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  • Consumer commission moves against arbitrary price fixing

    Consumer commission moves against arbitrary price fixing

    • FCCPC CEO Tunji Bello: enforcement begins Sept

    The Federal Competition and Consumer Protection Commission (FCCPC) moved against profiteers  ‘engaging in the growing trend of unreasonable pricing of consumer goods and services across the country’, Executive Vice Chairman/Chief Executive Officer Tunji Bello explained yesterday.

    The commission also came hard on the unwholesome practice of market associations engaged in price fixing.

    Bello stated that as a responsive organisation, findings from discreet market surveys extensively carried out by the FCCPC across the country in the past few weeks were quite disturbing, hence the urgency of the need that “we both work together to check this unwholesome development.”

    He spoke at a one day stakeholders meeting on exploitative pricing in Abuja.

     The CEO  said as a statutory body whose mandate it is to cater for consumer rights, “we cannot allow this unhealthy trend to continue.”

     He said the gathering was to underscore the gravity of the situation.

    On  the Commission’s findings, Bello said for instance, that the FCCPC’s check just two days ago at a popular supermarket chain in Texas, United States, revealed that a fruit blender called Ninja was displayed on the shelf at $89 (roughly N140, 000). The same product was displayed at a popular supermarket at Victoria Island in Lagos for N944, 999 on the same day and at the same hour. This, he said, represents more than 500 per cent inflation of the cost.

    The CEO said: “Interestingly, when our undercover officer visited the same supermarket two weeks earlier, this same blender was on display with the price tag of N750, 000.

    “The question then arises: what is the basis for this arbitrary hike in the price of the blender compared to the United States? What business principle can justify this level of profiteering?”, Bello asked.

    The FCCPC boss cited a few more of the unpleasant discoveries the Commission made during its investigation, noting, for instance, that in some notable supermarkets surveyed discreetly in Abuja, Kano, Port Harcout and Lagos, “we also found out that prices were arbitrarily jacked up from time to time without any justifiable reason.”

    Bello said: “In one particular big supermarket in Abuja, for instance, consumers were being charged N2, 600 for an imported toilet soap at the payment point as the price tag was not displayed as earlier mandated by FCCPC.

    “The same toilet soap was displayed for sale at N1, 950 at a popular supermarket in Lekki, Lagos, the same day. That already constitutes a double offense.

    He also said from the Commission’s findings, the penchant to hike prices arbitrarily is also common among sellers of food items and transport operators.

     “When the foodstuff sellers were engaged, their common response was that the cost of transportation had increased. But how justifiable is it for the tomato seller to double the price of a basket of tomatoes simply because they paid higher transport fare?

    “Whereas the price of the same basket of tomatoes was far cheaper at another market within the same jurisdiction surveyed by our field officers. Now, the question: did the seller who sold at a lower price not also pay transport fare?”

    Bello gave more insight into how price fixing happens in a typical foodstuff market environment.

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    He said: “A trailer-load of yam tubers arrives Wuse Market in Abuja from, say, Benue State. Rather than allow free trade, the market cartel then insert themselves between the produce farmers and the retailers.

    “They buy in large quantities from the producer at cheap rate and, in turn, sell to market retailers at much higher price. And the retailers, in turn, sell to consumers at cut-throat rate.

     “Such price fixing is no longer acceptable and FCCPC will henceforth crack down on those involved in this profiteering scheme.”

    In the case of public transportation, Bello,  asked how justifiable is it for the bus driver to double their fare simply because they paid slightly higher for petrol, noting that this will, of course, only result in a spiral of arbitrary hike in the prices of other services.

    As he said, “The landlord who pays more for transport will probably seek to double their own rent as a survival strategy. The school-owner asked to pay higher rent will also likely increase the fees they charge pupils. That way, we all end up being losers with the cost of living becoming unbearable for everyone.

    The FCCPC chief stated that in view of the current situation in Nigeria, “Price gouging and price fixing are not only unethical, but patently illegal under the FCCPA. As such, the FCCPC has the will and the capacity to invoke the full weight of the law against those found culpable of exploiting consumers.”

    He, however, clarified that the Commission’s approach is not punitive or adversarial.

    “To start with, we intentionally resolved to withhold the names of the aforementioned errant supermarket, believing that after this exposition, they will turn a new leaf and adjust their prices downward to a reasonable level,” Bello said.

    He explained that this approach was borne out of the FCCPC’s conviction that dialogue and collaboration are equally important tools in fostering a fair marketplace.

    “We believe that through constructive engagement, we can establish a framework for reasonable pricing that benefits all stakeholders, particularly the consumers who are the backbone of our economy,” Bello said.

    According to him, this FCCPC’s new initiative aligns with the renewed hope agenda of President Bola Tinubu, which prioritises the welfare of the  people in all economic activities.

    “We are determined to uphold this agenda by ensuring that market practices do not exacerbate the economic challenges faced by our citizens at this time,” Bello emphasized.

    He added that as a sensitive leader who cares for the welfare of the citizens, President Tinubu has  graciously taken some pragmatic steps to ease food insecurity in the country, including the provision of fertiliser to farmers as well as removal of tariffs on the importation of selected staple food items.

    Bello said: “It is only just and reasonable that distributors and traders pass down the gains to Nigerian consumers by reducing prices in the coming weeks.

    “As we move forward, I, therefore, call on all stakeholders to embrace the spirit of patriotism and cooperation. Let us talk to ourselves. The law empowers the Commission to impose heavy fine for breaches and also prosecute offenders which could lead to jail terms.

    “For instance, Section 107 (4a.) of FCCPA clearly states that, “Where the undertaking is a natural person, is liable on conviction to imprisonment for a term not exceeding three years or to payment of a fine not exceeding N10,000,000.00 (N10m) or to both the fine and imprisonment.

    “Section 107 (4b.) also states that, “Where the undertaking is a body corporate, is liable on conviction to a fine not exceeding 10% of its turnover in the preceding business year.”

  • Recalibrating consumer protection

    Recalibrating consumer protection

    The presidential appointment and subsequent confirmation by the senate of Tunji Bello, as the Executive Vice Chairman, of the Federal Competition and Consumer Protection Commission (FCCPC), should reinvigorate the commission to achieve on its core mandate, which is to ‘promote fair business practices and safeguard the interest of consumers’. There is no doubt that Nigerians are afflicted by severe economic hardship, especially, the runaway food-inflation, which has pushed many into the streets, as protesters.

    Sadly, the protest turned out bloody in a few states, and lives and properties were lost. Last week, this column had asked for protest without violence, but noted that it is a near impossibility. Some of those who promoted the protest are now regretting the outcome even though it was predictable. With the protest tempering out after the address by President Bola Ahmed Tinubu (PBAT), this column urges the attention of the federal, state and local governments, to refocus on making life easier for the ordinary Nigerians.

    The FCCPC has a role to play, in making life better for Nigerians, if it pursues vigorous consumer protecting policies. While taming inflation is principally the domain of financial and economic management ministries and agencies, fighting unbridled anti-competition practices, importation and distribution of fake products, and artificial price manipulations, which also cause inflation, fall within the domain of the FCCPC. So, in the new Nigeria that PBAT promised Nigerians during his campaign, and reiterated to the disillusioned protesters, the FCCPC has a significant role to play.

    The Federal Competition and Consumer Protection Act 2018 grants the Commission enormous and far reaching mandate, which should impact on the nation’s economy, if vigorously pursued. The mandate to combat anti-competitive practices is geared to fighting monopolists, price fixing and similar obnoxious practices that incrementally destabilize the economy. Such mandate cuts across all sectors of the economy, as the Commission is the ombudsman for the protection of public interest. In the entertainment industry for instance, there is an anti-competitive practice where a provider has an exclusive contract that makes it a monopolist.

    There are similar challenges in order arears, and the FCCPC has the mandate to protect the interests of competitors and consumers. Another expansive oversight is the authority to evaluate mergers and acquisitions, to forestall those that could significantly diminish competition in any industry. The FCCPC has authority to approve, reject, or set conditions for such transactions. The Commission is enjoined to review and analyse mergers and business combination to ensure that any potential merger or acquisition do not distort or impede efficiency in any industry.

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    The market-driven economy which the PBAT administration pushes for needs a vigorous and vibrant Commission to fight anti-competitive practices. And in the president’s speech on Sunday, he enumerated economic actives geared to promote competition. The president said that 600,000 nano-businesses have benefited from the nano-grants and another 400,000 more are expected to benefit. Also, that 75,000 micro and small businesses would receive N1 million single-digit interest loans, while large manufacturers would get N1 billion single-digit interest loans, to boast manufacturing output and stimulate growth.

    Clearly, these are pro-competition policies, and if properly implemented would engender economic growth, and create employment for the teeming youths across the country, feeding the protests. Government officials, calling on the youths to stop the protests have an eye on these policies, which could return the country to enhanced economic growth. The 2024, first quarter 2.98 percent economic growth, though higher than the 2.31 percent of the first quarter of 2023, needs to accelerate to higher levels, to be impactful for a nation with 2.39 percent growth in population, in 2023.

    The 2024, growth forecast for Nigeria, by the International Monetary Fund, in May was 3.3 percent, while Guyana in South America, the world’s fastest growing economy is projected to expand by 33.9 percent. Of note, while Nigeria ranks the sixth most populated country in the world, and its economy is projected to grow at 3.3 percent, the first, second and fourth most populated countries, which are India, China and Indonesia, will grow at 6.8 percent, 5 percent and 5.2 percent respectively. Meanwhile, Nigeria is projected to become the third most populous country in the world by 2050, behind India and China.

