Brand loyalty, good products/services to push retail sales $2trn in 3yrs
Consumer brand loyalty as well as value for good products and services perhaps explain the reason several foreign retailers set-up businesses in Africa’s largest economy, Nigeria, to market share in lieu of the investment potentials within the African continent. Little wonder foreign clothing retailers that ventured into Nigeria’s retail business are reaping the business choice of the country.
With a huge population size in excess of over 170 million people and vast market opportunity therein, foreign investors can hardly ignore the investment potentials Nigeria holds, which offer tremendous opportunity for bountiful return on investment (RoI).
Within the international community, Africa is the last frontier for economic growth, with Nigeria rebased Gross Domestic Product (GDP) of $510 billion at the epicentre of this global attraction.
An interesting development is that there is more brand recognition for foreign retailers in Nigeria that requires a marketing strategy that goes beyond advertising, store opening and extends to launching a new brand, which has continue to make them seek opportunities in the market.
David Botha, a South African clothing retailer, said feasibility studies show that Nigerian consumers were hungry for quality and innovation, a reason which made latest international fashion to sell at affordable prices and in trendy styles situated across the country.
Botha, who owns four stores in the country and is set to open new ones soon, said: “I started out with one store in Ikeja City Mall in Lagos, opened another one in Surulere, within Lagos. In my second year of doing business in Nigeria, I opened another store in Heritage Mall in Ibadan, as well as in the Grand Towers Mall in Abuja.”
He said: “We make use of an organic growth model, whereby we largely promote staff members from within our business. There are numerous staff members who hold senior positions now, who began their working career with us as casual employees.”
According to Sander Norman of Ikeja City Mall, “Constant research into the needs of customers is believed to be partly responsible for the rapid growth of retail business in Nigeria. If you are prepared to develop a country-specific model and invest in research to support a supply chain, get the right stock, provide the best price and render the best services, because there’s a bright future in Nigeria.”
This development comes as global clothing and footwear retail sales are forecast to surpass $2 trillion by 2018, with major impetus from developing economies, and sales are forecast to reach $303.5 billion by same year. The Chinese economy alone is forecast to add sales of $230 billion, growing at a cumulative average growth rate (CAGR) of 13 percent.
This latest report from retail experts Conlumino is an essential overview highlighting the largest and fastest growing markets across the globe. They contend that specialist stores are set to remain the largest channel.
However, online and discount stores are growing at a faster pace. Clothing and footwear is one of the largest sales categories online as retailers seek to ease the shopping process.
Anne Agbaje