Africa is becoming increasingly attractive to retailers
27 November 2014
African-focused trading firm CFAO Group has created a "club of brands" – a network of
international brands – that will target the rising African middle class.
The first members of the club are toy seller La Grande Récré (Ludendo), cosmetics
brand L'Occitane en Provence, Beaumanoir's fashion brands Cache Cache and Bonobo,
and Kaporal.
CFAO will operate the sales outlets of these new partners in Africa under exclusive
agreements that include franchises, brand and distribution concessions, and distribution
agreements.
The club will ultimately include about 20 brands. The retailers will have outlets in
CFAO's shopping centres in eight African countries: Cameroon, Congo, Côte d’Ivoire,
Democratic Republic of the Congo, Gabon, Ghana, Nigeria and Senegal. L'Occitane won't
be available in Senegal.
The launch of this club of brands coincides with the opening of CFAO's first mall in
Abidjan, Côte d’Ivoire, in
2015.
High growth market
"CFAO acts as a catalyst for the development of international brands in Africa and as a
springboard for brands that view the continent as a real growth lever. With our
experience and our approach to consumption in Africa, we give them access to a high
growth market," said Xavier Desjobert, the chief executive of CFAO Retail.
Jean-Michel Grunberg, president of Ludendo, said: "This franchise agreement bolsters La
Grande Récré's international presence. Our expertise in toys and the strength of our
brand concept are key in satisfying Africa's new consumption needs."
The African middle class is expanding rapidly on the back of strong economic growth.
According to the International Monetary Fund, seven of the 10 countries that will
experience the strongest growth between 2011 and 2015 are in Africa.
In sectors related to services and consumption, revenue on the continent is expected to
increase by between
4% and 5% per year by 2020, according to McKinsey, while the
number of households bringing home annual revenue of more than $5 000 is likely to
rise to 130-million compared with 85-million today.
First five members
- La Grande Récré is a market-leading brand with 255 stores in France and
elsewhere. Its concept is based on a quality range of toys and games.
- L'Occitane group has 2 715 sales outlets worldwide. It is a natural and organic
ingredient cosmetics and well-being products manufacturer and retailer with roots in
Provence, France.
- Beaumanoir group, which has more than 2 700 sales outlets worldwide, is pursuing
its international development strategy through a "multistore concept" which sees several
brands housed under one roof, such as fashion brands Cache Cache and Bonobo.
- Kaporal was created in 2004 in the home of Marseille denim. It is known for its
daring and creative clothing
range.
- CFAO, a subsidiary of Toyota Tshusho, the Toyota Group trading arm, is Africa's
biggest supplier of cars, trucks and pharmaceuticals. It has operations in 37 countries,
including 34 in Africa.
SAinfo reporter and CFAO
Group
The African middle class is expanding rapidly on the back of strong economic growth (Image: APO Photos: Joan Bardeletti)
