The Nation Newspaper

Category: Shopping

  • Shoppers in for big deal

    Shoppers in for big deal

    Last year, the retail industry witnessed massive growth with innovations.The Retail Council  also made its debut.  This year, operators say they would step up their game despite the challenges in the industry which made South African retailer, Woolworths, to close shop. TONIA ‘DIYAN reports.

    A few years ago, wading through a crowd into an open market to bargain for items was the only way to shop in Nigeria. Though the practice still continues, a different retail phenomenon now attracts shoppers. The berth of the Retail Council last year promises to redefine the experience of shoppers in the country.

    The emergence of world-class shopping places has changed the way people shop, leading to a boom in the industry and making the country a haven of retail shopping.

    With the entry of big retail shops such as Shoprite, Spar, Mr Price,Truworth, Mango, among others, shoppers have become aware of the benefits of shopping in a more conducive atmosphere.

    Just like in the days of Kingsway, Leventis and UTC, people now buy food and other goods at affordable prices in hygienic cozy environment.

    Retailers in the various malls within the metropolis said they are re-strategising in a bid to make shopping places more conducive this year. They have introduced innovations which they say are better than what they had last year.

    According to them, they will focus on improving the shopping environment to the benefit of shoppers.

    While some of the tenants in these malls promise to expand their scope of business, others say they will partner with other players in the sector.

    One of the big players in the industry, Mr Price said it will open more stores and create a befitting website where its customers could link up with it real time.

    It said: “Mr Price shoppers should expect the latest fashion, in an exciting shopping environment, with great customer service and at great prices.”

    Added that the clothing store will be focusing more on improving its supply chain processes. “This, we will achieve through better value for money prices, values for our great fashion items which caters for all age groups and sizes. We have something for everyone within our store and we will be growing the Mr Price brand in Nigeria for many years to come,” he said.

    The Leisure Mall Centre Manager, Debola Majekodunmi, said: “We want to have the bigger brands and would like it to be a destination point for families. We are striving to achieve 100 per cent occupancy before the end of the first quarter.”

    She added: “The mall will create lots of awareness on all its activities and will be linking with Adeniran Ogunsanya Shopping Mall. “It will be the first of its kind to mall partnership. Shoppers will see more variety in our tenant mix as we are looking to have more brands.”

    Managing Director, UAC Restaurants Limited Derrick Van Houten, said the UAC Restaurants Management team had put together a strategy with their new partners, and details would be discussed with franchisees at their national conference coming up the first quarter of this year.

    He said: ”Key areas of our business for the year are operations, training, franchisee support and human capital development. We expect these areas will see massive improvements as these directly affect our quality of service delivery to our loyal customers.”

    Centre Manager Ikeja City Mall, Sander Norman, said: “At Ikeja City Mall, we are known for give-away events. We will be doing more of that. We will be offering shoppers the right prices, products, services, quality and choices. We have realised that the give-away events work for us.

    “Therefore, we will be sticking to that strategy this year.”

    He added: “There are people who do not shop elsewhere when they are in Lagos. Such people deserve life-time rewards. Therefore, we will be doing the give-away events more during festivities. We will also be coming up with innovations to better serve shoppers and remain at the top always.”

     

     

    Reasons for growth

     

    There have been barriers to trade in the past. However, since the lifting of some of the trade bans in 2011, trade has been booming.

    The economy is growing, and has led to a demand for quality housing and other related real estate infrastructure, including adequate shopping centres, which formed the basis for retail businesses to thrive. Retailers are critical economic agents who help to create demand because of their affinity with both the consumers and producers. Also, retail sales are an important economic indicator because consumer spending drives much of the economy.

    Furthermore, the 2003 ban on an array of imported goods that included clothes, shoes, selected foodstuff, by former President Olusegun Obasanjo, which was  intended to stimulate local production saw some Nigerians flying to Dubai and other regional commercial centres to do their shopping.

