Major shifts on the horizon in Nigeria’s consumer landscape

Major shifts on the horizon in Nigeria's consumer landscape

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

Top 10 Most Expensive Universities In Nigeria

For many Nigerians, high-quality higher education is a luxury. There are many private universities who are known not only...

Midea Showrooms And Stores In Nigeria

If you’ve been wondering where Midea showroom and stores are in Nigeria below is a list of Showrooms and...
- Advertisement -
- Advertisement -

The Nigerian consumer landscape is set for a multitude of shifts. By 2025, 55% of Nigerians will live in cities or towns as a result of 50% growth in population in urban areas, which represents the fastest urban growth rate globally, ahead of China and India.

This was one of the insights that emerged at a recent Nielsen event in Lagos, which looked at whether retailers and manufacturers are equipped to beat the odds they are facing in Nigeria by anticipating and preparing for the future.

Speaking at the event, Nielsen Nigeria MD Ged Nooy said; “Everyone is fighting for growth and competition for consumers’ wallets has never been tougher. In a challenging environment, finding opportunities with the right insights becomes key to help beat the odds.”

Beating the consumer odds

Nigeria is a complex market that is characterised by consumers who are upbeat and confident with 81% feeling good or excellent about the state of their financials, while at the same time 60% of Nigerians say they can only afford the basics. Forty-one per cent of Nigerians feel that their quality of life is better but more than half feel that it is worse, leading to a polarization in the market, with consumers at both ends of the spectrum.

This means that marketers need to cater to the demands of those who want value and at the same time, those who are aspirational and want quality, premium products.

Read:  PRICES CRASH AT KONGA FOR 7TH ANNIVERSARY

Another trend impacting consumer behaviour is the rise of ‘disloyalty’ with 88% of consumers across Africa and the Middle East ready to defect from a current brand choice and 45% consumers saying they love to try new things. In such a scenario, it becomes all the more important to understand consumer attitudes and perceptions and how they make choices.

Nielsen executive director, thought leadership Ailsa Wingfield, said, “Opportunities today and tomorrow are about understanding and delivering what consumers need and want. Times are changing. There are more products on the shelf today than ever before, from new and existing brands, and a plethora of information points, advocates and advertising telling consumers about them. The consumer is spoilt for choice. Brands need to identify their purpose and provide the right value to their customers if they want to keep them loyal.”

Beating the retail odds

The retail environment is fragmented and tough and across the continent, everyone is fighting for growth. Inflation continues to be the main concern for consumers who feel their wallets are squeezed, while big traditional brands are facing an onslaught of challenges from smaller, more agile, regional players, and new formats and channels are emerging, making a competitive market even more competitive.

Read:  KekeAds Now Strategic Media Choice for NASCO Foods

In just 10 years, Nigeria’s physical bricks and mortar FMCG universe has nearly doubled in size. Today there are more than 1-million outlets selling FMCG products, increasing in size by 500,000 outlets in under 10 years. However, with the emergence of Modern Trade, this growth has been impacted in the short-term. It is also interesting to note that 50% of FMCG sales come from 60 LGAs in Nigeria. Given this retail landscape, the need is for precise and efficient distribution and trade strategies.

Read:  EXCITEMENT, DEALS GALORE @ LAUNCH OF YUDALA OFFLINE MARKETPLACE LAUNCH (Pictures)

The future of retail is not limited to physical stores or virtual channels. Streamlined services, digital experiences and frictionless commerce are converging with the ‘bricks and mortar’ and e-commerce worlds set to shape new shopping experiences that provide personalised and on-demand ease, utility and simplicity.

At the same time, the Nigerian shopper is evolving and contributing to the shift in retail dynamics. Nigerians shop 30 times per month and they want value and assortment when they shop. They are also price-conscious; with more than 70% aware of prices and 95% noticing price changes.

Consumer insights lead Nielsen West Africa Abiodun Olawale-Cole reported; “There will always be demand for physical stores, but in the evolving retail landscape you need omnichannel presence. Retailers need to leverage their unique consumer relationships, using the right technologies and a focus on convenience, to expand their consumer touchpoints. Also, it’s important to understand the evolving Nigerian shopper and delivering to their needs and wants.”

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

Latest News

Zenith Bank FY 2019 Financial Statement: Fear the Bank’s Staff more than the Yahoo Boys

The Board of Zenith Bank PLC, on Friday, 21st February 2020 released the bank’s audited full financial statement for...

Chemical and Allied Paints Plc: Unconvincing results but fundamentals remain strong

Chemical and Allied Paints Plc (CAP Plc) recorded revenue growth for the third year running since it reported a revenue decline in 2016 (the...

What do 8,000 consumers in 22 countries think about the future of payments?

From biometrics to neobanks, Visa report explores how people like to pay Consumers have an abundance of options when it comes to choosing how they...

Third Winner Of Konga Travel Rolls Royce Promo Emerges

Konga Travel and Tours, which was recently named Most Innovative Agency by the global airline, Virgin Atlantic, has disclosed the identity of the third...

Barcelona Could Leapfrog Real Madrid at The Top of LaLiga Santander This Weekend While The Battle Heats Up At The Bottom

Expect more twists and turns this weekend in both the title race and battle at the bottom as the 2019/20 LaLiga campaign continues to...
%d bloggers like this: