Africa, a growth market: Marc Zander presence at the Constancia flexible conference in Dubai about...

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07 No. 2_2014 TEAM Magazine 06 TEAM Magazine No. 2_2014 Guest Commentary | Gastkommentar Guest Commentary | Gastkommentar AFRICA – A GROWTH MARKET FOR CONSTANTIA FLEXIBLES? VON MARC-PETER ZANDER Partner & CEO Image of Africa Sand, AIDS, wars, abducted girls, bombs and corruption. That is the image of Africa. Never- theless, ever more countries are deciding to become active in Africa. Bosch Packaging is opening an office in Kenya, DB Schenker decided this week to enter into Angola and Mozambique and Unilever employs over 4,000 people in Africa. One German mid- market company summarizes the current situation as follows: “We are pleased that not many companies are active yet in Africa. With constant growth, we are selling rising volumes of packaging machines in East Africa at very good margins.” In the year 2015, the “Emerging Markets” will account for 52% of the world’s entire gross domestic product, putting them ahead of the developed markets for the first time. It may be true that Africa still makes up a small share here, but it will play an increasingly important role in the coming years. Growth markets such as South Africa, Egypt and Nigeria are of particular importance. With growth rates of over 6-10% per year, some markets are even growing faster than markets in Asia. If one compares the size of the African continent with other countries, it becomes evident that China, the USA, India, Europe, Mexico and Japan would all fit within its borders. The Nestlé group has also recognized the sales opportunities presented by this growth: “The food group Nestlé profited again in 2013 from a strong business in newly industrialized countries. The majority of the growth came from Africa, … – in contrast, the business in Europe practically stagnated,” states an article by the group. Growth for Constantia The growth drivers for the business of Constantia Flexibles in Africa are primarily a rapidly growing middle class, changing desires of consumers, the growth of local brands and rapid urbanization. Nigeria is the One of the world’s largest markets is developing in Africa. Nigeria, South Africa and Kenya in particular could be interesting countries for Constantia Flexibles since growth is increasing the demand for packaging in almost all areas. most interesting market and has recently sur- passed South Africa as the largest economy on the continent. According to estimates by SCOM Africa, the total gross per capita income of the continent will reach USD 246 billion by 2030. These numbers are also reflected in the revenues of the multinational groups. For example, Unilever already earns 9% of its total revenue in Africa, Coca Cola 8% and Kraft 4%. Who is the customer in Africa? In Africa, one can differentiate between three types of customers for Constantia Flexibles. Multinational corporations such as Nestlé who produce in Africa, large local groups and individual smaller groups that have never- theless been able to demonstrate major growth in recent years. One good example is the company UAC Foods in Nigeria. Founded in 1879, the UAC conglomerate has more than 5,000 employees and earns over 300 million euros in revenue. The main product GALA, a sausage-filled roll, is produced on Swiss ma- chines and packaged with film from India. UAC is considering further investments in expanding its systems and hopes to improve the packaging quality. Another potential customer is the company Peak Milk, which was founded in 1954 and now earns almost half a billion euros in revenue. The main product is milk powder that is sold in diverse packaging types. Peak Milk recently designed a new sachet to appeal in particular to customers in local markets. Its advantages are shelf life, protection from sun- light and a small size that can be afforded even by persons with low income. Five points for success in Africa 1. Make Africa a board topic Africa should now be discussed by every company at the board level. The following questions in particular should be asked: Do we want to pursue Africa from a strategic standpoint? If yes, how and where? 2. Invest in market research and select the right markets The selection of the right markets is critically important for a company to suc- ceed in Africa. No company can address the entire continent of Africa at once be- cause all 54 countries are culturally very different. Begin instead with a few markets and try to understand them properly. 3. Adapt your solutions The wishes of customers in Africa differ fundamentally from those in Europe and other markets. Adapt your products to the respective customer wishes. This absolutely requires dialog with the local customers and it should be a priority during initial trips. 4. Invest in an Africa team Currently, roughly 60% of all Africans who study abroad return again to Africa. But apart from these few “returners”, the number of well educated employees in Africa is still very low. The competition for good talent is therefore heating up. Begin now in training people for Africa so that you can assemble a strong and effective Africa team over the coming years. 5. Now ! One executive board member of a large German company recently said: “Africa is the last large market in the world with a re- levant economic size. If we do not develop an Africa strategy now, we will miss out on Africa just as on China.” Develop your Africa strategy now and take advantage of the current opportunity. One possible start- ing point is to select important countries, build sales channels and establish a partnership with a local company. Africa is certainly still at the start of its development for the business of Constantia Flexibles, but if the possibilities within growth markets are identified, Africa can represent an interesting market for Constantia Flexibles already today. Marc-Peter Zander

