Category: Shopping

Lush Hair in partnership with the Nigerian Association of Hairdressers and Cosmetologists (NASHCO) Lagos chapter, has organised hair braiding competition amongst stylists from across the 20 local governments areas in the state.

20 teams comprising a model, stylist and an assistant from the local governments contended for prizes offered by the firm.

Contestants were given one and half hours during which they were judged based on creativity, tools handling, finishing and neatness, composure, seamless and innovative colour scheme.

Model Olamide Osoba from Orile Agege Local Government Area, came first and won for the team N150,000.00, Model Oyeloro Sidikat representing her team from Kosofe LGA won N100,000.00 for the second place while  Model Roseline Ogunyemi with her team from Etiosa LGA won the third place with a cash prize of N50,000,00.

The Brand Manager, Lush Hair, Ms. SukhmPannu represented by the  Public Relations Manager, Tolaram Group, Mrs. Omotayo Azeez- Abiodun expressed her satisfaction to collaborate with NASHCO  in organizing the hair stylists competition which featured all the LGAs in the state.

An e-commerce platform, Konga, is on the right path of profitability after achieving 800 per cent increase in turn over which has drastically reduced its losses over the past 18 months of acquisition.

Its Co-Chief Executive Officer, Prince Nnamdi Ekeh said the management has set strategies to grow the business to the delight of its investors which has further increased the hope for profitability in 2022.

“We have reduced cost by over 45 per cent and also achieved growth of over 800 per cent in the past 18 months. We are working very hard to meet investors’ expectations. It is true we are incurring huge losses now based on the e-commerce business model. However, we have 36 months’ cash reserve to build Konga as a success.

“We are ambitiously scaling Konga, and that is why we launched a successful Konga Travels and Tours that is currently making huge waves in the travel booking industry. In addition, we have other approved projects and new lines of businesses that are set to be unveiled soon.”

He explained that the management spent last year restructuring the business and positioning as it is evident  in the turnover  recorded over the period, adding that several other viable business units and subsidiaries have commenced within the Konga Group.

“We understand the implications of not positioning infrastructure first. This is why we spent the last 18 months indirectly building our own facility nationwide and restructuring technologies to accommodate our ambition. Nigeria will experience the full scale of the Konga retail revolution in the coming months”  he added.

Meanwhile, serial digital entrepreneur and Chairman, Zinox Group, Leo Stan Ekeh, has said the only way to grow the economy is for the federal and state governments to support disruptive entrepreneurs who are now the corporate miracles of every progressive economy.

He cited America as an example of a country that  has produced the known whizkids of the century and raised global giants such as the Googles, Facebooks, Amazons and Microsofts, etc. of this world.

He said this while delivering an incisive talk at the Access Bank-sponsored 2019 African Fintech Disrupt Conference held at the Landmark Centre.

While advising entrepreneurs not to see hope as a strategy in business, he reminded them of a critical configuration required for a self-audit before deciding if they really want to be entrepreneurs.

According to Ekeh, who also doubles as a global advisor to Microsoft, success as an entrepreneur in Africa requires 40 per cent common sense, 20 per cent spirituality and 40 peer cent knowledge of the business.

In his opinion, the 21st century has defined two types of entrepreneurs – disruptors and regular entrepreneurs.

While advising startups and other budding business owners, he noted that their passion must pay their bills, else there is no justification for the business they are launching.

He reminded startups of the essential few ingredients of success, humility, ability to see the end from the start, an eye for the bigger picture, creative mindset, knowledge and energy to occupy the sector as well as the capacity to manage cash and excitement.

He, however, cautioned that they must be prepared to take reasonable pains before pleasure as they must postpone luxurious life until when they have built enough reserves to sustain such a lifestyle.

Counseling female entrepreneurs, the disruptive entrepreneur assured them that they will lead in the second quarter of this century as informed women are known to operate efficiently in structured environments with auditable systems.

He affirmed that no government has a choice to deny the youths of progressive infrastructure, except they want to face the wrath of this dominant segment of the populace.

Mrs Gertrude Akhimien is the new Chairman of the Nigeria Association of Small Scale Industrialists, (NASSI), Lagos Chapter. She served as the Vice Chairman to the previous administration for four years and has been in the SMEs sector for over 20 years. In this interview with Jane Chijioke, she talks of her plans to create more market access for her members and improve on the successes made by her predecessor. She also reels out the challenges faced by the sector.

What are your plans to improve the SMEs sector?

My visions for NASSI are quite strategic. There are three areas that are my main focus; access to funds for our members. Many of our members are running businesses that require scaling up. I mean growing  business to a level where it can produce more, generate more revenue and employ more workers.

Another area is market access.  Access to market is key because when you grow a business, it is important that you provide that access or you make it possible for such businesses to be able to sell their products, interms of distributions, logistics and then have turn over.

