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were looted in the first eight months of this Far left: some companies – an independent African
year alone. Only a fraction of these cases Confrontational beer brand would really struggle to stand
have been reported in the media. labour relations out, for example.”
– such as this
Malawian Sandras Phiri, founder municipal Jane Lyne-Kritzinger, Managing
and CEO of the Africa Trust Academy, workers’ Director of Youth Dynamix, an agency
acknowledges the problems associated strike – is one that markets to younger consumers, says
with safety and security issues. Africans of the biggest brands can make inroads by emphasising
from elsewhere on the continent are investment heritage and national pride – for example,
aware of these challenges too, he says. challenges. Left: traditional African dress is hugely popular
Many African and African designers do well in what is
“Some feel that it is dangerous in immigrants run essentially a niche market.
South Africa because of the crime. My hair salons in
company is registered in South Africa, South Africa’s “A smart strategy would be to build up
but we do work in Zambia, Malawi, townships a strong social media presence, so younger
Ghana, Mozambique and lots of other consumers will be interested,” she says,
African countries. When you are having consumers. Indeed, country of origin is adding that these consumers are generally
conversations there, people often ask cited in some studies as being even more hugely brand-conscious, materialistic and
you how you can survive in South Africa important than other purchasing criteria aspirational, and will not simply buy South
because of the crime,” he says. “Then like price and quality. African or African products for the sake of it.
again, South Africans themselves are “If your brand doesn’t catch their eye within
concerned and afraid of Nigeria, as well Local brands dominate when it comes 10 seconds, it will vanish.”
as the risks that they believe exist in to food and home products because
other African countries. It is a matter consumers want to support local On the other hand, a new brand has an
of perception.” businesses and the economy – but they opportunity to make an impact as it has no
prefer global brands when it comes to good or bad history in the market. “A label
Whilst the demand for products durable and electronic goods. This leaves on the back of a product saying ‘made in
from Ghana, Nigeria, Zimbabwe and little room for African products, particularly Africa’ won’t cut it,” says Kritzinger. “A
other continental nations is not to be in the formal market – although coffee, brand has to strive to be the best. African
downplayed, one needs to keep in chocolate and clothing have obviously brands can focus on storytelling while
mind that the market is only so big, made inroads. having the best possible product one can
warns Hammond-Aryee. “South African manufacture. That could appeal to an
consumers are very inward-looking. I don’t For instance, a group of Togolese Afrocentric market.”
think they are much interested in goods entrepreneurs is currently working
and services from other parts of Africa. on creating a prestigious, world-class Notes Markowitz: “In South African
This limits the market.” chocolate brand using organic local retail, where branding truly matters, African
ingredients that have been sustainably goods don’t stand out. Often they don’t
This is borne out by recent Nielsen produced. This could be a selling point meet the necessary standards. If you want
research, which indicates that home- among environmentally aware SA to import African products to South Africa,
grown brands are favoured by local consumers in higher LSM categories. you need to ensure they are ISO-compliant.
Succeeding on a large scale may therefore
Getting marketing right be difficult. However, a niche African
product like Fairtrade chocolate might be
Further challenges for African brands a more feasible opportunity.”
include the distribution network and
getting marketing basics in place. “One of When it comes to services, delivering
the hardest things for African brands to get clever localised solutions that can help
right is marketing,” says Dylan Ferguson, the South African private sector grow
co-founder of marketing consultants and improve could take the foreign
WatsonFerguson. “It is not enough to businessperson far, says Phiri. “South
come to South Africa with a whole lot Africa’s start-up environment is very
of money and spend millions on a TV ad supportive for IT ventures,” he observes.
when your product is available in only a
couple of provinces. Also, remember that “We have many incubators and tech
existing trade channels are dominated by hubs, for instance Silicon Cape in Cape
Town, which offer a lot of support and
expertise, particularly when compared to
other African countries. In South Africa you
can nurture a small company, grow it in to a
large firm and become a global player.”
Issue 4 2016 strategicmarketingafrica 55
