The main purpose of this paper is to give an in-depth analysis, as well as, insights of the Fast Moving Consumer Goods (FMCG) sector in the Egyptian economy, vis-à-vis the Unilever Strengths Weakness Opportunities and Threats (SWOT) analysis for the Egyptian market. Egypt is strategically located geographically in the North of Africa, and even politically in the Middle East.
The Egyptian economy boasts of being one of the strongest economies in Africa and also a leading economy in the world markets. With a labor workforce of approximately 28.4 million, as per March 2016 research, with a whooping 49% employed in the services domain. Unilever on the other hand is a multinational company, with its base headquarters in London UK, having its operations in over 190 countries globally. It is a Global giant in the FMCG sector and has managed to get proper foothold against most other global companies as well. It is a leading manufacturer of nutritional and personal hygiene products, which are some of the highest FMCG in any nation.
The Egyptian market share is defined by the number of persons in employment. Most of the persons in employment are in their prime ages that are from the ages of their mid-twenties all the way through to their fifties. The nation has an ever increasing population estimate of 88.4 million persons, with the unemployment rate standing at 12.8%; this is a drop of 0.4% from the latter years. The number of young people who enter the job market annually stands at 4%.These figures are as per the 2015 annual economic report analysis. The GDP increased from 3,478 to 3,740 USD in 2015. With an ever increasing GDP, Unilever is at an added advantage in that this is in line with the companies opportunities, which is the world is ever adopting to the western culture. This means that most of the young people are ever trying out new beauty products more so ladies. With a high number of the workforce being young, the company is able to increase its versatility in the creation of newer health products which would appeal to this young generation. The percentage of women in employment in Egypt is ever increasing thus the demand for more beauty products are ever increasing. This is backed up by the fact that the younger generation is willing to sacrifice a large portion of their salary to issues regarding beauty and health care.
With an ever increasing populous, the market opportunities for Unilever healthcare products, is at an ever increasing percentage. This is according to a demographics research conducted which states that by the year 2020 the population will be at 92.6 million persons, with the highest population being of the youth. Research has also revealed that over 75% of the population in Egypt is under the age of 25. This only increases the opportunities for the company to increase its supply of their products, as demand will be at an ever high, in one of the world’s most youthful nations.
Nearly 50% of the Egyptian population lives in urban agglomeration centers, with the highest percentage being that of the youth. Urban settlers are at the added advantage of using social media platforms of which have become the main means of communication nowadays. This is an added advantage for Unilever, since it can use the ever growing online platforms to market their products. With the highest population of the online media platforms being the youth, the company wills undeniably tapping into the right market to purchase their products. Also urban centers pose an ever ready market to purchase most of their healthcare products.
With most of the population being employed and in their prime years, most of them have the tendency to impulse spend, especially on issues appertaining beauty and health care. With most of them having a steady income, the young population has more spending power, which only increases the profit margins for Unilever.
Since the world is becoming ever smaller with the help of the internet, most popular healthcare brand names are becoming ever popular with most local Egyptian population. Thus most of the women are willing to be taken to health care to the next level by purchasing the newest and best healthcare products as recommended to them. Thus there is impulse spending in a muted war to using the best and latest healthcare products in the market, much more so by the ladies. While basic products will be driven by the increasing population growth, the other varieties will be driven by increase in the disposable income and the ever changing lifestyles as well as shopping patterns and habits, which have highly adopted the western styles.
The current construction boom in Egypt has seen the increase in the demand for specialized cleaning products. The construction market rose by 9.2% in the year 2014, whereas recent statistics reveals that the boom in the year 2016 currently stands at 6%. An increase in the economic market increases the opportunities for Unilever to deliver more specialized cleaning products in order to meet market demands.
In a nut shell the paper gives an over view and in-depth analysis of the FMCG market share in the Egyptian economy in relation to the Unilever SWOT analysis in the same economy.