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Page 1: Africa, a growth market: Marc Zander presence at the Constancia flexible conference in Dubai about Africa as a growth market.

07No. 2_2014 TEAM Magazine06 TEAM Magazine No. 2_2014

Guest Commentary | Gastkommentar Guest Commentary | Gastkommentar

AFRICA – A GROWTH MARKET FOR CONSTANTIA FLEXIBLES?

VON MARC-PETER ZANDERPartner & CEO

Image of Africa

Sand, AIDS, wars, abducted girls, bombs andcorruption. That is the image of Africa. Never-theless, ever more countries are deciding tobecome active in Africa. Bosch Packaging isopening an office in Kenya, DB Schenker decided this week to enter into Angola andMozambique and Unilever employs over4,000 people in Africa. One German mid- market company summarizes the current situation as follows: “We are pleased that notmany companies are active yet in Africa. With

constant growth, we are selling rising volumesof packaging machines in East Africa at verygood margins.”In the year 2015, the “Emerging Markets” willaccount for 52% of the world’s entire grossdomestic product, putting them ahead of thedeveloped markets for the first time. It may betrue that Africa still makes up a small sharehere, but it will play an increasingly importantrole in the coming years. Growth markets suchas South Africa, Egypt and Nigeria are of particular importance. With growth rates ofover 6-10% per year, some markets are evengrowing faster than markets in Asia. If onecompares the size of the African continent withother countries, it becomes evident that China, the USA, India, Europe, Mexico and

Japan would all fit within its borders. The Nestlé group has also recognized the salesopportunities presented by this growth: “Thefood group Nestlé profited again in 2013 froma strong business in newly industrialized countries. The majority of the growth camefrom Africa, … – in contrast, the business in Europe practically stagnated,” states an article by the group.

Growth for Constantia

The growth drivers for the business of Constantia Flexibles in Africa are primarily arapidly growing middle class, changing desires of consumers, the growth of localbrands and rapid urbanization. Nigeria is the

One of the world’s largest markets is developing in Africa. Nigeria, South Africa and Kenya in particularcould be interesting countries for Constantia Flexibles since growth is increasing the demand for packaging in almost all areas.

most interesting market and has recently sur-passed South Africa as the largest economyon the continent. According to estimates bySCOM Africa, the total gross per capita income of the continent will reach USD 246billion by 2030. These numbers are also reflected in the revenues of the multinationalgroups. For example, Unilever already earns9% of its total revenue in Africa, Coca Cola8% and Kraft 4%.

Who is the customer in Africa?

In Africa, one can differentiate between threetypes of customers for Constantia Flexibles.Multinational corporations such as Nestlé whoproduce in Africa, large local groups and individual smaller groups that have never -theless been able to demonstrate majorgrowth in recent years.One good example is the company UACFoods in Nigeria. Founded in 1879, the UAC conglomerate has more than 5,000 employees and earns over 300 million eurosin revenue. The main product GALA, a sausage-filled roll, is produced on Swiss ma-chines and packaged with film from India. UAC is considering further investments in expanding its systems and hopes to improvethe packaging quality. Another potential customer is the companyPeak Milk, which was founded in 1954 andnow earns almost half a billion euros in

revenue. The main product is milk powder thatis sold in diverse packaging types. Peak Milkrecently designed a new sachet to appeal inparticular to customers in local markets. Itsadvantages are shelf life, protection from sun-light and a small size that can be afforded evenby persons with low income.