    But all that has dwindled in favour of Nigerian-based retail shops that have gained in diversity and in sophistication, and have also benefited from increasing public affluence in the industry.

    Shoprite, widely renowned as Africa’s leading retailer, has also made significant in roads to the country thereby, causing a massive growth.

    While growth in the retail could be attributed to rapid economic development and to an extent, favourable economic policies, experts advise that for the country to maintain or even surpass the rate of growth, solutions to the challenges the industry is facing must be provided.

    Increase in the  population of the working class citizens and the fact that they are  desirous of convenience and the increase in the purchasing power of citizens generally has also contributes to retail growth.

     

     

    Bringing investors into the country

     

    The potential buying power of Nigerians is recognised by the outside world. There is a lot of wealth here , the country has become a market place whose economy is growing exponentially and will remain an enticing prospect for potential investors for years to come.

    More investors see the possibility of several projects in other parts of the country soon.The market is open to local and foreign investors haven realised the potential inherent in it, they understand it offers excellent opportunities for to cash in on further rapid growth expected to occur in the next decade or two.

    Reports have it that the push for malls in Nigeria and in Africa generally is led by South Africa. According to International Monetary Fund (IMF), the average growth of African economies for last year was between five per cent and six per cent.

     

     

    Challenges in the industry

     

    While Nigeria has the population to support more malls, there are many barriers and one of the biggest is access to the right land in the right location.

    Other barriers, include the costs involved, often leading to rentals that many retailers cannot afford.

    In 2005, when The Palms opened, there were trade bans in place. In 2011, when some of those trade bans were lifted, international tenants came on board.

    Investors have also revealed that capital is a major challenge. The project cost is expensive often with limited local expertise. Informed estimates however, reveal that the cost  of completing a project in Nigeria is 2.5 times that of a similar one in South Africa.

    “As services are steadily experiencing growth in many economies, the retail service is a new frontier that needs to be better tapped for economic growth.” Said Mrs Gbadebo Erejuwa, who is the head of Retail leasing at Broll Nigeria, and  Property Manager of the first six malls  in the country.

    “We have favourable economic conditions here. A growing middle class with disposable income, so now people are actually able to afford some of the brands that they are used to outside the country, or even afford their basic necessities,” she said, adding that people always want to shop in a modern environment.”

    “Retail is coming up all over the place. I think a lot of people are interested in malls and shops. A place where you can go in and get everything is more inviting than going to a market where everything is open and it is crowded and crazy.”

    She added: ”The regime of shopping malls development in Nigeria is just a pointer and an icing on the cake to what the future holds for shopping and sight-seeing experience in the country. This is evident in all of the massive state-of-the-art shopping structures strategically positioned in the country.”

     

     

    Strategies for doing business in Nigeria

     

    Broll Nigeria advises that Woolworths leaving the country shouldn’t deter foreign retailers from profiting. More retailers are expected especially value ones, says Broll. So that they can continue to seek opportunities in the Nigerian market.

    “Yes, doing business in Nigeria is a challenge. But if you can offer middle class Nigerians the right price, product, service, quality and choice, the sky is the limit,” said Norman Sander of Broll Nigeria, who manages Ikeja City Mall .” Äccording to him, Woolworths left the country because of a mismatch with the Nigerian consumer and the climate.

    Operators have however advice that retailers should be prepared to change their models for the Nigerian consumer. If they do so, they stand to gain a firm foothold in a marketplace and a country where consumers are brand loyal and value good service, which is still in short supply.

    Stating that the Nigerian market is vastly different from that of South Africa and its neighbouring countries. Broll said, research is essential to understand this unique set of consumer needs and norms, before venturing into its exceptional territory.

    For this reason and many others, Broll is increasingly being called upon for its professional property services and insights to support retailers and property owners alike seeking to unlock the many retail opportunities in Nigeria.

    The market and spend needed for retail success is here and growing, therefore, retailers wanting to crack this market need to customise their models to meet the unique consumer needs and aspirations as the call of the mall is gaining the support of more Nigerian shoppers.

