Same continent. New year.
New trends.
2016 was truly a year of highs and lows for Africa and we’ve been tracking these milestones to understand how they’re (re)defining consumer expectations. From entrepreneurial ventures to new killer apps, to big brand services and government initiatives, below we’ve highlighted only the very best of 2016’s innovations and the 5 key African consumer trends they’ll represent in 2017.
Of course, these trends will not only provide you with game-changing innovation opportunities, but they’ll help you to remain relevant by catering to your customers’ future needs, right now.
So dive in, absorb and share. Then prepare to build brands that excel, products that resonate and campaigns that go viral in Africa… and beyond!
UNDERDOGS
RISING
Year of the (black) sheep!
With 2016 representing a year of social polarity, political extremism and further divisions, isolation has never felt so at home in the minds of the masses and the marginalized.
However, across the Middle East and Africa, 2017 will mark the year that a host of progressive brands and crowd-powered activist initiatives stand up for the repressed and the excluded.
Why? Because the expectation for more egalitarian societies has reached boiling point and, in 2017, ostracizing mentalities will no longer cut it for the majority of city-dwelling Africans. Many are all too familiar with the long-term negative effects of a divide and rule system, which today runs contrary to the aims of the continent (see the increasing convergence of the African Union).
Meanwhile, the exploding youth population is paving the way for a NEW AFRICAN NARRATIVE, one that snubs the parochial mind-set of those that came before. Young Africans are open to celebrating their differences, and seek brands willing to do the same.
So in 2017, expect to see more brands responding to these macro-shifts with new campaigns, empowering initiatives, and daring media, all heralding the rise of long-subdued or once taboo groups.
Innovation examples
Your response
Not every form of activism must be forceful.
Choosing which group, and how to champion them, requires deep cultural insight and sensitivities towards the idiosyncrasies of your target market. Otherwise, there is a risk that your initiative might not be readily accepted by your customers or, worse still, go against the agenda of the community you're attempting to appease. Kenya's response to Obama's stance on gay rights, stands as a cautionary tale.
With this in mind, consider what strategies you can employ to not only empower the forsaken but carry the masses along too - in a non-patronizing and assertive (yet empathetic) manner.
Parent mega-trend:
human brands —
Why personality and purpose will mean profit.
HAUTE
HEALTH
Wealth is health.
In 2017, brands will pay closer attention to increasingly affluent African consumers who are looking for new ways to splurge on mental and physical wellbeing.
As a wave of entrepreneurship continues to sweep across the continent, expectant patients welcome a more dynamic service delivery, regardless of cost implications. Of course – recessions aside – disposable cash from the emerging middle classes are key. This group amounts for almost 50% of Kenya’s population, according to Kenya’s National Bureau of Statistics.
Unlike in the West, where medical check-ups, fitness tracking devices and functioning health systems are ubiquitous, Africans have always taken it upon themselves to be wholly responsible for their own wellbeing. And with the ever-growing availability of health information online, the awareness of topical wellness issues (from gluten intolerance to internet addiction) is becoming more prominent in the mind of the average African consumer.
At the same time, social media has legitimized behavior once considered vain or boastful. A workout that isn’t captured and shared with a selfie is a workout wasted – after all, healthy consumers accrue status in the eyes of their peers.
HAUTE HEALTH products, services, and experiences that promise wellbeing and let users tell a story are bound to cause delight in 2017.
Innovation examples
Your response
The one thing all the above innovations have in common is their non-traditional approach to health and wellbeing. And yet, every innovation can also be categorized into two distinctive types of HAUTE HEALTH solutions that answer the following questions:
1. How can a timeless health-related issue be solved in a more contemporary manner?
2. As the continent continues to develop and evolve, can you anticipate your customers' future health concerns before they do?
Whichever road you choose, embedding a status play is absolutely imperative in ensuring your offering puts the 'wealth' in the 'health’. And remember: this opportunity isn't limited to brands in the health sector!
Parent mega-trend:
betterment —
The universal quest for self-improvement.
FINTECHPHILIA
Money's new makeover.
On a macro-economic scale, Financial Technology (FinTech) is set to be one of the biggest game-changers in 2017, as investors patiently await the killer FinTech product that, like M-Pesa, will disrupt, not only Africa, but also the world-at-large.