Five points for success in Africa

1. Make Africa a board topicAfrica should now be discussed by everycompany at the board level. The followingquestions in particular should be asked: Dowe want to pursue Africa from a strategicstandpoint? If yes, how and where?

2. Invest in market research and selectthe right marketsThe selection of the right markets is critically important for a company to suc-ceed in Africa. No company can addressthe entire continent of Africa at once be-cause all 54 countries are culturally verydifferent. Begin instead with a few marketsand try to understand them properly.

3. Adapt your solutionsThe wishes of customers in Africa differfundamentally from those in Europe andother markets. Adapt your products to the respective customer wishes. This absolutely requires dialog with the local

customers and it should be a priority during initial trips.

4. Invest in an Africa teamCurrently, roughly 60% of all Africans whostudy abroad return again to Africa. Butapart from these few “returners”, the number of well educated employees inAfrica is still very low. The competition forgood talent is therefore heating up. Beginnow in training people for Africa so that you can assemble a strong and effectiveAfrica team over the coming years.

5. Now !One executive board member of a largeGerman company recently said: “Africa isthe last large market in the world with a re-levant economic size. If we do not developan Africa strategy now, we will miss out onAfrica just as on China.” Develop your Africa strategy now and take advantage ofthe current opportunity. One possible start -ing point is to select important countries,build sales channels and establish apartner ship with a local company.

Africa is certainly still at the start of its development for the business of ConstantiaFlexibles, but if the possibilities within growthmarkets are identified, Africa can represent an interesting market for Constantia Flexiblesalready today. ■

Marc-Peter Zander

Page 2: Africa, a growth market: Marc Zander presence at the Constancia flexible conference in Dubai about Africa as a growth market.

09No. 2_2014 TEAM Magazine

Aktuelles

BY WOLFGANG SCHWAIGER,Constantia Flexibles Group

Effective June 30, 2014, Alexander van ’t Riet, Executive Vice President Labels of theConstantia Flexibles Group will step downfrom the leadership of the Labels Division inorder to take up other professional duties.Starting July 1, 2014 Mike Henry will assume leadership of the Labels Division. AsEVP Labels Mike Henry will become memberof the Executive Board of Constantia Flexibles, reporting to Thomas Unger, CEO.Mike Henry has been part of the leadershipteam of the Spear Group since September1999 and in addition to his Finance Directorposition he leads the operations of the SpearGroup in England and South Africa. Mike Henry holds a degree in Accounting & Finance from Kingston University, UK and isa Chartered Accountant.Before joining the Spear Group Mike Henrystarted his career at KPMG and served on theboard of various industrial companies.The change in the leadership of the Labels Division also expresses the intention to further develop the integration of the SpearGroup with other units of the Labels and Grouporganization. The successful integration constitutes the basis for further growth andsuccess of the Labels Division and the Constantia Flexibles Group. ■

MIKE HENRY NEW HEAD OF LABELS DIVISION OF CONSTANTIA FLEXIBLES

MIKE HENRY NEUER CHEF DER DIVISION LABELS DER CONSTANTIA FLEXIBLESVON WOLFGANG SCHWAIGER,Constantia Flexibles Group

Alexander van ’t Riet, derzeit Executive VicePresident Labels der Constantia FlexiblesGruppe wird die Führung der Labels Divisionzum 30. Juni 2014 zurücklegen, um sich anderen beruflichen Aufgaben zu widmen.Ab dem 1. Juli 2014 wird Mike Henry die Leitung der Division Labels übernehmen. Als EVP/Executive Vice President Labels wird Mike Henry Mitglied des „Executive