    Nigerians enjoy a first-world shopping environment that is pleasant, safe, cool, unrushed and offers a complete retail experience from shopping to relaxing at the food court. Mall dwell times are increasing and foot counts are growing.

    Broll suggest also that retailers planning to enter the Nigerian market, should start with using a cash-based model initially, rather than counting on sales from accounts or cards.

    There is more brand recognition for US and European retailers, more than there is for South African retailers, as such a marketing strategy that goes beyond advertising, store opening and launching a new brand is needed.

    For Woolworths, the markets’ buying patterns in Nigeria is different from what South African retailers are used to. When it has to do with fashion, there’s no seasonal shopping, because Nigeria is hot all year round.

    Sizes are also different, some 50 per cent of men’s shoe sales are sizes larger than size 10. And, while there’s a market for luxury goods, prices that are noticeably above those of Europe won’t be tolerated.

    Also with the mobile phone boom in Nigeria, and an increasingly tech-savvy population, digital and social media marketing are effective tools for retailers. Retailers are expected to offer guarantees and stick to their promises. It is said to be a tremendous way of growing customer loyalty.

    Despite all the opportunities, Broll cautions that retail in Nigeria is not for sissies. Mall rentals are high because of infrastructure and development costs which, in turn, demands high turnovers. Infrastructure is poor, red-tape is plenty and officials often interfere. The supply chain also takes far greater focus, with a host of potential obstacles to be navigated.

    Retailers will need excellent warehousing to overcome shipping issues in Nigeria, where goods don’t move as fast as they do in South Africa. Also, the choice of clearing agents is important and there is often a price attached to clearing goods.

    Yet, with all these challenges, Nigeria’s retail opportunities keep on growing on the back of mass urbanization, the emerging middleclass, rising retail awareness and an increasing consumer culture.

    “For retailers who are prepared to develop a country-specific model and invest in research to support a supply chain, which are; the right stock, the best price and service, they should be assured that there’s a bright future in Nigeria,”Broll said.

  • Why Nigeria is haven for investors

    David Botha is the general manager, (West Africa) Mr Price, a South African clothing retailer in Nigeria. He is also the anchor tenant at Leisure Mall, Surulere, Lagos. He spoke with TONIA ‘DIYAN on the state of the clothing industry and how his firm has helped to reduce unemployment.

    Nigeria has become an attractive destination for foreign investors why?

    I think it’s a combination of many aspects; the many positive changes the government has facilitated and made possible; the many success stories of phenomenal business men and women; the improvement of the economic growth rate as well as the world waking up to the tremendous potential Nigeria is able to offer as an investment destination.

    How would you rate the clothing industry?

    We do not have access to figures on the true size and rate of growth of the clothing industry; therefore, I am unable to comment.

    Your firm has contributed positively to the economy. Would you say you have put the retail market here on the platform, compared to other African countries?

    We are very excited and privileged to grow the Mr Price business in Nigeria. People are very hungry for quality and innovation and we are bringing world-class stores with all standard international guarantees and returns policies. We put our customers first, by providing the latest international fashion, at great prices and in trendy and stylish stores.

    Given South Africa’s dismal growth prospects, investors are keen to see evidence of retailers expanding into fast-rising sub-Saharan economies such as Nigeria. How are you part of this?

    We began our business in Nigeria with one test Store and opened another one in the same year. Last year, we doubled the number of stores. We have four stores in Nigeria and will be opening new ones this year, as well as launching our online offering very soon. Our Mr Price website will enable customers to view our fashion online, whenever it suits them. They will be able to purchase the items via the website and pay with their cards online, or upon delivery.

    How do you intend to bring more resources and grow your staff in Nigeria?

    As the Mr Price business grows, we will invest more capital in the country, as well as continue to employ more people. We are committed to our business in Nigeria being run by our Nigerian team.

