3 mistakes in African Retail💯⁉️ That international companies do …
1) companies set unrealistic goals; they misunderstand the drivers of consumer purchasing power
2) companies underestimate the extent to which local factors determine how, where and why consumers make purchasing decisions Fact ✅Africa’s informal sector remains the largest in the world. According to the International Labor Organization, it accounts for nearly 90 percent of the economy in sub-Saharan Africa and about two-thirds in North Africa
3) companies fail to consider how the consumer class is changing in the region changes.🔥 My Wednesday advice before you can learn from trAIDe GmbH & Kärcher on 23 June how to set up a smart sales strategy Africa African Investment Day- 2022 Don’t rely solely on economic indicator headlines. Corporate estimates of consumer opportunities in Africa are typically based on GDP and demographic growth data. These are misleading ‼️because they don’t reflect how wealth seeps through the economy. In many of Africa’s fastest growing markets, average spending power is very low as economic growth has not created high-paying jobs, instead creating a small elite and large population with low spending power. 🎩 A better measure of purchasing power is the Consumer Class Conditions Index (CCCI), which ranks markets based on how easily wealth is filtered through society. This indicates whether a wider range of consumers are able to make purchases on a regular basis. 💡
Source: LinkedIn.com