Committees“ der Constantia Flexibles und berichtet an Thomas Unger, CEO.Mike Henry ist seit 1999 als Teil des Füh-rungsteams der Spear Gruppe tätig und leitetneben der Position als Finance Director Spear auch die operativen Geschäfte der Spear Gruppe in England und Südafrika. MikeHenry hat einen Abschluss in Accounting &Finance an der Kingston Universität, UK undverfügt über eine Ausbildung als Wirtschafts -prüfer.Vor seinem Eintritt in die Spear Gruppe star-

tete Mike Henry seine berufliche Laufbahn beiKPMG und war dann anschließend in leiten-den Funktionen in mehreren Industrieunter-nehmen tätig.Die Veränderung in der Führung der Labels Division ist auch Ausdruck des Willens, die In-tegration der Spear Gruppe mit den anderenTeilen der Labels- und Konzernorganisationweiter voranzutreiben. Die erfolgreiche Inte-gration ist Grundlage für das geplante weitereWachstum und den Erfolg der Labels Divisionund der Constantia Flexibles Gruppe. ■

Mike Henry

AFRIKA – EIN WACHSTUMSMARKTFÜR CONSTANTIA FLEXIBLES?

VON MARC-PETER ZANDERPartner & CEO

Bild Afrika

Sand, Aids, Kriege, entführte Mädchen, Bom-ben und Korruption. Das ist das Bild von Afrika. Jedoch entscheiden sich immer mehrUnter nehmen in Afrika aktiv zu werden. BoschPackaging eröffnet ein Büro in Kenia, DBSchenker entscheidet sich diese Woche fürAngola und Mozambique und Unilever be-schäftigt mehr als 4.000 Mitarbeiter in Afrika.Ein deutscher Mittelständler fasst die Situa-tion aktuell wie folgt zusammen: „Wir sind froh,dass noch nicht viele Firmen in Afrika aktivsind. Bei stetigem Wachstum verkaufen wirimmer mehr Verpackungsmaschinen in Ost-afrika mit sehr guten Margen“.Im Jahre 2015 werden die „Emerging Mar-kets“ 52% des gesamten weltweiten Brutto-inlandsprodukts erwirtschaften und damiterstmalig mehr als die entwickelten Märkte.Afrika nimmt dabei zwar noch eine kleine Stel-lung ein, jedoch wird in den nächsten JahrenAfrika eine immer bedeutendere Rolle zuge-sprochen. Vor allem Wachstumsmärkte wieSüdafrika, Ägypten und Nigeria spielen dabeieine wichtige Rolle. Mit Wachstumsraten vonüber 6-10% pro Jahr wachsen einige Märktesogar schneller als Märkte in Asien. Vergleichtman die Größe des afrikanischen Kontinentsmit anderen Ländern, ist zu sehen, dass China, die USA, Indien, Europa, Mexiko undJapan in diesem Platz finden. Die daraus ent-stehende Verkaufschance hat auch der Kon-zern Nestlé erkannt: „Der Lebensmittelkon-zern Nestlé hat 2013 erneut von einem star-ken Geschäft in Schwellenländern profitiert.Das Wachstum kam dabei größtenteils ausAfrika, … – in Europa stagnierte das Geschäftdagegen fast“ titelt ein Artikel des Konzerns.

Wachstum für Constantia

Wachstumstreiber für das Geschäft der Constantia Flexibles in Afrika sind vor allemeine schnell wachsende Mittelschicht, verän-derte Wünsche von Konsumenten, Wachstumvon lokalen Marken und eine rapide Urbani-sierung. Vor allem Nigeria ist als Markt inter-

essant, welches vor kurzem Südafrika alsgrößte Volkswirtschaft ablöste. 2030, soschätzt XCOM Africa, liegt das gesamte Brutto pro Kopf Einkommen des Kontinentsbei 256 Milliarden USD. Diese Zahlen spie-geln sich auch in den Umsätzen der multina-tionalen Konzerne wider. Unilever zum Beispielerwirtschaftet schon 9% des gesamten Um-satzes in Afrika, Coca Cola 8% und Kraft 4%.

Wer ist der Kunde in Afrika?

