Home > General > Get ready to trade with Nigeria

Get ready to trade with Nigeria

Nigeria, which is the largest economy in Africa right now continues to grow and has taken over from South Africa as the investment destination for Africa. I travel a lot between Zimbabwe and Lagos with South African Airways and Arik and every time I fly, I am amazed that almost  one in every ten passengers is a black African. This is strange, because the aircraft takes of from an African country to another African country, but the imbalance is very obvious. There are obviously no buses to Nigeria from Southern Africa, so I assume that generally Southern Africans do not travel to Nigeria. I am sure that more than 60% of the people on the flight are white South Africans, then followed by white people from Westerners or Asians, followed by Nigerians then maybe 1% is black African. Black Africans are all fixated on Bako Horam while the rest of the world continues to build relations and trade set up businesses in Lagos. The few black Africans travelling to Nigeria are going to the Synagogue, SCOAN, to get a miracle! By the time our African brothers wake up and see the opportunities, there will be few business opportunities let for the taking.

A little tour of Lagos will show you that South Africa has a very marked presence here in Lagos. It is well representeed by its malls and all the shops that are often found in South Africa. The place to shop is Shoprite and everytime you need anything, the Nigerians will direct you to Shoprite. Who knows where they used to shop before Shoprite made an appearance. Woolworths failed to adapt to the Nigerian market and pulled out in January.

Undeniably, Nigeria is a tough market and is no simple business venture. However, with a population of 168 million, even 1% of this market can be all that is required to build a very successful business. People often say that if you made a dollar profit from each person in Nigeria, that would leave you with 168 million dollars profit. Don’t take the African market forgranted, South Africa’s Woolworhts had to throw in the towel, closing its three-store pilot project in Nigeria, citing a mismatch with the Nigerian consumer and climate, Broll Nigeria says this need not deter South African retailers from profiting in the country.

In fact, Broll expects more South African retailers, especially value retailers, to seek opportunities in the Nigerian market in the coming months and years. “Yes, doing business in Nigeria is a challenge. But if you can offer middle class Nigerians the right price, product, service, quality and choice, the sky is the limit,” says Norman Sander of Broll Nigeria, who manages Ikeja City Mall in Nigeria.

Retailers should be prepared to change their models for the Nigerian consumer. If they do so, they stand to gain a firm foothold in a marketplace in a country where consumers are brand loyal and value good service, which is in short supply. The Nigerian market is vastly different from that of other African countries. “Research is essential to understanding this unique set of consumer needs and norms, before venturing into this exceptional territory.”

The market and spend needed for retail success is here and growing. Retailers wanting to crack this market need to customise their models to meet the unique consumer needs and aspirations. Nigerians enjoy a first-world shopping environment that is pleasant, safe, cool, unrushed and offers a complete retail experience from shopping to relaxing at the food court. Mall dwell times are increasing and foot counts are growing.  Nigerian consumers are very brand conscious, but are more familiar with US and European retailers. They are not afraid of spending money and appreciate quality goods. This requires a marketing strategy that goes beyond advertising store opening and extends to launching a new brand.

What to expect in Nigeria

  • Like any other African country, there is a lot of red tape to cut through.
  • It will be beneficial to find a local that you can trust to assist you with the processes.
  • Nigeria is very expensive, in general and it will b very expensive to set up the business.
  • Getting your products into Nigeria will be a challenge as there are not many direct flights from across Africa. That was the advantage of doing business with South Africa.
  • Retailers will need excellent warehousing to overcome shipping issues in Nigeria, where goods don’t move as fast as they do in South Africa. The choice of clearing agents is important and there is often a price attached to clearing goods.
  • Infrastructure is poor, electricity and water can be a challenge and roads are poor and traffic.
  • Nigerians are tech savvy so you can use technology to market your business e.g internet, apps etc
  • Nigeria is English speaking so language will not be a barrier.
  • Unlike South Africans, Nigerians are very hospitable and embrace Africans from around the continent, Nigerians love expats.
  • Driving in Nigeria is not for sissies, it is best to get a driver and it will also be good for safety. Drivers often know the ins and out of the system and know how to avoid trouble.
  • Depending on where you are doing business some areas are no go areas, such as Northern Nigeria. Lagos and Victoria Island are generally safe.
  • If you are from Southern Africa, most of your usual home comforts are here already, Shoprite, KFC, Steers, Spurs, Malls, DSTV and more.

Yet, with all these challenges, Nigeria’s retail opportunities keep on growing on the back of mass urbanisation, the emerging  , rising retail awareness and an increasing consumer culture.

 

hile Woolworths has canned its three-store pilot project in Nigeria, citing a mismatch with the Nigerian consumer and climate, Broll Nigeria says this need not deter South African retailers from profiting in the country.

yinboIn fact, Broll expects more South African retailers, especially value retailers, to seek opportunities in the Nigerian market in the coming months and years.

