Business Plan

(Domestic Appliances)
Africa
 Personal Income Distribution in Africa by 2030 (per day)

•
Why Africa?
Population: Potential Market of 1.2 billion.
Mora than 20 63
116

• Projected GDP growth: 4.08% in 2021.

582
• Household consumption is expected to grow at an average 3.8% $2-$20 376
a year to reach $2.1 trillion in 2025
• AfCFTA: Worlds largest free-trade area. 283
• $1.25-$2 191
10 fastest-growing economies in the world in 2018, six were in
Africa.
• In the World Bank’s 2019 Doing Business index,5 of the 10 most Less $1.25 654
479
improved countries are in Africa.
• 1/3RD of all reforms globally were in sub-Saharan Africa. 0 100 200 300 400 500 600 700
• Growth of middle and upper class. (Fig 1)
• by 2050, roughly 2013 population 2030 population
Source: https://www.brookings.edu/wp-content/uploads/2018/12/Africas-consumer-market-potential.pdf
• 800 million more people will be consolidated in
• Africa’s urban mega-centers
Fig. 1 Company will be focused on Domestic Appliances for
Growth rate of real gross domestic product (GDP) from reasons below:
2017 to 2021 • Appliances (32 percent) exhibited the highest annual growth rates between 2009
and 2013.
5
4.08 Small Domestic Appliances Large Domestic Appliances
4 • Kettle • Refrigerators
3.27
3 3.07 • Water Purifiers. • Freezers
3 • TV
2

0
2017 2018 2019 2020* 2021*
-1 -1.56
-2
Source: World Bank
NIGERIA Strategy: Competitors:
1. LG
• Focus on unorganized retail sector: 2. Peterson Zachonis, PZ,
• 87% of the trading in Nigeria happens in informal markets manufacturers of Hair
Thermocool refrigerators.
(Business Chief) 3. Samsung
Facts: 4. Sony
• Largest population: 196 million (2018)
• In Nigeria, there are more than 200,000 roadside or
5. Polystar
“table-top” vendors in 2015, which are the primary source of
• Biggest economy: US$375.77 billion
• Nigeria will likely amount to nearly $200 billion in consumer revenue between daily purchases for more than 80% of consumers
2015 and 2025 (30% of Africa) • Sell products on e-commerce sites. E.g. Jumia.
• Urbanization rates: 4.51
• Eight cities already reporting a population above 1 million people.
• Nigeria tops in e-commerce in Africa.

Why appliances? Import Value in 2018 & 2017

• The Nigerian consumer electronics market had total revenues of Value in million dollars*
2017 2018
$4.7bn in 2017.
• High level of women entering the workforce benefiting several
appliances – including home laundry appliances, large cooking Water Purifiers 39
appliances and microwaves. 27
• With less time and busier schedules, women in Nigeria moved
towards time-saving, easier home laundry solutions.
TV 232
134
Products:
SDA: LDA:
• Kettle • Refrigerators 326
Regrigerators and freezers
• Water Purifiers • Freezers 179.3
Products for women entering • TV
workforce. Refrigeration products as Beverages 0 50 100 150 200 250 300 350
business is big.
Source: https://comtrade.un.org/data/
 Kenya Strategy: Competitors:
• Kenya’s formal retail penetration rate, which ranges from 30 % 1. LG
2. Samsung
to 40 %. 3. Bosch
• 41 per cent of Kenyan shoppers surveyed reporting to frequent 4. Von
formal retail outlets citing variety and price comparison as
Facts: influencing factors
• Largest population: 50 million (2018) • Work with retail supermarkets like Carrefour, Tusky
• Biggest economy: US$99.246 billion supermarket, Game, etc. at a later stage.
• Kenya home appliances Market attained a value of USD 184.48 Million in 2018 • Focus on E-commerce sell of products. E.g. Jumia,
which is expected to increase to USD 363.92 Million by the end of 2027
MallforAfrica, kilimall and hotpoint.
growing at a CAGR of 7.88%.
• Urbanization rates: 4.31
• Volume of consumer spending in Kenya largest in the East African region
Import Value in 2018 & 2017
• Ease of doing business rank is 53 Value in million dollars*
• Overall employment to population ratio increased to 71.6 % in 2016, from 2017 2018
69.3 % in the 2009 45.5
Ke
33
Why appliances?
• Kenya home appliances Market attained a value of USD 184.48 131
Million in 2018 which is expected to increase to USD 363.92 Refrigerators and Free...
87
Million by the end of 2027 growing at a CAGR of 7.88%
• Significant growth in working women population.
80
TV
Products: 61
SDA: LDA:
• Kettle • Refrigerators
• Washing Machine 14
• Freezers. washing mac...
10.6
Products for women entering • TV
Source: https://comtrade.un.org/data/
workforce.
Thank you
Submitted by: Pranay Ambulkar
Email: pranayambulkar5@gmail.com