In Afrika unterscheidet man drei Arten vonKunden für Constantia Flexibles. Multinatio-nale Konzerne wie Nestlé, die in Afrika pro-duzieren, große lokale Konzerne und verein-zelt kleinere Konzerne, die jedoch in den letz-ten Jahren großes Wachstum aufweisenkonnten.Ein gutes Beispiel ist die Firma UAC Foods inNigeria. Gegründet 1879 hat UAC als Kon-glomerat mehr als 5.000 Mitarbeiter und er-wirtschaftet einen Umsatz von über 300 Mil-lionen Euro. Das Hauptprodukt GALA, ein mitWurst gefülltes Brötchen, wird auf SchweizerMaschinen hergestellt und mit Folie aus Indien verpackt. UAC überlegt weitere Inves -titionen in die Erweiterung der Anlagen undhofft auf Verbesserung der Verpackungs -qualität. Ein weiterer Kunde könnte die Firma PeakMilk sein, die im Jahre 1954 gegründet wurde und inzwischen fast eine halbe Milliarde Euro Umsatz erwirtschaftet. DasHauptprodukt ist Milchpulver, welches in ver-schiedensten Verpackungen vertrieben wird.Vor kurzem hat Peak Milk ein neues Sachetentworfen um vor allem den Kunden auf loka-len Märkten anzusprechen. Vorteile sind dieHaltbarkeit, Schutz vor Sonneneinstrahlungund die kleine Größe, die sich auch Personenmit niedrigem Einkommen leisten können.

Fünf Punkte zum Erfolg in Afrika

1. Machen Sie Afrika zum Board ThemaAfrika sollte bei jedem Unternehmen inzwi-schen auf Vorstandsebene diskutiert wer-den. Dabei stehen vor allem folgende Fra-gen zur Diskussion: Wollen wir Afrika stra-tegisch verfolgen und wenn ja, wie undwo?

2. Investieren Sie in Marktforschung undwählen Sie die richtigen MärkteVor allem die Auswahl der richtigen Märkte für ein Unternehmen ist ein Schlüs-sel zum Erfolg in Afrika. Kein Unterneh-men schafft es, Afrika als Kontinent zu er-schließen, da alle 54 Länder kulturell sehrunterschiedlich sind. Fangen Sie deshalbmit einigen wenigen Märkten an und ver-suchen Sie, diese richtig zu verstehen.

3. Passen Sie Ihre Lösungen anDie Kundenwünsche in Afrika unterschei-den sich grundlegend von denen in Europaoder anderen Märkten. Passen Sie IhreProdukte an die jeweiligen Kundenwün-sche an. Dazu ist der Dialog mit den loka-len Kunden Pflicht und sollten bei erstenReisen im Vordergrund stehen.

4. Investieren Sie in ein Afrika TeamAktuell kehren ca. 60% aller Afrikanernach einem Auslandsstudium wieder zu-rück nach Afrika. Doch neben diesen we-nigen „Rückkehrern“ ist die Anzahl der gutausgebildeten Mitarbeiter in Afrika nochsehr gering. Damit beginnt der „Kampf“ umgute Talente. Fangen Sie jetzt an, Perso-nen für Afrika auszubilden, sodass Sie inden nächsten Jahren mit einem starkenAfrika -Team punkten können.

5. Jetzt !Ein Vorstandsmitglied eines großen deut-schen Unternehmens sagte vor kurzem:„Afrika ist der letzte große Markt auf derWelt mit einer relevanten wirtschaftlichenGröße. Wenn wir nicht jetzt eine Afrikastra-tegie erarbeiten, dann werden wir Afrikagenauso wie China verpassen“. Ent wickelnSie Ihre Afrikastrategie jetzt und nutzen Siedie aktuelle Chance. Ein möglicher Start-punkt ist die Auswahl der wichtigen Län-der, Aufbau von Vertriebskanälen und einePartnerschaft mit einer lokalen Firma.

Afrika ist sicherlich noch am Anfang der Ent-wicklung für das Geschäft der Constantia Flexibles, aber mit der Identifikation von Mög-lichkeiten in Wachstumsmärkten bietet Afrikaschon heute einen interessanten Markt fürConstantia Flexibles. ■

In Afrika wächst einer der größten Märkte heran. Vor allem Nigeria, Südafrika und Kenia könnten interes-sante Länder für Constantia Flexibles sein, da Wachstum in fast allen Bereichen den Bedarf für Verpackun-gen steigert.

08 TEAM Magazine No. 2_2014

Guest Commentary | Gastkommentar