A look at the Chinese business Template for African Market

1. Chinese Business
Template forAfrican
Market

2. Africa
– Africa is the world's second largest and second most-
populous continent, being behind Asia in both
categories, with 1.2 billion people as of 2016, Africa
accounts for about 16% of the world’s human
population.
– Africa's average population is the youngest amongst all
the continents;the median age in 2012 was 19.7, when
the worldwide median age was 30.4. Algeria is Africa's
largest country by area, and Nigeria is its largest by
population.

3. Chinese
Companies
– Chinese companies and Businessmen have perfected the
African market so while other countries and businessmen or
women are busy doing market research more and more
Chinese products keep flooding the African market
– A lot of companies, businessmen and women knew of the
Growth and business potential in Africa after all everyone
has access to the same information and data, but unlike the
Chinese a lot of countries and businesses didn’t trust or
believe these potentials present in Africa.
– The Chinese follow 1 template or model and that’s giving
Africa products suited for the African Market: so what are
Products suites for the African Market?

4. So what are
the Products
suited for the
African
Market?
– Most African countries lack constant power, so if you are a phone
manufacturer try manufacturing phones that have good batteries
an example of a company that succeeded with this kind of idea
was Nokia and currently Chinese phone manufacturers are taking
advantage of this model an example isTranssition Holdings
makers ofTecno & Infinix - it might shock you to knowTranssition
has not sold a single phone in China yet it’s the highest selling
phone in Africa.
– Move with the trends:- Africa is a continent with one of the
highest of not highest tech savvy population and why is that so?
It’s the continent with the youngest and highest youths, so your
Products have to include the latest innovations. An example of a
company that failed to move with the trends was BlackBerry
Limited, it’s refusal to let other phones support its bbpin n its
refusal to then switch toWhatsApp ultimately killed it, same with
Nokia which refused to switch to Android.

5. So what are
the Products
suited for the
African
Market?
– Get a local office:-Transsition makers ofTecno & Infinix have their
offices in different countries and states in Africa to provide sales &
repairs of their phones. iPhone with its popularity in Nigeria has no
office in Nigeria, so any Nigerian using an iPhone either bought it
in Dubai or bought a used one, this is a country with the largest
population in Africa and in 2050 it would be the 3rd largest in the
world. IfToyota, Honda and the likes all have offices in Africa
what’s stopping you from having yours.
– Lastly, price:- I have attended so many business
seminars/meetings in Japan and most of my comments have
always been about pricing.The Japanese business model forbids
you to produce substandard products, hence a normal Japanese
product is very durable and because it’s made to a high standard
it’s expensive, but I believe if these products are made to suit a
particular market with a particular price tag it will sell. If Japan can
have ¥100 shops that are stationed to meet low income earners
why can companies make products with prices that suit Africans.

6. So how do
you compete
with the
Chinese
Companies?
Identify the country you want to invest in
-As you may already know, Africa is made up of 54 countries and
identifying the country you want to do your business in might be
quite difficult, but you can look at some key considerations:
-Population Size (This can guarantee you sales)
-Ease of doing business (You know that setting up your business
here won’t be difficult)
-Bribery & Corruption
-Electricity/Power
-Political stability
-Connectivity
-Mobility

7. So how do
you compete
with the
Chinese
Companies?
Read or Listen to what other companies are doing
-Some companies/businesses are already established in Africa, just as
you study your competitors you can and should study these
companies/businesses that are already in Africa. Know what they have
done right, know what they didn’t do.
Identify a company or individual you with to do business
with
-It’s important also that you identify a company or individual you want
to do business with, a good way is checking for their online presence.
– Website
– Office space/address
– Contact details: phone number/email address

8. So how do
you compete
with the
Chinese
Companies?
Make contact
-You have to contact the company either through email or phone
calls.
Visit the country
-You have to visit the country and see for yourself, in Nigeria for
instance JETRO (Japan ExternalTrade Organization) has an office in
Lagos, Nigeria saddled with the responsibility of assisting Japanese
companies/businesses wanting to do business in Nigeria.They
provide all sorts of assistance from hotels, logistics and a full
database of companies in Nigeria that you can do business with.

9. So how do
you compete
with the
Chinese
Companies?
Invest in the Company/Individual
-You have to decide on what type of Investment style you want to
undertake with the company/individual. Do you want a partnership
or do you want that company/individual to stand as your brand
ambassador/sales representative?This aspect is important and
should be decided by both parties.
No matter how good your product or service is if you don’t have customers
that would purchase and use them then your product is as good as nothing.
Do proper market survey and research, draw out your own marketing
strategy and do your own market research, the African market is very
complex so let the company/individual you want to do business with draw
out theirs and compare.The market strategy/research you use in your
country might not work in the African country you intend to do business in