Retail in Africa (2/2): strategies for local brands facing international giants
Faced with these major challenges, African producers, artisans, brands must quickly adapt to the growing competition in their backyard that is transforming retail. Here are some ideas:
4. Strategies to stand out and concrete examples
a. Focus on authenticity and local identity
African brands have a unique advantage with their in-depth knowledge of local cultures and markets. They can capitalize on this asset by developing products that specifically meet local needs and preferences, by highlighting their cultural heritage in their branding, packaging and marketing, and by creating "African PDOs" to promote local products. (Protected Designation of Origin)
Amarula is a good example of how territorial anchoring could influence creation. This South African liqueur brand created in 1983, became the property of Distell Group Limited - indirectly under the control of luxury magnate Johann Rupert, CEO of the Swiss group Richemont-.
It takes its name and its main ingredient from the marula fruit, an emblematic tree of southern and western Africa. The marula (Sclerocarya birrea) is a dioecious tree that can reach 18 meters in height, whose yellow fruits are rich in vitamin C. Amarula has transformed this local resource into an internationally renowned spirit, marketed in more than 100 countries. The brand stands out for its unique taste, combining the fruity flavors of marula with a creamy base, and for its commitment to the conservation of African elephants, symbols of the brand.
b. Adopt an omnichannel approach
In an increasingly complex retail environment, it is crucial to be present across all channels and precisely where the customer is, combining physical store presence with a strong online presence; using social media to directly engage consumers and exploring partnerships with local and international e-commerce platforms.
AAKS, a Ghanaian luxury handbag brand, has adopted an innovative collaboration strategy to develop its international presence. By partnering with established luxury brands, renowned retailers and international institutions such as the United Nations, AAKS has successfully increased its visibility and credibility in the global market. These strategic partnerships have enabled the brand to showcase its unique craftsmanship and contemporary designs rooted in the craftsmanship traditions of Bolgatanga in Ghana, while benefiting from the expertise and distribution networks of its collaborators. Through this approach, AAKS has been able to position itself as an authentic and desirable brand, attracting an international clientele sensitive to ethical craftsmanship and innovative design.
c. Innovative customer experience
African brands can differentiate themselves by offering a unique customer experience. Create innovative exhibition spaces, like the Alara concept store in Nigeria, which allows young brands under the Homegrown label to offer a unique customer experience once a year. It's just like organizing events and pop-up stores to create a direct connection with consumers and use technology to offer personalized experiences (augmented reality, mobile applications, etc.).
At ZYNE, a Moroccan shoe brand, the customer is taken on a unique customization experience at La Mamounia. In this exclusive workshop, customers collaborate with master embroiderers to create custom shoes. The process allows you to choose the embroidered initials, the colors of the beads and the fabrics, thus offering complete customization. This experience combines the customer's personal style with traditional Moroccan craftsmanship, allowing the creation of unique shoes ranging from subtle details to bold statements. The brand elegantly demonstrates its know-how and embodies the exception and excellence of Moroccan craftsmanship.
This beautiful brand activation allows it to offer a unique experience with a unique pop-up store, which makes you want to buy a plane ticket before October 27, 2024 to Marrakech.
d. Collaborate with local influencers
Influencer marketing is particularly effective in Africa. Brands should collaborate more with influencers who share their values and vision to create authentic content that resonates with local audiences and trends. Collaborate with influencers to educate consumers about their products and their story.
Tongoro, the fashion brand founded by Sarah Diouf, uses strategic collaborations with influential personalities to increase its visibility on social media. By partnering with figures with strong traction and real power of influence, Tongoro manages to reach a wider audience and strengthen its brand image. These partnerships not only increase consumer engagement, but also position the brand as a symbol of Senegalese craftsmanship and affordable luxury.
This influencer strategy is essential to attract an international and diverse clientele. Long before Beyoncé, the American star, there were personalities like Maria Borges, an international model.
e. Investing in sustainability, inclusive businesses and ethics
African consumers are increasingly sensitive to environmental and social issues. Brands can stand out by adopting sustainable production and distribution practices, supporting local communities through their activities and clearly communicating their ethical commitments.
Sustainability also means guaranteeing its independence, this is the bet that Laduma made by investing in its production chain to maintain its margins and not depend on suppliers.
In this interview Laduma Ngxokolo talks about his vision, his commitment to creating jobs, an inclusive business in his community and the importance of controlling his value chain. & intellectual property.
These different examples are proof that local brands in Africa can find a place in this new configuration, gain market share in Africa and even go on to conquer the world. However, as the saying goes, to travel far, you have to take care of your mount. And for African brands, taking care of your mount means first securing your local market.
In a rapidly changing distribution environment, African brands have the opportunity to stand out by capitalizing on their unique knowledge of the local market, innovating in their distribution approach and offering an authentic and engaging customer experience. By combining these strategies with a strong omnichannel presence and a commitment to sustainability, African brands can not only compete with international players locally, but also create a strong and distinctive identity on the global market.
And for those who doubt that there are exceptional brands (the word luxury is so overused) on the African continent, I invite you not to miss my chronicles to discover the most beautiful African brands.