The Nation Newspaper

Tag: sales

  • BDCs lose ground to banks in forex sales

    BDCs lose ground to banks in forex sales

    More than 700 Bureaux De Change (BDC) operators are inactive in the Central Bank of Nigeria’s (CBN’s) Forex Window as forex end users embrace commercial banks, The Nation has learnt.

    The preference for commercial banks followed the uncompetitive rate regime that shifted the business patronage in favour of the lenders. The practice has cut BDCs’ turnover, putting their businesses under threat.

    Confirming the development at the weekend,  Association of Bureaux De Change Operators of Nigeria (ABCON) President Aminu Gwadabe said the BDC business had been badly affected by the uncompetitive rate as the CBN sells dollars to BDCs at higher rate compared to what the regulator sells to commercial banks, yet both institutions target the same market segment and customers.

    On the CBN’s approved list, 3,389 BDC operators have been licensed and are expected to get $40,000 weekly from the CBN Forex Window. The apex bank disburses about $135.5 million to the 3,389 registered BDCs weekly to sell to forex end users. The funds are for Personal Travel Allowances (PTA), Business Travel Allowances (BTA), medical needs and school fees.

    The BDCs, Gwadabe said, buy dollar from the CBN at N360/$1 and sell to end users at N362/$1 while the regulator sells to commercial banks at N358/$1 and the banks sell to end users at N360/$1.

    Gwadabe described the buying rate for the BDCs as “uncompetitive” and “a big disincentive for many forex users to patronise the operators. He said the banks and the BDCs service the same market segment, they should get dollars at the same rate to enable both institutions compete favourably.

    According to the ABCON boss, the banks enjoy a large customer base with the customers having their accounts debited to cover the cost of purchase. Such convenience plus a lower rate put the banks at an advantage position to attract more customers than BDCs, he said.

    He lamented that BDCs are not only buying at exorbitant rate, but also sell at a rate higher than that of the banks, hence creating low patronage for the operators.

    Gwadabe advised the CBN to review the rate at which the dollar is sold to the BDCs to boost the recovery of the naira against dollar. The naira has remained at N368/$1 at the parallel market in the last one week, a major improvement from N520/$1 it exchanged last February.

    He said the success recorded by the CBN in stabilising the naira was largely contributed by the BDCs, which remain backbone of the retail forex segment of the economy.

    “The CBN should be proactive enough to quickly review the BDC buying rate to ensure effective competition among all the stakeholders. There is no need to give the banks undue advantage over the BDCs as is currently the case based on the level of disparity seen in the dollar buying rate by both sectors. Nothing stops the CBN from ensuring that both the banks and BDCs buy dollars at same rate,” he stressed.

    Gwadabe said the rate challenge faced by BDCs, if not checked, would trigger a liquidity crisis that may derail the ongoing recovery of the naira against the dollar. He said the BDCs will continue to support CBN’s determination to stabilise  the exchange rate, and strengthen the value of the local currency.

    Gwadabe also called on the CBN to increase the volume of Personal Travel Allowances (PTAs) from $4,000 to $8,000; Business Travel Allowances (BTAs) from $5,000 to $10,000; school fees from $5,000 to $20,000 and medicals from $5,000 to $15,000 quarterly to deepen liquidity in the market.

    Gwadabe praised the CBN for liberalising the forex market and making more dollars available, adding that making the funds readily available in right volumes will double the positive impact of the policies on the economy.

  • Lagos resumes sales of Lake Rice

    Lagos resumes sales of Lake Rice

    Lagos State Commissioner for Agriculture, Mr Oluwatoyin Surau has said that the sales of Lake Rice will resume at designated outlets across the state today.

    Suarau explained that the sale of the product is part government’s commitment to ensure that Lagosians scale through recession.

    Governor Akinwunmi Ambode, he said, had assured Lagosians that his government would do all  to achieve food security and create more jobs.

    The Commissioner hinted that sale of the product is auspicious especially with regards to next week’s Eid-il-fitr celebration.

    He said the rice which had been subsidised by the government is available at different sizes and at approved outlets. This, he said, would make the product affordable for residents, adding that the rice is fresh and safe for consumption.