    We regularly take our people for training in other countries and are excited by the fantastic potential of our Nigerian team members. We promote from within our business and we only have one expatriate, who will be replaced by a Nigerian, by the end of the year.

    What makes you unique?

    I cannot comment on what other retailers are doing. However, the Mr Price Group is dedicated to learning how we can improve on the way we do things to make our current and future customers’ shopping experience, as enjoyable and rewarding as possible. We are not simply copying what we do in other countries, we are customising our business to suit the needs of our customers in the various regions in which we have stores.

    Before now, what did you think of the clothing industry in Nigeria?

    We thought it was very restrained and was dominated by cheap imports with not much formal shopping. Since we began operating here, we have been very impressed by the retail market, which will grow in importance as time goes on and will contribute immensely to the growth of the economy. It will also be a great contributor to increased employment opportunities across the country.

    Where do you see the retail industry in a few years?

    We think that in a few years we are going to see a very different retail landscape, in terms of different store types and there will be many more new shopping malls built, throughout Nigeria. Mr Price will be a part of this growth. There will be many opportunities for local entrepreneurs to develop new store brands and different types of entertainment offerings, restaurants and fast food businesses. There will likely be new foreign stores, which will enter Nigeria and this will result in numerous different retail-related job opportunities, as well as prospects to supply such stores with all the various services they will require.

    The malls will provide a great place for people to browse and do their shopping, as well as meeting their friends and families, also enjoying themselves during their free time.

    What innovations are you coming up with?

    The innovation we are primarily focusing on is to get our business running as smoothly as possible, so that we have new fashion items reaching our stores every week, thus ensuring that our customers always have the freshest fashion available, when they visit our stores.

    We will also be launching our Mr Price E-commerce site early this year, so our customers in all corners of Nigeria will eventually be able to go online and order their fashion items, which will be delivered to their doorstep.

    Where is Mr Price?

    We started off with one Store in Ikeja City Mall in Lagos. We then opened a store in Surulere, within Lagos. In our second year of doing business in Nigeria, we opened a further store in the Heritage Mall in Ibadan, as well as in the Grand Towers Mall in Abuja. So, there are four Mr Price stores in Nigeria.

    We will open additional new stores this year as well as begin trading online. As a result of this growth, we are able to offer an ever-improving shopping experience with the most fashionable items at the best possible prices.

    That means you are even helping Nigerians in employment?

    Absolutely, the success of Mr Price is based on the passionate and dedicated efforts of all our staff in Nigeria and elsewhere. We are focused on the development of our staff and continue to invest in their training and development. As more stores open, we will continue to hire and develop staff. We make use of an organic growth model, whereby we largely promote staff members from within the Mr Price business. There are numerous staff members who hold senior positions, who began their working career with us as casual employees.

  • Reckitt Benckiser launches Dettol Re-energize

    RECKITT Benckiser, a market leader in the health, hygiene and home care products segment, has launched Dettol re-energize in Lagos.

    Its Managing Director, Mr. Rahul Murgai, said innovation has helped the company to build the Dettol franchise across markets, including Nigeria.

    He described the extension of the soap category as another “great innovation.”

    Murgai said the new soap is unique because of its citrus fragrance, long-lasting freshness and protection.

    “Innovation underlines the acceptability of our brands, including Dettol, which is now a household name in the health and hygiene segment, not only in Nigeria, but all over the world,’’ he said.

    The firm’s Marketing Manager (Personal Care), Mr. Ahmed Shah, said innovation, consumer engagement and research were three critical factors that could not be compromised in the market.

    He said Dettol Re-energize, which was another product of innovation and extensive research into consumers’ want and preference.

    “Our research has shown that consumers want a soap that has pleasant fragrance and ability to refresh them. This is why we have introduced a Dettol Soap variant with a pleasant long-lasting orange fragrance that refreshes and also gives them protection against germs,” he said.

