The beauty market in Africa
Today's African beauty market represents only 3% of the global beauty market. However, it is a $10 billion market with an annual growth of 9%, twice the global worldwide growth. It is also the market where the supply of cosmetics is the lowest. The market is flooded with counterfeit and low quality products often illegally imported from China and Nigeria.
The beauty market in Africa is composed as follows:
- 30% of products found on the market are counterfeit. These are replicas of well-known brand name products, such as L'Oréal Paris, Maybelline, or MAC Cosmetics. Counterfeit products are illegally imported from China and Nigeria, and are of extremely low quality and sometimes even toxic. They are extremely low-priced and easily accessible in popular open markets.
- 65% of products found on the market are those sold in the retail industry, which have not been designed for the African consumer woman. Nowadays, the majority of retail distributors in Africa are owned by companies based in the Middle East. The beauty products sold in these stores are not adapted to the market. These products are sold for a higher price than counterfeit products, but their quality remains low. Moreover, there is no "touchpoint" for these products. Although consumers can find them in-store, a website, an online presence, marketing campaigns or customer support are rare for these products. They are commodity beauty products.
- 5% of products found on the market are directly imported from Europe. They are generally imported by people from the diaspora, who buy products at full price in Europe, and resell them on average for a price that is 5x higher in independent boutiques in Africa. They are therefore high quality products, which are reserved for a high social class clientele.
- Strong growth: Africa is a rapidly expanding continent, which is experiencing strong growth, particularly in terms of Internet penetration, mobile penetration and social network penetration. The African consumer is particularly mature with regard to online shopping.
- Growing awareness: The African consumer is becoming increasingly aware of the different options available on the market, and the level of quality of the products available to them. African consumers are watching beauty brands that are creating online buzz without having access to them.
- E-marketing costs on average 13x lower than in Europe: Advertising via social networks (Facebook, Instagram, Google) is on average 13x cheaper in Africa than in Europe.
Andjou's target demographics
Andjou targets the urban and connected woman, typically between 18 and 34 years old, who is looking for better quality products, and/or a better experience as a consumer, in terms of her beauty consumption.