At OUTLOOK™ you will provide insight on the changing market space for the hygiene sector in African economies. How have you witnessed this evolution recently?

The changes in the African hygiene space have 3 main themes: the changing retail space, new regional players (and the end of P&G and KC domination in key markets) and opportunities in new product categories.

In retail we have seen increased interest in Africa by big European players like Carrefour moving very aggressively into French West Africa, Kenya and now indications are they already have a licence for South Africa. Before that we saw Walmart take a stake in Massmart in South Africa, as a way to have a foothold in the bigger regional retail opportunity. South Africa’s major retailers (Shoprite, Pick n Pay, Spar and Massmart) have all been establishing themselves in new markets north of the South African border. Choppies, a Botswana-based retailer, has been the fastest growing retailer in Africa, growing to above 250 stores spread across Southern, Central and East Africa in the space of a decade. Jumia has disrupted Africa’s e-commerce space, although it is still in its infancy.

Coming to the hygiene players and brands, the past decade has seen new brands becoming leaders in key markets, where Pampers and Huggies have always been the top two. In Nigeria we have seen Molfix become the market leader. Molfix is also a leading brand in Cameroon and has recently launched in Kenya. In Ethiopia we have seen Canbebe take over. New regional brands are emerging. Local manufacturing is also gaining momentum in key markets of Nigeria, Kenya and Ethiopia. There are also new leaders in other hygiene spaces and categories; Chandaria Industries is the biggest player in tissue in Kenya, with a growing appetite in feminine hygiene, while Wemy Industries is now the market leader in wet wipes in Nigeria. All these developments create new opportunities for equipment manufacturers, raw material suppliers and private label manufacturers.

And what are the specifics that are not comparable to other regions?

Unique developments that are not comparable to other regions include the challenges in the e-commerce space for example. E-commerce in other parts of the world is predominantly computer based. In Africa, the majority of transactions, led by Kenya, Nigeria, South Africa and Morocco, are mainly mobile phone based, leading to a whole new category of mobile-commerce. The challenges linked to the cost of the last mile deliveries in markets like Kenya and Nigeria are not to be under-estimated. Physical addresses are a big hurdle and raise the cost of delivery significantly. Some fintech start-ups have dedicated their focus to exactly these challenges and solutions are gradually beginning to surface.

Other initiatives that seem to be working very well include creating networks of collection points. Despite the rapid growth in more "modern trade" models, the informal channels, including the general trade, the independents and neighbourhood stores, are still in the majority. No hygiene brand can win in an African market by focusing on a modern trade framework alone. The informal channels, which may be as simple as a table top, will continue to be a key part of African retail for the foreseeable future. So important is the informal channel that we are beginning to see major retail players like Pick n Pay and Shoprite in South Africa seeking new opportunities and partnerships in this channel. Major modern trade players in other markets tend to stick to their craft and the informal market is hardly worth looking at. This is a purely African phenomenon.