Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Rwanda Tops A.T. Kearneys First African Retail Development Index for Market Opportunity  Join our daily free Newsletter

MENAFN Press - 19/03/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN Press) Rwanda, Nigeria, Namibia, Tanzania and Gabon occupied the top five places of the inaugural A.T. Kearney African Retail Development Index (ARDI), a new study designed to help large, organized retailers determine where and how to best enter Sub-Saharan Africa's rapidly growing retail market. The ARDI is a useful framework for retailers because it not only identifies the markets in Africa most attractive for retail expansion today, but those that offer the most potential in the future.



"Formal" retail, that which takes place in malls, shopping centers, and other defined trade areas, remains in the nascent stages in most Sub-Saharan Africa countries, limited primarily to a handful of urban areas. Low rates of formal retail coupled with increasing urbanization and the relative stability of many African economies represents massive room for retail growth.



This first edition of the retail index for Sub-Saharan countries represents a valuable tool for retailers in the Middle East to understand the opportunity in Africa. A segmented approach to the markets is critical to identify the few spots where investment is already attractive vs. countries or cities at an earlier stage of development that require monitoring



Emanuele Savona, Principal at A.T. Kearney Middle East, commented: "Africa represents a development area for Middle-East retailers. Since retail and consumer brands are not yet well established in many African countries, there is an opportunity to benefit the first mover advantage if retailers in the region select the right formats that can match the needs of the growing African middle class. In addition, the large presence of traditional small stores creates an additional opportunity for retailers that want to introduce Cash & Carry formats to provide a 'one-stop-shop', stable purchasing offering at competitive prices.





ARDI Result

The ARDI is based on four elements: Market Size, Market Saturation, Country Risk and Time Pressure, and ranks the potential and urgency of moving into each country accordingly. The top 10 markets in the Index are segmented into three high level approaches: Start with the Basics, Move Quickly and Differentiate.



Start with the Basics: The vast majority of Africa, including Rwanda, Tanzania, Ghana, Mozambique and Ethiopia, has limited market saturation, but also low maturity. While these markets are promising bcause of favorable demographics and recent growth trends, the main retail markets remain small, scattered and informal. The largest opportunities available in these markets revolve around offering basic consumer packaged products at low prices.




Move Quickly: The countries in this group “ currently only Nigeria and Gabon from our Top 10 “ have rapidly evolving retail dynamics and demographics, with some established retail players and many other global retailers planning entries. There is no time to spare entering these markets before these first movers gain an advantage as they establish their brands early and secure loyal customer bases.



Differentiate: These markets (Botswana, Namibia and South Africa) have Africa's most advanced retail sectors as well as an existing presence of international retailers. These markets offer opportunities for retailers that have the capability to deliver differentiated products or formats that are hard to find and appeal to a growing middle class and globally minded citizens.



Bart van Dijk, A.T. Kearney partner and ARDI co-author noted, "There are wide differences in infrastructure and supply chain development across African countries. Understanding the opportunities and limitations from country to country is a critical element of the retail expansion decision.



By 2020, nearly half of all Africans will be living in cities. As disposable incomes rise, consumer spending will grow to almost 1 trillion. Even with the challenges of entering and succeeding in Africa, the opportunity is impossible to ignore



"Although there are many challenges, Africa has reached a point in its economic development where global retailers must evaluate the significant potential for growth in this market," noted A.T. Kearney partner and ARDI co-author Mike Moriarty.



The 2014 Africa Retail Development Index Ranking and Recommended Approac



Index RankCountryHow to approach

1RwandaStart with the basics

2Nigeria Move quickl

3NamibiaDifferentiat

4TanzaniaStart with the basics

5GabonMove quickly

6GhanaStart with the basic

7South AfricaDifferentiat

8BotswanaDifferentiat

9MozambiqueStart with the basics

10EthiopiaStart with the basics



To read the full 2014 Africa Retail Development Index, please go to: http://www.atkearney.com/consumer-products-retai


