SlideShare a Scribd company logo
1
Contents
The Market Environment – key takings..................................................................................................2
The People – key takings.........................................................................................................................6
Population profile & Pen Portrait – Key takings .....................................................................................9
Purchasing behaviours & trends - Key takings.....................................................................................11
Retail environment – key takings..........................................................................................................13
Money, Banking & insurance – Key takings..........................................................................................16
Opportunities - key takings...................................................................................................................22
CONCLUSIONS.......................................................................................................................................24
Decoding the Kenyan
Consumer
Executive Summary
Workshop organised on 27th March 2017
Key Speakers: Eric Reingewertz, Bilkiss Jownally and Virginie
Villeneuve
We can help you to go further in your project : How?
Before the launching of the project:
Analyse the opportunity for your product and service and Improve your offer
1. Market potential survey – qualitative and quantitative
2. Competitive Analysis
3. Concept and Product Test Survey: to estimate the acceptability of your service,
product, brand and price
4. Develop a Brand and Marketing Strategy (retail and communication)
5. Identify local partners for retail and communication
After the launching of the project:
Evaluate the impact of your marketing and retail strategy and Re-align:
a. Monitor your market penetration / share
b. Monitor your advertising impact and brand presence
c. Evaluate the consumer / customer feedbacks
d. Audit the retail and communication organisation
2
The Market Environment – key takings
1. Kenya is one of the most promising countries in Africa : a GDP growth above 6%, a
GDP per capita of 1400 USD (Ethiopia = 600, Tanzania = 880, Madagascar = 400,
Uganda= 800, Cote d’ Ivoire = 1400 and Mauritius = 9200), a young population of
more than 52 million (41% <14 years old)
2. 42% of the GDP is still derived from natural resources
3. We note a significant growth in some key sectors over the period 2011-2015:
Agriculture; Construction; Finance & insurance; Real Estate
4. The urbanisation in Kenya is quite strong: the population of Nairobi and Kiambu
(close to Nairobi) represents more than 4 million people.
5. 83% of registered employment (excluding agricultural and pastoral activities) are
connected with the traditional sector (essentially trade).
6. Food and Beverages are the main expenses category for Kenyan households (36%)
followed by housing expenses (18%, incl. electricity, rent) , transport (9%) and
clothing and footwear (7%)
1.
2.
3
4
5
6
The People – key takings
“In Kenya we are not taught to answer questions which
have not been asked”
• There is a true & different Kenyan character
• Since 2013 (riots post-election) Tribalism – renamed
“community” => sensible issue
• Out of the 43 tribes existing in Kenya, daily
interaction is limited to approx. 8/10 tribes.
• People in Nairobi have now developed their own
character
• Overall, Kenyans are open to foreigners, seen as “opportunities”
• The national motto of Kenyans is “what is it in for me”
• Welcoming by nature, the Kenyans cannot support aggressive language (never
shout!), but understand / respect authority
• Corruption is everywhere, despite continuous calls for action from all part of the
society and foreign partners, nothing seems to change and nothing will probably
change soon. Most of the money (corrupted money) is reinvested in the country.
7
8
9
Population profile & Pen Portrait – Key takings
 First of all, this is important when retailing to Africa not to confuse Wealth and
Development. Most of the Kenyans do not have money in bank but own cows or lands.
For this reason, figures (such as Socio-Economic group) should be analysed with caution.
 4 key customer segments have been identified:
1. the Rural (they depend on their production to eat and pay the school fees –
their quality of life depend on rain season),
2. the BOP – Below of Poverty line (casual workers living in Nairobi slums,
fighting every day to ensure that kids eat something before going to school),
3. the Middle-Class Urban (living in Nairobi, in flats, shopping twice a month at
Nakumatt or Tuskies, have invested in land or trying to buy land in their
village) and
4. the Top Level (top executives or business owners, have a large house,
children studying abroad, have large plot of land in the country side).
10
11
Purchasing behaviours & trends - Key takings
 In Kenya, shopping is an activity on its own and is highly planned, if not ritualized.
For most people, it is planned with limited impulse purchase, done with a list
 Most often done by the wife, with the kids over the week end. Smaller shopping can
be done by the maid or children. Kenyans use informal sources of supply for milk,
meat, veggies, etc.
 Kenyans are loyal to their main brands (based on trust and respect relationship),
however affordability is key.
 There are differences in shopping behaviours according to the Consumer Segment
and Revenue. See slides below.
READ: TOP 10 Brands in Kenya
https://softkenya.com/kenya/top10-brands-in-kenya/
A List Of The 20 Biggest Brands In Kenya In 2017 Has Been Unveiled
http://omgvoice.com/news/list-biggest-brands-kenya-2017/
12
13
Retail environment – key takings
Only recently, modern distribution has reached over 50% volume share across most
categories
 Modern distribution is now developing very fast. We are using the presence of a
supermarket in a town to define it as Urban center
Traditional distribution is progressively shrinking
 Kiosks and “Dukas” used to be handling a huge volume of daily consumption and
are now declining sharply: almost disappearing in urban residential centers
 Driven by development of large estates/gated communities, proximity stores are
progressively taking over in mid and upper classes locations
 Police checks, alcohol blows and attempt to control consumption of alcohol by
restrictive laws encourage this trend from consumption & shopping in the close
neighbourhood
 In the meantime, hard push from the government to collect taxes discourages
informal retail
Modern distribution: Convenience stores
− Petrol station & service bay are important location/retail for small shopping . These
places are important meeting points for friends and families: to eat & drink nearby (
bar & Nyama Choma place), with bouncing castle over the week end for children ,
and place to clean and wash the cars (a low middle class “ritual”).

