The Nation Newspaper

Tag: consumers

  • Battle for consumers’pocket

    Battle for consumers’pocket

    The competition in the retail market has become intense, with price discrimination being used to attract patronage. This trend may continue for a long time given the harsh economic climate. And with retailers struggling to make good sales, and consumers determined to ensure they get value for their money, the real competition may just have begun. Who will be the bigger beneficiary? TONIA ‘DIYAN asks.

    Rapheal Chukwuma, a young Nigerian in his mid-20s,  likes to look trendy. His reason for this can be traced to his young uncle whom he grew up with. “The way you dress is the way you are addressed,” is a regular phrase his uncle used for him. But looking trendy comes at a price.

    This is why Chukwuma, a young and unemployed graduate, takes his time to window shop for best prices  before making purchases from the stipends he gets as allowance from his uncle as well as occasional tips from running errands for older people in his neighbourhood. He, therefore, structures his shopping around clearance sales or promotional sales periods when goods, which ordinarily he couldn’t have been able to afford, are sold at discounted prices.

    “I notice a 40 to 50 per cent reduction on items at Mr. P,” said Chukwuma, who explained that he  noticed price reduction on items at Ruff ‘n’ Tumble, Cash ‘n’ Carry and Life mate in recent weeks.

    Realising that price is the number one factor consumers consider when shopping, retailers are now evolving more strategies to outwit themselves. One of such is the introduction of several rounds of price cuts, especially on competing items. This development has made the retail market literarily become a theatre of price war, as the contest for shoppers’ pocket intensifies among retailers.

    The retailers, determined to remain competitive and avoid losing sales, are offering mouth-watering and irresistible discounts to existing and prospective customers. This is why some retailers have already taken their prices to an all time low, leaving competitors in the cold as they brace up with the need to adjust their price tags in favour of price conscious shoppers.

    Checks by The Nation Shopping revealed that the competition cuts across virtually all sectors in the retail segment. For instance, contenders in the clothing sector seek to win back budget-minded customers who have migrated to discounting shops such as Mr. Price and Mango, who recently started lowering the prices of selected items and giving out 50 per cent discounts on its items purchased.

    Max store is also launching what is called a ‘significant’ reduction in prices of all items. It said the decision to slash prices is to satisfy their old customers and make new ones. Similarly, Red Tag offers discounts on several of its products. For instance, a plain designer Polo shirt with small logo which sold for N8000 in the store now sells for N4, 000. A striped collar polo shirt used to be N4, 995; it is now N3, 245. A single breasted suit was N24, 495; it now sells for N14, 995.

    Accessories 2 die 4, situated in most of the Lagos malls, is offering 10 per cent discounts on all gifts items at the store. Grocery chains are doing much the same. Shoprite is giving a face-lift to its price structure and customer reward programme to grab back market share from competitors, such as Super Saver, Justrite, The Bazaar and Grocery Bazaar, who are its major contenders in grocery business. It has also lowered the prices of perishables and products that are among the most purchased items in its shelf.

    In the Home and Furniture section, there is a renewed effort that seeks to win back budget-minded customers who have migrated to outfits known to give good discounts like Lifemate and Bedmate, who recently lowered the prices of over 7, 000 items on its kitty and still discounting it. Also, Sixth Sense, another furniture outfit, has launched what it called a ‘significant’ reduction in prices of often-purchased items, saying the decision is to satisfy customers and possibly entice new ones.

    The former General Manager, West Africa, Mr Price, David Botha, said his store has stepped up its game to satisfy customers at this time of the year leading to its slashing of prices with generous discounts. Adducing reasons for this development, Botha explained that the strategy will help the store sell all old stocks to allow new ones come in. “We also want our customers and prospective customers to experience sales of cheap but quality items, which we always make available. We encourage shoppers to buy from our store today instead of our competitor’s website or store tomorrow,” he said.

    Explaining the rationale behind this development, the former Centre Manager of Leisure Mall, Surulere, Lagos, Mrs Debola Majekodunmi, revealed that retailers have been lowering prices because they are aware that the consumer is price-conscious.

    Another Centre Manager of one of the Lagos malls, Sander Norman, explained that retailers decided to lower prices because they were aware that the consumer is also price-conscious and because it is one of their many strategies to improve sales at strategic times. “Price reduction has to do with timing, planning and sacrifice; being ready to give out at cost price or below cost price most times,” he said.

    Sander cited Shoprite, saying that the store is priced about three per cent below the other grocery retail, and that is one reason it has gained a fraction of a point in market share since it entered the country in 2005 at the Palm in Lekki, Lagos, where it tops the grocery market.

    Investigations by The Nation Shopping show that retailers who refused to be part of this strategy are likely to experience a drop in demand and low sales. This is so because price conscious shoppers are already moving to discounters or are purchasing less-expensive items from such stores as substitute for items they are used to buying or would like to patronise.

    Some retailers have already taken their prices to an all time low, leaving competitors in the cold as they brace up with the need to adjust their price tags in favour of price conscious shoppers. A retail analyst, Modupe Shopeju, attested to the fact that price is the number one factor consumers consider when they pick where to shop. According to her, it is the reason why more people are found in shopping places during promotional periods. “People actually look forward to times like this to make the best of it. Some save towards sales period, some follow the trend and are able to know when sales are on, some do constant check on items in-store to find out if these items are discounted aside finding out what is trendy or new in the market,” she explained.

