Change Begins with Me – Does it Really?!

How has the Nigerian consumer and trends changed within the last 3 years?

We reviewed The Boston Consulting Group (BCG) African Consumer Sentiment 2016 report to see what still holds true in 2018 about the Nigerian consumer and our trends.

Before we dig into the key findings from the BCG study, lets take a look at the methodology they deployed. Between February and March 2015, BCG surveyed 11,127 African living in 11 countries (Algeria, Angola, Cote d’Ivoire, Democratic Republic of Congo, Egypt, Ethiopia, Ghana, Kenya, Morocco, Nigeria and South Africa). Participants were between the ages of 18-75 and their gender, income, ethnicity, employment status, marital status, education level, residency area and social economic class were reflective of the wider population.

BCG report key findings

  • African consumers are increasingly getting access to the Internet and are on it everyday
  • Africans value brands and it has a strong influence on their purchasing behavior
  • Television is still the most effective way to reach African consumers but in Nigeria we are more influenced by online advertising
  • Usage of modern trade is growing with some product categories

So have we changed?

  • African consumers are increasingly getting access to the Internet and are on it everyday mostly through mobile devices. This poses an opportunity for e-commerce, online adverts and mobile financial services
    • Yes, indeed, the number of Nigerians on the Internet is increasing. As of December 2017, there were 98 million Nigerians with access to the Internet; giving Nigeria the 8th position on the Global Internet Users rank
    • And people are starting to take advantage of this; creating e-commerce and mobile banking solutions
      • In 2017, Nigeria’s e-commerce industry was worth $13 billion and is projected to rise to $50 billion in the next 10 years with Jumia and Konga being the two main players
      • Mobile banking and e-payment solutions are aiding in reaching the proportion of the population who are unbanked and don’t have access to more traditional banking services. It has also helped banks reduce their operating costs by reducing the amount of branches they own.
  • Africans value brands and it has a strong influence on their purchasing behaviour
    • It is well known that Nigerians are price sensitive but what we see is that they still place a high value on brands
    • In the last 10 years, we have seen top brands like Nokia, Samsung, Nike, Adidas, Budweiser, Mango, Visa, Kia penetrate the market and even start local production/assembly
    • In regards to Nigerian’s price sensitivity, we see that in certain product categories, sensitivity plays a bigger role than others. In the electronics and automobile categories for example, durability is more valued than is lower price while for food and beverage, price plays a bigger role.
  • Television is still the most effective way to reach African consumers but in Nigeria we are more influenced by online advertising
    • Online advertising is growing in Nigeria mainly because of the population on social networks and the Internet in general
    • An average Nigerian spends about 3 hours a day on the Internet in comparison to about 2 hours a day in front of a television. And even when in front of a television, second screening takes place; where they are on a computing device while watching TV
    • It is predicted that in the next 4 years, online advertising will equal to or be greater than TV as the largest advertising platform in Nigeria.
  • Usage for modern trade is growing with some product categories
    • Three years later and the use of traditional markets (open market, hawkers, neighbourhood stores) still dominates in Nigeria
    • There are currently 16 malls in Nigeria, which bring in a lot of traffic (not necessarily sales) mostly because of the supermarkets, cinemas and restaurants in the malls. What we find is that people patronize the supermarkets (especially the low priced ones like Shoprite) and restaurants but hardly purchase from the other stores.

In order for you to penetrate the market and for your brands to grow, you need a detailed understanding of the Nigerian consumer. We are constantly changing, evolving and reinventing ourselves – although looks like it takes more than 3 years for us to do so!

 

To read more on the BCG report visit: http://image-src.bcg.com/Images/BCG-African-Consumer-Sentiment-CCCI-2016-June-2016_tcm58-60518.pdf

 

Work Cited

Internet World Stats (2018). Internet Users Statistics for Africa. Retrieved on June 15th 2018 from https://www.internetworldstats.com/stats1.htm

TechNext.ng (2017). Nigeria is Eighth in Global Ranking Of Internet Users, Lagos is First In Nigeria. Retrieved on June 15th 2018 from https://technext.ng/2017/08/28/nigeria-comes-eighth-global-ranking-of-internet-users-lagos-comes-first-in-local-ranking/

Eromosele Abiodun (2017). Nigeria’s E-commerce Market Value to Hit N15.45tn in 10 Years. This Day. Retrieved on June 15th 2018 from https://www.thisdaylive.com/index.php/2017/08/28/nigerias-e-commerce-market-value-to-hit-n15-45tn-in-10-years/

Folarin Okunola (2015). 85% of Nigerians access the Internet through their mobile phones. Pulse.ng. Retrieved on June 16th 2018 from http://www.pulse.ng/news/tech/infographic-85-of-nigerians-access-the-internet-through-their-mobile-phones-id4160660.html

Ibukun Igbasan (2016). Smartphone users spend average of 193 minutes on device daily. The Guardian. Retrieved on June 16th 2018 from https://guardian.ng/technology/smartphone-users-spend-average-of-193-minutes-on-device-daily/

Vas & Telecoms (2017). Digital Advertising in Nigeria? iConcepts Imagine a better mobile life. Retrieved on June 16th 2018 from http://www.iconcepts.com.ng/digital-advertising-in-nigeria/