We have identified two opposite trends in shopping habits (see details in the following
slides)
1. Small SKUs -Increase affordability
2. Big quantities - Reducing prices/costs
READ
Nakumatt closes branch in city centre, blames poor sales
http://nairobinews.nation.co.ke/news/nakumatt-closes-branch-city-centre-blames-poor-sales/
East Africa’s biggest retailer has sold a 25% stake to an international investor
https://qz.com/890060/kenyas-nakumatt-just-hired-a-tesco-veteran-after-selling-25-stake/
Ouverture du 1er hypermarché carrefour au Kenya
http://www.carrefour.com/fr/actualites/ouverture-du-1er-hypermarche-carrefour-au-kenya
Kenya: first carrefour hypermarket store opens at the hub mall, karen
http://allafrica.com/stories/201605180106.html
14
15
16
Money, Banking & insurance – Key takings
 Overall there is a complete lack of trust toward banking industry :
 Every now and then, some banks collapse, most of the time fraudulently (Imperial
Bank & Chase Bank in 2016 only)
 Rates of transaction are perceived as prohibitive
 Banks are too formal. Complicated, not helping enough & Arrogant
 International Banks are less accessible and have long and tedious process for
financing or account openings
 When it comes to investment: low return while other options can provide higher
return
 Financing projects: Generally Kenyans don’t like borrow money formally (loans &
mortgages) and will avoid doing so as much as possible.
 Deeply rooted mistrust toward the banking system and what is perceived as big
institutions
 High cost perceived: why paying twice the price of the asset?
 Feeling of uncertainty about the future
 Use as far as possible, other solutions such as the tontine system (Harambee)
 Insurance (except car insurance) are not in well anchored in the local culture/habits.
The concept of anticipating the risk is not widely spread: the attitude is to save
money – not to cover risks. Furthermore there is no trust toward the institutions.
17
18
19
Mobile phone market – Key takings
 Safaricom has been leading the market now for about 15 years
 Mpesa is a key factor but the company has been diversifying its activity: TV box,
Optic fiber, Applications, Finances, Etc. Overtime, Mpsea has become the backbone
of the economy and daily life. “When Mpesa is down, it is like the entire life is on
standstill…!
 Some of the benefits of Mpsea :
 Can reach anyone across the country, including in the very remote places
 “ Before we used to send money through the bus driver to the village”
 Trustworthy, convenient, widely accepted across the country
 No security issues, no scams
 Competitors have been trying to file a case against Safaricom for dominant position
– so far with no success. The government tried to force a separation between
Safaricom and Mpesa –so far with no success.
 However, new initiatives are now coming out which could potentially challenge
Safaricom: Equitel, PesaLink, etc.
 Mobile phone has become the key access to internet and its
services. In people’s mind, Safaricom and Mpesa have
both been contributing to this success. Both brands are
actually recognised and appreciated. Both actually did
make a difference in people’s life and this cannot be
forgotten.
 The convergence and the services attached are even
more critical in Kenya as many of these services were
just not available before: they come and are discovered
for the first time through the mobile phone
READ: Safaricom tops the list of most influential brands in Kenya Read more:
https://www.tuko.co.ke/109978-top-10-most-influential-brands-in-kenya-number-one-
seems-obvious.html
20
21
22
Opportunities - key takings
1. Traditional distribution: mitumba : An estimated $1.1 million per month, 100,000 tones
of secondhand clothes a year, Selling price: from Ksh. 100 to Ksh. 1,000
2. Cosmetic and Beauty : An estimated Euro 10 billion market in 2017 across Africa . Driven
mainly women entrepreneurs. Double digit growth over the last 10 years. Boost by the
Young population, increasing middle class with higher disposable income, increasingly
urbanisation.
3. Other interesting sectors are :
 Agro-business
 Industrial farming
 Construction (infrastructure & housing)
 Real estate
 Car import
 Transport
 ICT (Technology, programing, software, etc.)
 Fashion
 Health/Pharmaceutical
 Education
 Power generation
 Finances investment

4. Global business is facing tough challenges while local players are gaining momentum
 After the financial crisis, many multinationals have sometime brutally disinvested
or have not invested enough when markets where growing in Africa, thus leaving
a vacuum.
 This happened while local competition is stepping up fast and is improving quality
of services and products offered to local the market.
 Large multinationals remain challenged with excessive centralization of decision:
too often key decisions are made at head office and are not best fitted for Africa
while local players can move and react much faster as they know the local
markets
 Multinational are fighting here an asymmetric warfare against local businesses
and many are actually struggling to get return, just sustain or penetrate the
market
 Furthermore, many consumer categories have seen the number of players
increasing (cosmetics, distribution, spirits & alcohol, etc. ), from both
international and local companies, increasing significantly the level of
competitiveness
READ : Nestlé cuts Africa workforce as middle class growth disappoints
https://www.ft.com/content/de2aa98e-1360-11e5-ad26-00144feabdc0
http://www.nestle.com/media/news/nestle-positive-about-africa-future
Nice & Lovely représente désormais 2/3 des ventes de L’Oreal en Afrique orientale
23
http://www.agenceecofin.com/industrie/2105-20165-nice-lovely-represente-desormais-
2/3-des-ventes-de-l-oreal-en-afrique-orientale
5. Local Entrepreneurs Increasingly take the Lead :
 There is an increasing inclination toward local brands/companies: Progressively
a shift in consumer mindset is happening in favor, at least for some categories, of
local brands and local companies. Consumer word: “her fight is our fight”.
 Local Entrepreneurs have eeasier access to financing through local banking
system and access to cheaper manufacturing capabilities from China are making
possible investments & ventures which would have been unthinkable a few years
back
 They have better ability to identify/recruit & retain best resources : In the
meantime, large multinationals find it harder and harder to attract and retain
best talents who have knowledge of the local market
 And the New generation: “don’t care about the big corporates anymore…” :
While previous generation was more concerned about a career in formal business
or an international company, the young generation is eager to become
entrepreneurs, is ready to drive innovation and to take risk to succeed
READ : The female Kenyan brewer taking on a global drinks giant
- http://www.bbc.com/news/business-32495853
- Kilimall courts local brands to grow its market in Kenya
- https://businesstoday.co.ke/kilimall-courts-local-brands-to-grow-its-market-in-kenya/
Kilimall launches global shopping service in Kenya
https://www.standardmedia.co.ke/business/article/2000221755/kilimall-launches-
global-shopping-service-in-kenyamarket-in-kenya/
-
:
24
CONCLUSIONS
Few points to remember on KENYA market and consumers
Economic Environment:
- A pretty stable environment and pretty protected legal with strong ambitions: it is progressively
happening!
- A fast growing economy, progressively becoming more sophisticated, improving infrastructure
- The economy is becoming progressively more formal
Customer and Market Environment
- Copy pasted solutions don’t work: African situation require African solutions + need to balance with
global solutions
- Heritage is not enough anymore: need to make a change in people life to get credit
- New generation is ambitious but has no time, want to make money fast…. !
- Local entrepreneurs are now extremely aggressive; depending on sectors: distribution is critical
- Almost 50% of the population still leaves below the poverty line: this requires adapted strategies….
More information and quotations:
Nathalie JOB – Analysis Group / Kantar TNS / nathalie@kantartns.io
Katouskia SAWMY – Kantar TNS / Katouskia@kantartnsio.io
T + 230 202 00 55