    And shoppers are happier for this trend. “It is encouraging,” said Adewale Odunayo, a shopper, who bought dress shirts from Mango store. He thinks it is best to wait for a time like this to shop. “I am enjoying every bit of shopping at this season. For instance, a David Wej shirt sells for N6, 500 but its price has dropped to N5, 955, thereby saving N505. The ongoing price slash made me buy more shirts than I planned to buy, he added.

    Even online stores woo customers daily with price changes to teach their ‘brick-and-mortar’ (traditional retail shops) competitors the need to use price intelligence solutions if they want to compete. Savvy retailers also monitor their online competitors’ prices daily to remain competitive and avoid losing sales.

    Yet, there are fears around this trend. Maku Oladele, who sells baby items at Alade Market in Ikeja, Lagos, confirmed this. He explained that the price war has become a permanent feature in the retail segment such that there has been one price war after another without making profit. For this reason, she submits that the trend may be very difficult to sustain.

    And some of these price wars are deliberately induced. Oladele revealed that big retailers seem  prepared for price battles as conventional festivals, such as Christmas and Valentine’s Day are no longer enough to keep up with the demand for discounts, so they create event out of nothing, just to initiate new price wars. This, she warns, may soon become a battle for survival for small retailers, most of who aren’t making much profit.

    Behavioural economists say promotions have a huge effect on the consumer. And that more than 40 per cent of groceries are bought on special offer, so regardless of what’s on a shopping list, the consumer ends up buying items on special offers. That means what the customer buys is always cheaper, or at least, not much more expensive than it would have been elsewhere.

    According to players in the industry, promotions appear more about point scoring against competitors than engaging with customers and their needs.

    Whether the trend gives good returns to the retailer is obviously not a concern for the shoppers, who is only interested in retailers offering the best quality at the lowest prices.

  • Consumers groan under rising food prices

    Consumers groan under rising food prices

    Prices of most staple food items have increased by as much as 60 per cent. The situation, triggered by prevailing economic realities, particularly crashing oil prices and weakening value of the naira, has left sour taste in the mouth of consumers. TONIA ‘DIYAN and TAIWO ADEYANJU report.

    Since mid-June 2014, when prices of crude oil started crashing, forcing the authorities to adopt measures to stabilise the naira, among others, prices of major staple food items in the market have hit the roof.

    Although checks by The Nation Shopping showed that prices of food items returned to normalcy shortly after the last festivity period, the continued drop in the exchange rate of the naira to other major foreign currencies especially the dollar, has seen prices of most food items rising by as much as 60 per cent.

    For instance, a bag of rice, which previously sold for between N8, 000 and N8, 500, now goes for as high as between N12, 500 and N13, 000, representing an increase of over five per cent. Also, a small bag of beans, which before now sold for between N11, 000 and N11, 500, has gone up to N12, 500. A big bag of beans, which was N19, 000 is now sold for N21, 000. Similarly, a big bag of garri costs N7, 500, while a small size bag costs N5, 000. groundnut oil, which sold for N9, 300, now costs N9, 500. From N1, 000, a five-litre pack of palm oil increased to N1, 400.

    Similarly, 10 bags of sachet water, popularly called Pure Water  goes for N1,000, up from the original price of N600. Same for a crate of eggs, which has gone up from N750 to N900. A 10- kilogramme of Honneywell wheat cost N1, 600, up from N1, 400.

     The Nation Shopping found that other food items have had their prices increase by about N500, depending on the market and the bargaining power of the consumer. The situation, according to some traders, who spoke with The Nation, is not likely to change unless there is significant improvement in the naira-dollar exchange rates.

    At present, the naira exchanges at between N260 and N250 to a dollar. Some traders say until there is a level of normalcy in the exchange rate, consumers would have to live with the price hike. Besides, they pointed out that there is need to finish selling items stocked during the dollar increment period before any relief can come to consumers. This means that Nigerians may have to tighten their belt, as the situation is not likely to abate any time soon. Although, there has been a slight increase in crude oil prices, the thinking is that the increase is not significant enough to inspire hope in consumers.

    The economic crisis is said to have pushed up the cost of production, forcing those producing and selling locally made items to increase prices. Some of them say because cost of raw materials used in production has gone up, and the raw materials are mostly imported, there is no way consumers would not be at the receiving end. For instance, producers of sachet water claim that the nylon used in packing the water is scarce and expensive, forcing them to queue up to purchase. This is why even drinking water is gradually getting out of the reach of the common man.

    The nation’s huge infrastructure gap is also not helping matters. Because of bad roads, for instance, cost of transporting these food items from farms in rural areas or their places of purchase to markets in urban centres where they are needed, has gone up. This explains why prices of some staple food items which ordinarily should be on the table of low income earners, have gone out of their reach. Some traders appear to have cashed in on the challenge of infrastructure especially road and electricity to sell at exorbitant prices.  Some of them argue that as long as the problem persists produce will remain high and out of stock.

    As a result  of hike in prices  of food items, owners and operators of restaurants and canteens have also jacked up their prices much to the agony of their customers. Some of them who spoke with The Nation Shopping, said they were left with no other choice than to increase the price of their meals since they purchase foodstuff at high prices. A food vendor at Ladipo in Mushin, Lagos, Iya Rukayat, said foodstuffs have become very expensive, attributing the hike to the unending fluctuation in the value of the naira.

    “Some food stuff merchants whom I patronise say they sell to make profit so, they will have to include all cost to the original price. I am left with no choice but to buy and also sell at exorbitant price to my customers,” she said.

    Iya Rukayat has reason to do so. Checks by The Nation Shopping on major markets within the Lagos metropolis showed that the price of a ‘paint’ of garri, which is regarded as a common staple food among low income earners, has increased. From its original price of N400, a ‘paint’ of garri sells for N500, depending on the brand. A full bag of yellow garri is sold for N7, 000. It was less than that few months back.

