Not only is Ethiopia one of the most stable expanding economies in Africa. 8.5 % growth in 2019 against 7.5% growth in 2018. The hair market also benefits from the fact Ethiopia is the business link between Africa and the Middle East. Next to this being the second most populous nation in Africa gives a domestic market as a great opportunity for small and medium sized companies. In short, all signals are green.
Start your hair business in Ethiopia before others do
In various African countries, like South Africa, Nigeria and Kenya we have seen the following evolution.
First clients had to buy their hair and beauty products from oversees.
Entrepreneurs, of whom some lived in Europe or the Unites States, started a company in their country of origin. They used their knowledge of the hair market and business practices to the country they were born. And over time clients, benefiting from better jobs and higher income, found their way to local stores.
Ethiopia aims to reach a higher income per inhabitant. This growth in income is possible thanks to growth in industry, construction and services. According to the WorldBank the government of Ethiopia wants to transform the country into a manufacturing hub. Growth in the industrial and service sector will mean more jobs for women. More jobs will lead to a higher income. This higher income will allow the women in Ethiopia, like women in Nigeria and Kenya for example, to consume more hair and beauty products.
Start a hair business in Ethiopia with little money
In these favorable circumstances a small investment in your hair business will be enough to create the base for a successful hair business. The competition is still limited. Thanks to the economic prosperity more and more women will enter the beauty and hair market. You can start with a small store or salon and anticipate further growth of the beauty and hair market by launching a Facebook page.
Use of social media in Ethiopia
Facebook is by far the most popular social media platform in Ethiopia. At a very far distance followed by Pinterest, Youtube and Twitter.
The challenge in Ethiopia is the fact the internet penetration is still rather low, and it faces quite some disruptions. Most of these disruptions find their cause in interference by the government, amongst other reasons to prevent exam leaks.
You should invest in a online presence to ensure your place at the top rankings, even if it is not helpful for the growth of your business to work with internet disruptions. If you invest in a free Facebook page, you will limit the costs of doing business. While you still can potentially reach over 3 million people between 25 and 34, the ideal target market for beauty and hair products.
Position Yourself for the number one online hairstore in Ethiopia
Once you have gained experience and market presence with your hair business in Ethiopia, you should position yourself for the number one position. Launch a online store, like Shopify, to build a trusted hair business. Being one of the front runners, will allow you room to experiment and to fully understand the customers needs. If you understand the needs of your clients, you can adapt your business model into more stores or even a wholesale business in Ethiopia.
Are your ready for a hair store in Ethiopia?
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