Companies Starting to See Value of African Consumers
Frank Braeken, executive vice president of Unilever in Africa, commented on how Western companies treat the entire continent of Africa as one ‘monolithic’ consumer base, instead of taking into consideration how diverse and different all of the african countries actually are. Africa is not just one nation, but it is many nations, consisting of people from various backgrounds with different preferences. American companies still have yet to understand or appreciate that fact.
The West has had a long-standing business relationship with Africa. Companies like Lipton and Knorr employ thousands of workers in 15 different countries. 15 out of 54 countries is a pretty decent spread, especially since it is projected that by 2020, housing spending in Africa is expected to jump up to 1.4 trillion dollars. Braeken says, “I’m very optimistic about Africa, but I say it always with a tinge of hesitation because one of the big risks is that we get carried away and therefore forget to talk about the real challenges that are still ahead of it.”
Braeken also told CNN that he is ashamed that American companies have not done a better job of trying to understand consumers in Africa.
“I’m almost somewhat ashamed to admit that we are still very much in learning mode about what the differences are within Africa.”
Nielson recently did a survey and showed that there are basically seven kinds of consumers that companies should look for in Africa.
“Rather than just a continent, Africa must be viewed as 54 separate and distinct countries with a wide array of political, economic, geographical, cultural and social features,” according to Nielsen’s “The Diverse People of Africa” report.
The tiers are listed below:
Tier 1
Progressive Affluents: 7%
Tier 2
Balanced Seniors: 17%
Struggling Traditionals: 10%
Tier 3
Evolving Juniors: 24%
Wannabe Bachelors: 11%
Female Conservatives: 10%(Source: The Diverse People of Africa, Nielsen)
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Amen! ALL continents are made up of diverse countries. Are we North Americans (made up of Canada, USA & Mexico) monolithic?–NO; are South Americans monolithic?—NO; are Central Americans monolithic?–No; etc. We all know Europe is NOT monolithic, so why aren’t other continents seen as having individually different countries? (I know why, but am asking anyway.) BTW, Mexicans are Americans–look at any map and globe. It’s part of North America…
Africa was one nation of people prior to the 1884 Berlin Conference where our enemies and slave masters divided up an entire continent to dominate under their ruling crowns. We should be really critiquing why we as the dispersed people brutally taken away from our home should be excited about companies coming into our space to push their products on us with hardly a pinch of what they receive in profits staying within the continent. They swindle governments and wield all types mechanisms in their favor that always results in expatriated profits—- going back to their country and their pockets. I am insulted (though not surprised) that it is always with the capitalist barometer that the west measures all things. You are not even human beings on the planet worthy of reparations due at the behest of the cruelty of their own foredathers (Unliever itself dates back not in recent times but as a consequence of colonial conquest)….you- “African,” though you lack the dignified life that they live….you are only valuable to them in relationship to their pockets. You- “African” are a recent phenom….you are the newly realized “Value Consumer.” Dr. Boyce you have to elevate this discussion.
Interesting point– oppressed people now are being allowed to toil for pay and learn to be consumers. Well the Africans in America are great examples of being trained to be consumers. Now the brothers and sisters from the MOTHER LAND are being converted into being consumers. As though they are better off consuming versus owning the manufacturing companies that produce the goods. By the way— can anyone inform me of why the late brother Ron Brown vision was to join the hands of the Africans in America with the Africans in Africa?