    As if the about 60 per cent increase in prices of food items is not enough to give consumers sleepless nights, food producers are projecting a more than 70 per cent increase by the middle of this year if the naira does not firm up significantly. The naira, having lost at least 30 per cent of its value against the dollar recently, is said to be largely responsible for driving up prices of most food items.

  • Battle for consumers’ pocket

    Battle for consumers’ pocket

    The competition in the retail market has become intense, with price discrimination being used to attract patronage. This trend may continue for a long time given the harsh economic climate. And with retailers struggling to make good sales, and consumers determined to ensure they get value for their money, the real competition may just have begun. Who will be the bigger beneficiary? TONIA ‘DIYAN asks.

    Rapheal Chukwuma, a young Nigerian in his mid-20s,  likes to look trendy. His reason for this can be traced to his young uncle whom he grew up with. “The way you dress is the way you are addressed,” is a regular phrase his uncle used for him. But looking trendy comes at a price.

    This is why Chukwuma, a young and unemployed graduate, takes his time to window shop for best prices  before making purchases from the stipends he gets as allowance from his uncle as well as occasional tips from running errands for older people in his neighbourhood. He, therefore, structures his shopping around clearance sales or promotional sales periods when goods, which ordinarily he couldn’t have been able to afford, are sold at discounted prices.

    “I notice a 40 to 50 per cent reduction on items at Mr. P,” said Chukwuma, who explained that he  noticed price reduction on items at Ruff ‘n’ Tumble, Cash ‘n’ Carry and Life mate in recent weeks.

    Realising that price is the number one factor consumers consider when shopping, retailers are now evolving more strategies to outwit themselves. One of such is the introduction of several rounds of price cuts, especially on competing items. This development has made the retail market literarily become a theatre of price war, as the contest for shoppers’ pocket intensifies among retailers.

    The retailers, determined to remain competitive and avoid losing sales, are offering mouth-watering and irresistible discounts to existing and prospective customers. This is why some retailers have already taken their prices to an all time low, leaving competitors in the cold as they brace up with the need to adjust their price tags in favour of price conscious shoppers.

    Checks by The Nation Shopping revealed that the competition cuts across virtually all sectors in the retail segment. For instance, contenders in the clothing sector seek to win back budget-minded customers who have migrated to discounting shops such as Mr. Price and Mango, who recently started lowering the prices of selected items and giving out 50 per cent discounts on its items purchased.

    Max store is also launching what is called a ‘significant’ reduction in prices of all items. It said the decision to slash prices is to satisfy their old customers and make new ones. Similarly, Red Tag offers discounts on several of its products. For instance, a plain designer Polo shirt with small logo which sold for N8000 in the store now sells for N4, 000. A striped collar polo shirt used to be N4, 995; it is now N3, 245. A single breasted suit was N24, 495; it now sells for N14, 995.

    Accessories 2 die 4, situated in most of the Lagos malls, is offering 10 per cent discounts on all gifts items at the store. Grocery chains are doing much the same. Shoprite is giving a face-lift to its price structure and customer reward programme to grab back market share from competitors, such as Super Saver, Justrite, The Bazaar and Grocery Bazaar, who are its major contenders in grocery business. It has also lowered the prices of perishables and products that are among the most purchased items in its shelf.

    In the Home and Furniture section, there is a renewed effort that seeks to win back budget-minded customers who have migrated to outfits known to give good discounts like Lifemate and Bedmate, who recently lowered the prices of over 7, 000 items on its kitty and still discounting it. Also, Sixth Sense, another furniture outfit, has launched what it called a ‘significant’ reduction in prices of often-purchased items, saying the decision is to satisfy customers and possibly entice new ones.

    The General Manager, West Africa, Mr Price, David Botha, said his store has stepped up its game to satisfy customers at this time of the year leading to its slashing of prices with generous discounts. Adducing reasons for this development, Botha explained that the strategy will help the store sell all old stocks to allow new ones come in. “We also want our customers and prospective customers to experience sales of cheap but quality items, which we always make available. We encourage shoppers to buy from our store today instead of our competitor’s website or store tomorrow,” he said.

    Explaining the rationale behind this development, the former Centre Manager of Leisure Mall, Surulere, Lagos, Mrs Debola Majekodunmi, revealed that retailers have been lowering prices because they are aware that the consumer is price-conscious.

    Another Centre Manager of one of the Lagos malls, Sander Norman, explained that retailers decided to lower prices because they were aware that the consumer is also price-conscious and because it is one of their many strategies to improve sales at strategic times. “Price reduction has to do with timing, planning and sacrifice; being ready to give out at cost price or below cost price most times,” he said.

    Sander cited Shoprite, saying that the store is priced about three per cent below the other grocery retail, and that is one reason it has gained a fraction of a point in market share since it entered the country in 2005 at the Palm in Lekki, Lagos, where it tops the grocery market.

    Investigations by The Nation Shopping show that retailers who refused to be part of this strategy are likely to experience a drop in demand and low sales. This is so because price conscious shoppers are already moving to discounters or are purchasing less-expensive items from such stores as substitute for items they are used to buying or would like to patronise.

    Some retailers have already taken their prices to an all time low, leaving competitors in the cold as they brace up with the need to adjust their price tags in favour of price conscious shoppers. A retail analyst, Modupe Shopeju, attested to the fact that price is the number one factor consumers consider when they pick where to shop. According to her, it is the reason why more people are found in shopping places during promotional periods. “People actually look forward to times like this to make the best of it. Some save towards sales period, some follow the trend and are able to know when sales are on, some do constant check on items in-store to find out if these items are discounted aside finding out what is trendy or new in the market,” she explained.

