Open air markets: uniquenesses about African marketing channels

Abstract

Purpose – The purpose of this paper is to offer a state of the art description of open air markets (OAM), a little-known phenomenon that is indispensable in Africa’s consumer packaged goods industry. Design/methodology/approach – A qualitative methodology comprising in-depth semi-structured interviews and direct observation was employed. Findings – Analysis of data from Nigeria, Africa’s largest economy and most populous country, reveals that channel members have roles that are different from that of their Western counterparts. For example, distributors often do not distribute and principals are expected to actively sell on behalf of their distributors to empty the latter’s warehouse. Also, while many end-users in developing countries expect credit sales and opportunity to bargain, extant literature does not include these demands in the formal list of service output demands. Another major finding is the surprising order underlying OAM. It is the bedrock of commercial activities: for most consumer packaged goods manufacturers, sales through OAM account for over 90 percent of revenue. Research limitations/implications – The focus on one industry and country limits the generalizability of the above findings. Practical implications – Africa is the next growth frontier. Tapping into this growth requires a deep understanding and appreciation of the important role played by its unique marketing channels. Originality/value – Given the dearth of documented knowledge about marketing channels in emerging markets, this study addresses an important gap. Its findings could inform theory development and encourage more research on marketing channels in developing countries.