Global information and measurement firm, Nielsen Company, has said for producers of commodities to win more sales in the competitive consumer goods market in Nigeria, there is a need to optimise distribution.
According to the company, the level of sales for corporates is very critical considering the impact it can have on the profit and continuous existence of companies.
The company stressed that aside from producing goods for target markets, companies must ensure that their distribution strategies are capable of getting products efficiently and successfully into the hands of the consumer.
Nielsen made this known at the Retail and Shopper World forum, which is a management audit forum for manufacturers and retailers.
In its trend synopsis, the company maintained that, “As Nigerian consumers look for greater value and efficiency due to the macro-economic and inflationary pressures, they are trading down on spend. Promotions and pricing are key tactics to attract consumers to stores.”
In its analysis, it said, “The Fast-Moving Consumer Goods categories which have most been affected by increasing food prices and resulted in lower purchases by consumers, are fruit juices followed by carbonated soft drinks and mineral water; fresh meat/poultry and fish/seafood, and laundry detergent and household products category.”
Speaking at the forum, the Managing Director, UAC Foods Nigeria, Mr. Chidi Okoro, said the consumer was evolving and fast changing.
Okoro said, “The consumer is in a complicated time; he’s challenged by a lot of things -income levels are down, inflation has devalued everybody’s world and so choice making at the point of purchase becomes more important.
“If one looks at the retail point of purchase in Nigeria, it is also evolving with the traditional and modern approaches; but Nigeria remains largely traditional. That is what we can get out from the data Nielsen showed because by culture, we are still tradition. So you can see that open markets still account for nearly 53 per cent of shopping especially of FMCGs even when the modern trend is giving the fastest level of growth.”
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