Bild 1: Diagramm mit Darstellung der verschiedenen Haartypen

Marktdynamik in Afrika südlich der Sahara:

Marktlücken und DIY-Lösungen: Der historische Mangel an Produkten, die auf Haartypen afrikanischer Abstammung im südlichen Afrika zugeschnitten sind, hat dazu geführt, dass Verbraucher bei der Haarpflege auf markenlose Inhaltsstoffe wie Sheabutter, Kokosnussöl und Rizinusöl zurückgreifen. Da diese Inhaltsstoffe für Verbraucher leicht verfügbar und reichlich vorhanden sind, haben Schönheitsunternehmer die Möglichkeit gesehen, auf diesem hungrigen Markt zu verkaufen. Diese natürlichen Inhaltsstoffe sind weit verbreitet und werden zunehmend für eine Vielzahl von Haartypen eingesetzt.

Internationale Markenattraktivität: Der Haarmarkt ist ein Markt, der im Laufe der Jahre durch Versuch und Irrtum die einzigartigen Bedürfnisse verschiedener Haare aufgedeckt hat. Multinationale Marken richteten sich an unterschiedliche Gruppen unterschiedlicher Menschen und versuchten, den optimalen Kompromiss zwischen Ernährung und Pflege zu finden. Einige Versuche wurden als unauthentisch oder oberflächlich angesehen, etwa die Änderung der Verpackung ohne Anpassungen an der Rezeptur. Diese Missachtung der afrikanischen Bedürfnisse durch große internationale Unternehmen bot lokalen Apotheken und Schönheitsmarken wie Amka reichlich Gelegenheit, Produkte auf den Markt zu bringen, die speziell für afrikanische Frauen von Kopf bis Fuß entwickelt wurden.

Inklusive Produkte: Amka, ein wichtiger Akteur auf dem afrikanischen Schönheitsmarkt und Heimat vieler bekannter lokaler Marken wie Satiskin und Playgirl Deodorant, hat sein Angebot erweitert und Produktlinien wie Black Like Me, Easy Waves, Darling und Inecto eingeführt. deren Preise wettbewerbsfähig sind, um eine größere Verbraucherbasis anzusprechen. Diese Marken bieten Produkte an, die auf verschiedene Haartypen zugeschnitten sind, insbesondere auf Haare vom Typ 3 und Typ 4.

Nischenchancen: Massenproduzierte Haarpflegeprodukte mögen den Markt dominieren, sie bieten jedoch auch Nischenprodukten die Möglichkeit, ihren Ruf aufzubauen und immer beliebter zu werden. Der Mangel an Premium-Haarprodukten afrikanischer Abstammung stellt einen Vorteil für Unternehmer dar, die dieses Schönheitssegment in Angriff nehmen möchten.

Formulierungstrends: Neue Haarpflegeeinführungen zeichnen sich durch Formulierungen mit natürlichen Inhaltsstoffen aus, die häufig mit Vitaminen angereichert sind. International anerkannte Inhaltsstoffe wie Biotin, Rizinusöl und Sheabutter sind mittlerweile in Markenprodukten üblich und lassen sich leichter in grundlegende Schönheitsprodukte für alle Ethnien integrieren. Die erhöhte Sichtbarkeit dieser Inhaltsstoffe, die lokal über Online- und Einzelhandelsplattformen gefeiert werden, hat ihren wahrgenommenen Wert und ihre Schönheitsvorteile erhöht.

Segmentierung und Differenzierung: Haartypen helfen Herstellern zunehmend dabei, den Markt und ihre Zielprodukte zu differenzieren. Marken entscheiden sich mittlerweile dafür, anzugeben, für welchen Haar Typ ein bestimmtes Produkt gedacht ist, etwa für lockiges, krauses oder welliges Haar. Es ist eine Lücke im Verständnis der Bedürfnisse dieser Haartypen und der relevanten Bedenken entstanden, die mit den verschiedenen Klimazonen in der Region südlich der Sahara einhergehen.

Bild 2: Typische Ausgabe- und Kaufgewohnheiten von Haarpflegeprodukten in Afrika

Verbraucheraufklärung und Vertrauen:

Bildungslücke: Insgesamt bietet die Verbraucherbildung im südlichen Afrika Raum für Verbesserungen. Traditionell trägt das Verständnis des Produkts und seiner Anwendung unmittelbar zur Marktdurchdringung bei. Schönheitsmarken haben die Chance, ihre Kunden aufzuklären und Fehlinformationen oder Schönheitstrends auszuräumen, indem sie zur Förderung gesünderer Haarpflegepraktiken beitragen.

