Kenyan SMEs lack originality and will in most cases borrow names from people or places, according to a recent survey
The Kenya Branding Report Card 2021 conducted between October 2021 to December 2021 by a local image firm, Elite Mawu, shows Small and Medium-Sized Enterprises (SMEs) lose 30 per cent of revenue due to lack of brand distinctiveness.
The survey sampled 1,000 respondents from consumers (30 per cent) and from SMEs (70 percent) in different categories among them, Fast Moving Consumer Goods, Manufacturing, Real Estate, Logistics, Agriculture and Fintech in Nairobi, Kisumu and Mombasa.
Seventy per cent of respondents said that they got their business ideas from other existing businesses, which could not fill the demand gap. Only 30 per cent of the respondents said their business idea was original.
Elite Mawu Agency Chief Executive and Founder Esther Murugi said the data shows that SMEs struggle to differentiate their brand from their competitors.
“There are very few people who come up with ideas that are new and able to solve people's problems and in return enable them to earn some cash from the idea," she said.
Murugi said borrowed ideas are difficult to different from the original idea.
“People are constantly bombarded with different products and services - from the moment they get up until they go to sleep, across different devices, and in real life,” Murugi said.
She added that a young company emerging in such a tough market could find it difficult to establish itself hence the importance of branding.
Seventy percent of the respondents said they used their names to come up with their brand.
The report shows that more than 70 per cent of Kenyan consumers love a brand because of helpful customer services while 80 per cent of shoppers stay loyal to brands that share their value.
It further shows that brands that blog generate over 60 percent more leads while distinct logos, attractive colours and other visual elements are much more will be much more memorable.
