Market-Potential-for-Chemical-Sector

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Market Testing for Chemical Products
1. Our research has revealed that price and quality are the main factors influencing purchasing decision of
detergents importers in Zimbabwe. Moreover, the industry is characterised by consumers who are more
familiar with South African brands.
2. Although, this highly competitive sub-sector is dominated by Unilever’s Omo and Sunlight brands, most
of importers met have shown an interest to import from Mauritius.
3. The leading player in the deodorants market in Zimbabwe is Unilever with a broad portfolio that
includes competitively priced brands like Axe, Brut. Other prominent competitors include Revlon, Avon
and Nivea.
4. South Africa has already an edge in Zimbabwe as a sourcing destination since it has an advantage in
terms of logistics and Zimbabweans are used to the South African brands. Hence, to be able to
challenge the established leading sourcing market of Zimbabwean importers and to capture market
share, our exporters will have to embark on intensive brand awareness.
5. The potential for Mauritian exporters to export Bio fertilizers and enter the market is relatively high.
6. It is noted that there are two major companies manufacturing fertilizers in Zimbabwe accounting for
50% of the market supply while the difference is imported.
7. Our research has revealed that before Bio-Fertilizers could be imported in Zimbabwe, it would need to
be approved by the Ministry of Health and Child Welfare.
Simscore Cleaning Services
Detergents
Simscore Cleaning is a company involved in the industrial, commercial and residential cleaning
service. The company has over 10 years of experience in the business. In its years of existence,
Simscore Cleaning Services has managed to have long term contracts with high profile
organisations in the banking sector, property management / real estate sector, industrial as well
as tourism sector. The company is also involved in the distribution of detergents and soaps.
Mr. Munjere, the Managing Director of the company stated that he is pleased to meet with EM
representatives as he always wanted to be linked to potential suppliers in Mauritius in order to
take advantage of the COMESA trade opportunities. He claimed that he is currently sourcing
most of his products from South Africa and Zambia.
The packaging of the Mauritian samples is considered as very good and the price as satisfactory.
According to Mr. Munjere, the detergents with vibrant colours will appeal to the Zimbabwean
consumers.
Moreover, he claimed that Zimbabwe comprises of many firms in the informal sector which are
manufacturing the same products. He said that to penetrate the market, Mauritian suppliers will
face fierce competition from them. He also pointed out that although the quality of the detergents
proposed by the local firms is poor, people are still willing to buy.
Mr. Munjere claimed that he is ready to import the below products, provided the price is
appropriate:
•
Floor Tile polish and cleaner
•
Toilet Cleaner
•
Toilet air freshener
•
Hand wash liquid soap
•
Window cleaner
•
Floor polish (cement and wood)
•
Dish washing liquid
It is to be noted that the company usually imports 500 litres of toilet cleaner and 200 litres of
window cleaner per month. However, the main disadvantage is the payment method norm in
Zimbabwe. He claimed that the Zimbabwean importers are more comfortable to deal with
suppliers who can offer 30 days credit facilities.
Bellevue Spar
Bellevue Spar is a franchise business of the Spar group international which is involved in the
retail of grocery products. Raj Modi, the Director of Bellevue Spar stated his main sourcing
market is South Africa and the majority of his customers are low to middle income earners.
Deodorants
When presented the deodorants, he found that the packaging was good and the products had very
good fragrance. However, one major drawback is that as Zimbabwean consumers are more
familiar with deodorants from South Africa. He claimed that these well-known brands benefit
from a halo effect since consumers assume that these products have reached and surpassed
minimum standards with regards to quality and packaging. Hence, creating awareness about
Mauritian deodorants in Bulawayo will require heavy marketing investment. He recommended
doing an in-store promotion among consumers to know their preferences.
Detergents and Soaps
According to Mr. Modi, the detergents products fall under the fast moving consumer’s category
and the Mauritian suppliers will have to offer suitable prices in order to compete effectively in
the Zimbabwean market. Moreover, Mr Modi said he prefers to use the port of Durban for
trading its goods. In fact transport from Beira to Zimbabwe is viewed as riskier than transport
from Durban to Zimbabwe due to long transit times and breakdowns.
Jaran Enterprises (PVT) Ltd
Jaran Enterprises Ltd is a grocery wholesaler that distributes a wide range of products such as
detergents, laundry bars, soaps, canned foods, biscuits, sweets & candies and deodorants among
others. It is important to note that since they cater for the mass market, price is an important
factor in choosing its sourcing markets. Mr K. Azad, the Director of Jaran Enterprises Ltd
mentioned that he purchases most of its goods from South Africa, Egypt and Pakistan. He
imports around 50 to 100 containers per month.
Detergents, Laundry bars & Beauty soaps
For Mr. Azad, in order for the Mauritian detergents to compete effectively on the market, they
will need to fulfill the following requirements:

Affordable price

High Quality

Attractive packaging
In regards to the Mauritian detergents, they were found to be too expensive. The detergents and
soaps market is fiercely competitive and to penetrate the market, Mauritian operators with have
to play on price at the beginning in order to gain market share.
Deodorants
When we presented the samples, Mr. Azad informed us that competing in the deodorants market
is hard as it is already flooded with well-established brands from South Africa. He also stated
that deodorants are slow-moving items.
3.3.4 Spar (Harare PVT) Ltd Distribution Centre
Spar Distribution Center is the procurement centre that caters for most Spar retail outlets in
Zimbabwe. The company works in a collaborative style with the Spar retail outlets. It is engaged
in sourcing the products on behalf of the Spar retail chains and also does the distribution of these
products to Spar supermarkets.
Mr Manuel Chitenje, Imports Manager of Spar (Harare) Distribution Centre was approached as
he is interested to import from Mauritius. According to him, to be able to compete favourably on
the Zimbabwean market, goods from Mauritius should be offered at an affordable price with
good quality and the right packaging.
Detergents, Laundry bars & Beauty Soaps
Mr Chitenge stated that he is very keen to trade with Mauritius in order to take advantage of the
COMESA preferential trade agreement. EM officers had the opportunity to present a variety of
samples from the chemical sector.
Deodorants
The company was also approached regarding the deodorants. Mr Chitenge informed EM
representatives that he is currently sourcing from South Africa and China but is willing to give a
try to the deodorants from Mauritius for a trial period but claimed that eventually the adoption of
the brand will depend on consumers.
Chitrins Distribution (Pvt) Ltd
Chitrins Distribution (Pvt) Ltd is one of the largest wholesaler companies in Bulawayo involved
in foreign trade and distribution of a variety of product lines ranging from grocery to hardware.
They import for all segments, from low end to high end. The company imports all consumer
commodities from South Africa and supplies to major retailers in the country such as Spar, OK,
TM supermarkets, etc.
Ms Sandy Guest, the Executive Agency & Brands Division of Chitrins Distribution said that she
is willing to import from Mauritius but on an exclusive basis.
Detergents, Laundry Bars and Beauty Soaps
According to Ms. Sandy Guest there is tough competition on the local market regarding
detergents, laundry bars and beauty soaps. She stated that Mauritian brands are not well known
in the Zimbabwean market. Therefore they do not have the edge that established brands from
South Africa have in Zimbabwe. She further mentioned that the challenge not only requires
persuasive advertising but also requires careful selection of customer segments that may not
attract mega brands. She also mentioned that the market is price conscious. Thus, the goods from
Mauritian manufacturers have to be competitive.
Deodorants
Deodorants from Mauritius were also presented to Ms. Sandy Guest. She claimed that they are
already importing well-known brands from South Africa at a relatively good price and since she
is interested to deal with only well-known brands, she informed us that she is not interested to
source new deodorants whereby much brand awareness would need to be created through
intensive advertising.
Meikle Stores
Thomas Meikle Stores is a thriving Group of Department Stores and supermarkets, having
acquired the Greatermans and Checkers brands in the country. The supermarkets were later
separated under the TM logo as a separate company. The department Stores were consolidated
under the Meikles banner, later adding Barbours to the portfolio and, from the early 1990’s, the
Clicks franchise. The Meikles department and chain store group provides customers with the
opportunity to purchase a complete range of competitively priced, quality goods for the family
and the home in every major centre in Zimbabwe.
Mr. Custon Mutoti, the procurement manager of Meikles group said that the company used to
import clothes and other manufactured goods from Mauritius but had to discontinue because of
the challenges the country faced over the last decade. However, he mentioned that the
organisation is planning to resume imports from Mauritius now that the economy has started to
register some positive growth and the business environment has somehow improved.
During the field investigation, Mr. Mutoti was presented with samples from Mauritius. In
evaluating the deodorants he said that the packaging is eye catching in terms of colour.
According to him, the price is suitable and will be able to compete on the local market. However,
he claimed that competition will come from established brands such as Nivea, Adiddas, etc. He
further mentioned that the main target segments for deodorants will be the young and middle
aged people.
Mr. Mutoti said that the company is currently buying from a local agency who imports from
China. The deodorant is a highly competitive market and to penetrate this market, Mr. Mutoti
recommended the following:

To create brand awareness,

To carry out testing in supermarkets,

To advertise in Newspaper,

To work with TM supermarkets.
Bozmic
Bozmic is a distribution company in Zimbabwe engaged in perfumes. It currently imports
international brands such as BOSS, SMIYAKE, etc. from South Africa. Mr. Joseph Musariri, the
Managing Director of Bozmic stated that his organization has embarked on a project called
Community Development Project (CDP). The aim of this project is to reduce dependency on
traditional brands and to introduce new brands in particular to the grassroots market like the rural
and small town communities. He said the CDP concept is to supply the masses with new brands
at affordable prices and good quality.
Mr. Musariri expresses his interest to import deodorants manufactured in Mauritius as long as
the price and shipping costs are reasonable. Commenting on the samples from Mauritius, he said
that the packaging looks good and the prices seems to be fair as well. According to him, the
cheapest deodorants are sold at $2.00.
Foodworld Supermarkets
Foodworld supermarket is the fourth largest retail group in Zimbabwe specializing in the selling
of grocery items mainly to the low and middle income segments. The group has branches in
major towns like Harare, Bulawayo and Mutare.
Mr Danford Mutashu, the General Manager of the supermarket was presented with various
samples. He claimed that he is currently importing most of its items from South Africa. He
mentioned that a 500g of OMO is sold at $1.75. Regarding, the beauty soaps Mr. Mutashu
claimed that the packaging needs to be improved. He stated that a 200g lifebuoy soap is currently
sold at $1.05.
Market Testing for Fertilizers
Demand for fertilizer in Zimbabwe is met by both domestic production and imports. On the
domestic side, Sable Chemicals and Zimphos have comparative advantages in the production of
ammonium nitrate and phosphate fertilizers respectively and they supply to ZFC and Windmill
in proportion to their market shares. The common fertilizers types used in Zimbabwe are straight
fertilizers (e.g. ammonium nitrate), compound fertilizers and blends (e.g. tobacco blend, maize
blends). Fertilizers are supplied in granular form and in bags. It is important to note that the
major fertilizer types used in Zimbabwe differs by crop. Moreover, in Zimbabwe liquid
fertilizers are currently limited to drip irrigation for high value crops.
3.5.1 Zimbabwe Commercial Farmers Union
The Zimbabwe Commercial Farmers Union (ZCFU) is an association of farmers involved in
commercial farming of various crops such as tobacco, maize, soya beans, horticulture, etc. The
association has over 300 000 farmers drawn across the country. The company currently imports
foliar fertilizers from USA via Kenya. Samples of bio fertilizers were presented to the President
of the organization, Mr. Clever Madzara. Although, he is currently not importing bio-fertilizers,
Mr. Madzara has shown a keen interest to source same from Mauritius.
According to him, the product is unique since it is in liquid form. Mr.Madzara found the price
competitive and rated the packaging as appropriate since the labeling of the bio-fertilizer had the
maximum information about the product. He further stated that they import around 90,000 tons
per year and would be interested to find out about the output of using the bio-fertilizers by
hectare. He also mentioned that the bio-fertilizer will have to undertake several trials by the
government authority before it is approved.
Windmill (PVT) Ltd
Windmill Fertilizers is a privately-owned fertilizer producer in Zimbabwe. Its headquarters are at
Westgate on the north western boundary of Harare. Its assets include two fertilizer
manufacturing plants, bulk handling and bagging facilities and a crop chemical formulation
plant. Windmill imports and markets crop chemicals supplied by a number of the world’s leading
principal companies.
Ms. Caroline Charumbira, the Crops Chemical Manager, was presented with the bio-fertilizers. The
fertilizers were appreciated for the fact that it is liquid and new. She stated that although the
Zimbabweans have just started getting acquainted with bio-fertilizers, there is definitely an
opportunity for Mauritius to penetrate this market as the price is reasonable. She mentioned that
the company is currently importing a lot of fertilizers from Russia.
Ms. Charumbira suggested that the Mauritian manufacturers need to collaborate with the
Ministry of Agriculture for them to able to proceed forward. She also proposed that the suppliers
send her samples so that she can test the bio-fertilizers over one or two seasons to determine the
efficiency of using bio-fertilizers.
Lotomba Investments
Lotomba Investments is a company which is involved in horticulture and market gardening. The
company is also involved in the distribution of fertilizer in the Matabeleland province in
Zimbabwe.
In the course of our meeting with the Managing Director, Mr. Ngoni Mazhuwarara expressed his
interest to import bio-fertilizers from Mauritius which he will distribute to local farmers. He
claimed that he may consider importing and would be interested to know if the fertilizers are
available in 250ml, 500ml, 1 litre and 5 litres.
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