Vertrauensaufbau: Der Aufbau von Vertrauen bei afrikanischen Verbrauchern ist entscheidend für den Erfolg. Durch die Zusammenarbeit mit Influencern und den Einsatz inklusiver Marketingstrategien können Beauty-Marken dazu beitragen, eine tiefere Verbindung zu ihren Kunden aufzubauen und ihnen zu ermöglichen, ihrer Meinung zu vertrauen. Es ist wichtig zu verstehen, dass dieses Verbrauchersegment einfallsreich und daran gewöhnt ist, Lösungen zu finden. Daher müssen Marken echte Werte und Lösungen bieten.

Letztendlich erlebt dieser Schönheitsmarkt eine Renaissance der Formulierung und betritt einen fruchtbaren Boden der Inklusion. Dieser neue Blickwinkel wird durch die Verlagerung vorangetrieben, die Bedürfnisse aller anständigen afrikanischen Verbraucher zu erfüllen und Produkte zu entwickeln, die für bestimmte Haargruppen wirksam und pflegend sind. Da multinationale Unternehmen ihre Strategien anpassen, um dieser Bevölkerungsgruppe gerecht zu werden, eröffnen sich neue Möglichkeiten für internationale und lokale Marken, die in den afrikanischen Markt eintreten möchten.

Hier ist InterGest South Africa in der Lage, an die Spitze zu treten und das zu übernehmen, was wir am besten kennen. Mit unserer 20-jährigen Erfahrung in vielen afrikanischen Märkten wie Südafrika, Mosambik, Kenia und Äthiopien sind unsere Fachleute in der Lage, Sie beim erfolgreichen Eintritt in wettbewerbsintensive Märkte zu unterstützen. Mit unseren Dienstleistungen in den Bereichen Steuerberatung, Unternehmenssekretariatsberatung, Buchhaltungspraktiken und Gehaltsabrechnungsmanagement ermöglichen wir dem Kunden, sich auf die Markenimplementierung und das Networking zu konzentrieren, während wir gleichzeitig sicherstellen, dass die Geschäftsanforderungen erfüllt werden.

Da sich die Schönheitsbranche umgestaltet und nach Produktinnovationen und effektiver Verbraucheraufklärung verlangt, ist dieser Markt sowohl für Neueinsteiger als auch für bestehende Unternehmen, die ein Rebranding anstreben, attraktiv. Wenn Ihre Marke in dieses Feld passt, würden wir uns freuen, von Ihnen zu hören! Für weitere Informationen senden Sie uns eine E-Mail an contact@intergest.co.za.

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Growth Factors of Internet Retail in South Africa

1. Expanding Internet Penetration: Expanding Internet Penetration: One of the primary catalysts behind the rapid growth of internet retail in South Africa is the increasing accessibility of the internet. With improved infrastructure and affordable data plans, a larger portion of the population now has the ability to connect to the digital world. This expanded internet penetration has opened doors to new online shoppers, creating a vast consumer base that seeks the convenience and efficiency of virtual marketplaces.
2. Mobile Revolution: The ease of access to smartphones has played a pivotal role in propelling the growth of internet retail. South Africa has witnessed a significant increase in mobile usage, with more people relying on their smartphones to access the internet and make online purchases. Mobile-friendly E-Commerce platforms, coupled with secure and seamless payment options, have made it easier for consumers to shop on-the-go, driving the surge in mobile commerce.
3. Digital Payment Solutions: The evolution of digital payments has significantly contributed to the growth of internet retail. South Africa has witnessed the rise of convenient and secure payment methods such as mobile wallets, digital banking, and payment gateways. These innovations have instilled trust among consumers, making online transactions more seamless and reducing barriers to entry for those who were previously hesitant to shop online.
4. Diverse Product Range and Competitive Pricing: Internet retail in South Africa has diversified the product range available to consumers, surpassing the limitations of physical stores. Online platforms now offer an extensive selection of products, including niche items and international brands, catering to a wide range of preferences and interests. Furthermore, online retailers often provide competitive pricing due to reduced overhead costs, passing on the benefits to consumers.
5. Enhanced Customer Experience: The growth of internet retail in South Africa has forced businesses to prioritize customer experience. Online retailers are investing in user-friendly interfaces, personalized recommendations, and efficient delivery services. Consumers now have the convenience of comparing products, reading reviews, and making informed decisions from the comfort of their homes. This enhanced customer experience has fostered loyalty and trust, encouraging repeat purchases.