While the third area is the advocacy;  it is important that we continue to walk with government to improve standards, build on what we have already achieved, and advocate for lower taxes for our members. Government needs to provide SMEs with logistics in terms of better infrastructure, roads, hubs so that people who are into production can come together especially for people who are producing  the same  kind of items.

Shopping malls have become one stop shop for most consumers to do their shopping activities. Has there been any form of partnership with these supermarket chains to expand market access of SMES products?

One of  the things I did as soon as I resumed office was to have a meeting with Silver Bird Galleria on the need to give us space in the mall. They have actually allocated space to us which we are trying to see how many of our members can bring in good products that would be displayed there. We are still trying to get them to give us some good discounts on the space because as smes, we cannot afford that kind of space. So it is part of the ways to create more market access for our members.

As we speak, we have some of our members who are now in some shopping malls. We have the likes of Shoprite, Spar who now have our products. We were lucky two years ago after our yearly exhibition, Jumia Came on board and took a lot of our members’ products. So many of us sell online right now and we are competing very well with foreign made products.

Nigerians  still love the Nigerian products. They still eat the basic food at homes and these foods must be produced locally by Nigerians and that actually is a big market.

What other strategies are you putting in place to promote these locally made goods?

Many of these supermarket chains have the leverage which we lack. Number one is the size, their logistical capabilities. But it is not deterring us. We are also putting efforts to expand ourselves. We are trying to organise ourselves in such a way that we can have warehouses for our goods. We are already looking at going into the market to get these wholesale shops. Get distributors and dealers who can move these goods for us. That would boost more production of our products and that way we will be able to turn over.

How much assistance does NASSI get from the government in promoting locally made goods in the country?

I believe that there are laws in place for that.  The problem we face in this country is implementation and monitoring. If the laws are enforced to see that a significant percentage of our products are displayed in these shopping malls, then we can have more access of Nigerian products in such market places. There are enabling laws to watch against some of these things but unfortunately, these things are over looked and then we suffer. What we have achieved today is based mostly on our own efforts. We visit them, talk to them and appeal to them to have our products in their shelves.

If you go into the ministries, and other government agencies’ office, you will find out that one of their enabling laws is to watch against some of these things. Unfortunately it is just a lip service. These foreign markets are here for profit so they take advantage of our lapses.

We advocate for a hub. We need a hub for our members especially for those producing the same kind of items. With that, they would be economies of scale which will reduce their cost of production and make such items cheaper and competitive with foreign counterparts in the markets.

Are there plans for market expansion of NASSI products beyond the country?

With the quality and standard of products we uphold, some of our members are now exporting their products. Some of the products have already gone for testing to confirm the standard that is required. We are already into talks with organisations that want to partner for export purposes.   Some of our export partners are even offering to train our members to ensure the products meet the standard. Our food items such as smoked fish, Garri, Semovita, teas, snacks, elubo and others are being exported.  I was happy to see our products in an Indian shop in the United Kingdom a couple of months ago. I had a chat with the owner, he confirmed that the   items sell well but the comment he made at that time was that the packaging should be improved upon.

What are the challenges faced by this sector?

We have government interventions but sadly, they are not accessible. In terms of funding, the Federal Government through the Central Bank of Nigeria,  has put in place about N200b. We have over 500 applications for that fund with CBN but not even one  SME  has accessed it .  It is really sad. Our members have gone through the necessary interviews and collated all the documents needed; making sure that everything they asked for has been put in place. But to our greatest surprise, nobody has received these funds. As an association, we can only   keep encouraging our members not to give up. Now they have started talking about the textile fund our members are also getting ready for that. So we are putting together their documents and we are trying to ensure that they access the fund.

Whenever government makes such declarations of funds, they should let  people believe them by making sure that these things get to the people that ought to have them. I urge government to please release these funds.  Smes are the bedrock of any economy. They generate more employment aspect of the economy. They create wealth. With smes, that is where you have the growing middle class.  We have over 20 million smes in the country but contribute 45 percent to the GDP. This is little because there are so many factors impeding their growth. Government ought to provide infrastructure. Many run their businesses from small spaces, rented apartments, homes. That is why they need these funds to expand.

Also, we are advocating protection of the smes, whereby certain products are given protection by the government through higher taxes or custom tariffs so that people who are importing them into the country see it as unprofitable, allowing the local industry to grow. It is important that we communicate these issues to government so that they can swing into action.

What is your advice to your members?

Everybody is out there trying to sell one thing or the other. Customer is  critical to your business. You should ensure your product is acceptable, that way you can gain consumers’ loyalty. I encourage everyone to take advantage of the digital age to grow their market base. Know your target market, if they fall within that internet space, you must be online. Identify other means of reaching out to them. You need to push your products into different parts of the society and ensure that you make your products acceptable.

