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How digital can unlock opportunities in Africa’s CPG market

For first movers, going digital in Africa offers a massive opportunity. Right now is the time to explore that opportunity.

Africa’s CPG market is facing some key challenges including reaching the consumer where there is no formal retail infrastructure; achieving effective consumer engagement across a widely diverse population (from South Africa’s townships to Nigeria’s open markets), etc. However, there is also a vast untapped potential of the consumer market in Africa. How can CPG companies unlock the benefits?

There are a number of digital levers along key segments of the CPG value chain that can deliver $152 billion in cumulative value over the next five years. Those levers include:

  1. Better product development via crowdsourcing and open innovation. On the African continent, nurturing brand loyalty through consumer engagement will be a key differentiator in the battle to win African consumers over. The CPG sector winners will be those that deliver products that meet consumers’ needs and desires. Getting this right can add $14 billion in value to the CPG market by 2020.

  2. The development of connected agriculture platforms to enhance sourcing and to risk proof supply. As local demand grows, new solutions are emerging to strengthen the supply of agricultural commodities in Africa. Mobile technologies and digital platforms are proving to be of great use. “Connected agriculture” digital platforms can deliver improved quality and security of supply, lower costs and carbon footprints, and enhance the social capital of the brand. They also offer the potential of defining new business models.

  3. Implementation of digitally-driven distribution management platforms putting an end to chronic out-of-stock. Digital solutions, analytics and applications accessed via shared industry platforms are increasingly emerging as a foil for the logistics and distribution challenges facing CPG companies in Africa. These solutions are not just driving business efficiencies and customer satisfaction, they are seeing the evolution of innovative new business models.

  4. Usage of analytics, offering better product assortment to customers. Applying analytics to insights gained on distributor and retail activity, CPG companies will be able to better allocate marketing and promotion spend.

How to can CPG companies define and implement a digital strategy? Find out the 4 step process.

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