The Future of Retail

As the dynamic nature of the digital world has proven, nothing stays the same for very long. As a result, it can be adequately predicted that more and more physical stores are going to invest in functioning online platforms which are mobile and user friendly in an attempt to maintain market share. As more of the population is able to access the internet through different means, retailers will need to think quick on their feet to ensure that the content and online interface that they are offering is engaging and competitive in order to keep potential customers interactive on their page and promote them to complete their purchases. This screen stimulation can be aided by the ease of online payment methods and growing ease of purchase.

Consumers owe the growth of internet retail in South Africa for having ushered in a new era of convenience, choice and accessibility in both the business-to-business and the business-to-consumer markets.  As internet penetration expands, mobile usage soars, and digital payment solutions become more prevalent, online shopping is set to continue its upward trajectory. Businesses that embrace the digital landscape and adapt to evolving consumer preferences stand to benefit from the climbing potential in internet retail in South Africa. The future holds exciting possibilities as technology continues to shape the way we shop, connect, and engage in the ever-evolving digital world.

InterGest South Africa is able to offer a full understanding on the South African market and the potential that comes with expanding access to online markets. With our thorough services of accounting practices, local tax advisory, employer of record, incorporation of companies and banking services, we are able to offer an all-encompassing view of South Africa as a business destination. Allow us the opportunity to focus on the market entry, while you and your company focus on the client relationships and online and in person engagement.

For more information on South Africa as an investment destination or as a market entry point, check out our Investment Guide.

SOURCES:

https://www.euromonitor.com/article/growth-internet-retail-south-africa

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The world today is abuzz with fast-paced and highly competitive business environments in all fields. This is where B2B (business-to-business) supply chain optimisation of operations could prove crucial to achieving success. For businesses in South Africa, this means implementing B2B supply chain optimization strategies that can help improve efficiency, reduce costs, and enhance overall productivity.

Supply Chain Pain Points:

Supply chain management is a turbulent industry to be in these days. Technological advancements, delivery restrictions, increased competitors and fluctuating price structures challenges companies to meet their deadlines and deliver on their customer service promise while maintaining an efficient cost base and asset utilisation.

• Increase in shifting buying behaviour: the buying structure seen by suppliers both at business and consumer level is that of a hybrid system. Buyers now take the form of both online and in person. This new model brings with it a new balance that supply chain must master in order to fufil the ever changing need of the customer.
• Rising supply chain costs: The costs of logistics is one which no company can hide from. Globally costs have been driven up by the demand for fossil fuels and energy resources.
• Outdated business practices: Just like fad trends, fad business practices can also exist. Rigid, traditional and inflexible ways of thinking are often to blame when it comes to stock outs, lost sales and lost market share.
• Sustainability: Consumers demand for sustainable practices plays a heavy part in business decisions. Access to information has triggered consumers desire to know the origin of the product, the detailed structure of the product, where the product will go after use and how a business in involved in managing climate change.

What is B2B Supply Chain Optimisation?

B2B supply chain optimisation is the process of streamlining and improving the flow of goods and services from one business to another. This flow of goods does not make any contact with the final consumer. It involves two businesses optimising their various supply chain processes, including procurement, inventory management, transportation, and logistics, to ensure that they are efficient and effective.

By implementing B2B supply chain optimisation strategies, businesses can reduce lead times, improve delivery times, and increase customer satisfaction. This, in turn, can help businesses gain a competitive advantage in the market and achieve long-term success and preference against competitors.

Benefits of B2B Supply Chain Optimisation:

There are several benefits to optimising B2B supply chain operations, including:

• • Improved Efficiency: By streamlining supply chain processes, businesses can reduce waste and improve efficiency, leading to cost savings and increased profitability.
  • Enhanced Customer Satisfaction: Optimising supply chain operations can help businesses improve delivery times, reduce errors, and provide better customer service, leading to increased customer satisfaction.
  • Increased Flexibility: A well-optimised supply chain can help businesses respond quickly to changes in demand or market conditions, allowing them to adapt and remain competitive.

