Financial Data
Updated 21 May 2019


Why ABC Cosmetics launched in Angola and how you can to

Angola offers the ingredients for success. ABC Cosmetics knows this and has launched a large operation. Maybe it’s time you looked into Angola to discover its potential too? 


Nicole Crampton, 11 June 2017  Share  0 comments  Print


All the answers to your unique business lifestage questions

With a budget of USD10 million and with capacity to produce 8 840 tonnes of five different products annually, ABC Cosméticos’ factory was inaugurated recently in Luanda by the Industry Minister, Bernarda Martins.

The ABC Cosméticos factory will allow for the creation of 300 direct jobs for national citizens residing around the factory and 20 for expatriates. Your business could be experiencing the same solid start if you invest in Angola. Why and how? Read on.

Related: Angola’s foreign direct investment: The opportunities and restrictions


THE NEWS

ABC Cosméticos launched their inaugural factory in Angola, with plans for a packaging plant to follow. Your business could also experience this kind of growth if you expanded into Angola.


Here are a few reasons why you should invest in Angola according to PwC’s report Retail in Africa:

Angola offers a developing consumer class

An increasingly skilled and better-paid consumer class is developing in Angola, according to Guido Varatojo dos Santos, an analyst with Eaglestone Securities. This offers you the opportunity to launch your own higher-priced, higher-quality product in a growing market.

Aspirational consumers

These consumers are more brand-conscious and are also focused on aspirational purchases, according to PwC. If your business targets this type of consumer then Angola might be the right marketplace for you.

Growing middle-class

Angola has experienced a large middle class growth of 700% between 2000 and 2014. This growing middle class is opening up the market for more business. You could be growing into this market if you were to expand into Angola.

Now that you know why you should invest in Angola, find out insights into how you can invest from Charl Cronje, managing director, Pepkor Africa:

Related: What Angola has to offer SME investors

How to enter the Angolan market

“We started in the south in 2008, in Lobito, as we had experience in northern Namibia and understood the product offering and the price positioning for that region. Our expansion strategy followed a ‘mushroom’ approach, concentrating new stores in a specific region before moving on to another region. This puts less pressure on our supply chain and our infrastructure,” says Cronje.

Pepkor expanded into Luanda in 2010, and now has more than 50% of its stores and more than 50% of its revenue come directly from Luanda.

Will you need to adapt your strategy to suit Angola?

“We focused on competing on price, but also by offering goods for the whole family under one roof: clothing, footwear and homeware. We created a one-stop shop, with an average store size of 400m2. We now have 60 stores in the country, in more than 25 towns and cities,” explains Cronje. 

You will have to adapt your strategy, but you can do this by following Charl Cronje’s advice and focusing on price and your offering. Ensure you’re convenient for your new customers and they’ll keep coming back.

Related: 4 Things you need to know about doing business in Angola

You’ll need to upskill your new workers 

Even though Angola has a shortage of skills, they don’t have a shortage of talent. This is why Pepkor Africa has launched their own training programmes to get its store managers up to standard.

“We have a training school for store managers, which train between 15 and 18 employees at a time for a three-month period. During this time they train in actual stores, but also have classes,” shares Cronje.


KEY TAKEAWAYS

  • Angola has a growing middle class. This is causing it to develop aspirational, brand-conscious consumer class.
  • By strategically planning your stores you can reduce pressure on your supply chain.
  • You’ll need to adapt your strategy to suit Angola’s market.
  • Upskill your new workers instead of shopping from the limited skills pool.
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About the author


Nicole Crampton


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