The huge potential of Africa is being missed by overseas retailers, who should be looking at the investment and expansion opportunities now, an African-based panel told World Retail Congress delegates in Amsterdam.
“If we look at where there is massive potential, it is Africa. It has the potential to be huge,” said Melanie Hawken, founder and CEO, African Lionesses, a company that works to help female African entrepreneurs.
“There are world class ideas coming out of Africa but very few are willing to take a risk on business. There's a great back story to many of these, with women in Africa putting a lot back into their communities and businesses. But we are not seeing proactive investment.”
She said that it is taking so long to get product on to the shelves of established retailers in Africa that instead many are turning to pop-ups because it takes so long to access the market.
Jessica Anuna, founder and CEO of ecommerce fashion site Klasha, added that with 50% of the African population under 30 and the middle class growing exponentially, “the time is now”.
She added: “A lot of retailers are looking at China, but the Chinese are looking at ecommerce opportunities in Africa. We started Nigeria because it is the largest market. The opportunity is not just African-made products, there is a huge demand for international goods.”
However, Anuna said that it is vital to partner with African companies who know how the vast market works, speak the languages and also are able to help support taking cash payments and in a wide variety of African currencies.
Suzie Wokabi, founder and chief creative officer, Suzie Beauty, echoed the views about investment and recalled: “It was hard at the beginning to fund as a start-up. Localisation is vital to succeed in Africa.”
Tobias Wasmhut, managing director of SPAR, opened up the discussion about retailing in an increasingly uncertain world and practical responses to today’s macro challenges, together with Jaume Miquel, Group CEO Tendam, and Lalit Agarwal, managing director of V-mart.
Although 2018 was a roller coaster for shoppers and retailers alike, nevertheless, Wasmuht saw great growth over the past few years, with Dutch retailer, Spar, now serving 13.5 million customers on four continents, every day. “Retail in some countries is still in an emerging stage, which is where we find some challenges, especially in African countries such as Zimbabwe and Nigeria,” he said.
“We are exploring in a world of limited resources. Of course, we are facing challenges,” said Miquel. “The common elements are the same, however, cultural elements need to be adjusted when you are active in emerging markets.”
He said you might need experiential stores in different locations adding that globalisation is a talent. “Everyone wants to go omni-channel nowadays, but forgetting that they need to make geographical changes to be able to succeed. Flexibility is key in every aspect of the business, when you want to sell in emerging markets,” he said.
