A developing economy refers to a country that is in the process of industrialization and modernization and is characterized by lower income levels, poor infrastructure, high poverty levels, low levels of education and a reliance on agriculture.
Almost all African countries are characterised as developing economies and they rely extensively on traditional trade as apposed to the highly organised and meticulously recorded formal trade.
A lack of trade records in developing economies
Developing economies and their traditional trade rely on cash-based transactions creating challenges for businesses in tracking sales and managing revenue. Traditional trade, also known as general trade is predominantly composed of small-scale traders rather than large retail outlets, which influences consumer behaviour and access to goods.
A substantial segment of the population resides in rural areas, often leading to disparities in accessibility to products and services compared to urban centres. There is are also strong regional preferences driven by cultural practices and local traditions, necessitating tailored marketing approaches.
Infrastructural challenges impact the logistics of distributing products, making supply chains less efficient and more costly and there is limited record keeping as many businesses operate without formal records, creating difficulties in analysing sales patterns and understanding market dynamics.
Vast numbers of retail outlets have no registered physical address making distribution, sales, activations and record keeping very difficult if not impossible.
Why market research is essential for large companies wanting to enter or expand operations in developing economies
Because of the complexities, lack of infrastructure and poor record keeping large producers and distributors of FMCG and CPG goods wanting to enter or expand in a developing economy will require the expertise of a specialised market research company that can geolocate the retail outlets and conduct regular retail audits to monitor the performance of their products in these retail outlets.
Here is our list of the market research companies that are best equipped to conduct market research in developing economies in Africa.
- Frontline Research Group
Frontline Research Group top our list because they have over three decades of experience conducting market research throughout Africa. They have offices in South Africa and Mauritius.
They conduct ongoing retail census in several countries and have a database of over 5 million retail outlets. They also have ongoing retail audits in countries throughout Africa.
More than any other market research company, they specialise in traditional trade and have a great understanding of the nuances of most African countries.
They offer a range of services including in-store intelligence, market intelligence, bespoke research and geo-spatial solutions.
Frontline Market Research work with some of the largest FMCG and CPG companies including Coke, AbInBev, Diageo and Pepsi and, because of their regional knowledge, they also worked with many local and independent businesses.
There stand out characteristics are that they will adapt their research to their clients’ requirements, they don’t just provide data, they also provide analysis, insights and direction and they offer to syndicate their research to reduce costs.
For more information or a demonstration contact Steve Johnson, Managing Director on Tel: +230 5493 6376 or email: steve@frontlineafrica.com
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2. Sagaci Research
Sagaci Research have 9 years of experience conducting large-scale market research projects in Africa and have worked with leading multinational companies as well as with local or regional players, consulting firms and investors. They have offices in several African countries.
They operate their own field teams and run online panels across various countries. In 2021, they had conducted more than 200 projects in 34 countries across the Africa.
They have extensive and specific quality control (QC) steps, including automatic and manual human checks, to ensure that all collected data is reliable and genuine.
They also offer customized and off-the-shelf syndicated products and services. They regularly and frequently update their datasets.
For more information contact sales@sagaciresearch.com.
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3. Ipsos
Ipsos is a global market research and public opinion specialist company that is listed on the Paris Stock Exchange since 1999. They have offices in 89 countries and including in a number if African countries.
Unlike Sagaci Research and Frontline Market Research who focus on retail, Ipsos key areas of focus is accountancy, agriculture, automotive, government, charities, energy, engineering and entertainment.
They rely extensively on science, technology, and know-how to provide accurate and relevant information.
Despite being a large company, they are seen as a trusted partner by their clients and they offer more than just data, but actionable insights and understanding too.
Contact them by email here or call (+27) 117 097 800
4. Kantar
Kantar is a global market research and consulting firm with offices West Africa, East Africa, Sothern Africa and North Africa but are best known for their unique global approach.
They offer market research but also have a wide range of other services, including data analytics, brand strategy, and consulting.
Their expertise covers various areas, including advertising and media, analytics, brand growth, consulting, customer experience, consumer, shopper and retail, innovation and product development, public policy and communication, behaviour change research, and qualitative research across a broad range of industries.
As one of the biggest market research companies in the world they have worked with most of the biggest brands.
Contact them by telephone (+27) 011 844 6888