As Africa’s retail sector continues to develop, Business leaders and specialists within the retail sector have urged African companies to increase past their home markets.
This was the crux of discussions on the Africa Retail Congress 2024, organised by the Lagos Enterprise School (LBS) in partnership with Nairametrics, which was held on November ninth, 2024.
Talking on the Congress with the theme “Retail Past Borders, Chris Ogbechie the Dean of Lagos Enterprise School, confused that development past native markets is essential for survival in at the moment’s aggressive international atmosphere.
“As I all the time inform CEOs, innovate, develop, or die,” Ogbuechi remarked, underscoring the urgency for companies to suppose past their home markets.
Ogbuechi spoke on the significance of regional growth, citing how companies that develop past borders are higher positioned to diversify their income streams and scale back their dependency on native markets. “By venturing into new markets, we won’t solely diversify our income but additionally mitigate the dangers related to over-reliance on home economies,” he defined.
He inspired Nigerian retailers to suppose like their international counterparts, utilizing China for example of a nation that continues to increase regardless of its giant home market.
Nevertheless, Ogbuechi was additionally candid in regards to the challenges concerned in cross-border retail.
He highlighted obstacles corresponding to regulatory obstacles, cultural variations, and logistical points. These elements, he famous, may be formidable for companies trying to increase past their borders.
Nonetheless, Ogbuechi remained optimistic, encouraging the viewers to undertake innovation as a device to beat these hurdles.
“Strategic partnerships, technological developments, and a dedication to excellence will empower us to beat these challenges and emerge stronger on this market,” he stated.
Following Ogbuechi’s remarks, a college member at Lagos Enterprise School, Patrick Akinwatan, expanded on the theme of cultural sensitivity in retail growth.
“All the time put your self within the sneakers of one other,” he stated, stressing the significance of empathy and cultural consciousness when coming into new areas.
“The ecosystem of your workforce is important. It’s worthwhile to perceive how your workforce feels and be invested of their well-being,” he added. This holistic method, in response to Akinwatan, is essential to creating profitable cross-border retail methods.
In keeping with Ogbuechi’s name for innovation, retail leaders mentioned how expertise can play a pivotal function in overcoming the challenges of regional growth.
CEO of Terragon Group, Elo Umeh, confused the significance of integrating digital instruments into retail companies. “Retailers needs to be as diligent on-line as they’re of their bodily market,” Umeh stated. He emphasised that adopting cloud-based applied sciences and utilizing aggregated knowledge are important for retailers to totally harness the potential of synthetic intelligence (AI).
CEO of Multipro Shopper Merchandise Restricted, Gaurav Dwivedi, agreed with Umeh’s level and highlighted the necessity for retail companies to spend money on digital transformation. “Individuals belongings check with these you spend money on, particularly customers. There may be tech adoption or digitalization of your product,” Dwivedi defined.
Each Umeh and Dwivedi identified that as African customers develop into more and more tech-savvy, companies should be agile in adopting digital options to satisfy their calls for.
Congress chair for the Africa Retail Congress, Prof Luis, highlighted the rising significance of expertise and innovation for African retailers aiming to increase into worldwide markets. “To improve within the international market house, retailers must embrace expertise and innovation to ascend borders and improve buyer expertise,” Prof Luis stated.
“The e-commerce sector’s worth is predicted to rise to round $35 billion,” he added. Luis additionally talked about that fashionable retail codecs, which account for about 35% of whole retail gross sales, mirror a shift from conventional markets to extra modernized retail areas.
Nevertheless, he additionally famous that infrastructure challenges persist, particularly in areas essential for enabling seamless retail operations throughout borders.
Along with technological and cultural concerns, the congress additionally explored the monetary and operational challenges confronted by smaller companies.
Commissioner for Commerce, cooperatives, commerce & funding in Lagos State, Hon. Folashade Ambrose, famous that the Lagos State authorities has been actively engaged on insurance policies to scale back obstacles for small companies. “Coverage is necessary for retail development,” she stated, including that targets corresponding to enhancing digital retail areas, offering secure electrical energy, and selling monetary inclusion had been a part of the Lagos state’s targets to assist the retail ecosystem.
Ambrose additionally famous the necessity for better web inclusion amongst small enterprise homeowners. “There’s a must spend money on capability constructing within the digital house. Technological inclusion permits cashless funds, funding administration, and improved buyer engagement,” she stated. She confused that empowering entrepreneurs with the best sources and abilities is important for serving to them navigate the challenges of regional growth.
One other barrier mentioned on the congress was entry to capital. Deputy managing director of retail south at Access Bank, Chizoma Okoli, identified that many small and medium-sized enterprises (SMEs) face difficulties securing financing for growth. “So long as Access Bank is operational, we’re in service to SMEs, as a result of they’re within the enterprise of lending, and their providers are tuned to serve the varied facets of each enterprise,” Okoli defined.
Okoli famous that entry to funding usually is determined by a enterprise’s technique and future imaginative and prescient. She inspired enterprise homeowners to be proactive in securing capital and suggested them to search for different funding sources to gas their development ambitions.
Head of retail at Microsoft, Titilayo Akinwale, mentioned how cell expertise and social media are highly effective instruments for reaching new prospects.
Akinwale urged companies to tailor their advertising methods to completely different areas, investing in native audiences and understanding how expertise is being adopted in these areas.
“Spend money on native goal audiences, particularly for these that aren’t but conversant in social media,” she stated. She additionally inspired companies to make their presence felt each bodily and digitally, as on-line exercise continues to develop throughout the continent.
