On Friday, brand owners and companies involved in the Fast-Moving Consumer Goods (FMCG) industry were urged to be adaptable to satisfy the ever-changing demands of modern consumers.
This is the case due to socioeconomic realities, as customers continue to question brand loyalty as their purchasing power declines, choosing instead to use brands that best suit their needs at any given moment. Experienced professionals and industry participants stated that FMCG companies and brand owners need to understand their customers and be prepared to change their preferences to capture their attention.
This was stated by experts at the 6th Industry Summit, which had as its theme “Understanding Changing Consumers Preference in Troubled FMCG Space” and was hosted at the Chartered Institute of Bankers (CIBN) House, Adeola Hopewell, Victoria Island.
Lampe Omoyele, Managing Director/CEO of Nitro 121, stated during his keynote talk that consumers are changing their buying habits by concentrating more on necessities and cutting less on discretionary spending. Businesses and brand owners must, therefore, put themselves in the customers’ position to win them over by providing what they desire. Focusing on a recent survey performed by his organisation, Omoyele stated price sensitivity, availability, and perceived value are some of the variables that force individuals to switch brands, especially in product categories such as food & grocery, domestic items, and personal care.
Continuing, most said they compared pricing, switched brands, and bought in quantity to save money.
He had this to say: “From our study, respondents between the ages of 35 and 54 with monthly earnings of N250,000 and above said that they have made adjustments to their shopping habits in the past year.”
Digital payments, the growth of e-commerce, and packaging that is driven by sustainability are some of the trends that are changing the FMCG industry in Nigeria. To increase engagement and keep customers in a competitive market, brands are investing in direct-to-consumer (DTC) models, influencer marketing, and loyalty programs, while consumers are looking for healthier product options. Therefore, he suggested that FMCG firms use direct-to-consumer business models, omnichannel distribution, and data-driven marketing to stay ahead.
Leveraging AI for customer data, improving supply chains, and generating engaging brand experiences through social media and influencer collaborations can help organisations effectively manage these market transitions.
He went on to say: “Brands that quickly respond to emerging trends, experiment with new product formulations, embrace digital commerce, and invest in technology-driven solutions will maintain a competitive edge and sustain long-term customer loyalty.”
He noted that quality is still a key factor that consumers take into account when making selections about what to buy, even in light of the increased emphasis on cost-consciousness brought on by economic hardships. He stated; “While consumers may opt for more affordable alternatives in certain categories, they continue to prioritise products that offer high performance, reliability, and long-term value.”
High-quality products foster trust and customer satisfaction, which often leads to stronger brand loyalty, he continued. In this situation, quality continues to be the primary differentiator in consumer choice, especially for necessary or long-term use products, even when price sensitivity is rising.
Can Nigerian companies afford to remain stationary in the face of such fast changes in customer demands? Asked marketing expert Toyin Nnodi while she was presenting her paper.
According to her: “Adapting FMCG Business Models to Meet Shifting Consumer Demands.”
She asserted that FMCG companies in Nigeria need to change or face negative effects. Based on the evolution of consumer trends, including the growth of e-commerce platforms that provide convenience and variety in 2018 and the fact that real spending growth is anticipated to be driven by stable foreign exchange, a stabilising economy, and declining inflation in 2025, Nnodi stated that brands that cater to consumers must continuously change to stay relevant to the market.
Among the practical tactics for a successful FMCG business, she mentioned cooperation and partnership, omnichannel marketing, agility, and production innovation.
Stanley Obi, Co-founder and CEO of Innova Hive Integrated Ltd. urged brands to adopt a strategic stance. Speaking on the topic of strategic positioning for fast-moving consumer goods (FMCG) companies in the face of changing economic conditions, he stated that strategic positioning will provide any brand with a competitive edge and that it will guarantee: “They don’t just sell products or services but offer an experience that no one else provides in the same way.”
According to Nana Milagrosa, CXO-Chief Experience Officer, MPXM, who chaired the panel discussion led by Gift Uche-Ewule, Assistant Brand Manager, Indomie, customers are increasingly looking for value and aren’t wasting money on every campaign or experiential activity they attend. She suggested that companies think about Return on Emotion in addition to Return on Investment.
However, to guarantee 2value addition, Celestine Umehi, CEO of Arewa24, tasked brand managing agencies with having an in-depth understanding of the many brands they work with, BrandSpur business and economy news desk reports.
He claims that because many agencies are not enhancing the brands, many customers are now avoiding them. He said: “Many agencies want to market for brands that are doing well so, but when they run into problems, it becomes difficult to proffer solutions, especially when they don’t have much knowledge about the brand.”
Among the elements that will make any brand relevant in the current economy, he mentioned trust, agility and flexibility, data analytics, and skill set.
Goddie Ofose, the Convener of the Industry Summit, stated in his introductory remarks that the event’s goal was to honour innovation, tenacity, and excellence in the FMCG industry, especially in light of shifting consumer preferences.
He claims that the theme: “Understanding Changing Consumer Preferences in Troubled FMCG Space, is a timely reflection of the challenges and opportunities that the industry, and by extension, the Nigerian economy, faces at the moment. As consumer behaviours and expectations continue to evolve, it is crucial for businesses to stay was ahead of the curve and adapt to these changes.”
