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Involved brands ring the changes in Africa
The African continent is poised for huge growth, but the business of doing business in Africa requires a new response. To do business in Africa, brands not only need to understand the unique and diverse landscape, but need to cast aside old mindsets and clichés.
Brand leaders in Africa are fast learning that growth can only be unlocked through understanding, commitment and involvement.
The biggest mistake that any brand could make was to think that because Africa has large pockets of poverty, consumers are looking for a 'cheap' experience.
"In Africa a brand is a guarantee of a quality. When you haven't got money a guarantee is a trust mark that indicates that you know what you will experience when you buy the brand," says Interbrand Sampson's Jeremy Sampson. "Consumers may pay a premium for a brand, but they are happy to do it because of piece of mind they are purchasing. They know they will get a good result."
One of the biggest mistakes that big business has made in Africa is to ignore the continent's potential. That's the view of Moky Makura, Joint Managing Director of FCB Redline who maintains that big business has until now left their brand unprotected in Africa. "Global brands allowed other people to market their products for them. They have woken up now, but there are considerable implications to the neglect. Grey markets and fake products with improper distribution channels have hurt brands who have been slow to enter the market."
Makura adds that a lot can be learnt from consumer greats like Unilever and Coca Cola who have been involved in the continent for some time and are reaping rewards.
Author and emerging market expert Muzi Kuzwayo cautions however that the 'gold rush' for Africa will not last forever. "By the time the book is written on Africa everyone will have a copy and the opportunity will be lost. The people that will make it are those who go into the territory first and then break traditional marketing rules with good reason. Each time you enter a new territory you draw the map, but it is a bit like a gold rush. You have to be there first and do it well. If you are an also ran, than you'd better hope that the pioneers are making the mistakes," says Kuzwayo.