How to develop the African market
It is a very time-consuming process to explore the African market and find suitable customers. There are more than 50 countries in the African continent. It is also very challenging to launch their own products in the huge African market. It is therefore important to identify reliable and effective African business partners.
There are many ways to judge potential business partners. A good start is to understand them through an organization specializing in marketing and business promotion in Africa. This kind of organization is not only professional and experienced, but also the right contact for you to strive to develop the African market.
Another effective way is through the network. Although the network is not as widely used in many African countries as in developed countries, it provides you with a way to find business counterparts in African countries. Professional websites can provide a lot of effective business information about African countries.
Large industrial institutions or professional manufacturers usually purchase their products directly from manufacturers, especially most users of specific machines, equipment or raw materials. The industrial sector in most African countries is run by a small number of large diversified groups. These large enterprises are very important not only because of their size and diversification, but also because they are important end users and investors of capital and raw materials. Each group has its own procurement system to handle imports and raw materials. In addition to these large enterprises, many smaller manufacturers directly purchase specific raw materials and mechanical equipment.
If there is no corresponding importer for some specific products, you need to sell them directly to the wholesalers in the corresponding market. Wholesalers usually do not have the right to sell exclusively. However, wholesalers play a very important role in the distribution system in the African market, especially for independent retailers and informal operators. For some products, especially in the food sector, major importers also operate wholesalers. Another feature of the wholesale sector is that large wholesalers are usually managed by a major retail group.
Large retail stores may also purchase products directly from overseas. This situation usually has a certain range, such as linen, clothes or kitchen utensils. Many African retail outlets import from Asian countries. The remarkable feature of Retailing in Africa is that it operates in a highly competitive market environment. Therefore, some large groups dominate the retail industry. For example, in South Africa, four major retail groups dominate the food business, accounting for more than half of the retail market. In addition to major chains and groups, there are a large number of independent retailers catering to their own market segments.
Once you have established your list of potential customers using business navigation, you need to contact them and make them interested in your business. One wise choice is to email your company brochure and price list to potential customers. E-mail marketing has become the main tool to promote direct trade.
As an exporter, it is necessary to conduct market field visits. First of all, this is an ideal opportunity to meet potential customers and recommend your products and details to customers. Field trips can also help you understand the operation mode and characteristics of your target market, as well as your competitors. Including the sales model of competitors, as well as the price and quality of their products.
Finally, I also want to make some suggestions for Chinese suppliers exploring the African market:
1. Understand the policy of the region where your target market is located, and consult the chamber of Commerce, embassy or trader of the country in time;
2. Formulate a reasonable commercial marketing policy;
3. Identify reliable business partners through the chamber of Commerce and relevant embassies or other channels;
4. Conduct necessary field visits;
5. Keep a good and open mind, because communication with African countries is a long-term process and may not be as smooth as expected;
6. Understand the local culture of African countries engaged in commercial activities;
7. Establish direct contact with African partners by participating in business activities or exhibitions;
8. Add your company to relevant business websites in Africa.
According to the analysis of China Africa Trade Research Center, for Chinese suppliers, understanding the business system and procurement system structure of the target market is the first step in developing the market. With the further development of African market potential and the continuous improvement of African market consumption power, more and more Chinese suppliers are eager to open the African market, but Africa is a completely emerging market for most Chinese suppliers. Therefore, the China Africa Trade Research Center suggests that Chinese purchasers must have a complete understanding of the procurement, wholesale and retail system of the African market at the initial stage of developing the African market, and planned field visits can also be an effective supplement.

(from China Africa Business Road Network)