This briefing explores the forces driving apparel demand and supply in Sub-Saharan Africa, which has historically been a protected market, with tariffs, quotas and bans. It discusses how market routes, supply chains and competition have evolved. A one-size-fits-all approach will not suffice, given diverse consumer segments, from budget to luxury. The report aims to illuminate this diversity and guide industry players in identifying target markets for tailored strategies.
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Local and international brands are becoming popular among Sub-Saharan Africa’s diverse consumer base. With a growing middle class and significant low-income group, the region offers many opportunities for tailored products that will meet the diverse needs of its consumers. Thus, solution-driven approaches are crucial to the success of this region by addressing concerns about services and product development, as well as tailoring offerings to local, regional and country-specific preferences and demographics.
Affordability remains one of the region’s most important competitive advantages. As the fashion industry continues to evolve amid the challenging economic climate, finding the right balance between value and trendy offerings is crucial to success. Companies can position themselves for success in the region if they adopt a customer-centric approach and offer products that meet the needs of the price-sensitive, yet trend-conscious consumers of the region.
Increasing visibility and access to brands and products requires embracing an omnichannel strategy, as well as enticing consumers to visit physical stores for discovery and interaction. By offering exceptional service, well-curated product displays, and seamless transactions from purchase to post-purchase, retailers can create compelling reasons for consumers to choose their brands and foster long-term relationships.
Accessing the last mile of distribution in Sub-Saharan Africa can be expensive as logistics costs and lead times vary significantly. Establishing local partnerships along the value chain provides a lower-risk approach to market expansion, since it facilitates efficient navigation of the complex distribution landscape and drives growth by understanding consumer preferences, maintaining brand control, and leveraging local expertise.
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
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