The needs of Africa trade products
Posted by: Jenny | 2016-08-30 16:04:55
In recent years, Africa's political becomes stability and the economic turnaround, having the good market prospects and further increasing business opportunities, which indicates that Africa is entering a stage of rapid economic development. I will now open big market in Africa for you, showing you the real needs of the African market and product in three minutes.
Diverse African market
The market demand in Africa is diverse and multi-layered. When talking about Africa, many people may feel that it is poor and backward which can not afford high-end products. But in fact, Africa has always been used the Europe products. The African markets are diverse. There are stalls, roadside tent stores, chain stores and specialty stores.
Africans do not know how to start a stall but the Chinese taught them. Chinese people are very profitable in the street vendor in Africa, for example, some jewelry, pendants, sandalwood, pearl pendants and so on which can be sold ten dollars while in China they can only be 2 RMB. The price of the clothes, flashlights, watches, porcelain, lantern and lighters sold in Africa are very high. This is what makes the Chinese people wealthy in Africa.
The tent shop in Africa is a little different but it is relatively simple and lower-grade, which very common in Africa.
There is a mobile vendors between tent stores and stall. Particularly wherever there is heavy traffic jams, there is mobile vendor, selling mineral water and napkins.
There are family shops. Indians, Pakistanis and Lebanese have a longer time in Africa. The Indians were brought by Europeans to Africa as slaves or workers. Later, Europeans discovered that the Indian and Pakistanis had very strong business and management sense, so they let them operate some stores, which had become the family stores. There are a lot of family shops in Africa. Though they are not as high-level in France and UK, they are also very good. The supply may come from China, Europe or elsewhere but not stores.
Few Chinese goods are sold in the exclusive stores but there are a lot in the corner of the supermarket, in the family shop, the tent shop and the stalls.
But with the economic development of China and Africa, the product structure of China and Africa has undergone a fundamental change. We can see more and more Chinese brands products enter the African market such as the Huawei, ZTE, Haier, Hisense, Tsingtao Beer, Chery, Chang'an Automobile etc.
Africans consumption habits is to buy branded products and spend out the money. Chinese people open businesses and factories in Africa give wage once a week, because the spending habit of Africans is to spend out all the money.
Also, do not think that Africa is the place that can sell fake and shoddy products. In fact, Africans need the brand, quality, level, image and satisfaction. So we need to change our concept of Africa.
The demand of African products
In recent years, Africa is at a stage of rapid economic development and the economic growth is more than 5.5% each year while some countries even reach 10-20%, which is due to the world’s economic development of mineral resources and oil demand.
Africa has abundant mineral resources and 17 kinds of mineral resources reserves in Africa rank the first in the world and 50 kinds of minerals account for a particularly important position. Almost every place has its minerals, diamonds and gold in Africa, as well as the three major oil depot.
The demand of the world for minerals has brought rapid economic growth in Africa. As the society entering the era of peace development, the market had a tremendous change. Starting from economic development, Africa needed to build a lot of infrastructures which needed equipment, building materials, decoration materials, household, sanitary ware, lighting and so on. And because of the changes in the economy, Africa still needs a lot of luxuries, such as wigs. Africans often use wigs which are all produced in China. Basically each person in Africa has one or two wigs that made in China. African like beauty and stylish, so the lipstick and eyebrow pencil and other cosmetic business is also very good.
Machinery and equipment, motor vehicles, household appliances, decorative materials, digital, solar, safety and medical devices are the new demands brought by the construction and development.
For example, solar energy products, economic and social development makes Africans want to change the situation of no electricity and no water. African countries are also supporting solar energy products, such as the Moroccan government regulates that 20% of the energy supply should be changed to solar energy. And this is the huge potential of of our exploring trade. China is now cooperating with Kenya, and South Africa, Morocco, Nigeria and other countries also proposed cooperation to China. Solar plants in Dongguan, Xuzhou and Haining also go to Africa for further discussion.
Take digital products as another example, digital products are very popular in Africa, but is expensive to buy locally, so Africans want to buy in China. Digital products produced in China are very cheap and can sell a good price in Africa which makes our products have good potential and development prospects.
The technology of products is also increasing. Before we just exported light industry and textile to Africa, but now the great changes have taken place. It turns to the high value-added and high-tech products. There are thousands of people in Huawei in Africa entering dozens of countries and last year it had more than 200 billion dollars profits. Many guesthouses and hotels in Africa invite Huawei to do the network while before it was done by the European companies but they did not do well.
The sources of African products are no longer confined in Europe and America, Japan and Korea. Although many African countries’ electric appliance come from Europe and America, Japan and Korea, this situation is changing. More and more Chinese products began to participate. Our products are competing with the Europe and America’s high-end products.
African Trade Market
The main trade countries with Africa are mainly Europe and America, such as the United States, France, and China ranked the third or fourth. Britain, Italy, Spain, Japan, South Korea are in the second.
Few things can be produced in Africa. Some countries produce some textile or sugar while some countries can produce shoes and the South Africa have some mining, automotive and steel industries. But the vast majority of the African countries have poor production capacity which is equivalent to the level of China’s 1970s-1980s.
The vast majority of consumer goods in Africa are imported, including daily necessities, transportation and household appliances. And so as African trade. The African countries exchanges the goods between each other. Kenya’s industry is better because the cement, clothing, iron, etc., can be exported to the neighboring countries such as Ethiopia and Tanzania.
It is noteworthy that United Arab Emirates and Dubai of the Middle East, while Dubai is the big transit station of the African region, especially the North Africa. Africa's largest transit station is: Johannesburg, Angus in Nigeria, Nairobi in Kenya, Cairo in Egypt and Dubai in the Middle East.
African travel trade services include telecommunications, banking, securities, aviation, etc., and some health services and labor. There are many Egypt service people in the Arab countries and the lives gap between them is great. Stock markets in African countries, for example, are South Africa, Zimbabwe and Kenya are very well developed. South Africa is known as one of the world's 14 biggest stock markets. Banking system in Africa is also good, such as the Seychelles and Mauritius and so on.
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