November 9, 2012
Data point: North Africans are fans of brands, especially international ones
Africa is now the world’s second fastest-growing region, behind Asia—by the end of the decade, its consumer-facing industries are forecast to expand by $400 billion, according to McKinsey. In a new report that examines “The Rise of the African Consumer,” McKinsey reports that consumers in North African markets (Algeria, Egypt and Morocco) place more importance on brands than those in sub-Saharan Africa.
More than 7 in 10 North Africans equate well-known food brands with quality. A majority are willing to pay a premium for well-known grocery and mobile phone brands, and close to half say the same for clothing. More than 60 percent of North Africans also see international brands as “more fashionable than local brands.” (Angola, South Africa, Ethiopia, Kenya, Ghana, Nigeria and Senegal), whereas consumers to the south are more accepting of local brands. McKinsey also found that North Africans have a somewhat greater willingness to try new things: 43 percent vs. 35 percent of consumers in sub-Saharan Africa.