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.