    The Nigerian Medical Association (NMA) has also given its nod to Dettol Re-energize. The Chairman, Lagos State chapter, Dr. Francis Faduyile, while unveiling the new product, said Dettol was a heritage brand which the group was proud to associate with.

    Dettol has been in Nigeria in the past 50 years.

  • BuyOlogy.com fetes customers

    The atmosphere was convivial. Shoppers related with the buyology.com staff. There was a talk session and a question and answer segment where shoppers expressed themselves in dance, music and comedy.

    The event was the BuyOfiesta 2013 held at Freedom Park in Lagos. It was an afternoon of music, dance and cocktails, organised by BuyOlogy.com, an online store.

    It was aimed at giving back to loyal customers and welcoming new ones. Thirteen people went home with N5000 vouchers each to shop on buyology.com.ng free.

    The Buyofaceoff finale (Buyology’s online modelling contest) held during the event produced Boma Amieyeofori as the winner and brand ambassador. She took home the grand prize of $1000 and a modelling contract with Sulcata’s Royal Court models. The first runner-up got $500, while the second runner-up left with a techno tablet.

    The fiesta also featured performance from a many acts, including Olamide, Ajebutter, beatbuxx entertainment artistes, award winning singer Byno, Zephyr, Ace rappers Mvp and T’Sleek. Cintron energy drinks supported the online store, as well as The Beat 99.9fm.

    The event, which was hosted by multiple awards-winning MC Larry Foreman, featured an explosive dance crew battle. The winner of the dance battle Charachoros went home with a cash prize of N50, 000.

    Also, some lucky shoppers won Buyology gift vouchers and guests were treated to unique and delicious cintron alcoholic and non-alcoholic cocktails mixed by Master Mixologist.While Dj Planter kept the audiences energy levels up.

    The Executive Buyologist, Yeye Durojaye Arogundade, said: “We are basically the first online store in Nigeria to promote buyer education. We are the definitive guide to online shopping. We’re dedicated to also provide customers with a wide range of useful information to help them get the best products that suit their needs. It’s not just one size fits all with us, we understand the science of buying and work to ensure you get the right deals, on the products that meet your needs.”

    She also said the store brings people and products together and makes online shopping easier and more inspiring, adding that it is a rendezvous for shoppers, designers, stylists, experts, curators and retailers.

  • Design label launches African print children’s wear

    Design label launches African print children’s wear

    Award-winning children’s wear brand, Isossy Children, continues to be the forerunner in global clothing for kids with the launch of Isossy Babies this Spring Summer and true to form it is a deliciously “bubblelicious” collection.

    The collection is made for fashionable “Bambino Babies” and it includes the Fifi romper in African prints and contrasting cotton satin with shirred detailing and some gorgeous 2-piece shorty sets like called “Outsie Cutsie” and “Mianna”.
    The collection reflects the designs featured in the Isossy Girls collection whilst using a softer palette of contrasted honeyed tones.

    Tones of peaches and cream, reminiscent of our favourite ice cream flavours make these clothes look good enough to eat.

    Features like mock epaulettes in contrasting soft colours and mock welt
    stitching on panelled dresses showcase the attention to detail that Isossy
    Children prides itself on.
    The boy’s range has been expanded to include suits, shirts and trousers for children 3 – 24 month.

    The brand is honored to stand by its “Made in England” manufacturing ethos, combined with influences from African, Asian and Western cultures.
    The feel of the sumptuous fabrics from these cultures is evident within this vivacious collection, making it a global collection for Isossy
    Babies.

  • Gift vouchers excite shoppers

    More shopping malls are using gift vouchers to woo customers and boost sales, writes TONIA ‘DIYAN.

    Gift vouchers are becoming popular these days. It was not so in the past.

    There is a reason for the development. According to the Centre Manager, Ikeja City Mall, Mr Sander Norman, ‘’gift vouchers are a top shopper attraction, thus in December and January, sales are driven by both individual shoppers and companies via gift vouchers.”

    He said his firm gave out vouchers virtually every month last year to celebrate one event or the other.

