Nielsen: GDP, Population and Governance Data Alone Are Not Enough to Predict Brand Success in Africa
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Wednesday, February 25, 2015
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danielmjema.blogspot.com
PRESS RELEASE
New report shows hard retail data, consumer needs and behavior, combined with macro-economic datasets, are better indicators of opportunity and success in African markets
NAIROBI, Kenya, February 25, 2015/ -- For brands eager to tap into the growing African markets and the region’s estimated 350 million middle class consumers, relying solely on macro-economic data such as GDP growth, population trends and regulatory governance data to identify opportunities and predict success can lead to costly missteps, according to a new report from Nielsen (NYSE: NLSN).
The findings, which are featured in Africa: How to navigate the retail distribution labyrinth – a new report released today – show it is the companies that combine retail data from both modern and traditional trade and consumer shopping behavior with broader macro-environment indicators that are better positioned to identify the right markets, products, marketing and retail execution strategies that lead to sustainable growth and profitability in Africa.
“Conventional knowledge has held that where there is growth in population and GDP, and a stable business environment, a brand can succeed by being launched in the market. Those insights alone don’t provide a complete picture of Africa’s consumer opportunities,” said Allen Burch, Head of Africa for Nielsen. “We found that successful consumer brands in Africa understand three key pieces of retail information: who shops where and for what, which retail outlets are the best for the product to generate sales, and how to build demand amongst retailers and consumers.”
In 2013 Nielsen began conducting a quarterly analysis of consumer, retail and business outlook data, as well as macro-economic data across seven Sub-Saharan countries – Nigeria, Kenya, Ghana, South Africa, Tanzania, Uganda and Zambia – with plans to expand to additional countries over time.
Historically, one complaint has been the lack of market data within Africa. Without that insight, even companies with the right products for the right market can fail to get them in the right stores, leading to poor sales growth. By bringing together the standard macro-economic indicators with more granular consumer, retail and business data, it is possible to solve the distribution challenges that are so central to success in Africa.
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