The Sunday Mail
Mutual distrust between manufacturers and retailers is not showing signs of letting up, with the latter accusing the former of filling shelf space with imported products even where competitive local products are available.
At the Buy Local Summit in Victoria Falls between June 17 and June 19, manufacturers were adamant retailers were foisting imported goods on consumers.
It is believed that if retailers give preference to locally-manufactured goods, this would create a positive multiplier on the economy.
Local industries are struggling to reclaim markets lost to imported commodities in the hyper-inflationary period leading to 2008.
Omarh Enterprises, which manufactures domestic and industrial detergents, said big retailers like OK Zimbabwe, Spar and Pick ‘n’ Pay were reluctant to buy products from local manufacturers under the presumption that they were sub-standard.
The business finds succour among smaller retailers and wholesalers.
“We have problems with big retailers. There is severe competition from big brands which push us out of big retail shops.
“But our products are of good quality, we are already SAZ (Standards Authority of Zimbabwe) certified.
“They think quality only comes from outside the country.
“Through the Buy Zimbabwe initiative, we want to advocate for more shelve space in our local retailers.
“That is how we can grow, if our products are seen in shops,” Omarh sales and marketing executive Ms Samantha Nyamukondiwa told this paper.
Delegates to the Buy Local Summit were unanimous that Zimbabwe ought to celebrate the success of local brands such as Dairibord and Seed-Co, which have been able to make a mark in the region.
But wholesalers and retailers said their relationship with local suppliers was strained because the latter were unreliable.
In addition, the packaging of local products is considered both unattractive and sub-standard.
OK Zimbabwe chief operating officer Mr Albert Katsande told The Sunday Mail Business that the grocer was working with local manufacturers to improve competitiveness of their products in an environment where competition from imported products was fierce.
Chitaitai, Dendairy, Omega and Spotless are some of the companies working with OK.
“We support and advocate for local production, but we need products that meet the quality standards our customers require. Customers determine the demand and shelf life of a particular product.
“Customers need products they enjoy using and supply of such products must be consistent,” said Mr Katsande.
In addition to quality and supply challenges, retailers allege that manufacturers tend to specialise in the same line of business while neglecting sectors that have relatively less competition.
Washing powder, bath soap, toothpaste and margarine from local manufacturers are currently limited. OK procures 95 percent of soft drinks locally, while chicken, sugar and mealie-meal supplies are also from local companies. However, between 95 percent and 100 percent of toothpaste and bath soaps are imported.
Mr Katsande said the market was filled with “me too” products that left retailers and wholesalers in a quandary.
“If there are 20 manufacturers all producing dish washing soap, we cannot fill the entire shop with that.”
Mr Archie Dongo, a director with wholesaler N Richards, whose shelf space has between 80 percent and 90 percent of local goods, said most manufacturers were lagging behind in marketing their products to the public, creating the misconception that local industry is “dead”.
He, however, noted that packaging is still a challenge.
“The question is: Have you tried them lately? We need to market local brands and highlight the quality has improved and can compete with imports, although packaging is still a problem with others…
“Local products just suffer a negative perception. But it is important to note even the sub-standard goods have a vibrant market. However, it is not an excuse to produce poor quality goods.”
It is generally agreed that there is need to create an enabling environment that promotes capacity and competitiveness of local manufacturing if local consumption is to be improved.