Implementing B2B Supply Chain Optimisation in South Africa:

Implementing B2B supply chain optimisation strategies in South Africa requires a comprehensive approach that addresses the unique challenges faced by businesses in the region. Some key strategies that can help optimize supply chain operations in South Africa include:

• Leveraging Technology: Businesses can use technology to automate and streamline various supply chain processes, such as inventory management, transportation, and logistics.
• Collaboration: Collaboration between businesses in the supply chain can help improve communication and coordination, leading to better efficiency and reduced costs.
• Data Analytics: Businesses can use data analytics to gain insights into supply chain operations and identify areas for improvement.
• Lean Management: Lean management principles can help businesses reduce waste, improve efficiency, and increase productivity.
• Developing Local Suppliers: Developing relationships with local suppliers can help businesses reduce lead times, transportation costs, and improve overall supply chain efficiency.

If there is anything promised in the international business market, it is that nothing stays the same for very long. This liquid market which we find ourselves in calls for flexible business practices which are efficient and engaging for companies. With very little room for error or for profit loss, finding effective means and implementing B2B supply chain optimisation strategies is crucial for businesses in South Africa to remain competitive and achieve long-term success. By leveraging technology, collaborating with supply chain partners, using data analytics, implementing lean management principles, and developing relationships with local suppliers, businesses can optimise their supply chain operations and achieve greater efficiency, reduced costs, and increased customer satisfaction.

InterGest South Africa works closely with logistics partners and values the relationship we share. By putting our clients in touch with the right distribution channels ease of business is promoted along with ease of access for consumers. Local warehousing, adequate access to fuels, and complete knowledge of the distribution link often can seem daunting in a foreign market, however with us readily available to advice and introduce you to the right people, it could be process worth fully understanding in order to take full advantage of and reap the benefits that lie instore. Our African reach includes Kenya, Mozambique, Tanzania and South Africa and provides us the opportunity to onboard a vast array of clients with the potential to grow internationally. For more about our accounting services, tax advisory, payroll experts, company incorporation or employer of record services, send us as email at contact@intergest.co.za or visit our website.

SOURCES

https://www.pwc.co.za/en/services/consulting/supply-chain-management.html

https://www.researchgate.net/publication/304184293_Supply_chain_management_challenges_in_the_South_African_public_sector

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• Smartphones:
  • Smartphones have become an integral part of our day to day lives and with South Africa having had taken to the digital revolution in recent years. Spanning beyond South Africa, the African region are eager to stay connected to the rest of the world and to global news and opportunities. In 2022, it was recorded that 20 million people in South Africa make use of a smartphone, accounting for one third of the population (Statista). The benefits of this digital interconnectedness are seen through social media, e-commerce opportunities and mobile banking. Leading smart phone brands offer competitive features and affordable prices to the African market making it a highly sought after product.
• Solar Power Systems:
  • Electricity has become a valuable resource in South Africa as the cost has risen and its availability has dwindled. With this is mind, it is clear why residents are turning to a more renewable energy solution. Solar Power Systems have gained popularity in recent years due to their ability to reduce electivity bills and provide a reliable back up power supply during outages. This Solar Power system appeals to a resource which Africa is renowned for, the sun. The abundant sunshine in the region throughout the year in South Africa offers an ideal environment for harnessing solar energy leading business owners to make this product readily available in South Africa. The demand therefore for solar panels, batteries and inverters has surged in the country, and only stands to grow as more success stories and ease of use arise.
• Home Appliances:
  • The demand for home appliances remains steady as a result of practicality and convenience. Kitchen appliances like refrigerators, washing machines, dishwashers and washing machines are essential in a modern home. With new energy-efficient models becoming particularly popular, electrical consumption can be throttled and contribute towards a greener environment. Tech savvy consumers are now focusing on building ”SmartHomes” and therefore creating a demand for advanced features such as application-controlled functionality.
• Health and Wellness Products:
  • Health and wellness post pandemic has become a main focus in many South Africans lives, obviously having an effect on product demand. Dietary supplements, fitness equipment and personal care items are sought after by South Africans who aim to live a healthy lifestyle. Impressively, South Africans are well known for being one of the more active countries on the continent, measuring 2.2 million people. A market for natural and organic products including skincare, hair care and organ health boosters is seen to be on the rise and consumers have become more conscious of the ingredients which they use.
• Online Gaming Consoles:
  • The gaming industry has experienced remarkable growth worldwide and South Africa is no exception. The demand for online gaming consoles, accessories and games has skyrocketed in recent years highlighting the need for product availability in South Africa. With a large enthusiastic gaming community, South Africans are embracing the immersive experience provided by gaming consoles. Online multiplayer games, virtual reality (VR) devices and gaming accessories, such as head sets and controllers are highly sought after by gamers country wide.