    So, the projected economic growth that can drag Nigeria out of poverty is seven percent, which is more than double of the current 3.3 percent. In effect, to steer Nigeria away from perpetual protests, the growth dynamics has to change. As this column has always maintained, those at the helm of affairs have to lead this change, if they are interested in the survival of the country. The greatest challenge of course, remains corruption in public spaces, and unless that cankerworm is wrestled to the ground, the country would not make significant progress.

    Even in the face of severe challenges occasioned by the current protests, the scarecrow of corruption scares a bleeding nation. In his address, PBAT said that N570 billion has been released to the 36 states to expand livelihood support to their citizens. This column wishes an audit, to know the whereabouts of the monies. Of course, if the monies had cascaded down to those in most need, the ongoing crisis may have been averted. If our past experience is a lead, substantial part of the monies may have gone to private coffers.

    Another disease afflicting the nation is the misapplication of scarce resources; in most parts fuelled by corruption and egoism. Many state governors engage in unnecessary projects, geared to massage personal egos, and give abundant room for corruption. By engaging in multi-billion naira projects, the chances of stealing exponentially are higher. That explains the many airports and flyovers, in states with insignificant economic activities. Of course, there will be insignificant leg room for stealing, where they to concentrate on social infrastructure, including health, education and poverty alleviation.

    Perhaps, the hardship protest will make the states reset their priorities. This is particularly important in the northern part of the country, with massive out-of-school children, which was weaponized by friends and enemies alike, to cause mayhem. As should be obvious to the northern political leaders, political power, unless used to change important social dynamics, does not matter when poverty breaks the banks. Despite the recent eight years of Muhammadu Buhari’s presidency, by some accounts, there are 15.23 million out-of-school children in northern Nigeria.

    The PBAT’s regime remains a great opportunity to reset the country, for the benefit of the majority of Nigerians, who are mere consumers of political, social, religious and economic activities. To encourage Nigerians to stay away from the streets, the many laudable economic plans of the Tinubu administration must hit the streets. The FCCPC exercising its surveillance and investigation mandate, should monitor how the economic policies stimulate competition, which is vital to national growth.

  • Consumer trends to watch in 2024

    Consumer trends to watch in 2024

    AI-Powered transformation, economic uncertainty, changing consumer behavior – there’s a lot to unpack as organisations plan for 2024. Our Global Consumer Trends Report sheds light on the top consumer trends that will shape the year ahead and provides expert advice on how to navigate them.

    What’s the current state of consumer experience?

    As we look back on 2023, the consumer landscape has changed dramatically around the world. A shift that requires businesses to reset for the year ahead and turn their attention to what really matters to consumers right now.

    Consumer behaviour

    The past 12 months have made many consumers more conscious than ever about who and where they buy from, and businesses are feeling the heat – turning their attention to retaining existing customers as acquiring customers gets harder. This puts businesses in a tricky spot as they balance the need to provide a far better customer experience to meet rising consumer demands, with doing so as efficiently as possible to successfully battle tough economic headwinds. With experience and operational efficiency both equally important, getting the balance right is key.

    Brand loyalty

    To succeed, businesses need to know their consumers deeper than ever, and make smart decisions that build deep, lasting connections that drive brand loyalty.

    Consumer spending

    And those that get it right will be rewarded. Because customer loyalty isn’t dead after all. In fact, despite many predictions to the contrary, we found consumer confidence and consumer spending to be improving. With likelihood to purchase up from 2023.

    Consumers will spend if you get the experience right.

    What are the 2024 consumer trends?

    Based on responses from more than 28,000 consumers surveyed across 26 countries, our 4th annual Consumer Trends Report reaffirmed just how valuable personalized connections really are.

    But here’s the catch – understanding how to make those connections is getting harder. Customer feedback preferences are evolving, consumer behaviour is changing, and expectations are at an all-time high.

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    So what can you do about it? We’ve outlined the top 4 trends and priority areas that every business, in every industry around the world needs to know, including the opportunities and risks ahead and expert advice on how to navigate the findings.

    Get the full 2024 consumer trends report

    What’s included?:

    The four consumer trends shaping 2024

    What it means for businesses, including the opportunities and the risks ahead

    Expert advice on how to navigate the findings

    Trend 1 – Human connection is the foundation of a winning AI strategy

    As AI set off a flurry of excitement this year, every business became urgently aware of the need to understand what it means for them and how they would integrate it into their strategy. It’s undoubtedly one of the leading trends of the year.

    We wanted to help break through the noise and provide businesses with a clear understanding of how consumers feel about AI, what they’re concerned about and where they think businesses can use it to improve the customer experience.

    We found that consumers are on the fence about AI, with 48% of consumers comfortable interacting with an organization’s AI. What’s driving that uncertainty is clear. A fear that it will replace humans.

    Consumers’ top 3 concerns about AI:

    So when thinking through the AI strategy for your business, be deliberate in where and how you implement it. Don’t just roll out another chatbot, because while it might make operations more efficient, it’s not always what consumers want and there are other ways to maximize the impact of this technology. Instead, think about how it can empower your frontline teams to improve the entire customer experience, across your digital and human channels.

