(Business in Cameroon) - The managing director of 3C Cameroon explains the motivation and advantages of the new wholesale distribution concept (a pioneering experience in Africa which could boost professionalism in some value chains) implemented by Casino in Cameroon. 

Business in Cameroon: Through 3C Cameroon, Casino group has just launched the “Bao” distribution brand which is actually an experimentation of the Cash & Carry concept in Cameroon. Concretely, what is the Cash & Carry concept?

Laurent Bugeau: “Bao” is derived from “Baobab”, a tree that is much respected in Africa for conveying strong values: power and resilience. The term also means “I’m strong”. We used the word Bao to identify ourselves with the African continent and as for “Cash & Carry”, it refers to a low-cost wholesale warehouse, which is exactly what the newly launched unit is. Bao Cash & Carry offers the market’s cheapest products. Our main targets are professionals (retailers, processors, users…) and households wishing to spend less on goods. Indeed, while each product is already quite affordable, its price goes further down depending on volume purchased. Casino, it should be noted, has a strong experience with Cash & Carry, in South America. Its Assaï unit currently leads this sector in Brazil. In 2017, it had 126 stores and a turnover of €5 billion in the country. Actually, Bao Cash & Carry replicates the Assaï model which proved effective in the past years. With its innovative concept, “Bao Cash & Carry” actively contributes to the government’s goal to reduce the cost of living.

BC: One of the particularities of Cash & Carry is the low cost goods that are also discounted according to the purchased volume. How do you manage to offer goods at such competitive prices when the supply channels and the economic environment are almost the same for all the operators in the market?

LB: Obviously, the economic environment has some impacts on our prices but we always seek ways to reduce our operating costs. For instance, our warehouses are rough with industrial floors and the goods are stored on pallets. Moreover, we are developing an industrialized management system (mechanization of the handlings with modern equipment, an integrated IT tool…). We are also setting a logistics system that will optimize the operations and facilitate bulk deliveries. Bao Cash & Carry offers a range of 3,000 essential products, required by the professionals, and these products are exposed on pallets. Above all, it is based on a large sample volumes model. All the costs saved by Bao Cash & Carry are directly reflected in the price. This is why we are competitive.

BC: Casino group is already the leader of Cash & Carry in South America. What are the similarities between Cameroon and the South American countries you are operating in?

LB: Well, Cameroon has some similarities with countries in which we are the leaders in market. For instance, like Brazil, Cameroon has a very high agro-industrial potential.

One of Bao Cash & Carry’s ambition is to boost professionalism in agriculture and animal husbandry by buying products directly from producers, organizing those producers’ production schedule and guaranteeing the sale of their output. It will also help them meet sanitary standards by organizing and optimizing logistics channels. For instance, we buy our meat products (beef, pork and chicken) from the local producers and we process them in our laboratories. Also, this first Bao Cash & Carry warehouse has an important storage capacity to preserve the cold chain and guarantee the products’ quality and freshness.

BC: As far as the sector is concerned, many African countries present better opportunities than Cameroon. Why did you choose it then as the first place to experiment with the concept on the continent?

LB: Cameroon presents many advantages. First, it is at the geographic border between WAEMU and CEEAC countries. It is also an important economy since its GDP represents 50% of that of CEMAC and has 24 million residents. Moreover, it has at least ten towns, with a population of at least 200,000 people. The country can also be considered as a true model of Africa considering its diversified landscapes, religions, cultures, ethnicities, etc. This is what we looked at to decide to experiment here first.

BC: Despite progress recorded over the past few years, local products still struggle to find their way to the stalls of major stores in Cameroon. What is the proportion of local products offered in Bao warehouses?

LB: We mainly offer Cameroonian products. In addition, every time we have a local product that can efficiently replace one that is imported, we give priority to the first. At our Douala-Bassa Bao Cash & Carry unit, there is an even distribution of local and imported products. The percentage of local products offered can increase if our current performance is maintained.

BC: You said that your supply comes directly from local farmers. How do you choose those farmers?

LB: Months ago, our collaborators approached local farmers. In January, this year, we organized a seminar to present our concept and invited more than a hundred suppliers all over the country.

BC: Cameroonian farmers are known for their lack of professionalism. What are your plans to improve their knowledge regarding compliance with production standards, health standards, etc?

LB: We will share Casino group’s experience in the sector with the local suppliers.

BC: “Bao” was launched amid growing competition in the retail sector. What is your answer to those who think that the new concept is Casino’s way to adapt to a more competitive environment?

LB: Bao Cash & Carry is a modern retailing concept much different from the concept introduced by the other retail stores present in Cameroon. We had a great experience with the Cash & Carry concept in South America and Casino is also a multi-format actor in mass retail.

BC: Some also expected Casino, considering the rising competitiveness in the retail market, to open more stores in Cameroon, just like other actors are doing. Why did you rather decide to launch a new concept?

LB: We have a partnership with Mercure (Ed Note: which has 3 sales outlets) and we are confident that it will develop our brand. Once again, we believe that the Cash & Carry concept addresses a strong demand in Cameroon.

BC: Finally, what is your brand’s expansion plan in the short and medium terms?

LB: We plan to open a dozen other warehouses in the five coming years if this first experimentation is satisfying. This would cost between CFA15 billion and CFA20 billion. Our stores will generate more than 1,500 direct jobs and professional training will be provided to our workers. The local agribusiness sector will also benefit from this investment since the stores will prioritize “made in Cameroon” goods and support the development of agriculture and animal husbandry. Bao Cash & Carry brings opportunities to young Cameroonians who are ambitious and willing to learn a promising profession. They could become managers of warehouses we will build here in Cameroon or in other countries.

Interview by Brice R. Mbodiam