How African consumers choose retail products – Familiarity or a recommendation are strong drivers
Read the full report below.
Africa is on companiesâ€™ growth agenda for obvious reasons. Six of the 10 fastest-growing economies in the world are in Africa, it has the worldâ€™s greatest proportion of young people, and it has a burgeoning urban population with growing demand for many goods not yet widely available, as well as the means to buy them.
With the exception of South Africa, modern trade is at an early stage of development. Indeed, the most common shopping channel is the table top; a stall set up at the side of the road or in the local market to capture local and passing tradeâ€“â€“the emerging-market equivalent of the convenience store.
In a recent Nielsen study of sub-Saharan countries, we found that 80% of consumers shopped from table tops, of which there are no less than 200,000 in Nigeria alone. In addition, Nielsen retail sales data shows that some 40% of consumers shopped in small, local grocery stores, which account for nearly 50% of consumer goods spend. There are more than 550,000 of these outlets in the countries monitored.
In this environment, the approach to market is hugely complex. Manufacturers need to reach large volumes and many different types of outlets, figuring out the different role each plays for the consumer, and how to influence demand.
Recommended: Africa: A 21st century view â€“ The Deloitte Consumer Review (Report)
Consumers continue to show a powerful preference for products they know, have tried before, or that have been recommended to themâ€”not surprising in an environment where budgets are tight and a disappointing purchase is an expensive loss. But their level of caution differs by country. Our data shows that in Nigeria, for example, consumer willingness to try new products increased in the third quarter of 2014, but decreased in Ghana. This kind of data helps manufacturers understand consumers, of course, but it also spells out how important it is for manufacturers to get close to retailers and gain their trust.
Unable to view the “How to navigate Africa’s retail distribution labyrinth: Nielsen” report below? Download it here
How to navigate Africa’s retail distribution labyrinth: Nielsen
- Africa’s Prospects – Macro Environment, Business, Consumer and Retail Outlook Indicators (Infographics & Report): Nielsen
- Shop Africa 2016 (Report & Infographics): Knight Frank
- Kenyan supermarket chain Nakumatt agrees stake sale to fund for $75M
- Nakumatt and Shoprite are attracting interest from international investors for their fast-growing markets (Infographic)
- The 2015 African Retail Development Index (Infographics, Video & Report): AT Kearney
- East African assets attract private equity interest
- Africa Report 2015 – Real Estate Markets in a Continent of Growth and Opportunity: Knight Frank (Infographics & Report)
- The mobile economy – Africa 2016: GSMA (Infographics & Report)
- Invest in This Walmart of Africa?
- Africa attractiveness program 2016: EY (Infographics & Reports)
- IPO Watch Africa 2014: PwC (Infographics & Report)
- Pizza Hut Enters Ethiopia in Latest Expansion Into Africa
- Private equity firm Abraaj is interested in buying Barclays Africa (Infographics & Video)
- How insurance is transforming a rapidly growing Sub-Saharan Africa: EY (Infographic, Video & Report)
- Compelling investment markets in Africa – Inside Riscura’s Bright Africa 2015 Report: Debbie Oâ€™Hanlon, Senior Analyst, RisCura (Infographics)
- A few things we learned about tech hubs in Africa: GSMA (Infographic)
- Krispy Kreme Doughnuts to Open in Nigeria
- South Africa’s Shoprite shifts investment focus to the rest of Africa as profit slows
- Check out these four mega mall developments soon to be launched in Africa (Photos & Videos)
- Into Africa: The continentâ€™s Cities of Opportunity – PwC (Video, Presentation, and Report)
- Opportunities multiply as African ventures eye wider horizons
- Africa: A land of opportunity for property investors
- Africa’s richest man plans to almost double the continent’s cement production by 2020 (Infographic)
- African Markets Guide 2015: Barclays (Report)
- The top 7 African countries for mobile money (Infographics)
- The top 10 most active stock markets in Africa in 2014 (Infographic)
- Monopoly Money: The successes and failures of South African billionaire Christoffel Wiese
- Sub-Saharan Africa’s most and least resilient economies (Infographics): Anna Rosenberg, Head, Sub-Saharan Africa Research, Frontier Strategy Group
- Africa’s most valuable company Naspers ups investment in South Africa’s largest e-commerce company Takealot
- East Africa’s second-tier cities hold untapped potential
- How former Jumia MD is selling groceries online in Nigeria
- The top 10 most tourism-ready countries in Sub-Saharan Africa (Infographic)
- Nigerian e-commerce site DealDey gets acquired by Swiss media group Ringier (Infographic)
- Africa Attractiveness Survey 2014 – Executing Growth: EY (Report)
- Here are the top 10 Sub-Saharan African cities for consumer spending growth (Infographic)
- Sub-Saharan Africa Banking Review 2015: EY (Infographic & Report)
- Why I cannot tell ‘the African story’: Nancy Kacungira, News Anchor, KTN (Infographic)
- Africa Exchange Guide 2015: African Alliance Capital Markets (Presentation)
- Why you should take chances: Marek Zmyslowski, Managing Director of top African hotel booking website Jovago (Video)
- The eight best-performing African stock markets in 2014 (Infographic)