It may be a better strategy to find a distributor first who can help you to get your products in smaller chains or individual stores, and then help you to get to the big names. Or to start online.
In this article you will find more information on the retail market and guidance on how to convince retailers and distributors to work with you.
Africa, the world’s second-largest and second-most-populous continent, has a diverse population exceeding 1.3 billion. It’s characterized by its youth, with a significant portion under 25, presenting both challenges and opportunities for development.
African economies are diverse, ranging from resource-rich nations like Nigeria and South Africa to rapidly growing economies like Ethiopia. Key sectors include agriculture, mining, energy, and increasingly, technology and services. Investment in infrastructure and technology is crucial for future growth.
Opportunities abound in renewable energy, agribusiness, digital services, infrastructure development, and tourism. The continent’s growing middle class and urbanization also open up markets for consumer goods, financial services, and healthcare.
The supermarket landscape in Africa varies significantly across countries, reflecting the continent’s economic diversity. In regions with growing middle classes, such as South Africa, Kenya, and Nigeria, large supermarket chains like Shoprite, Spar, and Nakumatt have established a strong presence, offering a wide range of products from groceries to electronics.
Meanwhile, in less developed markets, smaller local chains and informal markets dominate. There’s a trend towards modern retailing in urban areas, while traditional markets remain crucial in rural areas. The sector is evolving, with opportunities for investment in supply chain improvements and expansion into underserved areas.
The best preparation for doing business in any country is visiting it. This way you can experience the culture, check the shops and build your network.
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If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
Distributors are risk averse, they know the portfolio they have and tend to be happy with it. They can’t just add a product or service to their range, since it will cannibalize on others:
Getting your products imported and delivered in a specific country can be a challenge. I have good experience with Tecex, who can act as your importer of record and even physical distributor. If you leave your details, they will contact you.
I always put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.
When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.
Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.
Be well prepared. All retailers expect you to prove why they are going to make more money with your product than with their current assortment. So you must know the competition.
