2015-03 candid consumption africa bulletin

CANDID CONSUMPTIONWhy increasingly inquisitive, info-craving African consumers will expect brands to be totally transparent in 2015.

AfricA trend bulletinMArch 2015

Power blackouts supplemented by diesel-powered generators, solar inverters, kerosene lamps and candles are routine (if not, daily) occurrences across the continent.And yet it is still a given that monthly utility bills are expected to be paid, without question.

Lack of accountability for poor service delivery, questionable

supply chain operations, disappearing government budgets

and unsustainable sourcing of raw materials (to name a few),

has long plagued most countries across the continent.

In an environment where the disconnect between

governments and their citizens cannot be overstated, many

Africans have grown accustomed to being the only party

expected to fulfil their side of the transaction: be good, obey

the rules and pay up, without question – or don’t, at your peril.

What’s more, that’s set a precedent that brands have followed.

So that over the years, consumer’s expectations from

brands operating in Africa were far lower than their global

counterparts…

cAndid cOnSuMPtiOn 2www.trendwatching.com/trends/candid-consumption

http://www.trendwatching.com/trends/candid-consumption/

Shell will pay out USD 83.4 million in compensation for oil spills in

the Niger-Delta region in 2008.

BP will pay USD 13 billion in compensation following the much

smaller Macondo rig disaster in the Gulf of Mexico in 2010.

reuterS, JAnuArY 2015.



AFRICANS ARE NO LONGER WILLING TO ACCEPT THIS STYLE OF CONSUMERISM!



DEFINITION

As the chasm between institutions and citizens shrink, brands

that continue to follow the modus operandi of yesteryear do

so to their detriment. African consumers today will not only

call out opaque organizations, but will also patronize and

support those that are more open, honest, real, raw and

transparent.

Take, for example, the successful influx of electricity meters

across key cities in sub-Saharan Africa – consumers will

always opt for unbiased and measurable solutions in place

of vague ones.

The rise of CANDID CONSUMPTION has only just begun,

but survival of the fittest (brands) in 2015 and beyond will be

determined by these aforementioned characteristics – so take

heed!

cAndid cOnSuMPtiOn | in 2015, all

institutions and brands will undergo

the African inquisition, as increasingly

agitated consumers across the

continent demand total accountability,

transparency and information.



1. Digitally Empowered consumers: As they become more

digitally interconnected, Africans are clued up more than

ever.

2. returning Globals & richer Locals: Increasing

disposable incomes and global benchmarks understood

by the diaspora and returnees are putting pressure on

organizations to be more transparent.

3. ¡Viva la revolución! ... African style: From Lagos to

Limpopo, the pendulum of activism is in full swing!

4. More competitors = More choice: Today, new offerings

and solutions are flooding the market, leaving consumers

spoilt for choice!

WHY NOW?

Four key drivers to explain this new phenomena.



1. cANDID EXPOSUrE: Businesses and initiatives forcing

open dialog and exposing information have risen where

institutions have fallen short. In Africa, this largely speaks to

governance and state-run services, which have remained

opaque despite the changing times.

2. EMBEDDED cANDIDATES: In some regions, certain

brands have already embraced a transparent and CANDID

approach with their customers. These progressive brands

are challenging the status quo by embedding openness and

accountability into their products and services.

3. cANDIDS ON cALL: These brands understand that, in 2015,

it is not enough to merely be informative and transparent:

they must also do it at the right time (or even in real time)!

WHY NOW?

In which ways are African brands today addressing CANDID CONSUMPTION? Here’s three actionable opportunities for brands, entrepreneurs and organizations to take advantage of...



WHY NOW?



Between 2000 and 2014, the number of internet users on the

continent grew from 4.5 million to 298 million: a growth rate

of 6,500%, almost ten times the global average (Internet World

Statistics, June 2014).

Africans are thus more informed and more able to investigate

and interrogate brands in ways that were not possible before.

Savvy organizations understand that willingly offering up

information is ultimately better than being found out online.

And that truth is only intensifying as connectivity and the

digitalization of services sweeping across the continent shows

no signs of slowing (at least for now).

1. Digitally Empowered Consumers

Africans are clued up more than ever, as they go online and become more digitally interconnected.

WHY NOW?



Internet.org, an initiative providing free access to Facebook and other online resources for emerging markets, launched in Zambia in 2014.



Between 2000 and 2014, there has been a tripling of middle-

class households across 11 key African markets (Standard

Bank Group Ltd, August 2014).

At least 32 African nations, in need of revenue, investment

and human capital, have created organizations to tap their

diaspora’s funds and know-how (Good Governance Africa,

March 2014).

Cities have and always been melting pots for a broad

spectrum of society. And in Africa, that’s no different. The

combination of more informed local consumers fused with

diaspora and returnee communities, has resulted in citizens

who not only expect but also demand more from their

governments, brands and even society!