    AI offers tremendous opportunities to organizations that implement it thoughtfully,  but if customers detect a pure cost-saving attempt they will leave in droves.  So AI interactions must build confidence — trust from customers comes with consistency, accuracy and convenience.

    – Leonie Brown, Qualtrics

     Get the full reveal, and so much more in our 2024 global consumer trends report, including insight from industry experts and world-renowned brands.

    Trend 2 – Great service beats low prices in the battle for brand loyalty

    Take note, you’ll need to go beyond low prices to increase consumer spending in 2024 because there’s more important things to consumers than saving money. That’s right, low prices are not the primary differentiator for consumers when making purchase decisions.

    Our research found organisations with a great reputation for customer experience are best positioned to win share of wallet, even in a down economy. Product quality and customer service ranked 1st and 2nd, respectively, while low prices ranked 3rd.

    If you want great customer experience, you need to start by focusing on the needs of frontline employees. Customer service interactions are where people have strong emotions, so they tend to be experiences they remember for a long time.

    – Bruce Temkin, Qualtrics Head Of XM Institute

    Hear how Delta is doubling down on customer experience

    Trend 3 –  Digital support is the weakest link in your customer journey

    As customer journeys get more complex and consumer interest, shopping behaviors and expectations change, it can be really hard to understand what’s working for you and your customers, and what’s not.

    Our report uncovered the hotspots across the customer journey from sourcing information, to purchase to receiving support. We compared how satisfaction varies by channel (digital and human) as you go through the journey and the results were astounding.

    The investment in incredible digital experiences from digital native brands has raised the expectation for all brands.

    – Max Venker, Qualtrics Product Marketing Manager

    What became clear is that digital support is the weak link in the customer journey, but it also poses the biggest opportunity if you get that experience right. That’s because while digital support had 64% satisfaction (the lowest across every channel and journey type), it also has the highest upside, with consumers 2.7x more likely to return after a positive digital support experience.

    Why does this matter? Because for the past few years, digital leaders have been doubling down on acquisition, focusing on getting customers through the door, but less concerned about what happens when they get there. And that support experience is suffering as a result.

    Our research shows that digital leaders have an opportunity to increase their value to the organization, becoming an engine for retention and loyalty by focusing on the pre- and post-purchase digital journey.

    Trend 4 – Consumers don’t give feedback like they used to… so companies must listen in new ways

    How and where consumers provide feedback is changing, which risks putting the legacy listening systems that so many companies rely on in the dark.

    That’s because the most prevalent shift in behavior is the continuation of a long-term trend of consumers providing less direct feedback. In fact, our research shows two-thirds of consumers will no longer tell you when they’ve had a bad experience.

    Even when customers don’t give feedback, they are talking to you in other ways – by spending less, visiting less frequently, and stopping mentioning you. The question is, are you tuned into those cues?

    – Leonie Brown, Qualtrics Principal XM Scientist, CX

    This is alarming considering 1 in 2 consumers reduce or stop spending after a bad experience, putting a huge amount of revenue at risk simply because they’re not aware those bad experiences are happening. To truly understand the voice of the customer, companies will have to adapt and expand their listening capabilities to meet consumers where they are – review sites, social media platforms, chats and calls – to capture that all-important feedback.

    What matters most to consumers in 2024?

    Our research showed that by navigating these evolving trends, businesses can be optimistic that there is opportunity and success out there – even despite the continued economic uncertainty and rising costs. But the organisations that succeed will only do so by understanding what their consumers want, and creating incredible personal experiences that attract new markets and retain their existing customers.

    When we asked consumers what they wanted from businesses in 2024, for the second year in a row, one theme became clear. Consumers want genuine, meaningful connections with the businesses they buy from. And they value this above all.

    We see this in their attitudes towards artificial intelligence (AI), their channel preferences, and how much consumers value great customer service.

    But this goes beyond 2023 and 2024 trends. The desire for human connection is an innate feeling, one that humans have always longed for. We all like to feel wanted, listened to, and appreciated, And we expect brands to understand this and rise to the occasion.

    And while technology will continue to transform our lives, businesses mustn’t lose sight that its purpose is to empower and enable humans and help us meet our wants, needs and desires.

    For CX professionals the task is clear. Providing personal, human experiences across your frontlines – in store, on the phone, and online – is mission critical to driving satisfaction and increasing customer loyalty.

    How technology can help you get closer to your customers

    As consumer trends evolve, businesses need to adapt with them. Fortunately, technology can do a lot of the heavy lifting. Here are the key benefits:

    With more listening tools at your fingertips, you can go beyond surveys to meet your customers where they are to hear how they really feel. With today’s consumers giving less feedback directly, diversifying your listening tools is vital to staying in touch with your customers. Otherwise it’s just guesswork.

