Local brands need to restrategise to tap into N14.7trn consumer market

Nigerian local consumer brands, which appear non-existent on the shelves, need to restrategise their business models to adequately tap into the country’s growing consumer market currently estimated at N14.7 trillion.

The consumer market projected by McKinsey Global Institute to grow in value to about N226 trillion by 2030 is dominated by foreign brands with food and drinks accounting for about 61 percent.

International investors are daily seeing the great opportunity in Africa’s largest economy with local brand owners reeling under excruciating environmental challenges and high interest rates inhibiting them from expanding to tap into the prospects.

Analysts strongly believe local brands in various sectors need to establish themselves and tap into the opportunities.

Growth in Nigeria’s consumer sector has been upbeat but majority of local consumer brands are still lagging and unable to raise their heads for recognition, a situation Charles Chijide, the president of Organisation of Advertising Agencies of Nigeria (OAAN), attributed to lack of government support.

“Nigerian local brands can only tap into the opportunity of growing consumer market if government supports the manufacturers by way of rebate on certain costs. There are much infrastructural challenges, they are running diesel and that is why they cannot compete favourably with foreign brands that have most of their infrastructure in place,” Chijide said.

He believes that government’s quest for FDIs has left the local manufacturers un-encouraged and unprotected.

“Government has allowed foreigners who have single digit interest rate to come and meet people who have very high interest rate regime. All manufacturers are crying because government policy is not protecting them and this has allowed the foreigners to take over and repatriate all the money they have made in this country”

In his view, Emeka Maduegbuna, an expert in marketing communication, advised local brands to boost their marketing communication strategies.

He said the immense opportunity in the consumer market assisted by the large population and the growing middle class will continue to elude local brands if they don’t up their game.

“It is for the brand owners to work to develop their brands. It is possible for local indigenous brands to grow but a lot depends on the brand owners to have quality and good marketing mix approaches. Dangote is a Nigerian owned brand that has worked to develop its brand. Local brands should make sure that the quality of what they offer is good. Secondly their marketing strategies must be right”, Maduegbuna said.

For some brand owners, branding is everything and they take it seriously and they also understand that is a guarantor of profitability and market share growth.