Africa’s economic reset requires moving from ambition to execution
The Africa Commerce Convergence Summit keynote address identified four elements that must converge if the continent is to achieve a meaningful economic reset.
Another major FMCG player re-evaluating its options in Nigeria
By our African Marketing Confederation News Team | 2024
PZ Cussons, which has a 140-year history in West Africa, is doing a ‘strategic review’ which could have significant market implications.
Nigeria’s well-documented economic difficulties may force yet another international FMCG player to exit the market, sell off assets, or switch to an import-only operating model.
UK-based PZ Cussons, which has had a West African presence for 140 years, is in the process of a ‘strategic review’ of its brands and the locations in which it operates. The company started its African business in Sierra Leone and has a small presence in countries such as Ghana, but its core focus in Africa has long been the Nigerian market.
The Imperial Leather soap brand has helped PZ Cussons build a strong West African presence.
Photo: Jni, Wikimedia Commons
The company sells well-known and established brands like Imperial Leather soap, Morning Fresh dishwashing liquid and Mamador cooking oil. It also manufactures home appliances products under the brand Haier Thermocool and operates the Coolworld electrical retailer.
In recent times, a long line of big global FMCG players have had to radically change their business models in Nigeria due to factors such as the weak naira, high inflation, foreign exchange problems, and declining consumer spending power.
Procter & Gamble and GlaxoSmithKline both announced last year that they would switch to an import-only model and close their manufacturing operations in Nigeria. Unilever has exited household care and skincare in the country, leasing out its factory.
Company is keeping its options open
According to PZ Cussons CEO, Jonathan Myers, “nothing is ruled out” as far as its operations in Africa are concerned.
“The macro-economic challenges and complexities associated with operating in Nigeria are significant and there is much more to do to unlock the full potential of the business,” he said in a statement.
“As such, we have undertaken a strategic review of our brands and geographies and have embarked on plans to transform our portfolio, refocusing on where the business can be most competitive.
“We have to have an eye on the future as well as a respect for the past. There could be many permutations of the outcome, which could include a change in ownership. We’re going to be objective and not emotional in how we make this decision.”
Comments Trentype, the London-based emerging markets consultancy: “The reality is that its Nigerian business, which includes cooking oil and home appliances is an outlier. We think PZ Cussons is likely to want to sell these outright to give it strategic focus on its core strengths in baby products, hygiene and beauty.
“But its personal care brands are strong in West Africa and highly regarded by consumers. PZ Cussons could sell the assets and the rights locally, which are the most likely options. Or it could sell its assets and switch to an import only model, the major problem of which is that any buyer would use the assets to create a competitor.”
Momentum Group appoints chief marketing and communications officer
Vongani Mageza brings more than 20 years’ experience across financial services and FMCG) companies such as FNB and Diageo.
AI and algorithm-led engagement among the challenges facing marketers
AI agents will influence shopping, algorithms will supersede social connections, and the clip economy will change how brands connect.
Absa bank launches pan-African campaign with athlete Eliud Kipchoge
The brand partnership includes a new TV commercial featuring Kipchoge, digital storytelling, wellness initiatives and community programmes.
How traditional trade is being reimagined, but remains ‘traditional’
Modern retail in Africa is still dwarfed by the traditional trade. Marketers who dismiss this relationship-heavy retail model do so at their peril.
How luxury brands become a source of meaningfulness for employees
Research finds brands don’t just sell products. They can also provide employees with stories through which they feel their work is meaningful
Redefining honesty in a crisis: Why truth alone is not enough
Honesty must be demonstrated through transparency, accountability and action – shaping both reputation and future trust following a crisis.
Lesotho bank’s culturally intelligent campaign beats bigger rivals
In the funeral plan category, where most advertisements look like an obituary, Standard Lesotho Bank opted to ‘sell the cow’, not the policy.
AMC magazine brings latest news and insights for Africa’s marketers
Strategic Marketing for Africa, the publication for deep-thinking African marketing professionals, is not to be missed.
Global study of marketers and agencies is coming to Kenya for first time
CEO of Scopen says the expansion into East Africa is a natural progression following the success of the research in South Africa.
Huge African and Caribbean trade potential can be unlocked, study finds
Report says around 80% of Africa’s annual goods export potential to the Caribbean remains untapped.