The Nigerian consumer market could be described as one the most brand conscious countries in Africa. The nation shares a unified love for thoughtfully branded products, as well as an aspiration to own and associate with the more luxurious, top shelf international brands. Although this largestly pertains to the South, there is a small but growing middle consumer class in the Northern half of the country.   Nigeria’s largest shopping mall, the Palm Shopping Mall, offers a 1st world choice of international, trendy brand stores such as KFC, Nike and Converse and houses a few more prestigious names like Hugo boss and iConnect.   Another success story of Nigerian commerce, the Palm Shopping Mall brings a world-class shopping experience to the Nigerian consumer and is even equipped with a six screen movie theatre complex from the South African cinema company Nu Metro.

NIGERIAN CONSUMER SHOPPING DATA TRENDS

According to www.top50brandsinnigeria.com, a site which measures a brand’s market penetration, innovation & vision, popularity and CSR initiatives, 2014 saw banking and insurance companies Access Bank Plc and Aiico Plc claiming first and second place. In fact, 24% of the brands that made it on to the top 50 list are from the financial services industry. Although the corporate banking system in Lagos is already well established and sustainably constructing lifetime relationships with their clients, the statistics indicate a trend formation whereby Nigerians are becoming more conscious about their personal finances and expenditure, gaining monetary protection, investing for the future and by trusting local banks, stimulating the growth of the economy. This trend of long term branding commitment suggest that a growing percentage of Nigerians are earning a higher spending power and investing money in properties. This could be a calling for real estate brands to zone in on the psychographics of the young Nigerian up-and-comers.   Banana Island, located just off the foreshore of Ikoyi in Lagos, is the wealthiest neighbourhood in Nigeria, with the average apartment costing a whopping ?400,000,000 which is the equivalent of over R2,000,000!  

DESIGNER APPEAL - FASHION BRANDS AND CONSUMERS IN NIGERIA

The fashion industry of Nigeria tailors to the popularity of international brands as well as a host of specialised, homegrown and artisanal nigerian designer brands.   High-end clothing brands have more room to penetrate the middle and upper class markets of cities in Nigeria. As mobile retail platforms grow, Polo and Nma - a Nigerian clothing brand - have become a top selling trends on online shop Jumia. There is reconnected sense of urban appeal in Nigerian fashion which is followed by the desire to own exclusive brands. Younger middle class Nigerians with lower incomes will actively purchase and engage with quality brands for the purpose of reflecting their desires for an affluent lifestyle. The electronic market penetration in Nigeria is monopolised by Samsung, Sony and LG offering state of the art home entertainment technology and is expanding which could potentially invite an influx of international competitors wanting a stake in the tech growth trend.   Samsung’s first direct-to-market store in Nigeria opened in 2012 in Lagos. The giant international company expanded and now owns a large share in the electronics market.

CAN YOU HEAR ME NOW NAIJA? TELCOM BRANDS AND NIGERIAN CONSUMERS

The fastest growing medium of communication in Nigeria is mobile, and Norwegian brand Nokia. It holds the popular stance due to the longevity of the battery life; In most parts of Nigeria, power supply is not a constant luxury. Coming in at second place is Blackberry and third is nigerian entry level smartphone brand Tecno. This leaves potential for Android technology to market its way into the Nigerian consumer psyche and expand its horizons into cheaper product offering to compete with the market leaders. This is being attempted with great success via social media.   Samsung mobile has utilised a Facebook page to connect with its customers and they have already tallied 502 000 likes. The brand integrates hashtag trends into many of their posts. This technological branding is standing in the spotlight of mobile advertising in Nigeria and we can expect a lot branding transitions into social media.   With emphasis on mobile branding technology and a good product offering mix of high-end fashion and electronics, Nigeria should be receiving a lot of international attention and investment. We can predict an influx of younger, educated middle class Nigerians to fill the growing needs of the economy as they aspire spend more of their earnings on quality brands.

NORTHERN VERSUS SOUTHERN NIGERIAN CONSUMERS

Despite how much former president Goodluck Jonathan would like his country to identify as a unified block, the country hosts more than 250 ethnicities, and the contrast between the north and the south is more than visible, and certainly impacts how brands should consider their Nigerian marketing strategies. Although the first point of call for most brands entering Nigeria is Lagos and the southern part of the country, the North actually holds more population and is often overlooked as a viable consumer market.   Visit Springleap’s Creative Insights page for more information on pan-african brand research.   Contributed by Cameron Smith.