“Yes, doing business in Nigeria is a challenge. But if you can offer middle class Nigerians the right price, product, service, quality and choice, the sky is the limit,” says Norman Sander of Broll Nigeria, who manages Ikeja City Mall in Nigeria.

South African retailer Shoprite is notching up exceptionally strong trading at Ikeja City Mall, according to Sander.

Sander says South African retailers should be prepared to change their models for the Nigerian consumer. If they do so, they stand to gain a firm foothold in a marketplace in a country where consumers are brand loyal and value good service, which is in short supply.

He adds the Nigerian market is vastly different from that of South Africa and its neighbouring countries. “Research is essential to understanding this unique set of consumer needs and norms, before venturing into this exceptional territory.”

Broll is increasingly being called upon for its professional property services and insights to support retailers and property owners alike seeking to unlock the many retail opportunities in Nigeria.

“The market and spend needed for retail success is here and growing. Retailers wanting to crack this market need to customise their models to meet the unique consumer needs and aspirations,” says Sander. He also notes the call of the mall is gaining the support of more Nigerian shoppers.

“Nigerians enjoy a first-world shopping environment that is pleasant, safe, cool, unrushed and offers a complete retail experience from shopping to relaxing at the food court. Mall dwell times are increasing and foot counts are growing.”

Sander offers a few suggestions that Broll has picked up for retailers planning to enter the Nigerian market, starting with using a cash-based model initially, rather than counting on sales from accounts or cards.

He explains that there is little, if any, brand recognition for South African retailers in Nigeria, where consumers are more familiar with US and European retailers. This requires a marketing strategy that goes beyond advertising store opening and extends to launching a new brand.

The markets’ buying patterns are also different to what South African retailers are used to.

For fashion, there’s no seasonal shopping – Nigeria is hot year round. Sizes are also important and different to Europe and South Africa. Some 50% of men’s shoe sales are sizes larger than size 10. And, while there’s a market for luxury goods, prices that are noticeably above those of Europe won’t be tolerated.

With the mobile phone boom in Nigeria, and an increasingly tech-savvy population, Sander says digital and social media marketing are effective tools for retailers.

“Offering guarantees and sticking to these promises is a tremendous way of growing customer loyalty,” says Sander. “We’ve also found that give-away events enjoy great participation at Ikeja City Mall. At first journalists were genuinely surprised to find that these were fair and above board.”

Despite all the opportunity, Sander cautions that retail in Nigeria is not for sissies.

“Mall rentals are high because of infrastructure and development costs which, in turn, demands high turnovers. Infrastructure is poor, red-tape is plenty and officials often interfere. The supply chain also takes far greater focus, with a host of potential obstacles to be navigated.”

Sander explains that retailers will need excellent warehousing to overcome shipping issues in Nigeria, where goods don’t move as fast as they do in South Africa.

“The choice of clearing agents is important and there is often a price attached to clearing goods,” notes Sander.

Yet, with all these challenges, Nigeria’s retail opportunities keep on growing on the back of mass urbanisation, the emerging middleclass, rising retail awareness and an increasing consumer culture.

– See more at: http://www.vanguardngr.com/2014/01/woolworths-pull-nigeria-will-deter-sa-retailers-says-sander/#sthash.KHU8QpJO.dpuf

hile Woolworths has canned its three-store pilot project in Nigeria, citing a mismatch with the Nigerian consumer and climate, Broll Nigeria says this need not deter South African retailers from profiting in the country.

yinboIn fact, Broll expects more South African retailers, especially value retailers, to seek opportunities in the Nigerian market in the coming months and years.

“Yes, doing business in Nigeria is a challenge. But if you can offer middle class Nigerians the right price, product, service, quality and choice, the sky is the limit,” says Norman Sander of Broll Nigeria, who manages Ikeja City Mall in Nigeria.

South African retailer Shoprite is notching up exceptionally strong trading at Ikeja City Mall, according to Sander.

Sander says South African retailers should be prepared to change their models for the Nigerian consumer. If they do so, they stand to gain a firm foothold in a marketplace in a country where consumers are brand loyal and value good service, which is in short supply.

He adds the Nigerian market is vastly different from that of South Africa and its neighbouring countries. “Research is essential to understanding this unique set of consumer needs and norms, before venturing into this exceptional territory.”

Broll is increasingly being called upon for its professional property services and insights to support retailers and property owners alike seeking to unlock the many retail opportunities in Nigeria.

“The market and spend needed for retail success is here and growing. Retailers wanting to crack this market need to customise their models to meet the unique consumer needs and aspirations,” says Sander. He also notes the call of the mall is gaining the support of more Nigerian shoppers.