South Africa’s dynamic consumer market has witnessed an increased demand for various products driven by technological advancements, sustainability, health conscious and entertainment preferences. The demands of the region allow companies to profile the target market and develop effective campaigns and useful products to infiltrate products. As consumer needs continue to grow and evolve, it will be fascinating to witness how the market responds and expands.

With this ever changing market, narrowing down a successful path may only become known through excessive knowledge of local trends. Our team at InterGest South Africa have sufficient understanding and many contacts spanning many industries, appealing to entrepreneurs and foreign investors who wish to gauge the African market. The basic needs of consumers tend to follow an exponential path as population and requirements for basic needs increase. Allow InterGest South Africa the opportunity to discuss your business ideas and plans further in order to appeal to the ever growing African Market.

If you have a product or service in one of these industries or another, check out our investment guide and pop us an email to further understand the successful potential of African soil.

SOURCES:

https://www.statista.com/statistics/488376/forecast-of-smartphone-users-in-south-africa/

https://www.statista.com/statistics/308807/members-of-health-clubs-in-africa-and-middle-east-countries/#:~:text=In%20South%20Africa%2C%20fitness%20and,2.26%20million%20people%20in%202019.

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Africa is home to over 1 billion people (Worldometer) and nearly 1 billion livestock animals, making it a key environment for animal products and medication to flourish. The majority of these animals are used for local subsistence farming and play a vital role in the economy and livelihoods of many farmers and families. With the growing population of the continent and surrounding countries, the demand for animal products such as milk, meat and eggs is expected to sky rocket particularly due to urbanization and the change of dietary requirements.

Importance of Animal Pharmaceuticals in Africa:

Although this market is set to boom and take off in years to come, investors and farmers must turn their attention to animal health challenges. These span from diseases, parasites and infections which can have a devasting impact on the livestock production and health. The health of these animals must not be overlooked as their lives run parallel to the regional economy and food security. In an effort to minimize the casualties of these factors, the animal pharmaceutical market has been seen to expand, providing farmers and local livestock owners with effective and affordable solutions to prevent and restrict animal diseases.

The animal pharmaceuticals market in Africa is diverse in nature and is made up of both multinational and local companies offering a host of products including:

• Vaccines
• Antibiotics
• Parasiticides
• Nutritional supplements

This animal medical market is monitored by the Regulatory Authority of South Africa (SAHPRA) which is responsible for the monitoring of health products intended for both human and animal use. With their responsibilities consisting of the distribution of medicines and conduct of clinical trials, it is important that this authority is adhered. This national authority therefore takes seriously their national authority to hold industry fair and in line with stipulated regulation. Some of these challenges include:

• Weak regulatory systems
• Inadequate infrastructure
• Limited access to finance
• Shortage of skilled personnel.

Growth of Animal Pharmaceuticals:

Despite these challenges,  animal pharmaceuticals in Africa still manage to offer significant and attractive opportunities for investors and stakeholders. With the demand for animal health products being spurred by the growth of the livestock industry, a booming market of activity is set to thrive, appealing to both producers and consumers. Furthermore, the increasing awareness of animal health and welfare among consumers and policymaker acts as a springboard for smart thinking companies to propel their brand ahead of competitors. By ensuring that a brand appeals to the needs of the market, as well as offering further benefits, companies are able to build up their brand loyalty and slowly see the lucrative return.

To tap into this market, companies and entrepreneurs will need to work in new and dynamic environments and have a strong sense of flexibility to meet the following:

1. The development of innovative and affordable products which are effective in the African landscape.
2. Building of strong partnerships with local stakeholders, foreign investors, new tech-based companies and ambitious entrepreneurs to turn investment in capacity building and infrastructure.
3. The use of technology such as mobile applications, mobile web space meetings and e-commerce platforms to improve access to the animal health products market and the products themselves. Online consulting of experts or veterinarians can also assist in providing services in remote areas.

