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
 Feb 7 2016 - Shehzad stars for Quetta, Lahore beaten againGulf Times
(MENAFN - Gulf Times) Under-pressure Pakistan opener Ahmed Shehzad hit form at the right moment as he scored 71 off 61 balls to help Quetta Gladiators defeat Karachi Kings by eight wickets in the ...

 Feb 7 2016 - QF's NSD activities to promote fitness, healthy lifestylesGulf Times
(MENAFN - Gulf Times) Qatar Foundation for Education, Science, and Community Development (QF) is set to celebrate National Sport Day with a jam-packed schedule that will feature over 60 exciting ...

 Feb 7 2016 - Exciting family activities at Aspire ZoneGulf Times
(MENAFN - Gulf Times) Aspire Zone Foundation (AZF) is organising a variety of activities on National Sport Day (NSD) designed to encourage people to stay fit and promote sports activity. The ...

 Feb 7 2016 - GCC Swimming ChampionshipsGulf Times
(MENAFN - Gulf Times) Khalid Abdullah, head of Public Relations Committee of the 13th GCC Swimming Championships (25m), handed over the medals to the winners on the final day of the competitions. ...

 Feb 7 2016 - Meet Qatar heroes who are on their way to Rio GamesGulf Times
(MENAFN - Gulf Times) While there are only two days to go until the whole of Qatar comes together in a celebration of sport for the annual National Sport Day (NSD), there are less than six months to ...

 Feb 7 2016 - Key combination CTRL + X has been disabled.Gulf Times
(MENAFN - Gulf Times) Qatari high-jumper Mutaz Essa Barshim warmed up for the hectic 2016 season with a 2.29m jump to win the high jump competiton at the Pedro's Cup indoor meeting in Lodg, Poland, ...

 Feb 7 2016 - Camels blow away Hurricanes in openerGulf Times
(MENAFN - Gulf Times) Qatar Rugby 7s League got off to an explosive start as the Camels 1 picked up a massive 50-0 victory over DRFC Hurricanes in the opening game at Aspire Park last evening.Camels ...

 Feb 7 2016 - Benfica and Aspire Football Dreams share spoilsGulf Times
(MENAFN - Gulf Times) ur goals, two missed penalties, and countless chances illuminated a gripping game between Benfica and Aspire Football Dreams at Al Kass 2016.Chances were few and far between in ...

 Feb 7 2016 - VIPs, fans show support on day one of Al Kass 2016Gulf Times
(MENAFN - Gulf Times) Local football fans descended upon the Aspire Zone on Friday for an exciting opening day of events at the 2016 Al Kass International Cup.With the first of three games kicking ...

 Feb 7 2016 - Non-oil sector contribution to GDP seen at 70% next year: QFC execGulf Times
(MENAFN - Gulf Times) The Qatar Financial Centre Authority (QFCA) CEO has said he is "looking at 70% contribution" from the country's non-hydrocarbon sector to the national gross domestic product ...

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

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