    Automatically turn that feedback into insights so you can understand every customer on a deeper level – what they want, how they feel, what they like and don’t like. Empower your frontline teams with the tools, time, and insights to build stronger connections with your customers.

    Keep track of the end-to-end journey, no matter how complex it gets, so you know what’s working, what’s not – and where to focus your efforts to keep customers happy, and your frontlines running as efficiently as possible.

    If you’re unsure how to get started, our Future of CX ebook outlines where to begin so you can begin to realise the opportunity in front of you.

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    Dive deeper into the 2024 consumer trends

  • NECA rejects Federal Competition and Consumer Protection Bill 2016

    NECA rejects Federal Competition and Consumer Protection Bill 2016

    The Nigeria Employers’ Consultative Association (NECA) has rejected the Federal Competition and Consumer Protection Bill 2016, sent to President Muhammadu Buhari  by the National Assembly. NECA urged the President to withhold his assent.

    The Bill seeks development and promotion of fair, efficient and competitive markets in Nigeria. It will also facilitate access to safe products by citizens and protect consumers’ rights.

    NECA accused the National Assembly of surreptitiously inserting 0.5 per cent tax on companies to fund the establishment of a planned Commission/Agency, which will undertake responsibilities under the law.

    NECA also contended that the  0.5 per cent tax on private companies was neither in the draft nor discussed at the public hearing of the bill. It described the development as fraudulent.

    In a statement by its Director-General, Mr. Segun Oshinowo, the body said: “While the private sector welcomed and, in fact, actively supported the introduction of a dispensation where an institution will exist to promote fair, efficient and competitive markets in the Nigerian economy, at no time, during the public hearing on the Bill, did we discuss the imposition of 0.5 per cent profit after tax on all companies operating in Nigeria, as a source of funding the Commission. This provision was not contained in the draft bill that was exposed to the public.

    “So, what could have been the source of this obnoxious provision that seeks to further drain life out of a struggling and comatose private sector that is still laboring under the unbearable weight of multiple and overlapping taxes and levies? This surreptitious insertion is a fraudulent act, which we seriously frown at.”

  • Protecting the Nigerian consumer

    It is often said that ‘consumer is king’.  It is also common in this part of the world to hear phrase such as ‘consumer or customer is always right’. Yet, in our nation, events playing out in our day-to-day life never cease to project consumer in any manner near being ‘chief’ not to talk of being ‘king’. What happens mostly in this clime cases of consumer being short-changed, conned, cornered and underrated.

    Every day, consumers are at the mercy of producer or the person offering the services being consumed. From goods, products and services, the story is the same. Outdoor advertisement, electronic medium, print and social media have become instrument through which consumers make informed decision on products and services that are supposed to meet their needs in addition to  client’s service consumers direct persuasion. In advanced countries, consumers’ protection is of paramount interest to the government. This is because consumers determine the destiny of the economy of any nation.

    One would have expected the Nigerian government to emulate policies such that enhances the growth of the economy and secure our society from needless wastage, security threat and dumping ground for all sorts of substandard products or services.   Rather, the culture here supports the importation of sub-standard products, to the detriment of consumers.

    Every day, consumers buy products and services that fall short of minimum standard and expectation. Not even the inscription ‘SON (Standard Organisation of Nigeria) approved’ is sufficient enough to guarantee customers’ satisfaction. Many advocacy groups have made tremendous efforts in times past, giving voice to the voiceless; hope to the hopeless. In some instances, these groups have succeeded in using diverse avenue to register their displeasure over breach of trust, abuses and sheer exploitation of consumers.

    While some culprits have saved face by addressing issues raised, others have ignored concerns of the advocacy groups. Sadly, rather than address the real issues raised by consumers and the advocacy groups,  majority of organizations involved shamelessly take to lobbying policy makers to overlook their acts of gross negligence. So, consumers simply continue to suffer in silence.

    But then, hope seems to be rising for consumers, especially those in Lagos as things might possibly change for the better soon.  Lagos State government recently enacted the law that establishes the Lagos State Consumer Protection Agency. The law, which was passed by the State House of Assembly in 2015, has since been signed into law by Governor Akinwunmi Ambode. Under the law establishing the agency, a convict would be mandated to pay penalty considered appropriate by court as compensation to consumers’ whose right has been infringed on.

    This could not have come in a better time than this. It is no longer news that Lagos State with its huge population is the commercial nerve centre of West Africa. Consequently, Lagos is the hub of diverse commercial activities. Sadly, in-spite of this huge commercial standing, Lagos has to contend with the highest reported cases of daily infractions on consumers’ right.

    It is hoped that the agency would live up to expectations by ensuring that consumers are well protected. This can only be done if its officials refuse to compromise on the principles that set the agency up. It is only in doing this that we can rightly affirm that in our own clime also, consumers are truly kings.

     

    • Bolaji Odumade,

    Ministry of Information & Strategy, Alausa, Ikeja.

