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How to grow your brand responsibly in Africa

21 Oct 2009 07:472 commentsBizLike
Despite its seemingly endless problems - diseases, crime, war, coup d'états, dictatorship and corruption - Africa has nevertheless become a destination choice for potential investors who seek to capitalise on its phenomenal growth and annual higher returns to expand their wings and grow their brands. But the continent is not for the faint-hearted!
Those who are willing to embark on an investment adventure and grow their brands in Africa in a sustainable manner must do their homework properly, warned Nomahlubi Simamane, CEO and founder of Zanusi Brand Solutions.

Simamane was speaking at the Brands & Branding for Good conference currently taking place at Gallagher Estate in Midrand, Johannesburg.

The African consumer

“Africa is not a consumer-led society and [is] a continent where corporates are not trusted, so an aggressive consumer education is required,” she said.

Redistribution of income is almost non-existent in many parts of the continent as ‘power-hungry' and ‘greedy' leaders, watched over by their families and friends, mismanage state resources and livela vida loca, leaving millions to starve in shantytowns and rural areas without running water, basic healthcare and electricity.

“The have-nots, mostly unemployed with little income and deprived of adequate education, survive in a cycle of poverty, are powerless, and are also the lowest consumers of media” Simamane explained, adding that their focus is on bread-and-butter issues.

“There is also a strong bias towards women and single parents.”

However, a new social class of nouveaux riches (as they are known in francophone Africa) or “black diamonds” (in South Africa) is rising and taking Africa by storm.

Simamane said that these people are aspirational, seeking prestige and exclusive status and busy acquiring materials to impress, and have a euro-centric stance.

You must know and understand your customers

The implications are that a business should know its consumers and analyse its needs.

“Who are they? How are they currently served? How important are they? And what is important to them?

“You should know that sustainability in Africa is multi-faceted. Add ethical value besides the unique selling proposition to give relevance to your brand, and choose areas you can impact positively,” Simamane advised.

Engage with your consumers, your market

“Here are some ideas,” she said.

“Ensure that there is market stability, reinvest into the country, employ local people and create partnerships with local people - you cannot go to those countries and believe that you can do everything on your own.

“Become a good corporate citizen, pay your taxes, respect the environment and address welfare and health issues of staff.

“Utilise eco-friendly materials and packaging, manage waste efficiently and effectively. Don't go into Africa with an arrogant attitude. Instead, engage people like real people and not like your slaves.

“Ensure future talent, offer bursaries, develop future skills and improve lives in the countries where you operate. Give excess stock to needy people, get involved in community projects, source from poor communities and establish standards and train.”

Simamane also called on potential investors to learn from others, to understand local market and act to support their brands.

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About Issa Sikiti da Silva

Issa Sikiti da Silva is a winner of the 2010 SADC Media Awards (print category). He freelances for various media outlets, local and foreign, and has travelled extensively across Africa. His work has been published both in French and English. He used to contribute to Bizcommunity.com as a senior news writer.View profile and articles...
Mark
Same old, same old-
Big, bad, black Africa demands you behave responsibly. I thought anyone would behave in the stiplated way regardless of where they are. The real question, that no one is answering is, what is sustainability in SA? Is it reasonable to talk about recycling and eco-friendly packaging in some of these areas; or is sustainability forst about a plate of food, some running water, and the other basics of life. Posted on 21 Oct 2009 14:08
Emma Donovan
Listen and respond to feedback-
There is some really practical and useful advice here, thank you. On your point about engaging with customers, I’d like to add that in order to really understand and tap into the local market, it is essential to listen and respond to your customers’ feedback. Based on the lessons learnt working at getclosure, we’ve put together some pointers on “How to effectively harness the power of feedback” which is worth a read if you’re serious about growing your brand responsibly and effectively: http://www.getclosure.co.za/How-to-effectively-harness-the-power-of-feedback/gca655 Posted on 23 Oct 2009 13:47
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