New York Business Consultants LLC

We need more African and emerging market brands!

By Malko Ebers, CEO New York Business Consultants

Sept 02nd 2014, New York City

Isn't it amazing you can spend your entire lifetime in America or in Germany or another 'Western' country and you will probably never encounter an African brand. Yes, globalization is real, the information economy is real and we are all connected but brands from emerging markets? How many do you know, which ones matter to you?

Yes, your t-shirt might have been made in Vietnam, your car is German, your smartphone from Japan, your wine from Spain and you own hundreds of products from all over the world. We depend on each other, global supply chains and connections are incredible they are part of our economies and daily choices as consumers - we probably wear items from a dozen countries when we leave the house. But are we just 5% aware of where our products are from, of the complexity of what makes this wonder of supply possible? Of course not.

We are however aware of brands. Look at the above image. It shows mostly US brands and I am sure you know plenty of them, a five year old kid pretty much anywhere on the world could recognize thge McDonalds sign and would know what it means, which products and services to get there.

Companies spend hundreds of billions of dollars a year on advertisement, it is like a tv-industrial complex and you can't escape. From online pop up windows to the daily mails offering you another credit card, to mails offering you to switch to the fastest internet to...an endless stream of communication, brands screaming at you 24/7...all while we have more choices than ever and less time.

In this multibillion dollar battle for attention any less wealthy companies have a tough time engaging their customers - but the internet makes it possible, it makes it possible to target customers for a low budget and for particular business, let's say a local coffee place.

What we should see is that commodity producers start developing their own brands which will allow them to sell directly to customers via ecommerce and to directly approach retailers and distributors. If you for example produce coffee or cocoa it is a very tough business to be in because your product doesn't differentiate from any other producer. Your business depends on world market prices and that makes you vulnerable and your business risky. If you sell coffee beans then you get 20 cents for the cup that Starbucks sells for $7dollars! You can do the exercise for any commodity. So where is the money? The answer: in brands and processed commodities, this is where the added value is. You won't get much for your coffee beans or your oranges doesn't matter how good your business is but for a branded coffee or juice it looks extremely different.

With our partners in Africa, India and other emerging marketplaces we observe that these economies rely far to heavily on commodities. Many of the producers should ddevelop their own brands and should proactively do business development in other countries to 'fight for shelve space' to open flagship stores and to find their way to the hearts and minds of consumers.

I want to see more African and other brands from around the world, it would create a fairer world and richer consumer experience. If we just have a handful of Western brands everywhere, if we only see H&Ms and McDonalds from new York to Shanghai and Lagos it would be boring and very few people would benefit. The internet and ecommerce, the opportunity to engage consumers globally give us unique opportunities to change this structure and to develop a more rich and pluralized brand landscape for the benefit of all.

& If we can give you a helping hand how to develop and market your service or product, how to create a brand that sells in the Us or Germany, get in touch at info@newyorkbusinessconsultants.com or toll free 1-800-481-2707