Oluchi Chibuzor
Executive Director and Vice Chairman, Africa, TGI Group, Farouk Gumel has listed packaging examination, optimising product quality, and streamlining distribution costs as some of the measures manufacturers can employ to adapt to rising cost without compromising quality
Speaking during a panel session titled, “How to Manage Inflation without Alienating Customers,” at the 2023 Africa CEO Forum in Abidjan, Cote d’Ivoire, he shared valuable insights about the challenges manufacturers face when it comes to costs and the importance of finding innovative solutions.
Gumel acknowledged the inevitability of passing some costs to consumers but stressed the need for manufacturers to think creatively to reduce production expenses while ensuring their products remain affordable.
He emphasized that these efforts are essential for the long-term sustainability of businesses.
“In the diverse landscape of Africa, cost considerations can be complex. The balance between inclusion and efficiency is unique due to the division between urban and rural centres. For us to foster an inclusive economy, we must focus on creating opportunities where unskilled labour can be engaged. This means a certain level of operational inefficiency may be required, but it pays back as community engagement ultimately guarantees the safety and security of investments, “he explained
He said, “Examining packaging, optimizing product quality, and streamlining distribution costs are all areas ripe for cost reduction. We regularly assess our packaging choices at TGI, considering factors such as ink type, colour selection, and raw materials. We evaluate where and how to advertise based on our target consumers – should we go digital, opt for print, TV, or radio?”
He emphasized the importance of quality products, noting that they enhance brand affinity. “When your product carries a story and positively impacts the job market, consumers naturally gravitate towards it,” said Gumel.
