Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Rwanda Tops First African Retail Development Index  Join our daily free Newsletter

MENAFN Press - 18/03/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN Press) A new study designed to help large, organized retailers determine where and how to best enter Sub-Saharan Africa's rapidly growing retail sector is published by A.T. Kearney (http://www.atkearney.com), a leading global strategy consultancy firm, today



Logo: http://www.photos.apo-opa.com/plog-content/images/apo/logos/atkearney.pn



Download the report - PDF (2Mo): http://bit.ly/1e94g8i



Download the ranking table: http://www.photos.apo-opa.com/plog-content/images/apo/photos/table.png



Photo: http://www.photos.apo-opa.com/plog-content/images/apo/photos/140317.png



Rwanda, Nigeria, Namibia, Tanzania and Gabon occupy the top five places of the inaugural A.T. Kearney African Retail Development Index (ARDI). South Africa ranks seventh due to the developed nature of its 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 for the future.



Africa is brimming with opportunities, not only for local and regional players, but also for large global brands and retailers



South African brands and retailers have been at the forefront of African expansion but may soon see global competition coming in. For South African players to keep their competitive advantage, sound strategies and investment plans will be required



With a billion people and growing economies, seven of the top 10 ARDI countries are among the 10 fastest growing ecomomies in the world



"Formal" retail, which takes place in malls, shopping centres, and other defined trade areas, remains in the early stages in most Sub-Saharan Africa countries, with the exception of South Africa, and is 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 represent massive room for retail growth.



Mirko Warschun, A.T. Kearney partner and ARDI co-author says, "The top 10 countries in the Index are diverse in terms of scale and growth potential.



"It is essential that retailers understand where African countries are in the evolution of the retail landscape and the stages of market development to craft their expansion strategies for Africa.



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, Gabon and Ethiopia, has limited market saturation, but also low maturity. While these markets are promising because of favorable demographics and recent growth trends, the major 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 the Top 10 - have rapidly evolving retail dynamics and demographics, with some established retail players and many other global retailers planning entries. According to A.T. Kearney, 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 can offer 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 says, "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," says A.T. Kearney partner and ARDI co-author Mike Moriarty.



The 2014 Africa Retail Development Index Ranking and Recommended Approach (http://www.photos.apo-opa.com/plog-content/images/apo/photos/table.pn


About The Africa Retail Development Index
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, GDP PPP per capita 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 (http://www.atkearney.com) is a global team of forward-thinking partners that delivers immediate impact and growing advantage for its clients. They are passionate problem solvers who excel in collaborating across borders to co-create and realise elegantly simple, practical and sustainable results. Since 1926, they have been trusted advisors on the most mission-critical issues to the world's leading organisations across all major industries and service sectors. A.T. Kearney has 58 offices located in major business centres across 40 countries. http://www.atkearney.comAbout 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
 Nov 28 2014 - Saudi- Lab-coated Muggles use Harry Potter to study brainArab News
(MENAFN - Arab News) WASHINGTON: Harry Potter swoops around on his broom faces the bully Malfoy and later runs into a three-headed dog. For scientists studying brain activity while reading it's the ...

 Nov 28 2014 - Saudi- Fleeting celeb friendships and moreArab News
(MENAFN - Arab News) 'Walking with a friend in the dark is better than walking alone in the light.'You must have encountered many such meaningful lines written on friendship through the ages. But ...

 Nov 28 2014 - Saudi- Women dislike about menArab News
(MENAFN - Arab News) The ten things women dislike most about their husbands...distilled from years of research. Look you don't have to agree you might have an eleventh very good reason but this is my ...

 Nov 28 2014 - Israel claims plotto hit stadium foiledArab News
(MENAFN - Arab News) JERUSALEM: Israel claims to have thwarted a planned attack by the Palestinian group Hamas on Jerusalem's biggest football stadium arresting 30 suspected militants commanded from ...

 Nov 28 2014 - Islamic State jams mobiles in MosulArab News
(MENAFN - Arab News) BAGHDAD: Residents in the militant-held Iraqi city of Mosul say militants with the Islamic State group have blocked all mobile phone networks in the town.Several residents said ...

 Nov 28 2014 - Winter brings fresh misery to Gaza war-hitArab News
(MENAFN - Arab News) GAZA CITY: As the wind whistles through gaping holes in her ruined house 62-year-old Suad Al-Zaza and her daughter huddle together for warmth on a bed made of a wooden door laid ...

 Nov 28 2014 - Saudi- Not a trouble but a giftArab News
(MENAFN - Arab News) Have you ever thought you have come to the end of your tether Or that you have suffered a lot That everyone is against you That people do not understand you and that the course ...

 Nov 28 2014 - 'A difficult but most fruitful Journey'Arab News
(MENAFN - Arab News) Muhammad Ishaaq formerly Girish KS Udupa an upper caste Hindu narrates his story about his conversion to Islam.I WAS born and brought up in an upper class Hindu Brahmin family of ...

 Nov 28 2014 - Saudi- Omaran inspiring leaderArab News
(MENAFN - Arab News) Omar also promised not to send the Muslim armies 'into destruction' meaning that he would not send the armies out unless the risks were evaluated and deemed acceptable. He ...

 Nov 28 2014 - Learning to love prayersArab News
(MENAFN - Arab News) Skipping prayers is unfortunately something common among many Muslims. Many nonetheless keep going back to prayers out of fear and rightfully so of Allah majestic in His praise. ...

more...


 






Google

Click to Apply

 
 

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

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

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