{"id":555,"date":"2014-09-10T12:00:36","date_gmt":"2014-09-10T11:00:36","guid":{"rendered":"https:\/\/blog.iese.edu\/africa\/?p=555"},"modified":"2016-10-28T14:10:34","modified_gmt":"2016-10-28T13:10:34","slug":"personal-care-products-booming-in-east-africa","status":"publish","type":"post","link":"https:\/\/blog.iese.edu\/africa\/2014\/09\/10\/personal-care-products-booming-in-east-africa\/","title":{"rendered":"Personal care products booming in East Africa"},"content":{"rendered":"<p>Something I find amusing is that most African women use not only hair extensions but also wigs. I went to a <a href=\"http:\/\/www.nakumatt.net\/index.php\">Nakumatt<\/a> supermarket in Nairobi, and I was amazed at the space dedicated to wigs! Women change their hairstyle so often that at times I&#8217;ve a hard time recognizing faces. This is but an indication that <strong>personal care products are one of the booming markets<\/strong> in East Africa. Other growing markets are South Africa and Nigeria.<\/p>\n<figure id=\"attachment_557\" aria-describedby=\"caption-attachment-557\" style=\"width: 300px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/09\/2014-04-23-13.39.04.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-557 size-medium\" src=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/09\/2014-04-23-13.39.04-300x225.jpg\" alt=\"Hair extensions and wigs\" width=\"300\" height=\"225\" srcset=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/09\/2014-04-23-13.39.04-300x225.jpg 300w, https:\/\/blog.iese.edu\/africa\/files\/2014\/09\/2014-04-23-13.39.04-1024x768.jpg 1024w, https:\/\/blog.iese.edu\/africa\/files\/2014\/09\/2014-04-23-13.39.04-624x467.jpg 624w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-557\" class=\"wp-caption-text\">Hair extensions and wigs<\/figcaption><\/figure>\n<p>This growth is <strong>driven by a growing population<\/strong> \u2013 and in particular, the fastest growing middle-class population in the world \u2013<strong> increasing urbanization, and improved business regulation,<\/strong> according to a <a href=\"http:\/\/www.rolandberger.fr\/media\/pdf\/Roland_Berger_BeautyandpersonalcaremarketinAfrica_20131205.pdf\">report by Roland Berger<\/a>. In fact, these factors are behind the general growth of fast moving consumer products in Africa. A <a href=\"http:\/\/www.kpmg.com\/Africa\/en\/IssuesAndInsights\/Articles-Publications\/General-Industries-Publications\/Documents\/Fast-moving%20Consumer%20Goods%20in%20Africa.pdf\">KPMG report<\/a> indicates some additional drivers: Africans&#8217; <strong>willingness to spend<\/strong> a proportionately large share of their incomes <strong>on beauty products<\/strong> due to their greater <strong>exposure to Western culture, improving levels of education, the youthfulness of the population, and the rise of female independence.<\/strong><\/p>\n<p>Important <strong>challenges to penetrate this market<\/strong> include:<\/p>\n<ul>\n<li>the need to <strong>adapt the products to local consumers&#8217; needs:<\/strong> for instance, make-up needs to be adapted to skin color and texture. Kenyan entrepreneur Suzie Wokabi created her cosmetics company <a href=\"http:\/\/suziebeauty.com\/%20\">SuzieBeauty<\/a>. Its product line is featured as &#8220;a bespoke product for the African woman, by an African woman.&#8221;<\/li>\n<li><strong>accessing the distribution network<\/strong>: while formal distribution channels are expanding, most distribution takes place through the <a href=\"https:\/\/blog.iese.edu\/africa\/2014\/03\/05\/lagos-street-vendors\/\">traditional system<\/a>. Penetrating this system is not an easy endeavor.<\/li>\n<\/ul>\n<figure id=\"attachment_558\" aria-describedby=\"caption-attachment-558\" style=\"width: 300px\" class=\"wp-caption alignright\"><a href=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/09\/2014-04-23-13.45.20.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-558 size-medium\" src=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/09\/2014-04-23-13.45.20-300x225.jpg\" alt=\"A wide range of personal care products is offered at up-scale supermarkets\" width=\"300\" height=\"225\" srcset=\"https:\/\/blog.iese.edu\/africa\/files\/2014\/09\/2014-04-23-13.45.20-300x225.jpg 300w, https:\/\/blog.iese.edu\/africa\/files\/2014\/09\/2014-04-23-13.45.20-1024x768.jpg 1024w, https:\/\/blog.iese.edu\/africa\/files\/2014\/09\/2014-04-23-13.45.20-624x467.jpg 624w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-558\" class=\"wp-caption-text\">A wide range of personal care products is offered at upscale supermarkets<\/figcaption><\/figure>\n<p>It seems to me that, given their local knowledge, <strong>indigenous companies are in better shape than foreign competitors<\/strong> to face these challenges. <strong>Foreign competitors may be better off if they go hand-in-hand with local ones.<\/strong> This is the route India&#8217;s <a href=\"http:\/\/www.godrejcp.com\/\">Godrej <\/a>has taken: they began with a partial acquisition (51%) of the Kenya-based <a href=\"http:\/\/www.darlingkenya.biz\/\">Darling Group<\/a> \u2013 a leader in hair extensions operating in 14 African countries; <a href=\"http:\/\/www.godrejcp.com\/category\/hair-care\/darling.aspx\">the acquisition was completed<\/a> in February this year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Something I find amusing is that most African women use not only hair extensions but also wigs. I went to a Nakumatt supermarket in Nairobi, and I was amazed at the space dedicated to wigs! Women change their hairstyle so often that at times I&#8217;ve a hard time recognizing faces. This is but an indication [&hellip;]<\/p>\n","protected":false},"author":1654,"featured_media":560,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[85385],"tags":[352,433,447,45502,121,80782,80748,25810],"class_list":["post-555","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-doing-business-in-africa","tag-business","tag-competition","tag-consumer-products","tag-east-africa","tag-economic-growth","tag-fmcg","tag-life-style","tag-urbanization","megacategoria-mc-africa"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 5.0.1.1 - aioseo.com -->\n\t<meta name=\"description\" content=\"This growth is driven by a growing population \u2013 and in particular, the fastest growing middle-class population in the world \u2013 increasing urbanization, and improved business regulation.\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"author\" content=\"\u00c1frica M. 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