More Related Content

Similar to Decoding the Kenyan consumer

Investing in Africa successfully & sustainably
Investing in Africa successfully & sustainablyInvesting in Africa successfully & sustainably
Investing in Africa successfully & sustainably
James Mwangi
 
Trade Marketing Proposal for Sunking
Trade Marketing Proposal for SunkingTrade Marketing Proposal for Sunking
Trade Marketing Proposal for Sunking
Daniel Emeka
 
Beyond Scaling Up: Mobile banking in Africa
Beyond Scaling Up: Mobile banking in AfricaBeyond Scaling Up: Mobile banking in Africa
Beyond Scaling Up: Mobile banking in Africa
IDS
 
Selling to the_poor
Selling to the_poorSelling to the_poor
Selling to the_poor
mahenjayasinghe
 
Slf informal-economy-overview-final
Slf informal-economy-overview-finalSlf informal-economy-overview-final
Slf informal-economy-overview-final
Dr Lendy Spires
 
Lisa Hanna Sectoral Debate 2016
Lisa Hanna Sectoral Debate 2016 Lisa Hanna Sectoral Debate 2016
Lisa Hanna Sectoral Debate 2016
Corve DaCosta
 
3 guy thompson export
3 guy thompson export3 guy thompson export
3 guy thompson export
CCR-interactive
 
Financial Inclusion: Landscape and Challenges
Financial Inclusion: Landscape and ChallengesFinancial Inclusion: Landscape and Challenges
Financial Inclusion: Landscape and Challenges
JohnnyRizq
 
IE Application Essay. Question G
IE Application Essay. Question GIE Application Essay. Question G
IE Application Essay. Question G
Bradk
 
Braley_International2015
Braley_International2015Braley_International2015
Braley_International2015
Diana Braley
 
Report Writing
Report WritingReport Writing
Report Writing
Muhammad Miqdad
 
Brussels Briefing 44: Fredrick Masinde, Business Development Manager, Undugu ...
Brussels Briefing 44: Fredrick Masinde, Business Development Manager, Undugu ...Brussels Briefing 44: Fredrick Masinde, Business Development Manager, Undugu ...
Brussels Briefing 44: Fredrick Masinde, Business Development Manager, Undugu ...
Brussels Briefings (brusselsbriefings.net)
 
China Asean Philippines Import Online Trading with Ecommerce102
China Asean Philippines Import Online Trading with Ecommerce102 China Asean Philippines Import Online Trading with Ecommerce102
China Asean Philippines Import Online Trading with Ecommerce102
Eireen Diokno - Bernardo
 
PCM-Vol.-1-Issue-7
PCM-Vol.-1-Issue-7PCM-Vol.-1-Issue-7
PCM-Vol.-1-Issue-7
Rogier Rouppe van der Voort
 
Caribbean_Economies_In_A_Global_Environment.docx
Caribbean_Economies_In_A_Global_Environment.docxCaribbean_Economies_In_A_Global_Environment.docx
Caribbean_Economies_In_A_Global_Environment.docx
AsherSmith5
 
A report on village survey
A report on village surveyA report on village survey
A report on village survey
Shally Singh
 
IE Application Essay Question C
IE Application Essay Question CIE Application Essay Question C
IE Application Essay Question C
Bradk
 
Fortune at the bottom of the pyramid
Fortune at the bottom of the pyramidFortune at the bottom of the pyramid
Fortune at the bottom of the pyramid
Gopal Kumar
 
Marketing Innovation In India
Marketing Innovation In IndiaMarketing Innovation In India
Marketing Innovation In India
The Added Value Group
 
Uptown Condo
Uptown CondoUptown Condo
Uptown Condo
Carla Jardine
 

Similar to Decoding the Kenyan consumer (20)

Investing in Africa successfully & sustainably
Investing in Africa successfully & sustainablyInvesting in Africa successfully & sustainably
Investing in Africa successfully & sustainably
 
Trade Marketing Proposal for Sunking
Trade Marketing Proposal for SunkingTrade Marketing Proposal for Sunking
Trade Marketing Proposal for Sunking
 
Beyond Scaling Up: Mobile banking in Africa
Beyond Scaling Up: Mobile banking in AfricaBeyond Scaling Up: Mobile banking in Africa
Beyond Scaling Up: Mobile banking in Africa
 
Selling to the_poor
Selling to the_poorSelling to the_poor
Selling to the_poor
 
Slf informal-economy-overview-final
Slf informal-economy-overview-finalSlf informal-economy-overview-final
Slf informal-economy-overview-final
 
Lisa Hanna Sectoral Debate 2016
Lisa Hanna Sectoral Debate 2016 Lisa Hanna Sectoral Debate 2016
Lisa Hanna Sectoral Debate 2016
 
3 guy thompson export
3 guy thompson export3 guy thompson export
3 guy thompson export
 
Financial Inclusion: Landscape and Challenges
Financial Inclusion: Landscape and ChallengesFinancial Inclusion: Landscape and Challenges
Financial Inclusion: Landscape and Challenges
 
IE Application Essay. Question G
IE Application Essay. Question GIE Application Essay. Question G
IE Application Essay. Question G
 
Braley_International2015
Braley_International2015Braley_International2015
Braley_International2015
 
Report Writing
Report WritingReport Writing
Report Writing
 
Brussels Briefing 44: Fredrick Masinde, Business Development Manager, Undugu ...
Brussels Briefing 44: Fredrick Masinde, Business Development Manager, Undugu ...Brussels Briefing 44: Fredrick Masinde, Business Development Manager, Undugu ...
Brussels Briefing 44: Fredrick Masinde, Business Development Manager, Undugu ...
 