    And shoppers are happier for this trend. “It is encouraging,” said Adewale Odunayo, a shopper, who bought dress shirts from Mango store. He thinks it is best to wait for a time like this to shop. “I am enjoying every bit of shopping at this season. For instance, a David Wej shirt sells for N6, 500 but its price has dropped to N5, 955, thereby saving N505. The ongoing price slash made me buy more shirts than I planned to buy, he added.

    Even online stores woo customers daily with price changes to teach their ‘brick-and-mortar’ (traditional retail shops) competitors the need to use price intelligence solutions if they want to compete. Savvy retailers also monitor their online competitors’ prices daily to remain competitive and avoid losing sales.

    Yet, there are fears around this trend. Maku Oladele, who sells baby items at Alade Market in Ikeja, Lagos, confirmed this. He explained that the price war has become a permanent feature in the retail segment such that there has been one price war after another without making profit. For this reason, she submits that the trend may be very difficult to sustain.

    And some of these price wars are deliberately induced. Oladele revealed that big retailers seem  prepared for price battles as conventional festivals, such as Christmas and Valentine’s Day are no longer enough to keep up with the demand for discounts, so they create event out of nothing, just to initiate new price wars. This, she warns, may soon become a battle for survival for small retailers, most of who aren’t making much profit.

    Behavioural economists say promotions have a huge effect on the consumer. And that more than 40 per cent of groceries are bought on special offer, so regardless of what’s on a shopping list, the consumer ends up buying items on special offers. That means what the customer buys is always cheaper, or at least, not much more expensive than it would have been elsewhere.

    According to players in the industry, promotions appear more about point scoring against competitors than engaging with customers and their needs.

    Whether the trend gives good returns to the retailer is obviously not a concern for the shoppers, who is only interested in retailers offering the best quality at the lowest prices.

  • 70% of electricity consumers not metered, says Amadi

    • As MAN, SERAP kick against 45% tariff increase

    About 70 per cent of electricity consumers are not metered. This has hampered accurate billing by Electricity Distribution Companies (DISCOs), the immediate past chairman Nigerian Electricity Regulatory Commission (NERC), Dr. Sam Amadi, has said.

    He said the DISCOs were given 18 months ultimatum to meter all consumers, but only achieved 10 per cent  at the end of the period. He, however, said NERCdeveloped another framework to ensure that electricity consumers are metered at the end of the period tagged: ‘Credited Advance Payment Metering Implementation (CAPMI).’

    Amadi, who spoke in Lagos during the week, while reacting to the recent tariff increase, said the idea was to allow willing customers advance a particular company with funds for the purchase and installation of meters for their premises. This means that a customer pays for the cost of the meter up front, while the cost of the meter shall subsequently be refunded through a rebate on the fixed charge element of their electricity bills.

    Amadi, however, said in the mean time, estimated bills are still being used to ensure that between 50 and 70 per cent of electricity consumers are not disconnected before the metering processes are completed. He, however, explained the implication of the new tariff regime, noting that tariff allows for more investments in the industry.

    Explaining the parameters used in arriving at the tariff, he noted that the cost of generation and transmission are principally considered with the effect of inflation and exchange rate variations all of which are factored in.

    Amadi gave three reasons for poor supply of electricity as supply, metering and tariff problems, noting that electricity in the country has been hovering around 4000-MW per day, which is meagre compared to the huge population and industrial concentration in the country.

    Factors responsible for the poor electricity supply, he said, include but not limited to the shortage of gas, which is as a result of poor planning, lack of funds for DISCOs to pay for gas, poor prices of gas that does not add incentive to electricity generation and the location of generating plants far away from the gas bearing regions due to poor planning.

    Others are non-readiness of some generating plants, pipeline vandalism, legacy of debt before privatisation and project management, contracting and execution challenges.

    But the Manufacturing Association of Nigeria (MAN) is not impressed with all the reasons given for the tariff increase. MAN President, Dr. Frank Udemba Jacobs, said the tariff hike came despite investigation carried out by the association on their electricity consumption, which showed manufacturers on the average expend N73.12 million on alternative sources of energy monthly.

    “The share of energy cost to total cost of production in the sector is about 40 per cent,” Jacobs lamented, saying that the association is against all manners of tariff increase until their suit in court against NERC is settled. He said anything done in the contrary is prejudicial to the subsisting case.

    Also, the Socio-Economic Rights and Accountability Project (SERAP) has advised the Minister of Power, Works and Housing, Mr. Babatunde Fashola, to “ensure that regulatory authorities are not allowed to get away with the 45 per cent increase in electricity tariff by promoting compliance with the November 2013 ruling on the matter by two United Nations (UN) special rapporteurs.

    SERAP’s advice followed a nationwide protest by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) against the increase in electricity tariffs, demanding an immediate reversal of the hike.

    A statement by SERAP Executive Director, Adetokunbo Mumuni, said Nigeria is an important member of the UN and has voluntarily accepted its Charter and treaties, adding that any effort to increase electricity tariffs should be guided by recommendations and dialogue with organised labour and other stakeholders.

    The organisation noted that the UN published the Joint Letter of Concern sent to the administration of former President Goodluck Jonathan where it expressed concerns that access to electricity and regular supply is a significant problem in Nigeria and that it raised eight questions for the government to answer within 60 days.

