From the Michael Chudi Ejekam Blog: 7 Nigerian Retail Industry Facts
Facts About How Nigerians Shop
- Nigeria is poised for growth where supermarkets are concerned. In Kenya, around 30% of the population has shifted to formal retail supermarkets and around 60% of South Africans have as well. In Nigeria, just 2% of the population makes use of supermarkets, which likely has more to do with limited options and accessibility than anything else.
- Nigerians with Internet access like the convenience of shopping online. In a study performed by PayPal, 90% of people used the net to shop in Nigeria, compared to 60% in Kenya and 70% in South Africa. Experts say that brick-and-mortar retailers can boost sales by commingling their options and by offering point-of-sales devices and customer-driven kiosks on-location.
Facts About Nigerian Consumers
- Consumers feel optimistic about their futures- more so than those in other countries. Almost three-quarters of people surveyed say their finances will be much better off in as little as two years. When consumers in other markets were asked the same question, just 66% of South Africans agreed. Only 52% of Kenyans could say the same.
- Consumers are both brand and budget-conscious. One of the biggest factors for consumers in the region when considering what to purchase is still the cost. A whopping 37% prioritize this over everything else. The second major factor is quality, with 31% saying they will go for a brand that they believe to be high-quality, often choosing the same option again and again because it’s trustworthy.
Facts About the Market
- Nigeria is ranked one of the top countries in Africa for consumer demand potential. The country trailed close behind South Africa and Mauritius, topping Morocco by one slot and Kenya by 12.
- The market lacks brand diversity. One of the biggest needs uncovered by research is that very few brands are available and the majority of Nigerians are willing to try new products if they’re high-quality and have a good reputation.
- Retail and wholesale make up a large portion of the GDP. The market presently accounts for 16.4% of the GDP and with urbanization and the population growing, is expected to continue to be a solid investment opportunity.
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