China Asean Philippines Import Online Trading with Ecommerce102
China Asean Philippines Import Online Trading with Ecommerce102 China Asean Philippines Import Online Trading with Ecommerce102
China Asean Philippines Import Online Trading with Ecommerce102
 
PCM-Vol.-1-Issue-7
PCM-Vol.-1-Issue-7PCM-Vol.-1-Issue-7
PCM-Vol.-1-Issue-7
 
Caribbean_Economies_In_A_Global_Environment.docx
Caribbean_Economies_In_A_Global_Environment.docxCaribbean_Economies_In_A_Global_Environment.docx
Caribbean_Economies_In_A_Global_Environment.docx
 
A report on village survey
A report on village surveyA report on village survey
A report on village survey
 
IE Application Essay Question C
IE Application Essay Question CIE Application Essay Question C
IE Application Essay Question C
 
Fortune at the bottom of the pyramid
Fortune at the bottom of the pyramidFortune at the bottom of the pyramid
Fortune at the bottom of the pyramid
 
Marketing Innovation In India
Marketing Innovation In IndiaMarketing Innovation In India
Marketing Innovation In India
 
Uptown Condo
Uptown CondoUptown Condo
Uptown Condo
 

More from AIM Analysis Institute of Management

Market intelligence kantar fr
Market intelligence kantar frMarket intelligence kantar fr
Market intelligence kantar fr
AIM Analysis Institute of Management
 
CCI Consumer Confidence Survey Mars Avril 2017
CCI Consumer Confidence Survey Mars Avril 2017CCI Consumer Confidence Survey Mars Avril 2017
CCI Consumer Confidence Survey Mars Avril 2017
AIM Analysis Institute of Management
 
Newsletter #8 club afrique - iae- paris alumni vf
Newsletter #8   club afrique - iae-  paris alumni vfNewsletter #8   club afrique - iae-  paris alumni vf
Newsletter #8 club afrique - iae- paris alumni vf
AIM Analysis Institute of Management
 
Kantar tns mauritiantop brands 2017
Kantar tns mauritiantop brands 2017Kantar tns mauritiantop brands 2017
Kantar tns mauritiantop brands 2017
AIM Analysis Institute of Management
 
Brochure mbaip 2017
Brochure mbaip 2017 Brochure mbaip 2017
Conference Kenya 27 march 2017
Conference Kenya 27 march 2017Conference Kenya 27 march 2017
Conference Kenya 27 march 2017
AIM Analysis Institute of Management
 
Calendrier des cours de AIM
Calendrier des cours de AIMCalendrier des cours de AIM
Calendrier des cours de AIM
AIM Analysis Institute of Management
 
Focus RETAIL 2016
Focus RETAIL 2016 Focus RETAIL 2016
Infographie Indice de confiance du consommateur mauricien - 3eme trimestre 2016
Infographie  Indice de confiance du consommateur mauricien - 3eme trimestre 2016Infographie  Indice de confiance du consommateur mauricien - 3eme trimestre 2016
Infographie Indice de confiance du consommateur mauricien - 3eme trimestre 2016
AIM Analysis Institute of Management
 

More from AIM Analysis Institute of Management (9)

Market intelligence kantar fr
Market intelligence kantar frMarket intelligence kantar fr
Market intelligence kantar fr
 
CCI Consumer Confidence Survey Mars Avril 2017
CCI Consumer Confidence Survey Mars Avril 2017CCI Consumer Confidence Survey Mars Avril 2017
CCI Consumer Confidence Survey Mars Avril 2017
 
Newsletter #8 club afrique - iae- paris alumni vf
Newsletter #8   club afrique - iae-  paris alumni vfNewsletter #8   club afrique - iae-  paris alumni vf
Newsletter #8 club afrique - iae- paris alumni vf
 
Kantar tns mauritiantop brands 2017
Kantar tns mauritiantop brands 2017Kantar tns mauritiantop brands 2017
Kantar tns mauritiantop brands 2017
 
Brochure mbaip 2017
Brochure mbaip 2017 Brochure mbaip 2017
Brochure mbaip 2017
 
Conference Kenya 27 march 2017
Conference Kenya 27 march 2017Conference Kenya 27 march 2017
Conference Kenya 27 march 2017
 
Calendrier des cours de AIM
Calendrier des cours de AIMCalendrier des cours de AIM
Calendrier des cours de AIM
 
Focus RETAIL 2016
Focus RETAIL 2016 Focus RETAIL 2016
Focus RETAIL 2016
 
Infographie Indice de confiance du consommateur mauricien - 3eme trimestre 2016
Infographie  Indice de confiance du consommateur mauricien - 3eme trimestre 2016Infographie  Indice de confiance du consommateur mauricien - 3eme trimestre 2016
Infographie Indice de confiance du consommateur mauricien - 3eme trimestre 2016
 

Recently uploaded

一比一原版英国赫特福德大学毕业证(hertfordshire毕业证书)如何办理
一比一原版英国赫特福德大学毕业证(hertfordshire毕业证书)如何办理一比一原版英国赫特福德大学毕业证(hertfordshire毕业证书)如何办理
一比一原版英国赫特福德大学毕业证(hertfordshire毕业证书)如何办理
nyvan3
 
Build applications with generative AI on Google Cloud
Build applications with generative AI on Google CloudBuild applications with generative AI on Google Cloud
Build applications with generative AI on Google Cloud
Márton Kodok
 
University of New South Wales degree offer diploma Transcript
University of New South Wales degree offer diploma TranscriptUniversity of New South Wales degree offer diploma Transcript
University of New South Wales degree offer diploma Transcript
soxrziqu
 