    The letter, dated November 26, 2013 and signed by two special rapporteurs, expressed concerns that at the end of 2012, Nigeria with a population of about 160 million people only generated about 4,000 megawatts of electricity, which is 10 times less than some other countries in the region with less population.

    The UN special rapporteurs argued that the beneficiaries of the right to adequate housing should have sustainable access to energy for cooking, heating and lighting, adding that the failure of states to provide basic services such as electricity is a violation of the right to health.

    The rapporteurs, Ms. Magdalena Sepúlveda Carmona, Special Rapporteur on extreme poverty and human rights, and Ms. Raquel Rolnik, Special Rapporteur on adequate housing, sent the letter following a petition by a coalition of human rights activists, labour, journalists and lawyers led by SERAP.

    The petition alleged that increase in electricity tariff would have detrimental impact on the human rights of those living in poverty in the country.

    The special rapporteurs wanted answers to the following questions: “Are the facts alleged by SERAP and others accurate? What kind of impact assessments were conducted to gauge the potential impact of the electricity tariff increases on the human rights of people living in extreme poverty in Nigeria?

    The special rapporteurs further said: “If so, provide details, did public consultations take place, including with potentially affected persons and, especially people living in extreme poverty? If yes, please give details of the dates, participants and outcomes of the consultations.”

    Other questions raised are: “Was accessible and culturally adequate information about the measure actively disseminated through all available channels prior to consultation? What measures have been put in place to ensure that the human rights of people living in extreme poverty in Nigeria will not be undermined by the increase in electricity tariff?”

  • Consumers seek waivers as new tariff takes off

    Electricity consumers are asking for waivers from power distribution companies (DisCos), following the decision of the Federal Government to implement the new tariff, The Nation has learnt.

    Consumers, it was gathered, have been approaching the DisCos to cancel  some of their  debts in order to ease the burdens the new tariff is bringing upon them and charge  them less,  especially those  of them  that do not have meters, among others.

    Investigations showed that consumers, who owe fixed charges, were also meeting DisCos to cancel their debts. A veterinary doctor, Akininyi Emmanuel said consumers were asking for waivers because they know that they would not be able to pay the new tariff.

    He said consumers under the Ibadan Electricity Distribution Company (EBEDC) have been trying to get waivers since the new tariff took off about two weeks ago. Akininyi, who lives in Ibadan, Oyo State capital, said many have sought ways of negotiating with the company, following the introduction of the new tariff.

    When The Nation visited some of the Business Units owned by the Ikeja Electric and Eko Electricity Distribution Companies (EKEDC), it found out that consumers have been asking for concessions since February 1, when the new tariff took off concurrently with the removal of fixed charges.

    A staff of Ikeja Electric, who pleaded anonymity, said many customers, who came to recharge their meters have been asking for cancellation of the fixed charges they owed.

  • Gionee relieves consumers with super power M5 mini Phone

    Based on the need to meet consumers’communication needs,  consumers can now do without power banks  as  Gionee, a global phone manufacturer, has introduced into the market a new phone that will address the needs of the Nigerians, especially with power outage.

    Speaking at the media launch of the phone in Lagos, the Marketing Director of Gionee, Mr. Habeeb Somoye, described the phone as elegant in style and sleek in design.

    The phone is aimed at meeting the desired needs of phone users who are constantly on the go. It is designed to align with lifestyle of consumers.

    The new phone combines fashion with creativity with a better user experience. It seeks to fit into the lifestyle of phone users to  build affinity for the brand.It underscores Gionee’s focus on innovation, efficiency and style.

    To further engage the consumers, Gionee has established 50 customer care centres across the country to deepen equity for the brand while also providing accessibility   its unique range of products.

    The phone targets the 25-40 age bracket to further enhance their status of owning a phone that meets their communication needs, especially the longer duration of battery functioning.

    This comes a as huge relief to Nigerian phone users as the era of carrying power packs alongside their phones is eliminated with the  unveiling of  Gionee  M5 mini smartphone with 4000mAh  battery power designed to last three to four day of battery stand by when fully charged, in addition to having capacity to  charge four others phones.

    M5 mini is a 5.1 android phone designed with a 2GB RAM size and 16GB internal storage guarantees users enough space to store over 1000 songs, five hundred videos and hundred applications, files and documents. M5mini is conceived with the entrepreneurs and outdoor professional of age range of 25-40 years in mind.

    Showcasing the distinctive strengths of M5 mini-phone,  Somoye explained that to make the phone adaptable to professionals working outside of the office, it was designed with on the go OTG capability and with this feature the phone can be connected through USB to printer, landline telephone, computer system as well mouse, thus giving it enormous outdoor capabilities.

    The phone has inbuilt software that manages it power even at its lowest level ensuring that the phone delivers on its functions.

    According to him, M5 mini is designed smooth and sleek 2.5D water drop and 5.0 HD IPS screen surface which delivers clear and sharp images with its 1280 x 720 HD resolution and it operates at a rather impressive processor speed of 1.3GHz Quad core.  Gionee’s understanding of customers demand for a phone of all occasions brought about the inclusion of 8MP rear and 5MP front cameras, which gives users satisfaction in taking those impulsive selfies with the selfie-enable front camera. To us, Somoye said, M5 mini is a phone as well as a gadget.

    He disclosed that Gionee has customer service centre in 15 major cities in Nigeria to ensure that customers are prompting attended to when there issues. Depending on the challenge with the phone customer can have their phone rectified in a day or maximum of five days where more serious technical issues are involved.

    M5 mini is a 143.5 x71x9.6mm Smartphone of 189.5g weight having 5.0HD IPS and 1280×720 pixels. In terms of connectivity, M5 mini is compatible with GSM, WCDMA, WI-FI, bluetooth 4.0 and dual SIM standby.

