The Executive Director and Vice Chairman, Africa, Tropical General Investments Group, Farouk Gumel, has highlighted various strategies companies can adopt to lower production costs without compromising product quality.
He spoke during a panel session titled ‘How to manage inflation without alienating customers’ at the 2023 Africa CEO Forum in Abidjan, Cote d’Ivoire.
In a statement, Gumel, said, “Examining packaging, optimising 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 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 said the efforts were essential for the long-term sustainability of businesses.
While speaking on the need for quality products, he said. “They enhance brand affinity. When your product carries a story and positively impacts the job market, consumers naturally gravitate towards it.”
Regarding TGI’s approach, Gumel highlighted its collaboration with development agencies to optimise resources.
He said, “We work closely with partners who provide grants and training, helping us improve while managing our production and distribution costs. While some cost increases are inevitable, careful control can significantly mitigate their impact.”
Gumel’s spoke on the delicate balance that African manufacturers must strike to navigate the challenges of inflation and consumer affordability.
His experience and commitment to innovative cost management inspired the industry, showcasing the potential for growth while maintaining product quality and affordability, the statement said.