社内勉強会資料_Hallucination of LLMs               .
社内勉強会資料_Hallucination of LLMs               .社内勉強会資料_Hallucination of LLMs               .
社内勉強会資料_Hallucination of LLMs               .
NABLAS株式会社
 
Beyond the Basics of A/B Tests: Highly Innovative Experimentation Tactics You...
Beyond the Basics of A/B Tests: Highly Innovative Experimentation Tactics You...Beyond the Basics of A/B Tests: Highly Innovative Experimentation Tactics You...
Beyond the Basics of A/B Tests: Highly Innovative Experimentation Tactics You...
Aggregage
 
Template xxxxxxxx ssssssssssss Sertifikat.pptx
Template xxxxxxxx ssssssssssss Sertifikat.pptxTemplate xxxxxxxx ssssssssssss Sertifikat.pptx
Template xxxxxxxx ssssssssssss Sertifikat.pptx
TeukuEriSyahputra
 
4th Modern Marketing Reckoner by MMA Global India & Group M: 60+ experts on W...
4th Modern Marketing Reckoner by MMA Global India & Group M: 60+ experts on W...4th Modern Marketing Reckoner by MMA Global India & Group M: 60+ experts on W...
4th Modern Marketing Reckoner by MMA Global India & Group M: 60+ experts on W...
Social Samosa
 
End-to-end pipeline agility - Berlin Buzzwords 2024
End-to-end pipeline agility - Berlin Buzzwords 2024End-to-end pipeline agility - Berlin Buzzwords 2024
End-to-end pipeline agility - Berlin Buzzwords 2024
Lars Albertsson
 
原版制作(unimelb毕业证书)墨尔本大学毕业证Offer一模一样
原版制作(unimelb毕业证书)墨尔本大学毕业证Offer一模一样原版制作(unimelb毕业证书)墨尔本大学毕业证Offer一模一样
原版制作(unimelb毕业证书)墨尔本大学毕业证Offer一模一样
ihavuls
 
一比一原版卡尔加里大学毕业证(uc毕业证)如何办理
一比一原版卡尔加里大学毕业证(uc毕业证)如何办理一比一原版卡尔加里大学毕业证(uc毕业证)如何办理
一比一原版卡尔加里大学毕业证(uc毕业证)如何办理
oaxefes
 
[VCOSA] Monthly Report - Cotton & Yarn Statistics March 2024
[VCOSA] Monthly Report - Cotton & Yarn Statistics March 2024[VCOSA] Monthly Report - Cotton & Yarn Statistics March 2024
[VCOSA] Monthly Report - Cotton & Yarn Statistics March 2024
Vietnam Cotton & Spinning Association
 
Cell The Unit of Life for NEET Multiple Choice Questions.docx
Cell The Unit of Life for NEET Multiple Choice Questions.docxCell The Unit of Life for NEET Multiple Choice Questions.docx
Cell The Unit of Life for NEET Multiple Choice Questions.docx
vasanthatpuram
 
Orchestrating the Future: Navigating Today's Data Workflow Challenges with Ai...
Orchestrating the Future: Navigating Today's Data Workflow Challenges with Ai...Orchestrating the Future: Navigating Today's Data Workflow Challenges with Ai...
Orchestrating the Future: Navigating Today's Data Workflow Challenges with Ai...
Kaxil Naik
 
一比一原版兰加拉学院毕业证(Langara毕业证书)学历如何办理
一比一原版兰加拉学院毕业证(Langara毕业证书)学历如何办理一比一原版兰加拉学院毕业证(Langara毕业证书)学历如何办理
一比一原版兰加拉学院毕业证(Langara毕业证书)学历如何办理
hyfjgavov
 
一比一原版(Sheffield毕业证书)谢菲尔德大学毕业证如何办理
一比一原版(Sheffield毕业证书)谢菲尔德大学毕业证如何办理一比一原版(Sheffield毕业证书)谢菲尔德大学毕业证如何办理
一比一原版(Sheffield毕业证书)谢菲尔德大学毕业证如何办理
1tyxnjpia
 
一比一原版(UO毕业证)渥太华大学毕业证如何办理
一比一原版(UO毕业证)渥太华大学毕业证如何办理一比一原版(UO毕业证)渥太华大学毕业证如何办理
一比一原版(UO毕业证)渥太华大学毕业证如何办理
bmucuha
 
一比一原版(UO毕业证)渥太华大学毕业证如何办理
一比一原版(UO毕业证)渥太华大学毕业证如何办理一比一原版(UO毕业证)渥太华大学毕业证如何办理
一比一原版(UO毕业证)渥太华大学毕业证如何办理
aqzctr7x
 
一比一原版(harvard毕业证书)哈佛大学毕业证如何办理
一比一原版(harvard毕业证书)哈佛大学毕业证如何办理一比一原版(harvard毕业证书)哈佛大学毕业证如何办理
一比一原版(harvard毕业证书)哈佛大学毕业证如何办理
taqyea
 
Palo Alto Cortex XDR presentation .......
Palo Alto Cortex XDR presentation .......Palo Alto Cortex XDR presentation .......
Palo Alto Cortex XDR presentation .......
Sachin Paul
 
一比一原版多伦多大学毕业证(UofT毕业证书)学历如何办理
一比一原版多伦多大学毕业证(UofT毕业证书)学历如何办理一比一原版多伦多大学毕业证(UofT毕业证书)学历如何办理
一比一原版多伦多大学毕业证(UofT毕业证书)学历如何办理
eoxhsaa
 

Recently uploaded (20)

一比一原版英国赫特福德大学毕业证(hertfordshire毕业证书)如何办理
一比一原版英国赫特福德大学毕业证(hertfordshire毕业证书)如何办理一比一原版英国赫特福德大学毕业证(hertfordshire毕业证书)如何办理
一比一原版英国赫特福德大学毕业证(hertfordshire毕业证书)如何办理
 
Build applications with generative AI on Google Cloud
Build applications with generative AI on Google CloudBuild applications with generative AI on Google Cloud
Build applications with generative AI on Google Cloud
 
University of New South Wales degree offer diploma Transcript
University of New South Wales degree offer diploma TranscriptUniversity of New South Wales degree offer diploma Transcript
University of New South Wales degree offer diploma Transcript
 
社内勉強会資料_Hallucination of LLMs               .
社内勉強会資料_Hallucination of LLMs               .社内勉強会資料_Hallucination of LLMs               .
社内勉強会資料_Hallucination of LLMs               .
 