    The phone manufacturer, GiONEE, is a global communications brand that has continually introduced highly innovative and technologically advanced phones to the global market. In Nigeria, it focuses on delivering high quality phones that fit the lifestyle of the Nigerian middle and upper class without hurting their pockets. GiONEE focuses on efficiency, style, and affordability in ways that other leading brands do not.

  • Gionee relieves consumers with super power M5 mini Phone

    Based on the need to meet consumers’communication needs,  consumers can now do without power banks  as  Gionee, a global phone manufacturer, has introduced into the market a new phone that will address the needs of the Nigerians, especially with power outage.

    Speaking at the media launch of the phone in Lagos, the Marketing Director of Gionee, Mr. Habeeb Somoye, described the phone as elegant in style and sleek in design.

    The phone is aimed at meeting the desired needs of phone users who are constantly on the go. It is designed to align with lifestyle of consumers.

    The new phone combines fashion with creativity with a better user experience. It seeks to fit into the lifestyle of phone users to  build affinity for the brand.It underscores Gionee’s focus on innovation, efficiency and style.

    To further engage the consumers, Gionee has established 50 customer care centres across the country to deepen equity for the brand while also providing accessibility   its unique range of products.

    The phone targets the 25-40 age bracket to further enhance their status of owning a phone that meets their communication needs, especially the longer duration of battery functioning.

    This comes a as huge relief to Nigerian phone users as the era of carrying power packs alongside their phones is eliminated with the  unveiling of  Gionee  M5 mini smartphone with 4000mAh  battery power designed to last three to four day of battery stand by when fully charged, in addition to having capacity to  charge four others phones.

    M5 mini is a 5.1 android phone designed with a 2GB RAM size and 16GB internal storage guarantees users enough space to store over 1000 songs, five hundred videos and hundred applications, files and documents. M5mini is conceived with the entrepreneurs and outdoor professional of age range of 25-40 years in mind.

    Showcasing the distinctive strengths of M5 mini-phone,  Somoye explained that to make the phone adaptable to professionals working outside of the office, it was designed with on the go OTG capability and with this feature the phone can be connected through USB to printer, landline telephone, computer system as well mouse, thus giving it enormous outdoor capabilities.

    The phone has inbuilt software that manages it power even at its lowest level ensuring that the phone delivers on its functions.

    According to him, M5 mini is designed smooth and sleek 2.5D water drop and 5.0 HD IPS screen surface which delivers clear and sharp images with its 1280 x 720 HD resolution and it operates at a rather impressive processor speed of 1.3GHz Quad core.  Gionee’s understanding of customers demand for a phone of all occasions brought about the inclusion of 8MP rear and 5MP front cameras, which gives users satisfaction in taking those impulsive selfies with the selfie-enable front camera. To us, Somoye said, M5 mini is a phone as well as a gadget.

    He disclosed that Gionee has customer service centre in 15 major cities in Nigeria to ensure that customers are prompting attended to when there issues. Depending on the challenge with the phone customer can have their phone rectified in a day or maximum of five days where more serious technical issues are involved.

    M5 mini is a 143.5 x71x9.6mm Smartphone of 189.5g weight having 5.0HD IPS and 1280×720 pixels. In terms of connectivity, M5 mini is compatible with GSM, WCDMA, WI-FI, bluetooth 4.0 and dual SIM standby.

    The phone manufacturer, GiONEE, is a global communications brand that has continually introduced highly innovative and technologically advanced phones to the global market. In Nigeria, it focuses on delivering high quality phones that fit the lifestyle of the Nigerian middle and upper class without hurting their pockets. GiONEE focuses on efficiency, style, and affordability in ways that other leading brands do not.

  • Have consumers fared well this year?

    Have consumers fared well this year?

    Looking back, the Nigerian consumers have come a long away. They have been abused, cheated, insulted, denied their rights, trampled upon and outrightly robbed by service providers, manufacturers, sellers of goods, etcetera as a result of a weak system that lacks the necessary impetus to fight for consumer rights.

    But how are the consumers faring now? Since the past one year, have they recorded any positive change or has life become tougher, that is, not considering the fuel scarcity and the erratic power supply?

    The federal government’s apex body set up to protect the interest of consumers, Consumer Protection Council of Nigeria (CPC), what is their stand on this and what contribution does other government agencies, like the National Agency for Food Drug Control and Administration (NAFDAC) and the Standards Organisation of Nigeria (SON) set up to regulate and enforce standards say on this issue?

    “Consumers of today are better informed than those of the previous years. You see more consumers taking their cases to courts and other government regulatory agencies than before because they are more aware of their rights,” said Barrister Steve Ogoejior, President, Consumer Rights Enforcement Nigeria, a non governmental organisation.

    Speaking with him in his office at Awolowo Rd. Ikoyi, Lagos, the lawyer though regretted that justice and redress sometimes take a long time to achieve for the aggrieved consumers, adding that it has made many of them to lose confidence in the Nigerian judiciary system.

    Nevertheless, consumer rights protection has improved. We are not where we used to be and to do more, both the aggrieved consumers and government agencies established to enforce the rights of consumers must do more. More consumers must come forward to report cases while the government agencies must get justice for the aggrieved.

    “Yes, I can say that consumers now know they can channel their complaints to CPC and get redress,” said Mr. Abiodun Obimuyiwa, Deputy Director, Public Relations, CPC Head quarters.