Now, these educated, assertive citizens are ready to call out

those falling short.

2. Returning Globals & Richer Locals (in a city setting)

Increasing disposable incomes and global benchmarks understood by the diaspora and returnees are putting pressure on organizations to be more transparent.

WHY NOW?



In December 2014, Anarchist Bookfair – an activist group that challenges the political landscape in South Africa – launched a parody site (titled So, happy in cape Town?), satirizing societal inequalities and the lack of racial diversity in the city.



In April 2014, terrorist group, Boko Haram, abducted over

200 schoolgirls from Chibok, an area in northern Nigeria.

The #bringbackourgirls social media (and offline) campaign

– initiated by Nigerian protesters – garnered the attention of

global influencers worldwide, from Michelle Obama to Nobel

Peace Prize winner Malala Yousafzai. Despite the failure to

recover the girls to date, the campaign has continued to put

pressure on the Nigerian government to act more decisively in

investigating their whereabouts (PBS.org, February 2015).

Many African citizens are no longer waiting for change,

but are catalyzing it. As the activism mindset permeates

the continent, consumers – in search of a brighter future –

are proactively engaging with organizations on issues both

serious and trivial, on and offline.

And let’s not forget 2015’s more daring, tech-savvy African

youth, who are aware that, regardless of their physical

ability to call out the powers that be, the global momentum

instigated via a click or hashtag can be far more powerful.

3. ¡Viva la Revolución! ... African style!

From Lagos to Limpopo, the pendulum of activism is in full swing!

WHY NOW?



Internet memes making fun of robert Mugabe spread across blogs and social media, after the Zimbabwean president attempted to block photographs of his fall outside harare airport in February 2015.



65% of Africans agree that the desire and ability to buy

products move the economy and culture forward (Boston

Consulting Group, March 2014).

Africans are natural consumers, and crave the plethora of

products and services available in other markets. Although

it has taken a while for supply to catch up with demand,

that is now happening at an unfathomable pace. The race

for this Final Frontier has never been so pressing, and the

past few years have seen withering monopolies relinquish

their strongholds to domestic, more agile, transparent and

relevant startups offering exciting home-grown solutions,

alongside global conglomerates eager to export their best-in-

class innovations.

And all this results in the most choice-abundant consumers

the continent has ever seen!

4. More competitors = More choice!

Like the metered billing system’s triumph over the older, more obscure methods, today new offerings and solutions are flooding the market, leaving consumers spoilt for choice!

WHY NOW?



An average of 75% of 10,000 Africans polled were keen to ‘buy more things’ – higher than averages in Brazil, china and India, and twice the percentage in developed economies (Boston consulting Group, March 2014).



SO WHAT?Trends are about opportunities. Here’s

three to start your CANDID journey.



1. CANDID EXPOSUREIf you can’t beat them, expose them...



Last November saw Namibia hold Africa’s first electronic

ballot for over 1.2 million of its citizens. Opposition parties

challenged the process, citing vote-rigging concerns;

the case was dismissed by the country’s High Court. (BBC,

November 2014)

Of course, not everyone will be excited about adopting

CANDID CONSUMPTION, and this is where the opportunities

for CANDID EXPOSURES lie.

The expectation gap between the information Africans

demand and what institutions, politicians, and other types

of state-managed service providers are actually offering, is

vast. Yet, this year will continue to see a steady growth of

programs, organizations and daring platforms fill these

gaps, by shining a light on (read: exposing) previously

hidden or opaque processes, institutions and people.

Are you ready to become CANDID BY PROXY?

There are plenty of platforms, brands, programs, initiatives and fearless entrepreneurs across the continent ready to inform consumers about YOU!

CANDID EXPOSURE



feAtured innOVAtiOnS: cAndid eXPOSure

afriLeaksWhistleblowing site launches in Africa


https://www.afrileaks.org/



BudgITNigerian website offers information on public budgets and spending


http://www.yourbudgit.com/



Live SAInitiative invites young journalists into South African parliament


http://livemag.co.za/vip/


WHY NOW?

SYNCED SERVICES?

Yes, sometimes archaic and stubborn institutions must have transparency forced upon them. But if you are an institution willing to adapt, how about partnering with a platform that makes you more transparent? For smaller organizations, why not BE that platform that partners with a big institution and opens it up? Either way: Collaborate! After all, it’s all about offering both your (and their) customers 100% candor!



2. EMBEDDED CANDIDATESEmbed openness, accountability and

transparency in your brand.



SiGn Of tHe tiMeS: eMbedded cAndidAteS

Van Ryn’s


http://www.vanryn.co.za/


EMBEDDED CANDIDATES

So, maybe you’re now ready to take that big step...