Beyond the Basics of A/B Tests: Highly Innovative Experimentation Tactics You...
Beyond the Basics of A/B Tests: Highly Innovative Experimentation Tactics You...Beyond the Basics of A/B Tests: Highly Innovative Experimentation Tactics You...
Beyond the Basics of A/B Tests: Highly Innovative Experimentation Tactics You...
 
Template xxxxxxxx ssssssssssss Sertifikat.pptx
Template xxxxxxxx ssssssssssss Sertifikat.pptxTemplate xxxxxxxx ssssssssssss Sertifikat.pptx
Template xxxxxxxx ssssssssssss Sertifikat.pptx
 
4th Modern Marketing Reckoner by MMA Global India & Group M: 60+ experts on W...
4th Modern Marketing Reckoner by MMA Global India & Group M: 60+ experts on W...4th Modern Marketing Reckoner by MMA Global India & Group M: 60+ experts on W...
4th Modern Marketing Reckoner by MMA Global India & Group M: 60+ experts on W...
 
End-to-end pipeline agility - Berlin Buzzwords 2024
End-to-end pipeline agility - Berlin Buzzwords 2024End-to-end pipeline agility - Berlin Buzzwords 2024
End-to-end pipeline agility - Berlin Buzzwords 2024
 
原版制作(unimelb毕业证书)墨尔本大学毕业证Offer一模一样
原版制作(unimelb毕业证书)墨尔本大学毕业证Offer一模一样原版制作(unimelb毕业证书)墨尔本大学毕业证Offer一模一样
原版制作(unimelb毕业证书)墨尔本大学毕业证Offer一模一样
 
一比一原版卡尔加里大学毕业证(uc毕业证)如何办理
一比一原版卡尔加里大学毕业证(uc毕业证)如何办理一比一原版卡尔加里大学毕业证(uc毕业证)如何办理
一比一原版卡尔加里大学毕业证(uc毕业证)如何办理
 
[VCOSA] Monthly Report - Cotton & Yarn Statistics March 2024
[VCOSA] Monthly Report - Cotton & Yarn Statistics March 2024[VCOSA] Monthly Report - Cotton & Yarn Statistics March 2024
[VCOSA] Monthly Report - Cotton & Yarn Statistics March 2024
 
Cell The Unit of Life for NEET Multiple Choice Questions.docx
Cell The Unit of Life for NEET Multiple Choice Questions.docxCell The Unit of Life for NEET Multiple Choice Questions.docx
Cell The Unit of Life for NEET Multiple Choice Questions.docx
 
Orchestrating the Future: Navigating Today's Data Workflow Challenges with Ai...
Orchestrating the Future: Navigating Today's Data Workflow Challenges with Ai...Orchestrating the Future: Navigating Today's Data Workflow Challenges with Ai...
Orchestrating the Future: Navigating Today's Data Workflow Challenges with Ai...
 
一比一原版兰加拉学院毕业证(Langara毕业证书)学历如何办理
一比一原版兰加拉学院毕业证(Langara毕业证书)学历如何办理一比一原版兰加拉学院毕业证(Langara毕业证书)学历如何办理
一比一原版兰加拉学院毕业证(Langara毕业证书)学历如何办理
 
一比一原版(Sheffield毕业证书)谢菲尔德大学毕业证如何办理
一比一原版(Sheffield毕业证书)谢菲尔德大学毕业证如何办理一比一原版(Sheffield毕业证书)谢菲尔德大学毕业证如何办理
一比一原版(Sheffield毕业证书)谢菲尔德大学毕业证如何办理
 
一比一原版(UO毕业证)渥太华大学毕业证如何办理
一比一原版(UO毕业证)渥太华大学毕业证如何办理一比一原版(UO毕业证)渥太华大学毕业证如何办理
一比一原版(UO毕业证)渥太华大学毕业证如何办理
 
一比一原版(UO毕业证)渥太华大学毕业证如何办理
一比一原版(UO毕业证)渥太华大学毕业证如何办理一比一原版(UO毕业证)渥太华大学毕业证如何办理
一比一原版(UO毕业证)渥太华大学毕业证如何办理
 
一比一原版(harvard毕业证书)哈佛大学毕业证如何办理
一比一原版(harvard毕业证书)哈佛大学毕业证如何办理一比一原版(harvard毕业证书)哈佛大学毕业证如何办理
一比一原版(harvard毕业证书)哈佛大学毕业证如何办理
 
Palo Alto Cortex XDR presentation .......
Palo Alto Cortex XDR presentation .......Palo Alto Cortex XDR presentation .......
Palo Alto Cortex XDR presentation .......
 
一比一原版多伦多大学毕业证(UofT毕业证书)学历如何办理
一比一原版多伦多大学毕业证(UofT毕业证书)学历如何办理一比一原版多伦多大学毕业证(UofT毕业证书)学历如何办理
一比一原版多伦多大学毕业证(UofT毕业证书)学历如何办理
 