    Speaking further, he explained that he was not making that statement because he is a staff of CPC but because of the increased number of complaints which consumers bring to their office. “We have television programmes where we enlighten and educate consumers on their rights and the necessary steps to take in order to get justice and I think the TV programme is paying off.”

    In a telephone interview, he revealed that due to the actions of the council against some multinationals this year, that a lot of other manufacturers have started taking customer service and relations more seriously.

    “A majority of them are now more careful in dealing with their customers. They know there is a Sheriff out there and they do not want to be reported,” said the Deputy Director.

    “Though we are not where we want to be in terms of protection and self regulation, we are gradually getting there. We want a situation where manufacturers, service providers and retailers do what they are supposed to do. A situation where they inculcate good customer relations in their daily dealings with customers, not situations they are being forced to do it because a customer has faulted them,” he stated.

    However, the Director General of the Council, Dr. Dupe Atoki, had said before that many challenges were militating against the council from fully achieving its mandate. If these challenges are resolved, life will even be better for the Nigerian consumers.

    These challenges, the DG listed as poor funding, apathy on the part of consumers, lack of awareness, inadequate offices and staff.

    “Seven offices in each geopolitical zone and an extra one for Lagos because of the commercial activities and the headquarters, in a country where we have over 170million people, I think that is grossly inadequate. We have a staff strength of barely 250,that, again, is a challenge, a great one which I believe we need to address urgently.”

    Expatiating on some the challenges which are hindering them and which if addressed will place the consumer in a better position, the DG pointed out that consumer illiteracy has not been an advantage to them. “You cannot protect people who do not know their rights. Is when you know your rights that you assert it, but if you do not, you remain docile. You remain trampled upon and you continue to be abused. We need funds for more awareness.”

    Another issue which would have improved the lot of consumers is the passing into law of the ‘Competition and Consumer Protection Bill’ which will bring about a competition regime that will enable businesses to operate more effectively in the Nigerian market place.

    According to the former Minister of Trade and Investment, Dr. Olusegun Aganga, who first made this promise since 2013, he said that the bill “will enable the nation to harness the gains of privatisation and deregulation, modernise the legal provisions for consumer protection in Nigeria and at the same time build the required synergy between competition and consumer protection in the country.”

    Among other benefits, the proposed law will address issues related to price fixing and the right of consumers. It will also check unhealthy competition among companies which in some cases result in organisations running down one another.

    But two years after, consumers are still waiting for the law.  Though there has been an improvement in the lot of consumers this year, more improvement could have been recorded if the federal government had also passed into law the bill sent to it by NAFDAC for stiffer penalty for people caught in the adulteration and importation of fake and substandard drugs and food products.

    The Director General of NAFDAC, Dr. Paul Orhii, has repeatedly stated that the present existing punishment which stipulates 15 years jail term and option of N500,000 for offenders does not serve as enough detriment for the criminal.

    “We are advocating life jail term, without an option of fine, confiscation of assets of offenders, and a law which guarantees reward for individuals who expose those involved in the nefarious activities,” said the NAFDAC DG.

    Nigerian consumers should not rest on their oars but we must continue to agitate until a good law is available to protect our interest. We must resist any attempt by any individual or group of people to frustrate the process at the National Assembly. In this year, we have recorded improvements in the ways consumers are treated and we shall see more improvements in the coming year. Gradually, we shall get there.

    As we usher in year 2016, I wish you all a glorious and prosperous year.

  • Consumers bemoan absence of meat in beef sausages

    Consumers bemoan absence of meat in beef sausages

    Beef sausage rolls and beef rolls as they have been christened by their manufacturers are not food products one needs to go far to get in Nigeria.

    They roll off the conveyor belts in various factories in their thousands every day and end up being sold along the roads in traffic, corner shops, open market, super markets, virtually in every nook and cranny.

    It is one of the most convenience foods for a hungry person. It is a piece of sausage meat baked in a roll of spiced pastry or dough.

    Practical food? Yes, because it is handy, tasty, affordable as it sells for N50 each, quite filling especially when eaten with a bottle of drink, can be easily accessed, neatly and safely packaged as a majority of the popular brands are produced by multinational companies.

    Beef sausage rolls have become a food product most Nigerians have come to trust and rely on especially when you are hungry and trapped in traffic hold ups like the ones experienced by Lagosians.

    The most popular brands are Gala from the UAC foods, Meaty from Leventis Stores, Chopsy beef Rolls manufactured by UTC foods, Super Bite/ Beef Rolls from CHI Ltd, Bigi etcetera.

    The sausage industry in Nigeria started with the first brand Gala, from UAC foods, in 1962. Then it was sold only in Lagos. For those outside Lagos State, it was a must-buy for them any time a relation or close ones travel to Lagos. Both adults and children relish the gift of gala sausage roll from Lagos.

    However, the market has greatly expanded. With many brands in the offing now, there is virtually no place in the country that one cannot find these snacks. Though the amusing thing is that the name gala has stuck with most people. Most consumers still refer to other brands as gala. It is a common thing to hear a buyer calling on the boys who hawk this product in traffic to bring gala, then when the seller comes with his cartoon filled with the various brands, the buyer will then select or ask for a specific brand. Generally people in most cases refer to all of them as gala.

    Is the so called beef sausages/rolls, or should I ask the pastry tasty? Yes. The problem, however, is that consumers do not know if the snacks are qualified to be called beef sausage as a majority of the brands do not seem to have any resemblance of beef in them.

    The stuffing that is supposed to be beef does not seem beefy neither does it taste meaty. The filling of the gala of old tasted meaty as is attested to by some consumers and that was why consumers got hooked to the product and when other companies saw their success rate they all went into the business. Unfortunately, they did not imitate the UAC standard of old. What we have as stuffing in the so called beef rolls are just spiced, lumpy, pink coloured dough.