Again, I encourage all to join a Business Membership Organisation because it is helpful. They teach you about your business and how to promote your products. Don’t just try and do it yourself. That incurs a lot of cost and time and you may eventually realise that you are just running  at a loss.

Street trading is an age-long marketing strategy. Notwithstanding several laws, attendant risks and treatment of its operators as pariahs, the practice has continued to flourish,writes JANE CHIJIOKE.

IN 2007, he left his native home in Osun State, with the hope of getting employment in a cozy environment. But this was not be.

To survive,  young Olaide Adeyemi thought of several ways.

A friend introduced him to street trading. With a loan of N4, 000 from his friend, he bought packets of a popular snacks meal and launched out.

He realised that he sold faster in the traffic.

To augment his sales, Adeyemi was introduced to selling a company’s product, which gave him the branded equipment.

“For the N100 ice-cream, my profit is N22. I get N40 gain from the plastic container ice-cream I sell for N150, although some of us sell it for N200.  So, at the end of the day, I calculate the number of product I sold and deducted my own money before I deliver for the day sales to the company,” Adeyemi told this reporter. He added that daily, he made profits in the region of N5,000 -N6,000. But when the market is dull, it shrinks to as little as N1,000- N2,000.

Welcome to the business of street trading.

Street trading, whether on the highways or the streets, has survived for centuries. Now it is borne out of the need to eke out a living, giving the challenging times in the country. Such trading is  common in developing countries with over population in urban areas.

According to data on urban growth, Lagos State, estimated to have over 24 million people, has the highest urban population growth in the country at the rate of 27.4 percent. As a result, many people resort to casual work or engage in informal entrepreneurship, such as street trading.

To some of its operators, street trading is viable. They access all street corners to ply their trade. The more streets they comb, the more sales they make.

 

Modus operandi

For those who trade on the highways, the modus operandi is one that is energy sapping and poses danger to operator’s life. For instance, traders are seen running after cars, displying their products before motorists to solicit patronage. They sell items, such as cooked food, snacks, beverages, bread, kitchen utensils, furniture, shoes, and clothes. To assist one another, they share information on areas that are traffic filled to make more sales and alert themselves on the state law enforcement agencies who haunt them.

Street trading, they argued, is a battle for survival.

As such, they are not deterred by the government policies to stop them. Some claim mobile trading generates quick profit as they get more than 60 percent of their customers through such a channel than selling in shops or an online interface. To face the day’s task,  some take herbal or the orthodox medicine to keep them fit and retire later at night to either under bridges, paired apartment, their homes or their guardian homes whom they remit the proceed from the day’s sales to.

In the past, street hawking had little value as it was believed to be for those who could barely have one square meal a day. They traded their goods, moving from one house to another, street to street, announcing their presence. Some display their wares on the roadside.

 

‘Corporate’ sales

Some firms have also defined smart ways of getting their products to the market. They engage hawkers, who they give the products to sell. At the end of the day’s business, the hawker returns the product cost and is paid a commission on the volume sold.

As part of assistance to them, the traders are given the company’s branded paraphernalia, such as carts, tricycle, bicycle, and vans  to aid their sales as well as some  ‘comfort.

For instance, a street trader, Donald Obi, who sells a company’s range of home appliances in Ikotun area of Lagos State, explained that he was not paid by the company. “We were recruited by the marketing manager of the company. We get our profit from the number of goods we are able to sell in a day. For instance, the company pegs this bulb at N400; we sell at N450-N500. So, that is how we make our own gains,” he revealed.

 

Changing face of street trading

Because of the most proximate channel to reach the end consumers and the quick sales it generate, street trading has gained more attraction as even traders who own shops leverage the advantages it offers.

But with the entrance of new products into the market, which has heightened competition, most  organisations have adopted mobile street selling as a strategy to gain more market.

Beyond their channels of distribution, some firms employ youths to hawk their goods.  They are seen moving from street to street and on the highways persuading passersby and motorists to buy a particular product or introduce them to a new product or services. Occasionally, they organise product display at strategic areas along streets and entertain passersby to patronise them.

“The competition in the market is high. We can no longer fold our arms and assume customers would come to the bank to seek our services.  We need to strategise every means possible to remain relevant in the market,” said a marketing staff member of a first generation financial institution, who was at Yaba introducing her bank’s services to passersby.

Yet, as street selling evolves, business firms and traders are devising innovative techniques to make their products appealing to consumers. They use mobile kiosk, mobile vans, mobile carts, street promos, uniforms, wheelbarrows, and the traditional head carriage, among others.

Experts see this trend as necessary to be at par with the changing consumer behaviour and taste, adding that innovation is key to business growth.