The Animal Medical care Market:

Like many budding industries in Africa, the animal pharmaceutical market is dynamic, growing and fluid, allowing for many new opportunities and niche industries to access and seize. With this however, comes the challenges of navigating a newer industry as an investor and stakeholder. This market is essential to support the livestock industry in Africa and to assist in the assurance of food security in the region. The effects of investment into this industry flows further into the promotion of economic development socioeconomic improvement. Companies, both international and local are able to navigate the challenges faced through lack of infrastructure and heavy regulation and find a way to succeed to in this unique market.

Through new, innovative and affordable solutions to animal health, this industry can be seen to improve the life of all those involved from the investor, the worker and the livestock.

InterGest South Africa offers a wide array of services to assist companies in establishing business activities in Africa. Our informed team boast a wide range of knowledge spanning many industries which aids our holistic approach to accounting, employer of record, payroll and banking services.

For more information on how we work, or on why Africa is a promising business decision for companies, visit our website:

www.intergest.co.za

SOURCES:

https://www.worldometers.info/world-population/africa-population/Bottom of Form

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One of the major driving forces of Africa’s growth is the widespread adoption of mobile technology. According to Groupe Speciale Mobile Association (GSMA), a global organisation unifying the mobile ecosystem, the mobile economy in Sub-Saharan Africa is set to contribute $184 billion to the region’s GDP by 2024. With over 800 million mobile phone subscribers and growing, mobile technology is revolutionising the way Africans live, work, and do business.

Africa and e-Commerce Growth:

Africa’s digital revolution has paved the way for new route-to-market strategies that leverage technology to reach customers more effectively. One such strategy is e-Commerce, which has seen significant growth in recent years specifically in the African region. The e-Commerce market in Africa is projected to grow at a compound annual growth rate (CAGR) of 25% from 2020 to 2025, according to a report generated by ResearchAndMarkets.

African Growth and Digital Marketing:

Another route-to-market strategy is digital marketing. With the growing adoption of social media in Africa, companies can leverage platforms such as Facebook, Instagram, LinkedIn, and Twitter to reach their target audience more effectively. Social media has become an essential tool for companies looking to build brand awareness, engage with customers, and drive sales.

In addition, the rise of digital payments has also created new opportunities for companies looking to do business in Africa. Digital payment platforms such as M-Pesa, Paystack, and Flutterwave have made it easier for companies to transact with customers in Africa. These platforms offer secure, fast, and convenient payment options for customers, which can help drive sales and improve customer satisfaction.

However, as newcomer companies navigate the digital landscape in Africa, they must also square up to face the continent’s unique challenges. For example, infrastructure and logistics can pose significant challenges for companies looking to distribute goods and services across the continent. Companies must also consider the complex regulatory environment in Africa, which is region specific and can vary significantly from country to country.

Despite these challenges, the digital revolution and the adoption of new technologies are driving African growth through offering significant opportunities for companies looking to enter and succeed in the market. By leveraging new route-to-market strategies and understanding the unique trends of doing business in Africa, companies can unlock the continent’s vast potential for growth and prosperity.

COMBINING OPPORTUNITY CAPITALISATION AND ROUTE-TO-MARKET STRATEGY TO DRIVE AFRICAN SUCCESS

• A developing economic environment

Sub-Saharan Africa is experiencing steady growth, with a 4% expected annual real GDP growth in 2025. Urbanisation is driving modern retailing, while traditional markets remain an important factor that cannot be ignored. The rise of Africa’s middle class is set to boost disposable incomes by an additional 4% compound annual growth rate (CAGR) until 2030. Key industries such as packaged food, non-alcoholic beverages, and alcoholic drinks can expect to see a rise in sales. The continued growth rate and developing economic environment are also due to the African Free Trade Continent Agreement which works hard towards reducing tariffs and standardising trade policies among member countries. Therefore, making it easier for companies to trade between African countries.

• Digital connectivity

The digital revolution in Africa is leading to targeted and innovative solutions that turn challenges into opportunities. With a surge in mobile subscriptions, connectivity is becoming a lifeline for many Africans, enabling them to make purchases and conduct transactions through secure mobile payment systems. The continent’s lack of legacy systems has become a “testing ground” for digital innovation such as the use of apps that provide farmers with commodity pricing and equipment training. Social media is also making it easier to target consumers and develop partnerships with local inhabitants, highlighting the abundant opportunities for those who understand the complexities of doing business in Africa.

