of room to grow. ~ Quartz Africa, Jan 2017 Failure is a risk, and an inescapable function of the amount of resources invested, not just money. […]
Snapshot of the Dynamics of the Urban Informal Retail Trade in Nairobi, Kenya
Latiff Cherono quickly made up this diagram during a brainstorming session with Francis Hook and myself on the ways and means to further disaggregate the general category of “Informal wholesale and retail trade” that the Kenya National Statistics Board uses to lump together the second largest sector providing employment in Kenya after agriculture. In urban […]
Signs of Interdependency between the Formal and the Informal Economy
There is a lot to be unpacked here – I made a mindmap of the urban African entrepreneur who is the backbone of the visible emergence of a consumer class. I’m drawing from my experience of the Kenyan context. I started this in response to Michael Kimani’s Storify recently on the mythical “middle class” and […]
An Africa Expert on Beneficiaries maybe the wrong Expert on Customers and Consumers
As the African markets increase in opportunity and visibility, the corresponding increase in need for experienced personnel is also felt. Many consumer facing companies hire “old Africa hands”, often former employees of various nonprofits and their projects. The assumption is that knowledge and experience among “poor” Africans implies knowledge and experience of African consumers and […]
Top 3 Assumptions About the African Consumer Market
Claims have been made about the Great African Market Opportunity – in retail, in real estate, in banking, and packaged consumer goods – that drive investment decisions and marketing strategies. Yet, reality has been less opportunistic than imagined – Nestle’s struggles in Kenya back in 2015 are one such example. Here are the top 3 […]
Implicit Assumptions commonly held about Informal Markets
“Informal Economy” always means illegal, shadowy, gray. High volume of low value cash transactions imply poverty, ignorance, lack of sophisticated money management. Operating with a lack of infrastructure and institutions implies ignorance, lack of ambitions and aspirations, and motivation. Lack of cash implies lack of purchasing power – particularly in rural settings. Lack of formal […]
Mirror-Mirror, Who am I? The rise of African doll brands that empower Black girls
During the past few years, people of color all over the world have started challenging their absence in a positive light in the media, entertainment, books and toys. Black people, and Africans more specifically, feel invisible or highly under represented. The lack of visibility has severe effects on image, self esteem and success. Experts say […]
Detailed breakdown of Uber’s business model in Kenya puts spotlight on weaknesses
Latiff Cherono has just published an indepth analysis of what exactly it takes for an Uber driver in Nairobi to cover the cost of doing business. Here’s a snippet, In this post, I try to understand the root cause of the disconnect between how the customer (who defines the value), Uber (the service that controls […]