Decoding the Kenyan consumer

  • 1. 1 Contents The Market Environment – key takings..................................................................................................2 The People – key takings.........................................................................................................................6 Population profile & Pen Portrait – Key takings .....................................................................................9 Purchasing behaviours & trends - Key takings.....................................................................................11 Retail environment – key takings..........................................................................................................13 Money, Banking & insurance – Key takings..........................................................................................16 Opportunities - key takings...................................................................................................................22 CONCLUSIONS.......................................................................................................................................24 Decoding the Kenyan Consumer Executive Summary Workshop organised on 27th March 2017 Key Speakers: Eric Reingewertz, Bilkiss Jownally and Virginie Villeneuve We can help you to go further in your project : How? Before the launching of the project: Analyse the opportunity for your product and service and Improve your offer 1. Market potential survey – qualitative and quantitative 2. Competitive Analysis 3. Concept and Product Test Survey: to estimate the acceptability of your service, product, brand and price 4. Develop a Brand and Marketing Strategy (retail and communication) 5. Identify local partners for retail and communication After the launching of the project: Evaluate the impact of your marketing and retail strategy and Re-align: a. Monitor your market penetration / share b. Monitor your advertising impact and brand presence c. Evaluate the consumer / customer feedbacks d. Audit the retail and communication organisation
  • 2. 2 The Market Environment – key takings 1. Kenya is one of the most promising countries in Africa : a GDP growth above 6%, a GDP per capita of 1400 USD (Ethiopia = 600, Tanzania = 880, Madagascar = 400, Uganda= 800, Cote d’ Ivoire = 1400 and Mauritius = 9200), a young population of more than 52 million (41% <14 years old) 2. 42% of the GDP is still derived from natural resources 3. We note a significant growth in some key sectors over the period 2011-2015: Agriculture; Construction; Finance & insurance; Real Estate 4. The urbanisation in Kenya is quite strong: the population of Nairobi and Kiambu (close to Nairobi) represents more than 4 million people. 5. 83% of registered employment (excluding agricultural and pastoral activities) are connected with the traditional sector (essentially trade). 6. Food and Beverages are the main expenses category for Kenyan households (36%) followed by housing expenses (18%, incl. electricity, rent) , transport (9%) and clothing and footwear (7%) 1. 2.
  • 3. 3
  • 4. 4
  • 5. 5
  • 6. 6 The People – key takings “In Kenya we are not taught to answer questions which have not been asked” • There is a true & different Kenyan character • Since 2013 (riots post-election) Tribalism – renamed “community” => sensible issue • Out of the 43 tribes existing in Kenya, daily interaction is limited to approx. 8/10 tribes. • People in Nairobi have now developed their own character • Overall, Kenyans are open to foreigners, seen as “opportunities” • The national motto of Kenyans is “what is it in for me” • Welcoming by nature, the Kenyans cannot support aggressive language (never shout!), but understand / respect authority • Corruption is everywhere, despite continuous calls for action from all part of the society and foreign partners, nothing seems to change and nothing will probably change soon. Most of the money (corrupted money) is reinvested in the country.
  • 7. 7
  • 8. 8
  • 9. 9 Population profile & Pen Portrait – Key takings  First of all, this is important when retailing to Africa not to confuse Wealth and Development. Most of the Kenyans do not have money in bank but own cows or lands. For this reason, figures (such as Socio-Economic group) should be analysed with caution.  4 key customer segments have been identified: 1. the Rural (they depend on their production to eat and pay the school fees – their quality of life depend on rain season), 2. the BOP – Below of Poverty line (casual workers living in Nairobi slums, fighting every day to ensure that kids eat something before going to school), 3. the Middle-Class Urban (living in Nairobi, in flats, shopping twice a month at Nakumatt or Tuskies, have invested in land or trying to buy land in their village) and 4. the Top Level (top executives or business owners, have a large house, children studying abroad, have large plot of land in the country side).
  • 10. 10
  • 11. 11 Purchasing behaviours & trends - Key takings  In Kenya, shopping is an activity on its own and is highly planned, if not ritualized. For most people, it is planned with limited impulse purchase, done with a list  Most often done by the wife, with the kids over the week end. Smaller shopping can be done by the maid or children. Kenyans use informal sources of supply for milk, meat, veggies, etc.  Kenyans are loyal to their main brands (based on trust and respect relationship), however affordability is key.  There are differences in shopping behaviours according to the Consumer Segment and Revenue. See slides below. READ: TOP 10 Brands in Kenya https://softkenya.com/kenya/top10-brands-in-kenya/ A List Of The 20 Biggest Brands In Kenya In 2017 Has Been Unveiled http://omgvoice.com/news/list-biggest-brands-kenya-2017/
  • 12. 12
  • 13. 13 Retail environment – key takings Only recently, modern distribution has reached over 50% volume share across most categories  Modern distribution is now developing very fast. We are using the presence of a supermarket in a town to define it as Urban center Traditional distribution is progressively shrinking  Kiosks and “Dukas” used to be handling a huge volume of daily consumption and are now declining sharply: almost disappearing in urban residential centers  Driven by development of large estates/gated communities, proximity stores are progressively taking over in mid and upper classes locations  Police checks, alcohol blows and attempt to control consumption of alcohol by restrictive laws encourage this trend from consumption & shopping in the close neighbourhood  In the meantime, hard push from the government to collect taxes discourages informal retail Modern distribution: Convenience stores − Petrol station & service bay are important location/retail for small shopping . These places are important meeting points for friends and families: to eat & drink nearby ( bar & Nyama Choma place), with bouncing castle over the week end for children , and place to clean and wash the cars (a low middle class “ritual”).  We have identified two opposite trends in shopping habits (see details in the following slides) 1. Small SKUs -Increase affordability 2. Big quantities - Reducing prices/costs READ Nakumatt closes branch in city centre, blames poor sales http://nairobinews.nation.co.ke/news/nakumatt-closes-branch-city-centre-blames-poor-sales/ East Africa’s biggest retailer has sold a 25% stake to an international investor https://qz.com/890060/kenyas-nakumatt-just-hired-a-tesco-veteran-after-selling-25-stake/ Ouverture du 1er hypermarché carrefour au Kenya http://www.carrefour.com/fr/actualites/ouverture-du-1er-hypermarche-carrefour-au-kenya Kenya: first carrefour hypermarket store opens at the hub mall, karen http://allafrica.com/stories/201605180106.html