“Nigerians enjoy a first-world shopping environment that is pleasant, safe, cool, unrushed and offers a complete retail experience from shopping to relaxing at the food court. Mall dwell times are increasing and foot counts are growing.”

Sander offers a few suggestions that Broll has picked up for retailers planning to enter the Nigerian market, starting with using a cash-based model initially, rather than counting on sales from accounts or cards.

He explains that there is little, if any, brand recognition for South African retailers in Nigeria, where consumers are more familiar with US and European retailers. This requires a marketing strategy that goes beyond advertising store opening and extends to launching a new brand.

The markets’ buying patterns are also different to what South African retailers are used to.

For fashion, there’s no seasonal shopping – Nigeria is hot year round. Sizes are also important and different to Europe and South Africa. Some 50% of men’s shoe sales are sizes larger than size 10. And, while there’s a market for luxury goods, prices that are noticeably above those of Europe won’t be tolerated.

With the mobile phone boom in Nigeria, and an increasingly tech-savvy population, Sander says digital and social media marketing are effective tools for retailers.

“Offering guarantees and sticking to these promises is a tremendous way of growing customer loyalty,” says Sander. “We’ve also found that give-away events enjoy great participation at Ikeja City Mall. At first journalists were genuinely surprised to find that these were fair and above board.”

Despite all the opportunity, Sander cautions that retail in Nigeria is not for sissies.

“Mall rentals are high because of infrastructure and development costs which, in turn, demands high turnovers. Infrastructure is poor, red-tape is plenty and officials often interfere. The supply chain also takes far greater focus, with a host of potential obstacles to be navigated.”

Sander explains that retailers will need excellent warehousing to overcome shipping issues in Nigeria, where goods don’t move as fast as they do in South Africa.

“The choice of clearing agents is important and there is often a price attached to clearing goods,” notes Sander.

Yet, with all these challenges, Nigeria’s retail opportunities keep on growing on the back of mass urbanisation, the emerging middleclass, rising retail awareness and an increasing consumer culture.

– See more at: http://www.vanguardngr.com/2014/01/woolworths-pull-nigeria-will-deter-sa-retailers-says-sander/#sthash.KHU8QpJO.dpuf

hile Woolworths has canned its three-store pilot project in Nigeria, citing a mismatch with the Nigerian consumer and climate, Broll Nigeria says this need not deter South African retailers from profiting in the country.

yinboIn fact, Broll expects more South African retailers, especially value retailers, to seek opportunities in the Nigerian market in the coming months and years.

“Yes, doing business in Nigeria is a challenge. But if you can offer middle class Nigerians the right price, product, service, quality and choice, the sky is the limit,” says Norman Sander of Broll Nigeria, who manages Ikeja City Mall in Nigeria.

South African retailer Shoprite is notching up exceptionally strong trading at Ikeja City Mall, according to Sander.

Sander says South African retailers should be prepared to change their models for the Nigerian consumer. If they do so, they stand to gain a firm foothold in a marketplace in a country where consumers are brand loyal and value good service, which is in short supply.

He adds the Nigerian market is vastly different from that of South Africa and its neighbouring countries. “Research is essential to understanding this unique set of consumer needs and norms, before venturing into this exceptional territory.”

Broll is increasingly being called upon for its professional property services and insights to support retailers and property owners alike seeking to unlock the many retail opportunities in Nigeria.

“The market and spend needed for retail success is here and growing. Retailers wanting to crack this market need to customise their models to meet the unique consumer needs and aspirations,” says Sander. He also notes the call of the mall is gaining the support of more Nigerian shoppers.

“Nigerians enjoy a first-world shopping environment that is pleasant, safe, cool, unrushed and offers a complete retail experience from shopping to relaxing at the food court. Mall dwell times are increasing and foot counts are growing.”

Sander offers a few suggestions that Broll has picked up for retailers planning to enter the Nigerian market, starting with using a cash-based model initially, rather than counting on sales from accounts or cards.

He explains that there is little, if any, brand recognition for South African retailers in Nigeria, where consumers are more familiar with US and European retailers. This requires a marketing strategy that goes beyond advertising store opening and extends to launching a new brand.

The markets’ buying patterns are also different to what South African retailers are used to.

For fashion, there’s no seasonal shopping – Nigeria is hot year round. Sizes are also important and different to Europe and South Africa. Some 50% of men’s shoe sales are sizes larger than size 10. And, while there’s a market for luxury goods, prices that are noticeably above those of Europe won’t be tolerated.

With the mobile phone boom in Nigeria, and an increasingly tech-savvy population, Sander says digital and social media marketing are effective tools for retailers.

