The consumer
- Consumer Profile
- Angola is a middle-income country, with a per-capita income of USD 2,080 (IMF, 2021). The rising inflation impacts deeply consumer prices (+21% in 2020 - IMF). Despite this, Angolan consumers are increasingly searching for quality instead of price. They are more suspicious with regards to cheap products made in China or other African countries and tend to prefer Western brands. They also value good service, including after-sales. The Angolan population is largely young, with weak purchasing power, low level of education and becoming increasingly urban (66,1% in 2019 - World Bank, latest data available). However, there is a growing middle class and a wealthy class concerned about the quality of products and the image they convey. The family is very important in Angolan life and women are generally responsible for making purchasing decisions. Angolans are generally brand-savvy and value international names, but the products need to be adjusted to local tastes. Packaging, advertising and brands are important in the buying choice. At this time, Portuguese and Brazilian products are advantaged by the common language (Portuguese), as the labelling is legally required to be in Portuguese. Angola is also a favourite destination for international franchises and shopping centres are developing in the country. Among consumer goods, the biggest growth between 2009 and 2013 was recorded for packaged food (+23%). Other sectors which should benefit from the future growth are electronics, beauty products and home furnishing. Internet access in Angola is slightly more developed than in its neighbour countries. Nevertheless, it remains limited. According to the World Bank, in 2019, 14.3% of the population had Internet access (latest data available). E-commerce is limited by the lack of credit cards. Domestic e-commerce websites are slowly developing and international e-commerce is only possible for the upper-class Angolans who possess international credit cards. Finally, many domestic companies do online advertising through social media such as Facebook.
- Consumer Behaviour
- Angola is the third economy in Sub-Saharan Africa and is a Portuguese-speaking country. Despite a satisfying economic ranking, Angola had a negative real GDP growth rate in 2020 (-4% - IMF) and prices have increased by 22.3% (IMF, 2021). Angola is one of the most promising consumer goods markets in Africa. The development of infrastructures (construction, telecommunications, banking, etc.) sustains employment growth. It fuels consumption, reinforced by the fast-growing demographics. Most of the consumer products are imported. Otherwise, the modern retail sales sector is fastly developing, with numerous grocery retail chains. The emerging middle-class is now interested in buying non-essential products. Nevertheless, for the majority of consumers with low purchasing power, price and product availability remain key factors. Angolan consumers generally prefer familiar brands, but younger people are less loyal and more likely to try out new products. Middle-class university graduates are the most susceptible to react to advertising and packaging. The wealthier part of the population is fashion-conscious and enjoys high-tech products and gadgets. Finally, purchasing wholesale products is deeply rooted in the country's culture.
- Consumers Associations
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The Angolan Consumer Rights Associations
The Angola Consumer Defense Institute