Africa’s consumers increase buying power - CNBC Africa

Africa’s consumers increase buying power

Special Report

by Trust Matsilele 0

Africa’s consumers are growing in numbers and in buying power. PHOTOS: techpinions

The recent Nielsen’s Emerging Market Insights report also said on average, half of all household spending in sub-Saharan Africa goes to consumer packaged goods.

Nielsen studies consumers in more than 100 countries to provide the most comprehensive view of trends and habits worldwide.

(WATCH VIDEO: The African consumer outlook 2014)

“The diversity of consumers and markets within Africa is staggering, but it presents tremendous opportunities for those who properly understand and navigate this complex marketplace,” said the company.

“Marketing and promotional activities are essential when entering a region or expanding brand presence, and Africa is no exception.”

The latest research also found that when it comes to advertising, Africa’s consumers are most aware of traditional channels, with broadcast (83 per cent) topping the list, followed by outdoor (78 per cent) and print advertising (65 per cent).

“Nearly half of respondents (49 per cent) are aware of mobile advertising, though most mobile advertising across the continent is still text messaging/SMS based because the majority of devices consumers own are feature phones. Consequently, only one-fifth (19 per cent) of respondents are aware of online advertising,” said the group.

The research also found that consumers in Africa are receptive to marketing messages.

[video]

“Nearly half (48 per cent) of consumers interviewed said advertising has significant influence on their purchase decisions. Some 38 per cent said that promotional activities, ranging from in-store displays to value packaging to special offers, motivate them to buy more of a particular product—and even give preference to that product over other brands.”

One-third (34 per cent) of consumers interviewed also said they buy more of a product or give preference to products that they know engage in corporate social responsibility programmes or practices.

“That figure is significantly higher in some markets, like Rwanda, where 53 per cent of consumers said corporate social responsibility (CSR) influences their purchase decisions.” 

Comments