  • CPC urges businesses on consumer protection

    The Director-General, Consumer Protection Council (CPC), Mr. Babatunde Irukera, has urged businesses to prioritise consumer protection as the pre-eminent factor in protecting brands and businesses.

    He also said prioritising consumer protection will help manage crisis, build confidence and corporate growth. He emphasised that customer satisfaction is the most vital pillar for loyalty and corporate trust.

    Irukera spoke at a meeting with Chief Executive Officers (CEOs) of food and beverage companies who are members of the Association of Food, Beverage and Tobacco Employers (AFTBE), during the week in Lagos.

    He noted that customer service cannot be ancillary to business, especially in the food and beverage industry; rather it must be the core of business and operations.

    He admitted that CEOs are vital to customer satisfaction and economic growth.

  • Consumer behaviour threatens legacy brand Seaman’s Schnapps

    Consumer behaviour threatens legacy brand Seaman’s Schnapps

    Some legacy brands, including Schnapps, are facing consumer apathy. Olufemi Babalogbon writes that unless their producers addressed the problem, their products may soon become extinct. 

    In 1985, when Chief Akin Odunsi created Seaman’s Aromatic Schnapps, the target was “the Nigerian yuppies, who seek to impress clansmen back in the village”, according to a 1987 report by New York Times’ James Brooke.

    In the early 1980s, when Nigeria and Ghana experienced foreign exchange pressure, and there was a need to produce a local schnapps to replace the imported one in West Africa, the imported brands, such as Blankenheym & Nolet and De Kuyper, were the favourites of elders in the village.

    At inception, Seaman’s adverts targeted youths. The TV advert in 1987 ended with ‘’Seaman’s aromatic schnapps -preferred by our elders for libations”.

    This tagline was in consonance with the consumer behaviour of the yuppies who prefer to take Schnapps as a gift to the elders, who would receive the drinks, pour some as libation, and offer some prayers.

    In contrast, Schnapps is a drink for the boys in the United States; so relevant that the late 2 Pack Shakur rapped about “Dripping peppermint Schnapps, with Jackie Wilson, and Sam Cooke” in his track titled: “Thugz Mansion”. Flavoured schnapps, he meant!

    The brand and the millenials

    Seaman’s Aromatic Schnapps is a legacy brand, just like Alabukun powder. Storied as the No 1 prayer drink, Seaman’s Schnapps thrives on festivals, the tradition of using drinks for libation, and of using drinks to pray during weddings, naming, coronations, and other forms of celebration. This proposition would be successful only as long as the culture it promotes thrives.

    This year, more than half of Nigerian population is under 30, and most brands focus on them for wallet share. These youths have interests in entertainment, social drinking and culture of night-clubbing, urban culture and charismatic religious practice. Also, the elders in the village do not fancy Schnapps as a gift, except if there is a celebration. At motor parks in Lagos, where people board buses to their villages, bread-sellers get repeat purchases as bread is the common gift for the elders. These emerging consumer behaviours and lifestyles may pose some threat to the legacy brand.

    Reviving the legacy brand

    In a market, which gives large wallet share to beer and wine, Schnapps competes in the spirits category, which has the likes of McDowell being merchandised by Guinness Nigeria PLC, a company with 54 per cent share of the Strong Spirits Category.

    Beyond the rivalry in the Spirits Category, Seaman’s Schnapps will struggle to be relevant and appeal to millennials who spend so much on spirits but are rather lovers of social brands, such as Hennessey and Johnny Walker.

    A visit to various night clubs across Lagos showed that Schnapps are not being sold at these hubs of night entertainment. Gold Oark Limited has introduced some innovations, including providing Seaman’s Schnapps in handy sachets. This is successful as it gives the drink some competitive advantage and makes the product available for social drinking.

    However, the use of social media to promote the brand, and the introduction of a mobile game – Seaman’s Ayo – are not sufficient to make the brand relevant to the evolving millennial culture. The Seaman’s Ayo game, which could be downloaded via google play store or played via Seaman’s Schnapps’ facebook page, is, however, a strategic consumer-engagement initiative.  But the game has rather made the cultural age-long game, Ayo Olopon, relevant to millenials who ordinarily use mobile apps. It fails to make Seaman Schnapps relevant to the youth.

    Against the waves of culture

    The #ShareABlessing campaign of Seaman’s Schnapps uses festivals, traditional figures, aboriginal practices and traditional leaders as icons of ad messages. A key component of strategy should be the evolving culture, and not a tradition that belongs to ages past. The millenials have embraced new religious ideologies. A tongue-speaking couple would not make use of a drink for prayer. They would use a bottle of anointing oil! In Ghana, a cleric, Apostle Kwamena Ahinful, urged former President Ata Mills in the latter’s aloofness to libation at public functions.

    Wrappa, a South African brand consultancy firm, warned that legacy brands die “because of rigid marketing strategies and redundant products that did not evolve”.

    The brand communications being churned out by the manufacturer of Seaman’s Schnapps do not resonate with Nigerians.

