Key Takeaways from the Africa Retail Congress 2024
1. Strategic Growth Through Cross-Border Expansion
Chris Ogbechie, the Dean of Lagos Business School, emphasized that for African businesses to thrive in today’s competitive environment, they must move beyond their domestic markets. Ogbechie’s mantra—“innovate, grow, or die”—underscored the urgency of global expansion for businesses seeking to diversify their revenue and reduce reliance on local economies. He encouraged Nigerian retailers to think globally, pointing to China’s ongoing expansion despite its large domestic market as an example.
However, Ogbechie also acknowledged the challenges that come with cross-border retail, such as regulatory barriers, cultural differences, and logistical complexities. He advised businesses to overcome these challenges through innovation, strategic partnerships, and technological advancements.
2. The Importance of Cultural Sensitivity in Retail Expansion
Patrick Akinwatan, a faculty member at Lagos Business School, discussed the need for businesses to be culturally sensitive when expanding into new markets. He highlighted the importance of understanding local values, preferences, and traditions to build trust and gain customer loyalty. Akinwatan advised retailers to invest in local teams and foster collaboration to ensure their strategies resonate with local consumers. Empathy and cultural awareness were key themes in his remarks.
3. Leveraging Technology and Data for Expansion
In line with Ogbechie’s call for innovation, speakers stressed the role of technology in overcoming the challenges of regional expansion. Elo Umeh, CEO of Terragon Group, emphasized the need for businesses to integrate cloud-based technologies, aggregated data, and artificial intelligence (AI) to stay competitive. He noted that African consumers are becoming increasingly tech-savvy, and businesses must adapt to meet these changing demands.
Gaurav Dwivedi, CEO of Multipro Consumer Products, echoed Umeh’s point, highlighting the importance of digital transformation. Dwivedi stressed that as technology adoption increases, businesses should focus on digitalizing their products and engaging with tech-savvy consumers.
4. The Rise of E-Commerce and Global Market Trends
Prof. Luis, Congress chair, discussed the growth of Africa’s e-commerce sector, projecting its value to reach $35 billion by 2024. He noted that businesses aiming for global expansion need to embrace technology and innovation, which will help them cross borders and enhance the customer experience. Furthermore, he highlighted the real estate sector’s growth, with the African market projected to exceed $1 trillion by 2026, which will play a pivotal role in retail expansion.
However, Prof. Luis also acknowledged the infrastructure challenges that persist, particularly in logistics and transportation, which are critical for smooth cross-border operations.
5. Addressing Barriers for Small Businesses and Entrepreneurs
The Congress also focused on the challenges faced by small and medium-sized enterprises (SMEs). Hon. Folashade Ambrose, Commissioner for Commerce, Trade, and Investment in Lagos State, discussed how the government is working to reduce barriers for SMEs. Initiatives include enhancing digital retail spaces, ensuring stable electricity, and promoting financial inclusion. She also emphasized the need for greater internet inclusion among small business owners to enable them to engage in digital payments and customer management.
6. Access to Capital for Retailers
Chizoma Okoli, Deputy Managing Director at Access Bank, addressed the challenges small businesses face in securing financing for expansion. Okoli pointed out that access to capital often depends on a business’s strategy and future vision, urging businesses to seek alternative funding sources to fuel their growth ambitions. She encouraged business owners to be proactive in securing financing and aligning their strategies with their expansion goals.
7. The Role of Social Media and Mobile Technology
Titilayo Akinwale, Head of Retail at Microsoft, discussed how mobile technology and social media are essential tools for reaching new customers, particularly in emerging markets. Akinwale emphasized the need for businesses to tailor marketing strategies to local regions and understand how different audiences are adopting technology. She encouraged businesses to ensure their presence is felt both physically and digitally, as online engagement continues to grow across the continent.
The Future of Retail in Africa
The Africa Retail Congress 2024 underscored several crucial trends and strategies for businesses looking to expand beyond borders:
- Technology and digital transformation will be key drivers of growth in cross-border retail, enabling businesses to overcome geographical barriers and enhance customer engagement.
- Cultural sensitivity is crucial for building trust in new markets and ensuring products resonate with local consumers.
- Government support for SMEs, especially in terms of digital infrastructure and financial inclusion, will play a vital role in enabling small businesses to expand.
- E-commerce and modern retail formats are expected to continue their upward trajectory, with significant growth anticipated in both sectors.
As African businesses increasingly look to the global market, the Africa Retail Congress highlighted that success will depend on innovation, cultural awareness, and the ability to leverage technology to meet the evolving needs of a global consumer base.
