The Zimbabwean economy is defined, by the formal sector and the informal sector. The record has it that most of the breadwinners in Zimbabwe are employed in the informal sector/SMEs Sector. A sector we should all respect, for it has coined its own economics, business models and way of sustenance for those employed by it. The question is what does it take for a brand to be successful in the “Ghetto” Zimbabwe’s informal economy? Taking into account that in the developing countries it is this sector that will help sustain the majority and if studied carefully it can unlock potential in economic development and eventually wealth.

💲 Cost

The market is rational, yet it’s comprised of low-income earners. This conditions customers to focus on price as a determinant factor in whether they will get a brand or not. In the “Ghetto” / township, giving someone the option to choose between similar brands the one with the least price will find itself a new home. For instance, washing powder, for someone earning as low as a dollar a day, there is no need for that individual to purchase a high-end, expensive brand because all he or she needs is to have clean clothes at the end of the day hence the low cost one will be the most ideal and go to choice. Raising the income threshold higher it’s only when this changes when someone earning a considerable income that he or she will start not to consider the price factor.

🔐 Accessibility

The market is anchored on hustle culture, people are always up and about to get the next dollar and there is no time to waste. Hence the convenience of having their favourite go to brand easily accessible is priceless. Customers prefer brands that can be easily accessed when they need them, brands that focus on removing hurdles for their customers so that they can get to them with ease. you will find that consumer brands that are found at distant shopping will grow less popular than brands that can be accessed everywhere and at closer locations. They do not force customers to get out of their day to day hustles and in this world that is a plus.

🍼 Childhood Brands

The Market is highly influenced by brands that shaped their childhood. There are brands that growing up were highly used by parents and they worked well to the extent that it becomes a natural go to brand when a customer thinks of a product. It goes deep to the extent that brand names are used to refer to products even those of the competitor’s brands. A common example is that most people refer to toothpaste as Colgate or washing powder as Surf. This means that a brand that has been around for a long time and has been in the homes of most people easily applies to the market.

To win in the Ghetto your brand has to be among others tips cheap, accessible and a brand the market grew up with. A comprehensive report with the full research results on how to succeed in the Ghetto and what the market looks at was done by Topline Researchers and Southern Africa Development Consultants.