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Hi operator,

For such a small industry, we talk about market saturation a lot. But you know what you need for market saturation? Market penetration.

There’s a perception of saturation because, as a human truth, we tend to focus on the negative, because that’s where there’s a job to do. The more objective truth is that most of our homegrown brands have barely scratched the surface when it comes to market access.

African fashion can’t saturate a market it can’t reach.

Whether the blocks have to do with skills development, funding, or distribution, too many independent brands aren’t cutting through. On the bright side, that means there are plenty of customers left for you to capture, if you keep going. I’m continually shocked at how many people in my world who can definitely afford to shop local tell me they simply have no idea where to go.

The margin math is still a problem for retail — in South Africa, I’ve witnessed it first hand during my time at Superbalist (last I checked, the local brands on the platform are making serious concessions to be there, and that’s just the ones it worked out for), and also observed from a distance with We Are EGG, which started out with 80% of its shop floor belonging to local, and has since tipped its majority in the other direction as brands no longer meeting their criteria rotate out of the store.

In e-commerce, the founder-designer whose job is every job takes on even more roles in merchandising (listing products, creating site content and organising it) and order fulfilment (picking, packing & shipping). Add to that the uphill battle of driving traffic anywhere but social media these days and having your own online home can seem to take more from your business than it adds to it.

And yes, the competition from the H&Ms and Zaras and SHEINs and Temus of the world is glaringly obvious — I’ll be paying close attention now that Temu is up and running in Nigeria, and FARO’s accelerated growth represents a whole new shape of competition. But a), some African fashion brands have made things work anyway, and not just those in the luxury category; and b), the global market continues to show a demand for African creativity that no global giants can currently deliver on. That’s a tailor-made opportunity, even with its challenges (which every opportunity comes with).

What have you experienced in pursuit of market access? I’d love to hear.

With thanks,
Modupe Oloruntoba

Across Africa

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That’s all for today — thoughts?

With thanks,
Modupe