  • 14. 14
  • 15. 15
  • 16. 16 Money, Banking & insurance – Key takings  Overall there is a complete lack of trust toward banking industry :  Every now and then, some banks collapse, most of the time fraudulently (Imperial Bank & Chase Bank in 2016 only)  Rates of transaction are perceived as prohibitive  Banks are too formal. Complicated, not helping enough & Arrogant  International Banks are less accessible and have long and tedious process for financing or account openings  When it comes to investment: low return while other options can provide higher return  Financing projects: Generally Kenyans don’t like borrow money formally (loans & mortgages) and will avoid doing so as much as possible.  Deeply rooted mistrust toward the banking system and what is perceived as big institutions  High cost perceived: why paying twice the price of the asset?  Feeling of uncertainty about the future  Use as far as possible, other solutions such as the tontine system (Harambee)  Insurance (except car insurance) are not in well anchored in the local culture/habits. The concept of anticipating the risk is not widely spread: the attitude is to save money – not to cover risks. Furthermore there is no trust toward the institutions.
  • 17. 17
  • 18. 18
  • 19. 19 Mobile phone market – Key takings  Safaricom has been leading the market now for about 15 years  Mpesa is a key factor but the company has been diversifying its activity: TV box, Optic fiber, Applications, Finances, Etc. Overtime, Mpsea has become the backbone of the economy and daily life. “When Mpesa is down, it is like the entire life is on standstill…!  Some of the benefits of Mpsea :  Can reach anyone across the country, including in the very remote places  “ Before we used to send money through the bus driver to the village”  Trustworthy, convenient, widely accepted across the country  No security issues, no scams  Competitors have been trying to file a case against Safaricom for dominant position – so far with no success. The government tried to force a separation between Safaricom and Mpesa –so far with no success.  However, new initiatives are now coming out which could potentially challenge Safaricom: Equitel, PesaLink, etc.  Mobile phone has become the key access to internet and its services. In people’s mind, Safaricom and Mpesa have both been contributing to this success. Both brands are actually recognised and appreciated. Both actually did make a difference in people’s life and this cannot be forgotten.  The convergence and the services attached are even more critical in Kenya as many of these services were just not available before: they come and are discovered for the first time through the mobile phone READ: Safaricom tops the list of most influential brands in Kenya Read more: https://www.tuko.co.ke/109978-top-10-most-influential-brands-in-kenya-number-one- seems-obvious.html
  • 20. 20
  • 21. 21
  • 22. 22 Opportunities - key takings 1. Traditional distribution: mitumba : An estimated $1.1 million per month, 100,000 tones of secondhand clothes a year, Selling price: from Ksh. 100 to Ksh. 1,000 2. Cosmetic and Beauty : An estimated Euro 10 billion market in 2017 across Africa . Driven mainly women entrepreneurs. Double digit growth over the last 10 years. Boost by the Young population, increasing middle class with higher disposable income, increasingly urbanisation. 3. Other interesting sectors are :  Agro-business  Industrial farming  Construction (infrastructure & housing)  Real estate  Car import  Transport  ICT (Technology, programing, software, etc.)  Fashion  Health/Pharmaceutical  Education  Power generation  Finances investment  4. Global business is facing tough challenges while local players are gaining momentum  After the financial crisis, many multinationals have sometime brutally disinvested or have not invested enough when markets where growing in Africa, thus leaving a vacuum.  This happened while local competition is stepping up fast and is improving quality of services and products offered to local the market.  Large multinationals remain challenged with excessive centralization of decision: too often key decisions are made at head office and are not best fitted for Africa while local players can move and react much faster as they know the local markets  Multinational are fighting here an asymmetric warfare against local businesses and many are actually struggling to get return, just sustain or penetrate the market  Furthermore, many consumer categories have seen the number of players increasing (cosmetics, distribution, spirits & alcohol, etc. ), from both international and local companies, increasing significantly the level of competitiveness READ : Nestlé cuts Africa workforce as middle class growth disappoints https://www.ft.com/content/de2aa98e-1360-11e5-ad26-00144feabdc0 http://www.nestle.com/media/news/nestle-positive-about-africa-future Nice & Lovely représente désormais 2/3 des ventes de L’Oreal en Afrique orientale
  • 23. 23 http://www.agenceecofin.com/industrie/2105-20165-nice-lovely-represente-desormais- 2/3-des-ventes-de-l-oreal-en-afrique-orientale 5. Local Entrepreneurs Increasingly take the Lead :  There is an increasing inclination toward local brands/companies: Progressively a shift in consumer mindset is happening in favor, at least for some categories, of local brands and local companies. Consumer word: “her fight is our fight”.  Local Entrepreneurs have eeasier access to financing through local banking system and access to cheaper manufacturing capabilities from China are making possible investments & ventures which would have been unthinkable a few years back  They have better ability to identify/recruit & retain best resources : In the meantime, large multinationals find it harder and harder to attract and retain best talents who have knowledge of the local market  And the New generation: “don’t care about the big corporates anymore…” : While previous generation was more concerned about a career in formal business or an international company, the young generation is eager to become entrepreneurs, is ready to drive innovation and to take risk to succeed READ : The female Kenyan brewer taking on a global drinks giant - http://www.bbc.com/news/business-32495853 - Kilimall courts local brands to grow its market in Kenya - https://businesstoday.co.ke/kilimall-courts-local-brands-to-grow-its-market-in-kenya/ Kilimall launches global shopping service in Kenya https://www.standardmedia.co.ke/business/article/2000221755/kilimall-launches- global-shopping-service-in-kenyamarket-in-kenya/ - :
  • 24. 24 CONCLUSIONS Few points to remember on KENYA market and consumers Economic Environment: - A pretty stable environment and pretty protected legal with strong ambitions: it is progressively happening! - A fast growing economy, progressively becoming more sophisticated, improving infrastructure - The economy is becoming progressively more formal Customer and Market Environment - Copy pasted solutions don’t work: African situation require African solutions + need to balance with global solutions - Heritage is not enough anymore: need to make a change in people life to get credit - New generation is ambitious but has no time, want to make money fast…. ! - Local entrepreneurs are now extremely aggressive; depending on sectors: distribution is critical - Almost 50% of the population still leaves below the poverty line: this requires adapted strategies…. More information and quotations: Nathalie JOB – Analysis Group / Kantar TNS / nathalie@kantartns.io Katouskia SAWMY – Kantar TNS / Katouskia@kantartnsio.io T + 230 202 00 55