• Localising route-to-market strategies

As this article mentioned afore, developing effective route-to-market strategies is as crucial as adapting to Africa’s ever-improving digital technologies. With 54 independent countries, each having its own cultural attitudes, it’s essential to respect local nuances and business requirements when selling products. No African country operates the same, the target markets and way of doing business vary with each country. To succeed in African markets, companies should consider connecting with informal markets. Through the creation of local partnerships along the supply chain, and by promoting social trust and relationship strengthening,  companies stand to inherit more value and rapport as these communities honour honest communication solutions and do not take word-of-mouth recommendations lightly. These recommendations will assist foreign companies entering the African market to overcome distribution challenges and respond flexibly to changing market needs, all while generating a positive consumer response and driving African growth.

In conclusion, Africa presents a range of opportunities for foreign companies willing to invest the time and resources to understand the complexities of the African business market. The digital revolution and growth in mobile connectivity have offered many Africans new avenues for companies and entrepreneurs to engage with consumers and sell products. However, it is important for companies to recognise the idiosyncratic nature of each market within Africa and to focus on developing local route-to-market strategies that respect the cultural attitudes and beliefs of each country into which they wish to expand into. Building local partnerships with market entry service providers such as InterGest South Africa will ensure that companies overcome market entry challenges and gain a greater stake in their business outcomes. With the right approach, companies can capitalise on the growth and opportunities presented by the African market in both the near and long term.

For more information on the services rendered by InterGest South Africa, please send an email to contact@intergest.co.za

Source:

• Digital revolution and route to market strategies will drive African, growth –https://www.euromonitor.com/article/digital-revolution-and-route-to-market-strategies-will-drive-african-growth
• Mobile economy of Sub-Saharan Africa – https://www.gsma.com/mobileeconomy/sub-saharan-africa/
• South Africa eCommerce market size forecast – https://www.researchandmarkets.com/reports/5504330/south-africa-e-commerce-market-size-forecast

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The Covid-19 pandemic is quickly changing the buying behaviour of people in South Africa.  In previous years consumers were happy to go to the shopping malls to purchase the goods that they need. Purchasing goods in person was the most popular method of shopping in South Africa. Since the pandemic, consumers have become more health cautious and online shopping has become an increasingly popular trend.  With the consumer trends changing, South African companies have had to adapt to their retail strategy and focus on digital transformation to keep up with the online consumer trend.  The largest e-commerce shopping segments are Toys, Hobby & DIY with a market volume of €934m in 2020.

Even before the Corona crisis, the e-commerce sector in South Africa was growing steadily with a current market revenue of €3,268 million. Annually the market was growing with 20 – 35% and was predicted that even without the crisis, the market would have exceed sales of around 60 billion ZAR in 2020 while growing three times faster than traditional retail sales between 2018 and 2023. With the expected longer road to normality, the importance of e-commerce will increase even more and will probably continue to play a major role in people’s buying behaviour after the crisis, which could change permanently.

More than half of South Africa’s population of about 58 million people have access to the Internet. More than two thirds of them access the Internet every day. Sales platforms on mobile devices are particularly promising, as around 96% of regular Internet users in South Africa access the Internet via mobile devices. The below image is a graphic illustration of the expected number of ecommerce users. By the year 2024, a total of 36.9 million people will be doing online shopping in South Africa. 

 DIE ZUKUNFT DES E-COMMERCE IN SÜDAFRIKA

Der E-Commerce-Markt umfasst den Verkauf von physischen Gütern über einen digitalen Kanal an einen privaten Endverbraucher (B2C). In dieser Definition sind sowohl Käufe über Desktop-Computer (einschließlich Notebooks und Laptops) als auch Käufe über mobile Geräte wie Smartphones und Tablets enthalten. 