About the Study
The Africa Retail Development Index ranks Sub-Saharan Africa countries on a 0-to-100 point scale: the higher the ranking, the higher the potential and urgency to enter the country. The countries considered for the rankings were pre-selected based on three criteria “ a country risk of 35 or higher in the Euro money country-risk score, population size greater than 1.5 million, and GDP per capita (PPP) of more than 1,000. The ARDI scores are based on Country and Business Risk (25 percent), Market Size (25 percent), Market Saturation (25 percent), and Time Pressure (25 percent). About A.T. KearneyA.T. Kearney is a global team of forward-thinking partners that delivers immediate impact and growing advantage for its clients. We are passionate problem solvers who excel in collaborating across borders to co-create and realize elegantly simple, practical, and sustainable results. Since 1926, we have been trusted advisors on the most mission-critical issues to the world's leading organizations across all major industries and service sectors. A.T. Kearney has 58 offices located in major business centers across 40 countries. From our Middle East offices in Abu Dhabi, Bahrain, Dubai and Riyadh, A.T. Kearney supports both private and public sector clients as well as nations to excel and prosper by combining our regional expertise and global business insights to achieve results. For more information, visit www.middle-east.atkearney.com.About the A.T. Kearney Global Consumer InstituteThe A.T. Kearney Global Consumer Institute is a worldwide network of professionals and executives. The Institute combines proprietary and public data resources with local knowledge to deliver strategic and operational insights to executives in consumer-facing industries seeking long-term growth and competitive advantage. For more information, please contact gci@atkearney.com.

 


MENAFN Press




  MENA News Headlines
 Sep 29 2016 - Qatar reveals new visa scheme to boost tourismMENAFN
(MENAFN) Qatar Tourism Authority (QTA), Qatar Airways (QA) and Qatar's Ministry of Interior (MoI) has announced A revised, free-of-charge tourism visa scheme.The offer is for passengers transiting ...

 Sep 29 2016 - Qatar to reach top green buildings in Mena by 2030MENAFN
(MENAFN) Qatar aims to reduce carbon footprints and achieve sustainable development in order to have the highest number of green buildings across the MENA region by 2030.Accordingly, Qatar has ...

 Sep 29 2016 - UAE-Empower to finish Meraas project at USD1.63bMENAFN
(MENAFN) UAE-based Empower Co. proclaimed that it aims to complete the district cooling infrastructure network at Bluewaters Island at a cost of USD1.63bn.The Island is a man-made mixed use island ...

 Sep 29 2016 - Oman's Al Batinah to invest OMR500.000 in 2 projectsMENAFN
(MENAFN) Al Batinah Development and Investment Holding will engage in new investments valued at OMR500.000.Furthermore, the new investments will be released via contribution by 35 percent in the ...

 Sep 29 2016 - Demand on Saudi steel to grow by 10pctMENAFN
(MENAFN) Demand on the Saudi steel sector will grow by 20 percent amid the fourth quarter of this year.Additionally, low steel prices became encouraging for the development of some private projects, ...

 Sep 29 2016 - Jordan's trade deficit drops by 7pctMENAFN
(MENAFN) Jordan recorded 7.2 percent decline in trade deficit in the Jan-July period of this year.Moreover, a trade deficit is the amount by which the cost of a country"s imports exceeds the value of ...

 Sep 29 2016 - Egyptian families' incomes unfulfilling: cost of living more expensive than everDaily News Egypt
(MENAFN - Daily News Egypt) The current circumstances have made it hard for experts to predict how much money is enough for a small family to live a fair life in Egypt. With the high inflation ...

 Sep 29 2016 - Egypt- Archaeological Replicas Unit looks into establishing factory with EGP 30m in investments: El-TibiDaily News Egypt
(MENAFN - Daily News Egypt) The Archaeological Replicas Unit, affiliated to the Ministry of Antiquities, plans to conclude a study on establishing a production factory of Egyptian monument replicas ...

 Sep 29 2016 - GCC States, New Zealand to enhance trade tiesMENAFN
(MENAFN) New Zealand and the GCC States will work to get a free trade pact back on track after trade ministers from the Pacific nation and Saudi Arabia confirmed to enhance trade ties.Two-way trade ...

 Sep 29 2016 - World’s 1 DLP Brand BenQ earns THX® HD Display Certification for W8000 Home Theatre ProjectorMENAFN Press
(MENAFN Press) United Arab Emirates, September 29, 2016-(ME NewsWire)- BenQ, the global No.1 DLP projector brand, proudly announced today that its W8000 home theatre projector achieves prestigious ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help