By heightening their focus on Africa, ecommerce firms could reap the rewards of a savvy, conscious consumer market, according to a study by consultants McKinsey.
In a new report, the firm estimated that consumer-facing industries would witness growth of $410 billion across the region over the next eight years, building on a $568 billion ‘increase in private consumption’ from 2000-10, reports warc.com.
McKinsey’s research, which polled 13,000 adults in major African cities, also discovered that 53 per cent of total income is accounted for by 16-34 year olds, indicating the ‘vast potential’ for ecommerce firms.
In addition, 58 per cent of African consumers are classed as brand loyal, meaning they are more likely to visit in-store or make an online payment to their favourite brands. This is backed up by 45 per cent of those surveyed willing to pay a premium for items from well-known grocery brands.
Posted on mckinsey.com, the report said: “Internet use is far greater than anticipated – more than 50 per cent of urban Africans say they have accessed the Internet in the last four weeks, on par with reported usage in Brazil and China.
“African consumers demand quality products and are brand conscious, belying the view that the continent is a backwater where companies can sell second-rate merchandise. African consumers want the latest fashions and a modern shopping experience,” it added.