Kenyans loyal to old brands, study shows

 

PHOTO | BILLY MUTAI | FILE IEBC Chairman Isaac Hassan arriving with commissioners at the Bomas of Kenya's auditorium ahead of a briefing. IEBC officials have remained mum over claims that commissioners were divided over the manner in which the General Election was handled.  NATION MEDIA GROUP

By BY MUTHOKI MUMO

In Summary

• About 41 per cent of the consumers who are loyal to particular brands do so because they believe in goods they have used before. An equal number are loyal to particular brands because they are of a higher quality than others with less familiar offerings.

Companies migrating to the region hoping to tap into a booming consumer base will have to work harder to get their brands noticed and picked up by local consumers. A new report shows that local consumers are largely conservative and remain loyal to certain brands.

In its latest statistical release, Consumer Insight Africa (CIA) indicates that 88 per cent of Kenyans consistently purchase the same brand in various product categories whenever they go shopping.

“In Consumer Insight’s recent REJA study, Kenyan shoppers revealed a faithfulness to familiar brands that resembles religious belief,” said the company in the research note.

About 41 per cent of the consumers who are loyal to particular brands do so because they believe in goods they have used before. An equal number are loyal to particular brands because they are of a higher quality than others with less familiar offerings.

Only 16 per cent of those surveyed indicated that they opted for their preferred brands because they were cheaper than those offered by the competition.

This is good news for brands that have already established a presence in the country.

In the quest to sway consumer preferences, Consumer Insight says positive testimonials from fellow shoppers might go further than clever advertising or even competitive pricing.

In a report titled “The Rising African Consumer” released last year, McKinsey Company argued that consumers on the continent were developing sophisticated tastes and becoming more brand conscious. 

With a discretionary incomes that are growing in tandem with the continent’s economic growth, the middle class no longer judges goods only on price, quality and brand status are also crucial.
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“African consumers demand quality products and are brand conscious, belying the view that the continent is a backwater where companies can sell second-rate merchandise,” writes McKinsey Company.

According to McKinsey, 55 per cent of consumers in Sub Saharan Africa are loyal to a single brand while 70 per cent are loyal to a small selection of brands.

McKinsey warns that companies that want to make headway in Africa will have to invest heavily in their brand identity and visibility.  

The company projects that Africa’s consumer-facing industries will grow to be worth Sh33.84 trillion ($400 billion) by 2020.