Die Covid-19-Pandemie verändert gerade das Kaufverhalten der Menschen in Südafrika rasch.  In den vergangenen Jahren gingen die Verbraucher gerne in die Shopping-Malls, um die benötigten Waren zu kaufen. Der persönliche Einkauf war die beliebteste Einkaufsmethode in Südafrika. Seit der Pandemie sind die Verbraucher gesundheitlich vorsichtiger geworden und Online-Shopping ist zu einem immer beliebteren Trend geworden.  Da sich die Verbrauchertrends verändert haben, mussten südafrikanische Unternehmen ihre Einzelhandelsstrategie anpassen und sich auf die digitale Transformation konzentrieren, um mit dem Online-Konsumententrend Schritt halten zu können.  Die größten E-Commerce-Shopping-Segmente sind Spielzeug, Hobby und Heimwerkerbedarf mit einem Marktvolumen von 934 Millionen Euro im Jahr 2020.

Schon vor der Corona-Krise wuchs der E-Commerce-Sektor in Südafrika stetig mit einem aktuellen Marktumsatz von 3.268 Millionen Euro. Jährlich wuchs der Markt mit 20 – 35% und es wurde vorhergesagt, dass der Markt auch ohne die Krise im Jahr 2020 einen Umsatz von ca. 60 Milliarden ZAR überschritten haben würde, während er zwischen 2018 und 2023 dreimal schneller wachsen würde als die traditionellen Einzelhandelsumsätze. Mit dem zu erwartenden längeren Weg zur Normalität wird die Bedeutung des E-Commerce noch weiter zunehmen und wahrscheinlich auch nach der Krise eine große Rolle im Kaufverhalten der Menschen spielen, das sich dauerhaft verändern könnte.

Mehr als die Hälfte der Bevölkerung Südafrikas von etwa 58 Millionen Menschen hat Zugang zum Internet. Mehr als zwei Drittel von ihnen haben täglich Zugang zum Internet. Besonders vielversprechend sind Verkaufsplattformen auf mobilen Geräten, da rund 96% der regelmäßigen Internetnutzer in Südafrika über mobile Geräte auf das Internet zugreifen. Die obenstehende Abbildung veranschaulicht grafisch die erwartete Zahl der E-Commerce-Nutzer. Bis zum Jahr 2024 werden insgesamt 36,9 Millionen Menschen in Südafrika online einkaufen. 

Sources/ Quellen:

Bizcommunity – https://www.bizcommunity.com/Article/196/706/203405.html

Accenture – https://www.accenture.com/_acnmedia/pdf-108/accenture-ecommerce-pov.pdf

Statosta.com

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• Annual compound growth rate of 4.6% in South Africa, since 2016.
• Predicted annual growth of 6.6 % for the African continent.
• Retail sector valued at R 27 billion (€ 1.27 billion) in 2017,
• Cosmetic imports amounted to R 2.97 billion (€ 192 Mio.), equivalent to 0,23% of total imports in 2018.

The beauty and personal care market in Africa are expected to grow at a compound annual growth rate of 6.6 % during the period 2018 to 2022. 36 % of the growth in the African cosmetics industry will come from South Africa. Consequently, the South African cosmetics industry has a great potential. In 2017, the value of this sector is estimated to have grown to R27.35 billion (€ 1.78 billion) at retail level and R19.69 billion (€ 1.28 billion) at manufacturing level. While the import of beauty, makeup and skin care preparation products was valued at $218.2 million (€ 192 Mio.), an impressive 14.3 % increase since 2017.

The below graph illustrates the top beauty and wellness products that was imported in 2015. South Africa’s beauty industry has shown significant growth over the past few years as the import rates of beauty, make-up, and sun tan preparations has increased significantly from 2011 to 2015 by 3.14 %. Perfumes and personal deodorants have also proved large growth potentials over the past few years as the imports grew by 5.84 % and 20.69 % respectively.

Demand forecasting

The demand for innovative products shapes the cosmetics industry in South African. That is why, the popularity of multifunctional personal care products has increased. Another major trend is the growing online retailing of beauty and personal care products. All in all, the South African cosmetics industry is vibrant and dynamic, comprising an interesting mix of multinational giants, entrepreneurial companies, and small, medium and large local brands.

In total, approximately 250 companies employing more than 60,000 people operate in the cosmetics industry in South Africa and are widely supported by the “Department of Trade and Industry of South Africa” through their South African Cosmetics Desk and other organizations like the “Cosmetic, Toiletry and Fragrance Association of South Africa” which leads to a very well-regulated industry in South Africa.

InterGest will be happy to assist you with your Southern Africa Venture.

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