{"id":151,"date":"2014-03-05T10:00:50","date_gmt":"2014-03-05T09:00:50","guid":{"rendered":"https:\/\/blog.iese.edu\/africa\/?p=151"},"modified":"2016-10-27T16:33:52","modified_gmt":"2016-10-27T15:33:52","slug":"lagos-street-vendors","status":"publish","type":"post","link":"https:\/\/blog.iese.edu\/africa\/2014\/03\/05\/lagos-street-vendors\/","title":{"rendered":"Lagos street vendors"},"content":{"rendered":"<figure id=\"attachment_183\" aria-describedby=\"caption-attachment-183\" style=\"width: 624px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/03\/Street-vendors.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-183\" src=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/03\/Street-vendors.jpg\" alt=\"Lagos street vendors\" width=\"624\" height=\"274\" \/><\/a><figcaption id=\"caption-attachment-183\" class=\"wp-caption-text\">Lagos street vendors<\/figcaption><\/figure>\n<p>I have the opportunity to observe <strong>Lagos street vendors<\/strong> in action on my daily ride to school. At one round-about which is particularly jammed, dozens of them <strong>offer drivers all and any kind of products<\/strong>: ceiling brushes, soft drinks, clocks, CDs, flip-flops, chewing-gum, underwear, posters, soccer team flags (including that of Bar\u00e7a F.C.), magazines, windshield wipers, you name it, and they\u2019ve got it. <\/span><\/p>\n<p>At the next roundabout, fruits and other food items are most popular.\u00a0To the casual observer, this looks like a random, non-organized activity.\u00a0 Yet, as it turns out, <\/span><b>street vendors are one link in the traditional distribution system<\/b>.<\/p>\n<p>After a few days observing vendors and their activity, I started wondering &#8220;<strong>Where do they get the items for sale?<\/strong> Are these defective items that they can sell at a lower price? <b>What&#8217;s going on here&#8230;?<\/b>&#8221; I learned a bit about street vendors&#8217; organization from <a href=\"http:\/\/lbs.edu.ng\/faculty\/marketing\/uzo-uchenna\/\" target=\"_blank\">Uchenna Uzo<\/a> \u2013 a &#8220;Prof&#8221; (as they call professors here) in the Marketing Department at <a title=\"Lagos Business School\" href=\"http:\/\/www.lbs.edu.ng\/\" target=\"_blank\">Lagos Business School<\/a>:<\/p>\n<ul>\n<li>Some vendors operate when there&#8217;s <b>traffic<\/b>, others at rush hour, and still others at quiet time; some operate in the morning, others in the evening.<\/li>\n<li>As everywhere else, <b>location<\/b><strong> is a critical choice<\/strong> that depends not only on how the traffic is at that location but also on the types of shops that are also part of the traditional distribution system in the area.<\/li>\n<li>Traffic volume, time, and location drive <b>product offering.<\/b><\/li>\n<li>The <b>price<\/b> charged depends on the time of the day, and even the season of the year.<\/li>\n<li>Some vendors are <b>independent<\/b>; others <b>work for a master,<\/b> likely the owner of a near-by traditional shop; some even are <b>shop-owners.<\/b><\/li>\n<li>The <b>proximity to the consumer<\/b> is highly valued by producers of fast consumer goods, who rely on street vendors as an important distribution channel.<\/li>\n<li>The <b>advertising opportunity<\/b> is valued as well, especially for products, like tobacco, can\u2019t be advertised otherwise.<\/li>\n<\/ul>\n<figure id=\"attachment_153\" aria-describedby=\"caption-attachment-153\" style=\"width: 338px\" class=\"wp-caption alignright\"><a href=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/02\/20140214_100928.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-153 \" src=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/02\/20140214_100928.jpg\" alt=\"Traditional shops\" width=\"338\" height=\"254\" srcset=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/02\/20140214_100928.jpg 3264w, https:\/\/blog.iese.edu\/africa\/files\/2014\/02\/20140214_100928-300x225.jpg 300w, https:\/\/blog.iese.edu\/africa\/files\/2014\/02\/20140214_100928-1024x768.jpg 1024w, https:\/\/blog.iese.edu\/africa\/files\/2014\/02\/20140214_100928-624x467.jpg 624w\" sizes=\"auto, (max-width: 338px) 100vw, 338px\" \/><\/a><figcaption id=\"caption-attachment-153\" class=\"wp-caption-text\">Traditional shops<\/figcaption><\/figure>\n<p>Are street vendors part of the formal, traditional system or of the informal one? It&#8217;s unclear: Some are <b>taxpayers <\/b>while others are not registered, and may or may not work for a master who is a taxpayer. <a href=\"http:\/\/www.bain.com\/Images\/BAIN_BRIEF_Lessons_from_Africas_pioneers.pdf\">A report by Bain<\/a> indicates that <strong>traditional trade represents more than 80% of formal retail across Africa, <\/strong>and that the <a class=\"inline-twitter-link inline-tweet-click\" href=\"#\" onclick=\"inline_tweet_sharer_open_win('https:\\\/\\\/twitter.com\\\/intent\\\/tweet?url=https%3A%2F%2Fblog.iese.edu%2Fafrica%2Fwp-json%2Fwp%2Fv2%2Fposts%2F151%2F&text=Informal+economy+is+estimated+to+represent+30%25+to+60%25+of+the+GNP+in+selected+African+countries+');\" title=\"Tweet This!\">informal economy is estimated to represent 30% to 60% of the GNP in selected African countries <span class=\"non-dashicons\"> <\/span><\/a>.<strong>\u00a0Can street vendors be ignored?\u00a0<\/strong><\/p>\n<p>I will be flying to New York tonight, so it may take me a while to get back to your comments. In NYC, I will participate in the <a href=\"http:\/\/aom.org\/amd\/\">Academy of Management Discoveries<\/a>\u00a0editors&#8217; board meeting. AMD is a new journal that will be launched in 2015, and we&#8217;re working in making it happen.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I have the opportunity to observe Lagos street vendors in action on my daily ride to school. At one round-about which is particularly jammed, dozens of them offer drivers all and any kind of products: ceiling brushes, soft drinks, clocks, CDs, flip-flops, chewing-gum, underwear, posters, soccer team flags (including that of Bar\u00e7a F.C.), magazines, windshield [&hellip;]<\/p>\n","protected":false},"author":1654,"featured_media":183,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[99106],"tags":[79906,93300,1211,79905],"class_list":["post-151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-future-and-perspectives-for-africa","tag-informal-economy","tag-lagos","tag-retail","tag-street-vendors","megacategoria-mc-africa"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blog.iese.edu\/africa\/wp-json\/wp\/v2\/posts\/151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.iese.edu\/africa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.iese.edu\/africa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.iese.edu\/africa\/wp-json\/wp\/v2\/users\/1654"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.iese.edu\/africa\/wp-json\/wp\/v2\/comments?post=151"}],"version-history":[{"count":12,"href":"https:\/\/blog.iese.edu\/africa\/wp-json\/wp\/v2\/posts\/151\/revisions"}],"predecessor-version":[{"id":1735,"href":"https:\/\/blog.iese.edu\/africa\/wp-json\/wp\/v2\/posts\/151\/revisions\/1735"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.iese.edu\/africa\/wp-json\/wp\/v2\/media\/183"}],"wp:attachment":[{"href":"https:\/\/blog.iese.edu\/africa\/wp-json\/wp\/v2\/media?parent=151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.iese.edu\/africa\/wp-json\/wp\/v2\/categories?post=151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.iese.edu\/africa\/wp-json\/wp\/v2\/tags?post=151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}