    Shopping places in Lagos do not only have their popularity soaring for slashing prices and giving out discounts, they are also known for giving out gift vouchers. Centre Managers at the various malls within the metropolis have noted that the giving away of gift vouchers has made sales climb strongly, especially during festivities.

    Virtually all major stores issue gift vouchers during the Yuletide. But, there is always a caveat: they must be used in the store that offered them.

    While some gift vouchers allow the recipient to do his shopping, and get what he needs, others do not; rather they specify what a one should buy, where to buy and the time to use the voucher.

    Many businesses, including beauty shops, electronics shops, grocery, spas, etc issue gift vouchers.

    Because some people prefer gift vouchers, they always appreciate any denomination they get. This is usually presented in form of a big cheque, which states the amount or the particular gift presented to the reciever.

    Though each store has its policy, generally a gift voucher cannot be exchanged for cash except it is specified by the retailer.

    Also, the value of a returned item that was purchased with a voucher is added to it and spent within the specified time.

    The Centre Manager, Leisure Mall, Surulere, Lagos Mrs Debola Majekodunmi, said vouchers have become popular since the entry of shopping malls into the country.

    “Before now, many gift vouchers were spent on minor household necessities at grocery stores only. Today, they are exchanged for luxuries such as cars, an all- expense paid trip abroad, expensive home gadgets and even cash prizes.”

    Experts have explained why retailers prefer to give out gift vouchers. They said they are helping to shape promotions to ensure customers’ loyalty.

  • Reckitt Benckiser launches Dettol Re-energise

    RECKITT Benckiser, a market leader in the health, hygiene and home care products segment, has launched Dettol re-energise in Lagos.

    Its Managing Director, Mr. Rahul Murgai, said innovation has helped the company to build the Dettol franchise across markets, including Nigeria.

    He described the extension of the soap category as another “great innovation.”

    Murgai said the new soap is unique because of its citrus fragrance, long-lasting freshness and protection.

    “Innovation underlines the acceptability of our brands, including Dettol, which is now a household name in the health and hygiene segment, not only in Nigeria, but all over the world,’’ he said.

    The firm’s Marketing Manager (Personal Care), Mr. Ahmed Shah, said innovation, consumer engagement and research were three critical factors that could not be compromised in the market.

    He said Dettol Re-energise, which was another product of innovation and extensive research into consumers’ want and preference.

    “Our research has shown that consumers want a soap that has pleasant fragrance and ability to refresh them. This is why we have introduced a Dettol Soap variant with a pleasant long-lasting orange fragrance that refreshes and also gives them protection against germs,” he said.

    The Nigerian Medical Association (NMA) has also given its nod to Dettol Re-energise. The Chairman, Lagos State chapter, Dr. Francis Faduyile, while unveiling the new product, said Dettol was a heritage brand which the group was proud to associate with.

    Dettol has been in Nigeria in the past 50 years.

    According to a report, the brand has achieved 216 per cent growth in market share.

    Besides gaining market leadership, it has succeeded in building the biggest consumer direct contact programme in Nigeria. For example, through the Dettol New Mum initiative, the brand has reached 5.8 million mothers in 44 cities, which is close to six million mothers in five years. It has taught them good hygiene practices and educated them on what good hygiene does for them, their babies and their families.

    Furthermore, Dettol brand has also reached 3.5 million school children in three years by visiting 7,000 schools across Nigeria courtesy of its school hand hygiene programme, Good Health is in Our Hands.

  • BuyOlogy.com fetes customers

    The atmosphere was convival. Shoppers related with the buyology.com staff. There was a talk session and a question and answer segment where shoppers expressed themselves in dance, music and comedy.

    The event was the BuyOfiesta 2013 held at Freedom Park on Lagos Island. It was an afternoon of music, dance and cocktails, organised by BuyOlogy.com, an online store.

    It was aimed at giving back to loyal customers and welcoming new ones. Thirteen people went home with N5000 vouchers each to shop on buyology.com.ng free.

