3 Ways to Drive Consumer Inclusion in African markets

3 Ways to Drive Consumer Inclusion in African markets

” Inclusive consumers have the power to influence all demographics” According to McKinsey’s Consumer Survey 2021 reaching out to consumers across age and racial demographics can potentially drive better purchasing outcomes for brands and businesses.

In Africa, consumer inclusion has steadily moved from the backstage of advertising actions, into shadows of the marketer’s stage and is now poised to step into the spotlight of continental trade. It is gratifying to see brands and business leaders making real efforts towards inclusive consumerism for BOP consumers in Africa.

In case you may be trying to find a foothold into the world of inclusive consumerism in Africa, here are 3 core consumer insights from marketing and social research outcomes that are close to the heart of base of pyramid populations.

Focus on meeting Functional needs of your core customer/stakeholder

BOP consumers have low purchasing power parity. This does not mean that they are an un-profitable or non-viable consumer segment. Contrary to conventional marketing misconceptions, BOP consumers are willing to sacrifice and spend in cases where their functional needs are met, and real value is delivered to meet their functional needs.  This is a call out to cut away the fluff and excesses that characterised last century business models. In an age where we all agree the world could use more sustainable sourcing and more responsible consumption this could be a powerful pretext for innovative business models where everyone benefits

Think Community (Shared use/access and efficiency)

Exclusivity is the opposite of inclusivity. Past purchasing motivations tended towards to exclusivity, limited offers and near elitist sentiments taunted at consumers. This is the antithesis of consumer Inclusion. Strategies and tactics that are bound to thrive in informal low-income economies should be ready to think community. Shared incentives, shared value and shared rewards not only yields greater profitability but also deeper loyalties and stronger ownership by consumers and stakeholders. These intangible benefits may well be the key differentiator to business survival in these turbulent times of recession.

Capital Efficiency

The wonderful thing about this point is that we do not have to try to hard to convince you on resource efficiency. Shrinking margins and leaner budgets are far more compelling reasons why businesses are currently tightening their money belts. The star factor about BOP consumer focused business is that LEAN is already IN. Last mile distribution channels may eliminate the need for superfluous shipping, packaging and/or logistics and require smaller, cheaper, dis-aggregated or even micro-aggregated models that deliver on economies of scale and create a bigger bang for every buck spent.

These 3 principles may sound simple enough but the application of it may be far from it. It takes research to be able to identify what BOP consumers specific needs are, sometimes it may not be as obvious to them or to us or a shared focus approach may require some human centred research to design. The point is, rethinking consumer inclusion is already an exceptionally good place to begin.

Marion Ngumo
Frontier Consulting is a pan African market research insights partner. We acquire credible data from anywhere in Africa. Using inclusive research design methodologies, we transform high quality data into tangible insights. Our mission is to connect African consumers and markets to impactful outcomes.

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