China-africa trade is growing strongly. As production and trading enterprises, we cannot ignore the African market. On May 21, Healthsmile Medical conducted a training on the development of African countries.
First, demand for these products exceeds supply in Africa
Africa has a population of nearly 1.4 billion, a huge consumer market, but material poverty. Large to steel and aluminum, machinery and equipment, grain, electric vehicles; As small as mobile phones made in Shenzhen, handicrafts made in Yiwu, and daily necessities such as baby diapers, daily necessities, especially plastic products, gifts, decorations, lighting, etc., are all in great demand.
Wigs, hair care products
In Africa, hair is a big deal. The real hair of an African woman is only about one or two centimeters long, and it is a small, shaggy hair, and almost all the different styles seen are wigs. Most hair care products are imported from the United States and China, and most African wigs are made in China.
Cloth, accessories, clothing
Cotton is an important cash crop in Africa, the planting area is very wide, but the industrial chain is not perfect. They lack processing capacity and can only rely on imported fabrics, fabrics, and even finished garments.
Packaging material
Especially mineral water labels and beverage bottle labels. Due to the climate and scarcity of water resources, mineral water and beverages are popular, so labels such as PVC shrink label often return orders in quarterly or semi-annual quantities.
Second, Characteristics of African customers
Work style “stable”
This is how Africans take their time. It is especially reflected in the negotiations on construction machinery and equipment, and we should be patient with African customers and actively cooperate with customers for detailed communication.
Like to call each other brothers
Their most common catchphrase is Hey Bro. If you use this catchphrase to communicate with male customers, you can instantly close the distance. In addition, our country’s strong aid to Africa has increased Africa’s favorable impression of Chinese people.
Very price sensitive
African customers are very price sensitive, the most fundamental reason is Africa’s economic problems. African customers like cost-effective products, sometimes in pursuit of low prices, at the expense of product quality. When communicating with African customers, do not say how good the quality of the product is, and explain the factors affecting the cost price in the process of counteroffer, such as expensive labor, complex technology, and time-consuming workmanship.
Warm humor
You can always communicate with them, take the initiative to greet them, and share some interesting things.
More inclined to make phone calls
In Africa, especially Nigeria, where electricity is in short supply, African customers generally prefer to communicate issues over the phone, so take notes when communicating and confirm details in writing.
Third, customer development
Attend African exhibitions to find customers
Although some money is burned, but the single rate is high; It’s best to visit as soon as possible after the show, otherwise customers may forget about you. Of course, if the funds are insufficient, you can settle for the second best, combined with your own situation reference.
Establish an office
If you focus on the African market and have a lot of money, it is recommended that you set up a local office and find local friends who have the ability to cooperate, which is likely to be a way to make the business bigger.
Use the Yellow Pages website to find clients
Although Africa network is not developed, but there are some of the more well-known website, such as: http://www.ezsearch.co.za/index.php, yellow pages web site in South Africa, many firms has arrived in South Africa, has the company’s web site, can through the website to find the email.
Use business directories to find customers
There are a number of companies and websites around the world dedicated to providing buyer directories, such as www.Kompass.com, www.tgrnet.com and so on.
Use foreign trade SNS to find customers
WhatsApp, Facebook, for example, are the most used platforms in Africa.
Working with African trading companies
Many African trading companies have offices in Guangzhou and Shenzhen, and they have a lot of customer resources. And there are many African customers who trust these African trading companies. You can go to mobilize resources, see if you have contact with these African trading companies, to try.
Fourth,What should we pay attention to when exporting to Africa?
Foreign trade fraud
The African region has a high incidence of fraud. When contacting with new customers, it is necessary to carefully choose trading partners and more screening or verification of customer information. Many criminals in Africa will use the name of a formal company, or fake identity to negotiate with foreign traders. Especially with the other party is about to sign a relatively large order, and the other party’s quotation is very frank, you must keep an eye on foreign trade, so as not to fall into the trap of fraud.
Exchange rate risk
The general depreciation is serious, especially in Nigeria, Zimbabwe and other countries. Since the foreign exchange reserves of African countries are below the average level of emerging markets, some international events or political unrest can easily cause a sharp depreciation of the currency.
Payment risk
Due to war, foreign exchange control, bank credit and other problems in some countries in Africa and South Asia, there are cases of bank release without payment, so the security of payment of L/C is poor. In African countries, most countries have foreign exchange controls, and many customers even have to buy dollars at high prices in the black market, which is poor security. Therefore, it is advisable to recover the balance before delivery. For the first cooperation, it is best to have a comprehensive understanding of the buyer, because there are cases of customs release without documents in some countries and customers refusing to pay. If L/C must be done, it is best to add a confirmation for L/C, and the confirming bank should choose international banks such as Standard Chartered and HSBC as far as possible.
Post time: May-23-2024