Africa & Middle East

Africa & Middle East

Module 4.2

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Africa

• Africa is the fastest-growing continent in

population. The average of TFR is 4.2 in 2023 is the highest among all continents. Accordingly, Africa is the youngest continent as 60% of Africa is 24 years of age or younger.

• Big 3 countries in population: Nigeria,

Ethiopia, and Egypt .

• Big 3 countries in GDP: Egypt, Nigeria,

and South Africa.

• South Africa is one of the BRICS countries (Brazil, Russia, India, China, and South Africa), with high economic growth.

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• With 54 countries, Africa is the most multilingual continent in the world; there are more than 2,000 recognized languages.

• South Africa is called a Rainbow Nation because of the mix of cultures and people living across the country; Has a total of 10+ official languages (picture on right).

• African consumers are collectivistic and optimistic about the future. The majority of Africans believe that tomorrow will be better than today.

• Africa’s values include a sense of hospitality and having good relationships with others.

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• With 54 countries, Africa is the most multilingual continent in the world; there are more than 2,000 recognized languages.

• South Africa is called a Rainbow Nation because of the mix of cultures and people living across the country; Has a total of 10+ official languages (picture on right).

• African consumers are collectivistic and optimistic about the future. The majority of Africans believe that tomorrow will be better than today.

• Africa’s values include a sense of hospitality and having good relationships with others.

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• Africa has a very diverse and multicultural society, especially in terms of religion.

• Islam (north) and Christianity (south) are two major religions, but there are other native religions and Hinduism.

• Apparently, this diverse cultural background should be an important consideration for many retailers.

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• Africa's traditional clothing can be formal or informal versions, worn at work, at parties, or as casual wear as modern African clothing.
• The boubou is a flowing wide-sleeved robe worn across West Africa, and to a lesser extent in North Africa. As you can see in the left picture, the Niger President Mamadou Tandja is wearing a grand boubou.

• The dashiki is a colorful garment that covers the top half of the body, worn mostly in West Africa. The right picture shows a musician in Ghana, dressed in dashiki.

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• Funerals are highly ritual reflecting their collectivistic culture. • These funerals are considered a rite of intensification, enforcing collective identity. • The ceremonies last for days or weeks, with family members and friends celebrating the memory of the dead.

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• Due to the burgeoning middle class and aspiration youth, and the rapid urbanization has led to changes in lifestyle and consumer behavior. People who live in urban areas have greater exposure to global retail trends.

• Africa is the world’s hottest continent; however, at the same time, some regions in Africa also have cold temperatures, for example, Morocco being as low as -11℉. Therefore, it has diverse seasonal fashion styles beyond the outfits for hot weather.

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• Due to the burgeoning middle class and aspiration youth, and the rapid urbanization has led to changes in lifestyle and consumer behavior. People who live in urban areas have greater exposure to global retail trends.

• Africa is the world’s hottest continent; however, at the same time, some regions in Africa also have cold temperatures, for example, Morocco being as low as -11℉. Therefore, it has diverse seasonal fashion styles beyond the outfits for hot weather.

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Africa

• As concerns about environmental damage from fast fashion production mount, more consumers are opting for ethnic clothing in response to this issue.

• Africa is a very young continent. As a result, they love fast fashion as well as traditional styles. After agriculture, the fashion and textile industry is Africa's second-largest market, with its market value increasing annually.

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• The retail market is growing steadily due to population growth, urbanization, and rising incomes in many countries.

• Informal retail formats, such as open-air markets, street vendors, and small, independent shops, remain a significant part of the African retail landscape.

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Africa

• Modern, formal retail formats such as supermarkets, shopping malls, and retail chains are also on the rise.

• South Africa, Nigeria, Kenya, and Egypt are among the countries with more developed formal retail sectors.

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Middle East

• The three largest Middle Eastern

economies (in GDP): Turkey, Saudi Arabia, and Israel.

• The region is best known for oil production and export, which significantly impacts the entire region through the wealth it generates.

• The Middle East is diverse in religions that are originated in the region. Three major religions are Islam, Christianity, and Judaism.

• Culture is collectivistic, conservative, religious, and traditional.

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Middle East

• Traditional modest Islamic clothing cover the body. In recent years, modern fashion has adapted Islamic clothing in style and color.

• Hijabs and abayas are incorporated into modern fashion, with unique and stylish looks that are still modest and respectful of the Islamic faith.

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Middle East

• In Middle East, tradition and modernity intersect in the realm of consumer behavior.

• Middle Eastern consumers are brand-conscious, and willing to pay for luxury or high-end products.

• Consumers assign status to brands in many product categories from cars to clothes to electronics.

• International luxury brands have a strong presence in the region, catering to affluent consumers. However, there is also a growing interest in supporting local businesses.

• Buying is very social: buying based on friends' or family's recommendations and good experiences (Word-of-mouth recommendations)

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Middle East

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• Across the Middle East, shopping malls fulfill an important cultural and social need.

• Malls like The Dubai Mall in the United Arab Emirates (top left) and The Avenues Mall in Kuwait (bottom left) are among the largest and most iconic malls in the world.

• The retail market in the Middle East has experienced significant growth and transformation in recent years. It is famous for its extravagant and modern shopping malls, often featuring high-end brands, entertainment options, and cultural attractions.

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• As the region undergoes rapid economic growth and embraces digital technologies, international companies must respect cultural nuances, provide exceptional shopping experiences, and leverage the digital landscape to engage with their customers effectively.