    The Buyofaceoff finale (Buyology’s online modelling contest) held during the event produced Boma Amieyeofori as the winner and brand ambassador. She carted away the grand prize of $1000 and a modelling contract with Sulcata’s Royal Court models. The first runner-up got $500, while the second runner-up left with a techno tablet.

    The fiesta also featured performance from a many acts, including Olamide, Ajebutter, beatbuxx entertainment artistes, award winning singer Byno, Zephyr, Ace rappers Mvp and T’Sleek. Cintron energy drinks supported the online store, as well as The Beat 99.9fm.

    The event, which was hosted by multiple awards winning MC Larry Foreman, featured an explosive dance crew battle. The winner of the dance battle Charachoros went home with a cash prize of N50, 000.

    Also, some lucky shoppers won Buyology gift vouchers and guests were treated to unique and delicious cintron alcoholic and non- alcoholic cocktails mixed by Master Mixologist. While Dj Planter kept the audiences energy levels up.

    The Executive Buyologist, Yeye Durojaye Arogundade, said: “We are basically the first online store in Nigeria to promote buyer education. We are the definitive guide to online shopping. We’re dedicated to also provide customers with a wide range of useful information to help them get the best products that suit their needs. It’s not just one size fits all with us, we understand the science of buying and work to ensure you get the right deals, on the products that meet your needs.”

    She also said the store brings people and products together and makes online shopping easier and more inspiring, adding that it is a hub for shoppers, designers, stylists, experts, curators and retailers.

  • ‘Doing business in Nigeria is profitable’

    A South African, Norman Sander, is Manager, Ikeja City Mall, Lagos. In this interview with TONIA ‘DIYAN, he urges his countrymen and women to remain in Nigeria, speaks on why Woolworth left and why Shoprite is thriving, among others.

    What major challenge is the South African (SA) retailer facing in Nigeria?

    There is little brand recognition for South African retailers in Nigeria. Consumers here are more familiar with United States and European retailers. This requires a marketing strategy that goes beyond advertising store opening and extends to launching a new brand.

     Do you think other South African retailers would want to follow Woolworth out of the Nigeria?

    Woolworths canned its three-store pilot project in Nigeria, but cited a mismatch with the Nigerian consumer and climate. It, therefore, decided to quit doing business in the country.

    As a result, Broll Nigeria has assured other South African retailers that they will not be deterred from profiting in the country for any reason whatsoever. SA retailers are advised to  remain here and do their businesses. As a matter of fact, Broll expects that more South African retailers, especially value retailers, would continue to seek opportunities in the Nigerian market.

    Do you consider doing business here a challenge?

    Yes, doing business in Nigeria is a challenge. There is the issue of mismatch between SA retailers and the Nigerian consumers just like Woolworth has sited. There is also the issue of climate, among other challenges, but I believe if we can offer the middle class Nigerians the right price, product, service, quality and choice, the sky is the limit for us here.

    Which SA retailer offers all these to the Nigerian market?

    I can say categorically that South African retailer Shoprite is notching up exceptionally strong trading at Ikeja City Mall and other malls where it is situated in and outside Nigeria.

     How can other SA retailer in Nigeria meet this standard?

    They should be prepared to change their models for the Nigerian consumer. If they do so, they stand to gain a firm foothold in a marketplace and a country where consumers are brand loyal and they value good services, which is in short supply presently.

    What should the SA retailer consider before embarking on a business trip to Nigeria?

    The SA retailer should realise that the Nigerian market is vastly different from that of South Africa and its neighbouring countries. And as such, carry out some researches to understand this unique set of consumer needs and norms, before venturing into this exceptional territory.

    For retailers planning to enter the Nigerian market, I suggest that they should start with using a cash-based model initially, rather than counting on sales from accounts or cards.

     How does Broll intend to sustain the Nigerian retail market?

