According to a study by NielsenIQ titled “NIQ H1 State of the Nation: Nigeria,” 60% of Nigerian consumers have responded to the country’s high inflation by switching brands in the last year. The report also highlighted that 86% of consumers in Nigeria are actively saving for the future and adopting coping strategies to navigate the increasing cost of living. Additionally, the study emphasized the significance of omnichannel retail, with 65% of consumers buying in bulk or larger sizes and relying on online wholesalers for cost savings.
Key Points:
- A NielsenIQ study reveals that 60% of Nigerian consumers have switched brands in the last year due to price increases caused by high inflation.
- The study emphasizes the importance of omnichannel retail, with 65% of consumers buying in bulk or larger sizes and turning to online wholesalers for cost savings.
- Traditional trade remains crucial in Nigeria, with at least 57% of consumers citing more reasons to buy store brands than preferred brands.
- Store brands are gaining popularity, as consumers perceive them to offer value for money with the same weighted products at a lower price.
- The FMCG market in Nigeria slowed in value to +15.1% in Q2 2023 from +16.1% in the previous period, and consumption further dropped to -4.9%.
- Traditional trade dominates the retail market in Nigeria, contributing 98% estimated at N2.1 trillion and growing in value.
- Consumers are exercising heightened scrutiny over their shopping choices, with 63% opting to reduce the number of items purchased or buying larger sizes or non-preferred brands.
- The study indicates a shift in consumer behavior towards more thoughtful and strategic consumption choices in response to inflation.
Source: Punch