    During Seaman’s Centenary pack launch in 2014, executives of Grand Oak Limited reportedly said: “Consumers should embrace the centenary pack as a conveyor of their prayers for Nigeria at 100”. Those words rather reinforced ritual practice and keep the potential consumers detached from the brand, an analyst said.

    The way to go

    Poju Bakare, Head of Digital at Noah’s Ark, an advertising agency based in Lagos, said Seaman’s Schnapps is going to survive, if the product evolves.

    Poju, an alumnus of Orange Academy, added: “What if they change the shape of the bottle to something fanciful? What if they make a luxury brand of Seaman’s and packaged it in a wooden box? What if they make flavoured varieties of Seaman’s schnapps?”

    Brand Strategist and Chief Executive Officer (CEO), Beacon Media & Communications, Enyinnaya Iroadum-ba, advised that the campaign for the legacy brand should be refocused on millennial culture.

    He explained: “If Seaman’s Schnapps must remain relevant in years to come, the product must be changed from being a prayer drink to an everyday drink.”

    The book titled: “The King of Drinks: Schnapps Gin from Modernity to Tradition” by Dmtri Van Den Bersselaar, a social scientist, supported  both Poju and Enyinnaya. It discusses the failure of Dutch’s Schnapps Gin in West Africa between 1980 and 2000, citing that the gin was restricted to the ritual sphere.

    The book adds: “The Dutch gin distillers and importers failed to reposition gin as a modern drink that could be consumed in a wide range of circumstances.”

    Therefore, the way to go for Seaman’s Aromatic Schnapps is to reposition it for social drinking. Perhaps we can have Seaman’s Flavoured Schnapps!

  • BIC 1 Shaver Unveil Consumer Promo

    BIC 1 shaver, a leading shaving brand in Nigeria, has concluded plans to kick-start a coupon-based promotion to reward its consumers for their loyalty and patronage over the years.

    The pan-Nigeria consumer promo, which will also induce trials by new users, will offer prospective and existing consumers the opportunity to buy a pack or more of BIC 1 Shaver and find the coupon inside the pack.

    Thereafter, the consumer scratches the panel to get the hidden number, which Ithe consumer will send to a short code.

    The consumer gets feedbacks, such as: “Congratulations! You have won an instant airtime (VTU Top Up), or “Congratulations, you have been selected for the monthly draw.”

    The promotion, which will last two months, will have a draw at the end of every month where several prizes and the star prize of a car would be won.

    BIC is one of the best international brands among shaving blades.

    It is present in almost four million points of sale in more than 160 countries. The products are known and appreciated all over the world for quality, affordability and ease of use.

    BIC has been in West and Central Africa since the early 1970s, first in stationeries, lighters and shavers.

    In shavers, BIC is available in different categories: men and women wet shaving; also in single, double and three blades with products, such as BIC 1, BIC Comfort 2, BIC Twin Lady or BIC Flex 3.

    A statement by the Product Manager Lighters and Shavers West Africa, Bigué Diouf, said: “BIC revolutionised shaving habits with the launch of BIC 1, a single blade shaver and has since become a market leader in Nigeria.”

    On the latest promo, she noted that “the new promotion is also aimed at re-introducing BIC 1 shaver and a large BIC shavers range into the Nigerian market while also rewarding loyal consumers and recruiting lapsed and new users”.

    Diouf added: “We intend to use the BIC 1 shaver promo to grow the brand equity of BIC shavers and, by extension, the BIC brand, while also increasing BIC brand awareness and encouraging trial usage by target audience”.

    The promo draws will hold in Onitsha and Lagos in August and September.

  • Responsibility of the consumer

    Responsibility of the consumer

    There are things manufacturers and retailers can do for you as a consumer. The manufacturer has the responsibility of indicating production and expiry dates, amongst others. The retailer, for instance, brings it closer to you but it is the sole responsibility of the consumer to purchase products that are still within its shelf life.

    Mrs. Toyin Adewale stopped at Purple& Scarlet, a popular supermarket in Ikeja, Lagos, to buy her hair shampoo.

    Her favourite is Head and Shoulder dandruff hair shampoo from the stable of Procter & Gamble Plc. She dashed into the shop, hastily exchanged greetings with the beautiful owner as she walked in through the door. Adewale told the shop owner she did not park her car well and requested for the hair shampoo.

    The attendant quickly took it off the shelf, bagged it and handed it to her. Without checking the container and packaging, she just dropped the bag on her car seat and quickly zoomed off, thankful to God that she had bought the shampoo and was able to evade her car being impounded by LASTMA officials for the wrong parking.

    The next evening, she went to the hair saloon. The hair stylist tried washing her hair with the shampoo but noticed it was not really foaming well and Adewale also realised that the menthol and clean feeling that usually accompany the use of the shampoo was not there. Is this actually the original shampoo? wondered Adewale. Grabbing the container, she noted it was the same brand only that it had expired.

