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.
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.
[blockquote right=”pull-right” cite=”Nielsen”]”Understanding the willingness of Africa’s consumers to try new products is also essential. There is a strong preference amongst consumers for brands and products they know, have tried before or that have been recommended by a trusted source, but the level of openness differs by country. Nielsen analysis shows that, for example, in Nigeria consumer willingness to try new products increased to 73 percent in Q3 2014, but decreased in Ghana to 53 percent.”[/blockquote]