    Broll is increasingly being called upon for its professional property services and insights to support retailers and property owners. The company is seeking to unlock the many retail opportunities in Nigeria gradually. The market and spend needed for retail success is here and growing. Retailers wanting to crack this market need to customise their models to meet the unique consumer needs and aspirations.

    Let me say that, the call for more shopping malls is gaining the support of more and more Nigerian shoppers.

     What has changed since SA retailers started coming into Nigeria?

    Mall dwell times are increasing and foot counts are growing. Nigerians now enjoy a first-world shopping environment that is pleasant, safe, cool, unrushed and which offers a complete retail experience from shopping to relaxing at the food court.

     How is the market buying pattern of Nigerians different from South Africans?

    For fashion, there’s no seasonal shopping – Nigeria is hot, year round. Sizes are also important and different to Europe and South Africa. Some 50 per cent of men’s shoe sales are sizes larger than size 10. And, while there’s a market for luxury goods, prices that are noticeably above those of Europe won’t be tolerated by Nigerians.

     What is your secret for keeping customers at the Ikeja City Mall? There is always a large crowd here.

    Offering guarantees and sticking to them is a tremendous way of growing customer loyalty in a business. We found out that give-away events enjoy great participation at Ikeja City Mall. So, we do lots of give-away events in form of promotional offers; we give out gift vouchers, organise shows and have shoppers win prices. We come up with lots of innovations to satisfy and keep our customers. At first, journalists were genuinely surprised to find out that our offers are fair and above board.

    Who should venture into retail business in Nigeria and what are the challenges in the industry?

    Despite all the opportunity, retail in Nigeria is not for sissies. Mall rentals are high because of infrastructure and development costs which, in turn, demands high turnovers. Infrastructure is poor, red-tape is plenty and officials often interfere. The supply chain also takes far greater focus, with a host of potential obstacles to be navigated.

    Retailers will need excellent warehousing to overcome shipping issues in Nigeria, where goods don’t move as fast as they do in South Africa.

    The choice of clearing agents is important and there is often a price attached to clearing goods.

    With these challenges, Nigeria’s retail opportunities keep on growing on the back of mass urbanisation, the emerging middle class, rising retail awareness and an increasing consumer culture.

    Is social media an advantage to the retailer?

    With the mobile phone boom in Nigeria, and an increasingly tech-savvy population, digital and social media marketing are effective tools for retailers always.

    What are your final words for retailers?

    For retailers who are prepared to develop a country-specific model and invest in research to support a supply chain. They should get the right stock, provide the best price and render the best services, because there’s a bright future in Nigeria.

    Also, I notice a massive gap in the market for homeware retailers, and I advise them to come and do business in Nigeria.

     

  • Ikeja City Mall hosts customers

    It was a fiesta of music and dance as the management of the Ikeja City Mall (ICM) hosted two events at Christmas.

    Its ‘Adopt an Orphanage’ programme and Christmas Carol were attended by its customers, among others.

    The ICM Leasing Administrator, Chinwe Ochei, announced a bursary for 30 pupils from three orphanage homes in Lagos.

    The beneficiaries are Bales of Mercy, Compassionate Orphanage and God’s Might.

    She said the firm was committed to giving back to the community, pledging that the management would continue to give Nigerians their best.

    The children from the orphanages were treated to lunch, visited Santa’s Grotto  and attended movie at the Cinema at the mall.

    Same evening, a carol was held on the escalator by the Symphony of Voices choir.

    This event was witnessed by lots of shoppers, who applauded the choristers while sang along. Many took photos and video clips of the event.

    The icing on the cake for the young customers of the mall was the performances of two superstar hip hop artistes, Skales and May D. ICM customers were thrilled by the artistes, comedians as well as dance competitions.

    A guest, Seun Awe, said he was pleased that the firm gave their customers such a fun time.

    “I had fun and the quality of the artistes that performed tonight shows that the management of the Ikeja City Mall understands its customers very well. It was well done,” he said.