“Offering guarantees and sticking to these promises is a tremendous way of growing customer loyalty,” says Sander. “We’ve also found that give-away events enjoy great participation at Ikeja City Mall. At first journalists were genuinely surprised to find that these were fair and above board.”

Despite all the opportunity, Sander cautions that retail in Nigeria is not for sissies.

“Mall rentals are high because of infrastructure and development costs which, in turn, demands high turnovers. Infrastructure is poor, red-tape is plenty and officials often interfere. The supply chain also takes far greater focus, with a host of potential obstacles to be navigated.”

Sander explains that retailers will need excellent warehousing to overcome shipping issues in Nigeria, where goods don’t move as fast as they do in South Africa.

“The choice of clearing agents is important and there is often a price attached to clearing goods,” notes Sander.

Yet, with all these challenges, Nigeria’s retail opportunities keep on growing on the back of mass urbanisation, the emerging middleclass, rising retail awareness and an increasing consumer culture.

– See more at: http://www.vanguardngr.com/2014/01/woolworths-pull-nigeria-will-deter-sa-retailers-says-sander/#sthash.KHU8QpJO.dpuf

hile Woolworths has canned its three-store pilot project in Nigeria, citing a mismatch with the Nigerian consumer and climate, Broll Nigeria says this need not deter South African retailers from profiting in the country.

yinboIn fact, Broll expects more South African retailers, especially value retailers, to seek opportunities in the Nigerian market in the coming months and years.

“Yes, doing business in Nigeria is a challenge. But if you can offer middle class Nigerians the right price, product, service, quality and choice, the sky is the limit,” says Norman Sander of Broll Nigeria, who manages Ikeja City Mall in Nigeria.

South African retailer Shoprite is notching up exceptionally strong trading at Ikeja City Mall, according to Sander.

Sander says South African retailers should be prepared to change their models for the Nigerian consumer. If they do so, they stand to gain a firm foothold in a marketplace in a country where consumers are brand loyal and value good service, which is in short supply.

He adds the Nigerian market is vastly different from that of South Africa and its neighbouring countries. “Research is essential to understanding this unique set of consumer needs and norms, before venturing into this exceptional territory.”

Broll is increasingly being called upon for its professional property services and insights to support retailers and property owners alike seeking to unlock the many retail opportunities in Nigeria.

“The market and spend needed for retail success is here and growing. Retailers wanting to crack this market need to customise their models to meet the unique consumer needs and aspirations,” says Sander. He also notes the call of the mall is gaining the support of more Nigerian shoppers.

“Nigerians enjoy a first-world shopping environment that is pleasant, safe, cool, unrushed and offers a complete retail experience from shopping to relaxing at the food court. Mall dwell times are increasing and foot counts are growing.”

Sander offers a few suggestions that Broll has picked up for retailers planning to enter the Nigerian market, starting with using a cash-based model initially, rather than counting on sales from accounts or cards.

He explains that there is little, if any, brand recognition for South African retailers in Nigeria, where consumers are more familiar with US and European retailers. This requires a marketing strategy that goes beyond advertising store opening and extends to launching a new brand.

The markets’ buying patterns are also different to what South African retailers are used to.

For fashion, there’s no seasonal shopping – Nigeria is hot year round. Sizes are also important and different to Europe and South Africa. Some 50% of men’s shoe sales are sizes larger than size 10. And, while there’s a market for luxury goods, prices that are noticeably above those of Europe won’t be tolerated.

With the mobile phone boom in Nigeria, and an increasingly tech-savvy population, Sander says digital and social media marketing are effective tools for retailers.

“Offering guarantees and sticking to these promises is a tremendous way of growing customer loyalty,” says Sander. “We’ve also found that give-away events enjoy great participation at Ikeja City Mall. At first journalists were genuinely surprised to find that these were fair and above board.”

Despite all the opportunity, Sander cautions that retail in Nigeria is not for sissies.

“Mall rentals are high because of infrastructure and development costs which, in turn, demands high turnovers. Infrastructure is poor, red-tape is plenty and officials often interfere. The supply chain also takes far greater focus, with a host of potential obstacles to be navigated.”

Sander explains that retailers will need excellent warehousing to overcome shipping issues in Nigeria, where goods don’t move as fast as they do in South Africa.

“The choice of clearing agents is important and there is often a price attached to clearing goods,” notes Sander.

Yet, with all these challenges, Nigeria’s retail opportunities keep on growing on the back of mass urbanisation, the emerging middleclass, rising retail awareness and an increasing consumer culture.

– See more at: http://www.vanguardngr.com/2014/01/woolworths-pull-nigeria-will-deter-sa-retailers-says-sander/#sthash.KHU8QpJO.dpuf

Advertisements
Categories: General
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: