Constant upgrades: Risks and opportunities

Africa Business Insights

Stephene Chikozho

THE desire among consumers to upgrade is now a growing trend.

This phenomenon, driven by a combination of rising incomes, increased access to technology and the influence of global consumer culture, is reshaping purchasing patterns across the African continent.

“In Africa, the appetite for the new and improved is a testament to our continent’s dynamic spirit and our entrepreneurs’ ability to adapt and thrive,” says Nigerian businesswoman and philanthropist Mrs Folorunsho Alakija.

While this trend reflects positive economic growth and consumer confidence, it also presents unique challenges and opportunities for African businesses.

The allure of the latest smartphone models, fashionable clothing and cutting-edge appliances is not lost on African consumers.

“The drive for immediate upgrades challenges us to create sustainable solutions that satisfy both the present and future needs of our consumers,” notes Zimbabwean businessman Mr Strive Masiyiwa.

With improved connectivity and access to the global media, consumers are more aware than ever of the latest trends and innovations. Social media platforms, in particular, play a significant role in shaping consumer desires, as they provide a window into the lifestyles and choices of peers and influencers worldwide.

As a result, the pressure to keep up with these trends has intensified, leading many to prioritise upgrades, even when existing products remain functional.

For African businesses, this consumer behaviour presents a double-edged sword.

On one hand, it drives demand and sales, providing opportunities for growth and expansion.Companies that can quickly adapt to changing consumer preferences and offer the latest products stand to gain a competitive edge. However, the pressure to constantly innovate and refresh product lines can strain resources, especially for smaller businesses with limited capital and production capabilities.

Moreover, the desire for frequent upgrades raises questions about sustainability and environmental impact.

As consumers replace products more frequently, the volume of waste generated increases, posing significant challenges for waste management systems across the continent. Businesses have a crucial role to play in addressing these concerns by promoting sustainable practices, such as offering trade-in programmes, investing in recycling initiatives and designing products with longer lifespans.

To navigate this evolving landscape, African businesses must strike a balance between meeting consumer desires and promoting responsible consumption.

Building strong brand loyalty through quality, durability and ethical practices can help companies differentiate themselves in a crowded market. Additionally, educating consumers about the benefits of sustainable choices and the true cost of frequent upgrades can foster more mindful purchasing decisions. Governments across the continent also have a role to play.

Through implementing regulations that encourage sustainable manufacturing practices and support recycling initiatives, policymakers can help mitigate the adverse effects of planned obsolescence.

Public awareness campaigns can further empower consumers to make informed choices and demand better quality products. The desire among African consumers to own better products sooner than necessary reflects broader global trends and the continent’s economic progress.

While this presents challenges in terms of sustainability and resource management, it also offers African businesses the chance to innovate and lead in creating solutions that cater for both consumer desires and environmental responsibilities.

Stephene Chikozho is the chief executive officer of Africa Business Inc. He writes in his personal capacity. He can be contacted on WhatsApp +263772409651 or email [email protected]