Africa
presents one of the fastest developing markets in the world
and the demand for cosmetics is growing at a frantic pace.
Not only is there a huge pent-up demand for upmarket products
from Europe and North America but also for the entire range
of beauty and personal care products from major manufacturers
around the world.
When it comes to looking their best at all times, Africans
are second to none. As such, there is a huge demand for
products such as beauty soaps, face washes, shampoos, conditioners,
body and skin lotions, toners, astringents, cold creams
and other moiturising formulations, perfumes, hair colours,
dyes, powders, eye and face packs, to mention just a few.
While
there is now a considerable level of manufacturing activity
taking place within Africa itself, there is an ever assertive
and growing segment of consumers who are demanding the
best products available in the world. Enterprising traders
are keen to source such goods from all the reputed manufacturers
but are often hamstrung by the volumes of purchases required.
Most manufacturers are not interested in supplying quantities
that do not run into several container loads at least.
Often it is not viable for buyers to go in for such large
volumes.
Secondly,
there is also the question of sourcing products from different
countries and even continents. For instance, an African
importer may be interested in facial products from Europe,
toiletry from the Far East and herbal cosmetics from the
USA. But this would place immense logistics constraints
and would involve travelling around the world and opening
of letters of Credit with a host of banks. Often, all
these obstacles would prove insurmountabe and many exporters
would be put off by the sheer magnitude and complications
of the whole exercise.
In
such a scenario, Dubai offers African importers the ideal
market place. "African buyers can source all their
requirements from just one location," says Mohd Al
Khatib, Managing Director, Siblin Cosmetics (LLC), a leading
supplier of salon equipment. "Buyers can select from
a vast range of merchandise and buy just the quantities
they require and then transport the goods back to their
home countries at very competitive freight costs,"
he says.
The
profit margins in this business are high and plenty of
African buyers are flocking to the United Arab Emirates
to meet growing requirements for cosmetics and salon equipment
in their own countries. "We are in a position to
meet any specifiic requirements African buyers may have
and are able to source all that they need. Even if we
do not carry adequate stocks, we are able to get fresh
supplies from our principals at very short notice,"
says Kamal Khatib, Managing Director of Maram Cosmetics.
"We specialise in salon products and are very happy
with the interest shown by African buyers in our products,"
he adds.
Dubai's
strength in the cosmetics business is based on low-priced
goods and low import duties. "We have excellent connections
and contacts with Far Eastern and European suppliers and
are able to offer their products to African buyers at
very competitive prices due to the fact that we operate
on low profit margins and a very low-cost environment
in terms of import related tariffs," says Ziad Sabbagh
of Al Nasaem Company. "As such, African buyers are
very happy to deal with us and we have a large number
of repeat orders from them," he says.
Pankaj
Menon, General Manager of Al Hathboor International (agents
for AVON) says that his company is very happy with its
dealings with African buyers. "We are keen to expand
our presence in Africa and are looking forward to much
greater business volumes in the coming months and years,"
he says.
"Our
participation in the AFRO BUSINESS TRADE FAIR in Uganda
proved to be a turning point of our business with Africa.
The trade fair provided us an opportunity to establish
longterm business contacts with wholesalers and distributors
in the East African countries of Kenya, Uganda and Tanzania.
We were surprised at the overwhelming interest in our
products by the African buyers," says Sanjay Makhija
of Gem Plaza, a reputed dealer in cosmetics, toiletries
and beauty products. African buyers too are very happy
to come to Dubai to buy their requirements. "Prices
in Africa for these goods are almost double," says
Grace Wanjiku of Kenya, who was recently in Dubai to buy
cosmetics for her salon in Nairobi. This sentiment very
much embodies the expectations that African buyers have
from the UAE and this trend of sourcing cosmetics and
beauty products from the UAE is expected not only to continue
in the years to come buy also grow in scope and stature.
Business
Advise
HOW
TO PROMOTE YOUR BUSINESS IN AFRICA
There are a few easy ways for cosmetic dealers and manufacturers to
make their presence felt in the markets of Africa. For traders of
beauty products, perfumes, toiletries and salon equipment, Africa
is indeed a very lucrative market. Those dealing in products manufactured
in the Far East (China, Korea, Thailand, Malaysia etc) will find a
ready market for their products as Africa is by and large a very price-sensitive
market. It is a well known fact that African customers prefer cheaply
priced goods from the Far East rather than the expensive ones from
Europe and America. You can promote your products and/or services
in Africa through many mediums:
The first and foremost, and by far the most effective, is to establish
direct contacts with your business counterparts in these regions by
participating in the forthcoming 3rd AFRO BUSINESS TRADE FAIR which
is being held in Kampala, Uganda just before Christmas season. Supported
by the Uganda National Chamber of Commerce and the COMESA Business
Community Committee, the AFRO BUSINESS TRADE FAIR has established
itself as one of East Africa's prime trade events. In the past few
years, many international companies, specially from the Middle East,
have used the AFRO BUSINESS TRADE FAIR to improve their presence in
the East African markets. Information on participation and stall availibility
can be obtained from the Organisers.
Download
the Kenya
Importers Directory and start sending emails to
your business counterparts in Kenya and establish a business relation
with them. Kenya is known as the "Gateway to Africa" and
is a major importer and distributor of goods in East Africa. The Kenya
Importers Directory is a perfect way to reach the
business community of Kenya from the convenience of your desktop.
The growing use and influence of the Internet can also be harnessed
to promote your business in the African markets. By posting your business
proposals on the African Classified Advertisements section, you can expect direct responses
from your business counterparts in African countries. Employing the
growing influence of Internet technology to promote your business
in international markets is one of the most simple and effective promotional
tool for forward-looking enterpreuners. Simply post your message and
wait for the results. Simple!
Last, but not least, add your company to the Advertising Section of the Africa Business Pages. The Advertising Section
will carry a full page editorial about your company as well as two
pictures of your company's products. In addition to this, your company
will also be provided with a direct link in the Business Links section.
By promoting your company on the Africa Business Pages you can reap
rich dividends. An absolute essential for those targetting the African
market. Browse through some samples before taking a decision.
Business Contacts
Some
useful business contacts in this sector are:
Nabeel
Perfumes
Al
As'aas Perfumes Company
Swiss
Arabian Perfumes
Tura
International
Ajmal
Perfumes
Arab
American Cosmetics
Maram
Cosmetics