Confidence remains in the continent’s growth. In January 2017, the George Soros-backed private equity company LeapFrog Investments raised a rumored USD 800 million for new African businesses. But there’s still plenty of work to be done. In December 2016, a senior director from the Central Bank of Nigeria reported that 40% of the country’s population remains unbanked.
As digitally powered businesses on the continent begin to thrive, many are held back by the lack of financial infrastructure. According to McKinsey, e-commerce in Africa is expected to generate annual sales of USD 75 billion by 2025 (McKinsey, December 2016). Moreover, the digital world is growing exponentially across the continent: “Cameroon aims for its digital industry, which now accounts for a little under 5% of the GDP, to double in size to 10% over the next three years. The sector currently employs 10,000 people but also intends to expand that to 50,000 by 2020.” All this indicates the cruciality for online payments and mobile financial infrastructures to be put in place.
Local bricks and mortar markets no longer service the over-exposed tastes of the young; and that, coinciding with the ever-increasing need to transact fluidly across geographic borders, has made Africa’s transition into FinTech a matter of urgency.
Innovation examples
Your response
If you’re a business, this conundrum wholly concerns you. In the mind of your customers, 'convenience is king'*, so remember that the easier it is for your customers to transact with you, the better.
What solutions will ensure your customers are no longer stuck at the point of sale? This might involve partnering up with an already established platform or, if you’re a bank or a FinTech entrepreneur, developing a service that will be useful to both the business and customer.
*Keep in mind that many African countries still rely on cash. Be thorough about understanding how this will affect your customers in their adoption of your rolled-out system. Communicate the benefits clearly and, if need be, educate consumers about your new app or service. Don’t assume that convenience is their only concern – apprehensions surrounding safety and usability will undoubtedly affect the adoption of your FINTECHPHILIA solution. So get hand-holding!
Parent mega-trend:
helpfull —
Be part of the solution, not the problem.
CAPACITY
CAPTURE
Killing two needs with one stone.
Across the continent, many citizens are accustomed to being deprived of the everyday necessities their fellow (read: wealthier) citizens are accustomed to wasting.
Yet such shortcomings have meant that sharing resources and maximizing the uses of everyday items comes as second nature to most Africans. Reusing, repurposing, upcycling and sharing are interwoven into the very fabric of the African lifestyle. So much so that it’s integral to African culture.
Up until now, the formal consumption arena has seldom tapped into this phenomenon, opting for waste over sustainability. And despite the very apparent need for organizations to operate more efficiently, traditional businesses are still infamous for turning a blind eye to irresponsible operations that harm vulnerable communities.
In 2017, savvy brands will address some of Africa’s most fundamental issues by maximizing the purpose(s) of their offerings, and minimizing wasted resources. These brands will focus on CAPACITY CAPTURE by creatively unlocking new sources of value from what would otherwise be an underused (or dormant) product and service element.
Innovation examples
Your response
When devising a CAPACITY CAPTURE strategy, first identify the parts of your current offering that are underutilized. Then find a compatible value-adding solution, like Uber or Hotels.ng, who repurposed physical assets for new uses.
Addressing Africa’s gargantuan issues (health, safety, education, shelter, utilities, and more), by reusing already-existing services is not always an easy feat, so don’t force it.
Try asking your customers about what other uses they envisage, or observe what they are already doing with your product – the answers might surprise you. Done well, CAPACITY CAPTURE is a win-win trend!
Parent mega-trend:
better business —
Why 'good' business will be good for business.
Bring us to YOU!
Tap into our regional trend intelligence in-person
If you want more African trends and deeper consumers insights from the region you can bring our expert analysis to your office or conference!
Lola Pedro, TrendWatching’s Africa Regional Director and lead author of this Trend Briefing, is available for in-house keynotes, innovation workshops and more.
Get in touch now: lola@trendwatching.com
Get going!
As always, we wrap up these annual Trend Briefings with a call to action...
While it’s our job just to watch trends, ambitious business professionals should read these trends with only one thing in mind: how to apply these trends and create compelling new innovations that will delight your customers (and win new ones!).
We can help with that too!
Take our CONSUMER TREND CANVAS, a free one-page tool for analyzing and applying trends. Dive into its simple, practical, step-by-step process to creating innovations that are deeply grounded in what customers want, desire and expect. Then win in 2017!
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