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Monday, May 22, 2017

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Feeder towns in Africa

For centuries feeder towns and markets (e.g. silk route) have played an important part in trade. Even today, understanding how these markets and towns function is important to any business wishing to make an impact. What are feeder towns? – Feeder towns are hubs for product distribution, e.g. Mercato in Addis Ababa. Customers and retailers […]

Market entry consumer goods – Key distribution issues Ethiopia

Ethiopia is the second most populous country in Africa (after Nigeria) and one of the fastest growing economies, with an average GDP growth rate of 10% (IMF) over the last eight years. When entering Ethiopia, there are a number of issues to consider when designing your Route-to-Market: Infrastructure & Territories – Ethiopia has made great […]

Distributor management skills in emerging markets

Implementing a 3rd party distribution system in emerging markets can be a challenging undertaking.  Often distributors don’t have the required skills and need additional support and training in order to be successful. Below are a number of issues to consider. Supply chain skills development – In emerging markets, distributors often lack dedicated supply chain professionals with […]

Key distribution issues in emerging markets

  Setting up a distribution system in emerging markets can be a challenging undertaking. Below are a number of issues to consider: Fragmented markets – What is the balance between modern and traditional trade?  Modern trade (e.g. Shoprite supermarkets) in most African countries, with the exception of South Africa and Kenya, is still in the very […]

Consumer goods – Servicing small groceries in emerging markets

Servicing small groceries, mom & pop shops, dukas or souks in emerging markets is no easy undertaking. Many companies don’t even try, even with the right product portfolio, volume and revenue. Servicing small groceries can be an expensive and painful experience. Below are a couple of issues to consider prior to rolling out your strategy. […]

Micro distribution in emerging markets– key issues to consider

There is increased interest in micro distributors and the potential they hold within an inclusive business model. Well documented micro distribution models include the Coca-Cola MDC (Micro-distribution centre) in Africa and Unilever’s Shakti model in India. Micro distributors can be found in emerging markets where markets are fragmented and modern trade (e.g. Walmart, Tesco) is […]

Reasons distributors in emerging markets fail

Implementing a 3rd party distribution system in emerging markets can be a challenging undertaking.  Below are a number reasons why distributors in emerging markets fail, and warning sign to look for. Financial management – A few years back we ran a project in for a consumer packaged goods company in Sri Lanka. During our assessments […]

Two-tier distribution in emerging markets – telecom and electronics

What is a two-tier distributor? They buy from manufacturers and sell to resellers. What are their competitive advantages? Two-tier distributors can expand the retail footprint in emerging markets. They normally sell a diverse range of brands and control a large percentage of the local distribution in the telecom and the computer industry. Two-tier distributors understand […]

Nestlé’s Amazon distribution model

Photo: Marcia Zoet Bloomberg Nestlé is planning to sail a supermarket barge down two Amazon River tributaries, namely Pará and Xingu rivers in Brazil. Nestlé wants to compete with Unilever in Brazil and aims to reach customers isolated from branded goods. Consumer goods companies are increasingly focusing on the one billion people in emerging markets […]

Pictures – Nestlé’s Amazon supermarket barge

Created with flickr slideshow from softsea. Share:del.icio.usFacebookTwitterLinkedIn

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