Issued by: Consumer Insight Agency


Wratten says, "There's a bit of a feeling of an economic wild west out there - people are trying to get footholds in places they don't really know a lot about."

Some 18 African countries registered growth rates of more than 5% in 2003, up from just 13 in 1999. And in 2004, the United Nations Economic Commission for Africa showed the continent's real GDP grew by 4.6%. This, coupled with an increasingly cluttered and competitive South African economy, means that major local brands are finding opportunities north of the border. From Nigeria, Kenya, Ghana, Cameroon and Cote d'Ivoire to Angola and Mozambique South African brands are everywhere. International brands too are pitching up in greater numbers.

Is it easy to open an office up north? Wratten says no. Too often South African companies think they can go north without modifying their business plans. The result is bad for business and is also generating a lot of antipathy towards to South Africa.

He says, "There's a sort of Western arrogance... we're picking up an increasing antipathy towards South Africa as being a neo colonialist power."

Brands and products cannot simply be transferred to foreign markets, says Wratten. "If you're wanting to go and do business in Ghana, for instance, it's critical that you actually listen to Ghanaians before you storm in," he says. "If you are not sensitive and if you aren't listening to what people are saying up there, you are not going to be successful."

Having conducted extensive market research for corporate clients in the major African economies the c.i.a. has learnt this first hand. The c.i.a. goes out into people's worlds, where real life happens, and conduct in-depth conversations with them - capturing what's in their hearts and minds on unobtrusive digital video cameras, so our clients can see and understand it too.

Acccording to Wratten there are already well documented stories circulating in South Africa of companies venturing into the rest of Africa with limited success. The Vodacom fiasco in Nigeria earlier this year is just one example.

"As interest in African business picks up, we can expect to hear more - many of which will surely be rooted in a failure to understand the cultural, social and economic contexts in which companies are looking to do business," he says.

Which is where market research can help. Business people can hire an agency, such as the ci.a., to conduct research on the ground and pick up valuable insights into how ordinary people interact with the commercial world. Or, they can explore the market themselves.

In many cases, the research is hampered by well worn fears and prejudices. And internationally business people seem wary of physically venturing into the African market at all. However, Wratten says, "If you've got the humility to be out there and listen to people's stories then you're on a winning wicket."

Listening to people would reveal, for example, that there is a growing 'proudly local' positioning. Brands such as Nigeria's telecommunications company Glo and Kenya's Tusker beer are competing against South African and international brands in much the same way proudly South African brands position themselves in opposition to American and European economic dominance. "This sort of thing is starting to happen in African economies like Nigeria and Kenya, and our experience is that South African business people aren't very switched on to this change...," says Wratten.

Africa has a history littered with conquest - businesses that continue this trend by rushing into countries they know little about could be in for a nasty surprise. Africa may be open for business, but it is the smart businesses, who listen to what African people have to say and adjust their strategies accordingly, that will prosper.

Visit our PRESS OFFICE: Born out of rebellion against conventional qualitative research approach, the c.i.a began in 1996 with just a curious mind, a pair of dirty boots, a camera & a philosophy... - more....

[21 Sep 2006 14:09]

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