Cheap American, European Consumer Products Hit African Markets

Cheap American, European Consumer Products Hit African Markets

From Ventures Africa

Retail industry experts say there appears to be a wave of liquidation stock from the US and Europe flooding into Africa. A sign of recent economic instability perhaps, but the reality is that there is a mass of surplus consumer goods from the likes of America and many European countries that needs to be sold, and these countries are now focusing on pushing this inventory heavily throughout Africa.

Why now? There appears to be a greater demand for cheap consumer product in many African markets, and with improved distribution channels and technological advancements it is now far easier to distribute these consumer goods throughout Africa than it was just a few years ago.

According to the African Development Bank (AfDB), the continent’s new middle class has risen to 34 percent, up from 27 percent in 2000, which has increased demand. Another key factor is that historically brands have mattered less than price throughout Africa, as they have not been bombarded with advertising, but now all this is changing, and quickly, thanks to television, mobile phones and general globalization. The surplus product that is coming into Africa is often ageing stocks and outdated models, and designs that have little demand in developed economies despite their low cost. However, in many African cities well-known brands at low prices, even if they are older designs and models, still have extensive consumer uptake.

Read more at ventures-africa.com