NAVIGATING THE NEW NORMAL IN NIGERIA
The potential of Nigeria, one of the largest Sub Saharan Africa economies, is undisputed. However, with the recent global and local turmoil adversely affecting Nigeria’s economic growth and consumer spending potential, businesses are grappling to adapt to the changing environment. The Nielsen report ‘Navigating the New Normal in Nigeria’ provides key insights into how businesses can prepare for what’s next in Nigeria.
More Shopping Around
Shoppers have adapted what they’re putting into their baskets to accommodate their wallets, and have also adjusted where and how often they are shopping. There is a trend towards more frequent shopping due to the decline in disposable income. As incomes vary on a daily basis, consumers are shopping on an immediate-needs basis, often visiting stores more than once per day due to their fluctuating earnings.
Channel importance has shifted as shoppers shop around in search of more cost effective products, pricing and available products. Consumers have reverted to Open Markets and smaller format stores, away from Supermarkets/Grocers, where there is greater flexibility in the quantity and packaging which can be obtained.
The implication for manufacturers is ensuring that their products are available in the pack size, format and price denominations which consumers can afford, and in the channels and locations where consumers are now shopping.
STAPLES CAPTURE MORE SPEND
Consumers have been compelled to divert more of their spend to staple, non-packaged (loose) food products to feed their families. Even within packaged goods, edible products account for the majority of spend (75%). As prices have risen more money is required to cover the essential living items, taking away from the non-essential categories such as Confectionery, Personal and Home Care products. Beverages have remained resilient in the face of rising prices as new, cheaper alternatives have become available.
For more details, download the full report (top right).