• Thursday, February 22, 2024
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BusinessDay

Food, household products top list of consumer spending in Nigeria

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Food, personal care, and household products account for 37 percent of total monthly household spend, a study by ‘Nielsen Emerging Market Insights’ has revealed.

With four out of 10 consumers likely to shop at traditional places like neighbourhood shops and open markets, shopping malls are increasingly becoming a destination for shopping with wealthy progressive and trendy buyers thronging the malls for household items.

The research shows that traditions, family and maintaining high standards for oneself are key attitudes that influence the purchasing habit of Nigerian consumer.

“Eight of ten respondents stress the importance of planning for the future,” the research stated, “which results in price sensitivity and prioritisation in consumption. Nigerian consumers prefer the tried and tested route in terms of products.

In addition, products that are affordable and easily available are most likely to succeed in the Nigerian market.

The establishment and growth of organized retail has continued to affect the way many Nigerian consumers approach the purchase of consumer goods and services. Not only do consumers have a wider selection from which to choose, they often times, tend to see, sample and buy many of the products and brands Western shoppers now take for granted.

Analysts believe sectors that have witnessed change from the nation’s formal retail sector include food and drink, clothing and footwear, personal care products and house wares.

With strong formal retail sector expected to have positive impact on the growth of other consumer sectors, an emerging trend is that with their increasing levels of disposable income.

Adesola Adedayo, a banker, disclosed that some Nigerians could afford to become brand-conscious, driving demand for designer fashions. Adedayo noted that Nigerian consumers tend to remain loyal to brands, and this is tested by increasing presence of cheaper quality alternatives.

The survey which identified seven consumer segments based on a face–to–face survey of 5,000 respondents across Nigeria, Ethiopia, Uganda, Kenya, Tanzania, Zambia and DRC revealed that Nigerian consumers preferred the ‘tried’ and ‘tested’ route in terms of products.

As products that are affordable and easily available are most likely to succeed, the survey disclosed that food, personal care, and household products accounted for 37 percent of total monthly household spend.

While growth in the country has been possible because of steps taken by the government to end armed conflicts and create a better business climate, due to these positive changes, Nigerians earn more and spend more on CPG products than the African average.

According to experts, while there is potential for value-added products among high CPG spend segments, launching a new product in this country of diverse groups require a strategy that accounts for the culture and needs of people across all consumer segments.

Anne Agbaje