    She was so furious and regretted not checking the expiry date before making the purchase. Unfortunately, the container of the shampoo is supposed to last her at least six months. Besides, the shampoo does not come cheap as it costs about four times the price of the ordinary shampoo.

    Mr. Obinna  Chujiuka does his shopping mostly on the road as he comes from work late in the evenings. On this occasion, he was in a heavy traffic, so he rolled down his car window to buy cereals for his three children.

    Happy with his purchases, 750g packs of three cereals, especially as the prices were slightly cheaper than usual, he envisaged the faces of his kids when they see the Rice Krispies, Fruit and Fibre and Corn Flakes. Flinging the carrier bags to the back seat of his car, he hummed a song, anticipating the happy shrieking when he comes home.

    Sure enough, getting home, he got a warm embrace from his wife and bear hugs from the excited children. Seeing the packs of cereals, they said they were not eating the food their mum made for dinner but were having the cereal for dinner.

    Their mum poured the Rice Krispies in a bowl of milk but noticed it has lost its freshness as the popping sound that usually emanate as the cereal touches liquid was not there. She tasted it but spat it out when she noticed it tasted flat and off.

    Sensing her husband must have bought the inferior brand, she checked the packaging, confirming it was the top and most popular brand. Now checking further, she noticed that the original manufactured and expiry dates had been rubbed off and in their place were new dates written in black marker pens.

    It is the sole responsibility of the consumer to check the condition of the product he or she is paying for. No wonder, one of the campaigns of the regulatory body, the Standard Organisation of Nigeria (SON) says, “Look well, well before you buy”. You must be aware and at alert when shopping in order not to be a prey.

    “The manufacturer, producers and importers of products owe the consumer the obligation of informing them of the expiry date status of products they manufacture, produce or import. By so doing, they stand the chances of boosting consumer confidence in their products,’’ explained Mr. Abiodun Obimuyiwa, Director, Corporate Affairs, Consumer Production Council (CPC) of Nigeria.

    On almost all products, edible and non edible, there are various dates printed on the packages and containers holding the product, and in some cases, printed leaflets attached to the products or even on the shelves where the products are displayed indicating the shelf life, manufactured dates and other relevant information for the general public.

    Different terms are used by the product manufacturers who are responsible for providing consumers with such information. They have the responsibility of informing consumers the shelf life of products, as part of their responsibility to substantiate product quality.

    Most terms printed on product or their packaging are : ‘Use by’ date, ‘Best Before’ date, ‘Expiration’ date, ‘Born on/Aged’ date, ‘Pack’ date, ‘Guaranteed Fresh’ date,  ‘Best by’ date, ‘Sell by’ date, ‘ Eat by’ date, ‘ Best if used by’ date, ‘Open’ date.

    ‘Sell by/Display Until’ date: The manufacturer is simply informing the store and the consumer that it is the last date stores are supposed to display the product for sale. Sell by date indicates the end of its shelf life at the store. Although the food product may be used and enjoyed past this date, it is advisable not to buy it. However, for food products that have passed their ‘sell by’ date and ‘display’ date but has not reached their ‘use by’ date nor ‘best before’ date, they will still be edible assuming they had been stored correctly.

    ‘Best before/ best by’ date are only advisory and refer to the quality of the product in contrast with the ‘use by’ dates which indicate that the product may no longer be safe to consume after the specified date. Food kept after the ‘best before’ date will not necessarily be harmful but may begin to lose its optimum flavour and texture.

    Eggs are a special case since they may contain salmonella which multiplies over time. They should therefore be eaten before the ‘best by’ date.

    ‘Use by’ date; Generally, foods that have the’ use by’ date written on the packaging must not be eaten after the specified date. This is because such foods usually go bad quickly and may be injurious to health if spoiled. It is also important to follow storage instructions carefully for these products.

    Open dating is the use of a date or code stamped on the package of a food product to help determine how long to display the product for sale. This benefits the consumer by ensuring that the product is of an acceptable quality when sold. An open date does not supersede a ‘use by’ date which should still be followed.

  • GlaxoSmithKline focuses on consumer healthcare products

    Nigeria’s healthcare  consumer company,GlaxoSmithKline, said it will concentrate its efforts in broadening its range of health-care products. It also said it will widen the distribution of its products to boost sales.

    The company said it is taking the step to cushion the impact of its depleted revenue arising from the challenging economy last year and the disposal of its drinks business which also resulted in a cut of its intake.

    GlaxoSmithKline said in a statement that it will now focus on its Over The Counter (OTC), Oral Health care and pharmaceutical business with the aim of driving improved margins and sustainable growth in Nigeria. Profit after tax for the year 2016 of N4.2billion represented a 335 per cent growth compared to 2015 on the back of profits from the divested drinks business of N1.8billion and N2.4billion  (including the effect of tax credit) from continuing operations,  although turnover was 21 per cent lower than 2015, the company said in a statement.