Digital is a market disruptor. New digitally-powered entrants with different mindsets and paths to value are seizing market share from traditional players and turning value chains on their heads. At the same time, the demographic dividend associated with Africa is enormous. It contains the next 1billion consumers—young, aspirational digital natives. On this continent, the next growth frontier for consumer packaged goods (CPG) companies, the potential to engage with consumers digitally and derive quantifiable value chain benefit, is monumental. Yet CPG companies have been slow to apply digital strategies.
The advantage for first movers could be great. This point of view offers insight into the power of digital ecosystems, and looks at how digital can help address CPG value chain challenges—from research and development to sourcing to logistics and sales. It also charts a path to consumer engagement and offers advice on taking the first steps to define and implement a digital strategy.
For first movers, going digital in Africa offers a massive opportunity.