... and embrace this trend in its entirety and become intrinsically CANDID? We’ve identified two routes:

1. cANDID SNIPPETS: Large brands, organizational bodies

and multinationals may not be able to overhaul their

entire transparency agenda straight away. But they can

still run with campaigns, initiatives and events that allow

consumers a ‘quick snippet’ of greater transparency.

2. cANDID EPIcS: Newer, more agile and adventurous

entrepreneurs can embed CANDID CONSUMPTION into the

essence of their brand and bring customers into the heart

of their operations.



EMBEDDED CANDIDATES

CANDID SNIPPETS

A few examples of organizations that have adopted candid elements into their products, services and experiences.



feAtured innOVAtiOnS: eMbedded cAndidAteS / SniPPetS

People’s Democratic PartyLagos State governorship candidate announces his first ever Google hangout session for local residents


http://jimiagbaje.com/event/hangout/



Capitec BankSocial media campaign invites bank’s customers to ask questions


https://www.capitecbank.co.za/campaign/askwhy



Nigerian GovernmentNigeria launches open data initiative


http://commtech.gov.ng/?view=featured


EMBEDDED CANDIDATES

CANDID EPICS

One for more agile brands! Africans will eagerly champion organizations that go the extra mile and expose more than expected. Whether this means offering up your supply chain for scrutiny, inviting your customers to interrogate or openly criticize your service, or even baring your entire production process, there are many ways to shock, excite and ultimately gain the respect of otherwise jaded consumers.



feAtured innOVAtiOnS: eMbedded cAndidAteS / ePicS

The Coffee StationEco-friendly mobile coffee cart launches in cape Town


https://www.facebook.com/coffeestationSA



Waste2WowBag brand’s ‘micro manufacturing’ franchise model opened to locals


http://littlegreennumber.com/



Wolf & MaidenSustainable accessories brand utilizes a single space as studio, workshop, stock room and store front


http://www.wolfandmaiden.com/


NEXT

CANDID ADD-ONS?

Now that you’ve embedded candidness into your core business, how can you milk it? If you’re an offline business operating transparently, think about how you can bring this feature online. It wouldn’t hurt for, say, Wolf & Maiden (above) to hold a Google+ Hangout session for their online community. And vice versa too!



3. CANDIDS ON CALLThe new ‘African Time’ is on time, at the

right time and in real-time.



CANDIDS ON CALL

CANDID CONSUMPTION in real-time anyone?

... because honesty/transparency/information is useless if it’s late!

Many services in Africa are pretty honest, just slow. So slow

that in some cases, there may as well be no service at all. The

recently postponed Nigerian elections are yet more proof

that there’s no shortage of hindrances to the timeliness of vital

events and services across the continent.

The next phase of CANDID CONSUMPTION sees its lines

being blurred with real-time information and services.Because

Africans in 2015 will demand that beyond just providing

transparent and honest information, organizations take

their accountability to the next level by disseminating

it as and when it is needed, and often in real-time.

CANDIDS ON CALL recognize the overwhelming need for

timely, trackable and measurable information.


http://blog.crisisgroup.org/africa/2015/02/12/nigerias-elections-a-perilous-postponement/


feAtured innOVAtiOnS: cAndidS On cAll

Ethio Telecomhotline provides rural Ethiopian farmers with real-time crop information


http://www.ata.gov.et/8028-2/



Traffic Litereal-time, crowdsourced traffic updates helps Nigerian drivers and commuters


https://play.google.com/store/apps/details?id=com.panthelope.trafficliteapp



electiOnrideInteractive mapping website shows Zimbabwe’s election results in real-time


https://www.facebook.com/electionride



Tunisie TelecomTelecoms company encourages Tunisians to collect trash and track beach cleanliness in real-time, in exchange for free wifi


http://www.tunisietelecom.tn/


NEXT

PLAYSUMERS

If you’re already implementing this trend, it means you’re ahead of the (CANDID) curve. So it’s time to have fun! What games or reward mechanisms can you embed into your real-time services? Tunisie Telecom incentivized consumers to collect trash with free wifi, which they could then use to track collective progress. How can you take this trend even further by engaging Africans in a fun and novel manner?



READY TO TAKE THAT STEP?Take a leap of faith into CANDID CONSUMPTION and Africans

will thank you with their hearts, votes, loyalty and of course Rands/Naira/Dirham/Metical/Birr/Kwanza/Shillings/Cedi...



Then try using our (free) CONSUMER TREND CANVAS tool to help you structure a session with your team. Will yours be among the next ones we feature in our future bulletins? ;)

Need some help?

NEXT


http://trendwatching.com/trends/consumertrendcanvas/

http://trendwatching.com/trends/consumertrendcanvas/


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PAUL BACKMANChief Client [email protected]

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