Consumer trends in the Algerian telecoms market

With a total population of 33 million (2006) and Per Capita Income of $2,730 (2006), it is a rising star in the North Africa region (World Bank, 2006). Overall, the outlook for growth is positive. Human resources are once again geared up and the public sector is speaking economic liberalisation and privatisation.

As one of an increasing band of business travellers to the country this year, I observed significant changes in Algeria’s marketing landscape compared to my initial visits in 2000 when Algiers was a city much less interesting to global multinationals.

Today, the volume and diversity of commercial interest in Algeria is definitely bullish, visually reflected in hefty outdoor branding ‘bling’, advertising buzz and visions of improved lifestyle options. Dialogue with the consumer is growing and matches an atmosphere of optimism and determination.

So if you’re delivering against ever increasing consumer needs, the Algerian market is a booming haven, especially in our area of interest - the Mobile Telecom Industry. We will also observe how the Algerian consumer is becoming ever more sophisticated in expressing their needs from this market.

On a macro level, in 2005, Algeria’s mobile Telecom market made incredible leaps ; it grew by about 200 per cent for four consecutive years and raced past the expected 45 per cent penetration mark. While Infrastructural support is key, it is strong consumer demand that is fueling the growth of the Telecoms market. (International Telecommunication Union, Apr, 2007)

Understanding drivers of consumer demand is of course of fundamental interest. We have been observing the process and reasons for adopting mobile phone services, researching consumer needs and giving our stakeholders the advantage of placing the consumer at the centre of their brand communication strategies.

The Algerian Telecom market is riding the crest of a few global consumer trends. One of those consumer trends is “Flow Living”. This trend has fully manifested itself in other global markets where economic growth has led to a much increased pace of life. Time is, after all, the most important, scarcest resource in one’s life. Whether you are a mother of two or an ambitious businessman with a non-stop schedule, the need for products and services which save you time and are available anytime, anyplace, anyhow, is sure to be a significant driver of brand choice.

On a brand positioning level, it is more than just providing ‘convenience’ to the consumer – living up to the trend of “Flow Living” means a brand must stand for efficiency and innovation in the consumer’s mind. And for that understanding the intricate steps in your consumers’ daily lives and how to flexibly cater to their needs yields fortunes of opportunity for brand growth.

Telecoms products and services also innovatively provide ‘Instant Communication’ (through multiple media) which keeps people linked - and helps them get more done in a faster-paced and interconnected world. Providing payment services that “flow” efficiently with a consumer’s lifestyle and routine is another opportunity under much research. There are many manifestations of ‘Flow living’ that can be leveraged in the fastest growing consumer market in the region.

Another observed trend driving the Algerian Telecoms market is the ‘Pleasure Principle’ behind consumer behavior. With economic prosperity now on the horizon and (especially) following the ‘dark years’ of civil war and economic stagnation, the emerging Algerian consumer market has a higher awareness of available products and a new emergent need to express one’s identity and status through consumerism.

A manifestation of the ‘Pleasure Principle’ occurs in a segment of the consumer market that is fuelled by a desire to enjoy luxury products. The desire for premium products clearly drives aspects of the Telecom market’s consumer demand. As mentioned, the Algerian consumer is increasingly sophisticated in expressing his or her needs.

We can already see a sub-trend of the ‘Pleasure Principle’ creeping into the picture – that of customisation. While still a strongly collective society at a cultural level, the need to express individuality is rising and certain segments of consumers want to be perceived and treated as ‘special’.

The manifestation of such trends in the Telecoms market is inspiring and when leveraged leads to focused and innovative opportunities for brands. Leveraging these opportunities introduces an array of new sales channels, product innovations, co-creative concept designs with consumers (ring tones, media) - and binds consumers and manufacturers together in an intense relationship and dialogue.

Keeping an eye on manifestations of global consumer trends and how these are emerging in the Algerian market gives a fruitful context to understanding the direction of the market as a whole. And we observe that Telecoms technology will enjoy an integral role in the Algeria market and in Algerian society’s drive for personal growth and prosperity.