    If at all there is any resemblance of minced beef in them, is the percentage of the meat enough to qualify those sausages as beef rolls and beef sausages not to talk of being called ‘Meaty’?

    Nigerian consumers definitely deserve to be treated better. They have the right to be fully informed as to what they are buying. Many consumers have registered their anger and concerns with Consumer Watch. Recently, a Public Relations consultant, Larry Ofile Badmus, called in anger after buying one of the so-called beef rolls and wondered why such a product that has no meat in it should be registered by government regulatory agency as a ‘beef roll’.

    “They can market the products but under different names that do not reflect or give the impression that the filling is made with beef,” adding that the manufacturers should be called to change the deceptive names or add enough beef to the stuffing to qualify it as a beef roll or ‘Meaty’ sausage”.

    However, reacting to the allegations, Mrs. Joan Ihekwaba, the General Manager, Marketing UAC Foods, makers of the leading brand, Gala, strongly stated that “Gala sausage rolls stands out with its unique beef filling made from pure beef, micronutrients, seasonings and other ingredients stated on the packaging in line with regulatory requirements.”

    Speaking in an interview, she refuted claims that the Gala of the 80s was of a higher quality than what we have now. She said that UAC Foods has not rested on its laurels but has rather improved its value offering over the years.

    “The brand is now 53years old and several improvement initiatives are routinely carried out towards meeting consumer’s expectations. It is the first brand in Nigeria to include micronutrients,” emphasised the GM Marketing, UAC Foods.

    Explaining further, Mrs. Ihekwaba said that the company engages in regular consumer research and identifies with aspirations of Nigerians and their appetite for success, thereby providing consumers with top quality safe and healthy convenience foods.

    Speaking with a nutritionist and food scientist at the Federal Institute of Industrial Research Oshodi (FIIRO), she said that for those snacks to be qualified to be called beef sausages and beef rolls they must contain between 15% and 20% beef in them.

    Analysing the stuffing in most of the popular brands, the civil servant, whose name cannot be mentioned because of civil service rules, said the manufacturers should change their recipes and include enough meat in their products or change the names of those products.

    “The stuffing is strong and even stony which should not be the case. It’s just spices, flour, binders, pink food colouring and maybe very tiny amount of minced meat which does not qualify the snacks as meaty or the other names,” she said.

    Calling on the manufacturers to stop the deception, she advised them to change their recipes or come to FIIRO for help in reformulating their recipes.

    “Though those manufacturers know the right thing to do, it’s just greed for high profit that is beclouding their sense of judgement,” she claimed.

    Exonerating NAFDAC, the civil servant said that most of the manufacturers present the right food products for reviews and inspection only to start producing substandard products after NAFDAC, SON must have issued them with approvals.

    However, that excuse does not exonerate the regulatory agencies as their duty does not end with the first inspection. They are supposed to carry out regular checks and monitoring to ensure standards are enforced and maintained.  Besides, they are residents of this country and definitely they are equally patronising those products.

    Reacting to the issue in her office at NAFDAC office, Isolo, Lagos, NAFDAC Public Relations Manager, Mrs. Christie Obiazikwor, said that the sausages actually have beef filling. Strongly debunking claims that the stuffing were anything other than beef, she said that the agency would not have approved them if that was the case.

    At the office of CHI Ltd, the company’s Customer Relations Manager insisted that the stuffing in both Super bite and Beef Rolls produced by them were minced meat.

    In fact, she said that at a time they had complaints from consumers who said that they were coming across difficult chewy parts of meat when they munched their beef rolls, adding that their recipes are a reflection of consumer demands and wants.

  • Chi Limited introduces handy packs for consumers

    In an ever dynamic market, innovation is crucial to differentiating a brand from the crowded pack. For a brand that has grown to become the market leader in Nigeria’s juice and fruit drink market, it is imperative that innovative ideas drive the production, packaging and marketing of its high quality products. CHI Limited’s recent introduction of the “can pack” for their juice like Chivita 100%, Chivita Active and Chi Exotic is a reference point to how the brand has leveraged on consumer feedback to drive innovative and affordable packaging that suits their lifestyle.

    The new juice can pack which is targeted at hip, trendy and on-the-go consumers is designed in a dynamic prismatic shape with an attractive cap that is well blended into the pack. With an affordable price of N100, the 315ml can pack contains enough juice to satisfy individual consumption and offers competitive pricing as well as value for money. Its handy size allows consumers to take it along with them wherever they go and fits into the lifestyle of young upwardly mobile consumers.

    According to Deepanjan Roy, Managing Director, Chi Limited, “the new and attractive 315ml can pack has a genuine consumer appeal and the feedback from the market has been fantastic. At the cost of N100, we are confident that the affordability, accessibility and convenience of this trendy, handy and on-the-go can packs would ensure that our consumers continue to get the same refreshing taste and nourishment.

    “Consumers have extolled the can pack size for its elegance, convenience and shelf appeal. They particularly appreciate its advantages over aluminium can packaging because it is easy to hold, pour from, and is far more environment friendly,” Mr. Deepanjan stated

    With its range of high quality fruit juices like Chivita 100%, Chivita Active and Chi Exotic in the can pack, the story can only get more interesting for a brand that truly places premium on consumer needs and satisfaction

    The 315ml juice can packs are currently available in Chi Shoppe, departmental stores, open markets, hotels and neighbourhood shops across Nigeria and retail at an affordable cost of N100.