A marketing strategist, Dotun Babatunde said: “We are in a very dynamic era where an average consumer is very technologically wise. Nigeria is a first mobile market, where more people have mobile phones and desktops.  As a consumer is critical to business, they need to appeal to the senses of their consumers. It is about creating new ways to reach out to their consumers.They need to understand what makes a consumer buy a product or the other.  This will affect how a business is faring.  With more products coming into the market, there is no point trying to stagnate yourself with whatever that has always worked for you. Otherwise you realise that you are losing in the business space.”

For Atinuke Shittu, it is about trying to appeal to the upper class, who for one reason or the other, place no value or feel uncomfortable patronising goods sold on the street. Also, such innovation like a branded mobile kiosk or van creates more awareness for the product.

She said street trading is beneficial to every party involved – the consumer, the trader and the business owner.

“For the seller, it is about surviving the harsh economy. It makes it easier for the buyers to get what they need at any point in time; for the company, it means their products are not just limited to the open market, or modern trade shops, which means more profits in return,” Shittu said.

 

 Rat Race

However, a street trader’s life is  akin to a rat race. Daily, he is faced with harassment from street urchins, popularly known as area boys, who extort money from them. For some roadside traders, including those who sell goods in car boots, they pay these areas boys  for space. But this does not grant them immunity from  government operatives, such as Lagos State Environmental Sanitation Corps (LAGESC) and  the Lagos State  Environmental Sanitation and Special Offences (Taskforce).

In Mafoluku area of the state for instance, street or roadside traders must pay area boys before they are allowed to start business. Findings by this reporter showed that the cash is based on the size of space and volume of wears or products to be sold. This is called ground ‘rent,’ which can be as much as N10, 000.

Subsequent payment after this range from N100, which is made  daily to the area boys.

“Here we pay N10, 000 or more for space depending on what we sell to the area boys around here and they charge us N100 daily afterwards,” said Moses, a sharwarma seller at the Mafoluku bus stop.

 

Nigerians react

To some Nigerians, the government should allow street trading stay. Rather than ban it, stakeholders advocated that it should rremain as operators add value to the sub sector.

They urged the government to create an enabling environment for citizens.

But the Lagos State Chairman  of Nigerian Association of Small Scale Industrialists, Mrs Gertrude  Akhimen, said street selling does not conform with best practices in the business world.

“Their effort or contribution to the economy cannot be quantified in figures as there is no organised platform for them. It affects other businesses, which is one of the reasons big companies are keying into it, as it has made consumers to rather do their shopping on the streets than visit  market places. I think the disadvantages outweigh the advantages,”Mrs Akhimeni said.

She called on government to provide affordable shops for traders to do business.

 

Government‘s position

Street trading has remained an issue that successive governments have continuously addressed owing to the fact that it aids robbery on highways, cause traffic congestion, litters the environment with waste and disrupts the aesthetic view of the environment.

TIn trying to address this, various enforcement agents have been inaugurated by successive governments.

In one of its raids on illegal traders,  the Chairman, Lagos State  Environmental  Sanitation and Special  Offences (Taskforce), Olayinka Egbeyemi (a Chief Sperintendent of Police), said government would not tolerate any disrespect of the law by traders who converts any available space to a trading spot. He also warned that illegal traders and hawkers should vacate the roads to reduce inconveniences to motorists and enhance the sustainability of the environment.

Efforts to get data on the number of  illegal traders prosecuted so far proved abortive as a  LAGESC source said there has been power outage for over a week as a result of ongoing Oshodi Interchange project.  The  source added that the power gnerating set of the agency has been faulty, adding that there was no way to access the data on   the computers in the office.

The Public Relation Officer, Ministry of Environment,  Kunle Adeshina, said while government has made tremendous effort in curtailing the issue, it has also embarked on advocacy to enlighten the  traders on the dire consequences of street trading.

“Just like the past administration, it is not about catching them and throwing them into jail. Government also adds human face to its enforcement activities and that is why we try advocacy to enlighten them on the dangers. Even when they are arrested, sometimes, instead of giving them custodian sentences, they are asked to do community services such as sweeping the street or market just to serve as a means of deterrent,” Adeshina explained.

He agreed nonetheless that some companies are leveraging  street trading to bolster their sales. This, he explained, is done under the guise of poverty alleviation initiative to give unemployed youths tricycle, bicycle, their products  and other forms of trading facility.

“Some of these regulatory powers reside with the local government and I believe they have been talking to them to let them realise that they constitute a form of elevated street trading and the government will surely address this in a very short while,” he said.

He  said taming the shrew of street trading is a continuous process, adding that the government is determined to reduce it to the barest minimum.

According to him, more shops will built for the traders at affordable rent.