Tag Archives: retail

The dangerous assumption that there’s no competition from the informal sector

By | January 29, 2017

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.… Read More »

Retail ranking metrics vs Readiness for formal retail #AfricanConsumerMarket

By | September 24, 2015

Continuing the thoughts expressed by Yacine in the previous post, I’d like to explore these rankings and their value. We’ll use the example of Tanzania, ranked 5th by AT Kearney in their 2015 African Retail Attractiveness Index (ARDI). The ARDI states: Tanzania is starting from a low base: With only 30 percent urbanization, high poverty… Read More »

Où se trouvent les plus grands consommateurs en Afrique?

By | September 23, 2015

Proud to introduce our newest contributor, Ms Yacine Bio-Tchane of Cotonou, Benin. She will be writing on the business perspective from Francophone Africa, mostly in French. If you’d like to see a post translated, leave us a comment! Une récente étude de la firme de conseil A.T. Kearney a classé 48 pays africains selon leur… Read More »

Breaking bulk and profiting at the margins

By | July 17, 2015

Michael sent me this information from Nairobi last week. He’d spotted informal retail within the context of a mini-supermarket – known as traditional trade in the jargon of consumer product distribution and retail. He adds, “So 500 ml of Rina cooking oil retails for 120KES, 1 litre for 195 KES. What the owner of this… Read More »

Market forces transforming the African retail landscape

By | April 16, 2015

Cosmetics giant L’Oreal’s partnership with pan African e-commerce platform Jumia signals a big shift in the way consumer packaged goods companies  address the challenge of reaching the emerging African consumer classes in a cost effective manner. A combination of market forces and on the ground realities points to this solution as a sweetspot for optimal… Read More »

Why Indian FMCGs eagerly enter African Consumer Markets

By | March 21, 2015

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… Read More »

Navigating the African Informal Retail Sector

By | March 15, 2015

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… Read More »

Importance and value of Africa’s informal food markets

By | March 3, 2015

There’s a new book released by the International Livestock Research Institute (ILRI) and partners — Food Safety and Informal Markets: Animal Products in Sub-Saharan Africa—that probes the complicated world of traditional or ‘informal’ markets in livestock products. Here are some unexpectedly juicy findings: Research by ILRI and partners shows that in most developing countries, more… Read More »

How e-commerce leadership is driving innovative business in Nigeria

By | March 2, 2015

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… Read More »

More or Less: the flexibility of the informal

By | July 27, 2013

One of the things that stood out for me during the recent household consumer behaviour study was the lack of weights and measurements used to sell foodstuffs and commodities in the market. There were no weighing scales at all, unless they themselves were for sale. Instead, some form of “socially accepted” measure was used to… Read More »