    Suarau assured that the ministry would ensure a fair distribution of the rice across the state and ensure that product is available during the festive period.

    The Commissioner listed the approved sales outlets to include; Lagos State Agric Input Supply Authority Centres at Ojo, Ajah, Odogunyan in Ikorodu, and Epe as well as the secretariats of all the 57 Local Government and Local Council Development Areas in the State.

    “Lake Rice would also be available for sale at the Agricultural Development Area Complex Oko-Oba, Agege; LTV Complex Agidingbi; State Universal Basic Education Board, Maryland; Government Technical College, Idimu-Alimosho and the Eko Farmers Mart Surulere”, Suarau added.

    While noting that the prices of the product has not changed, he said that the 50kg bag of Lake Rice would be sold for N12,000 while the 25kg and 10kg will be sold at N6,000, and N2,500 respectively.

  • REGISTRATION OPENS FOR AFRICA’S FIRST SALES REALITY SHOW

    REGISTRATION has started for aspiring contestants for Africa sales Academy, a ground-breaking platform created by SBA Interactive and the Olusola Lanre Coaching Academy (OLCA) first ever Nigerian Sales reality competition which is set to commence this year.

    According one of the founders of the reality show, Lanre Olusola, the sales reality competition has been created as a unique opportunity to challenge and motivate ambitious individuals with a passion for sales, towards a progressive and financially rewarding career

    “The Africa Sales Academy and her partners are giving hope and empowering entrepreneurs to create their own businesses and also create employment.  He added that by creating a unique platform for training job seekers in a competitive environment, the Sales Academy will churn out exceptional sales professionals who will ultimately be placed in employment at prominent organisations,” Olusola said.

    The competition will go through phases beginning with applications and filtering, then intensive coaching, live competitions and final selections. However, unlike random reality competitions, the Sales Academy will mentor, coach and empower every applicant who makes the top 1,000 list, and also have cash prizes for the final 250 participants, 3rd prize winner, 2nd prize winner and a grand prize of 3 million naira for the best sales participant, he revealed.

    The Sales Academy boasts of a robust faculty in the persons of Sales Guru, Segun Akande, Investment Banker, Joseph Edgar and Life & Executive Coach, Lanre Olusola who will also play major mentorship roles and provide support to the sales contestants during the live shows.

  • Infiniti Motor breaks new sales record

    Infiniti Motor breaks new sales record

    Infiniti finished the first half of the year with a new sales record. The company sold more than 110,200 vehicles, an increase of seven percent over the same period last year.

    In the month of June, more than 19,300 vehicles were sold, up 15 percent versus June 2015, and in the second quarter of the year (April-June), Infiniti set a new record with almost 53,000 vehicles sold representing an increase of four percent.

    This marks the best ever June for Infiniti sales globally and in several key markets including Canada, Mexico, Latin America, Western Europe, China and Australia.

    Year to date, Infiniti had record sales for the Americas (U.S., Canada, Mexico, and Latin America) along with Canada and Mexico individually, Western Europe, Middle East, Asia & Oceania (“A&O”), Korea and Australia.

    Western Europe sold close to 1,600 vehicles in June, which is an increase of more than 150 percent over June 2015. Year to date, more than 9,500 vehicles were sold, up 177 percent from the same period last year.

    In Americas, 12,300 vehicles were sold in June, 11 per cent more than in June 2015. Year to date, approximately 72,100 vehicles were sold, an increase of two per cent from the same period last year.

    In Asia and Oceania (Australia, Korea, Taiwan and other markets), Infiniti sold 540 vehicles in June, which is an increase of 14 percent over the same month last year. For the first half of 2016, Infiniti sold almost 3,300 vehicles, which is an increase of 25 per cent over the same period the previous year.

    In June, Infiniti set a new record for China with 3,700 vehicles sold, 12 per cent up from June 2015. Year to date, Infiniti sold more than 18,600 vehicles in China, a slight drop of 2 percent from the same period last year due to product availability in April and May.

    Infiniti Motor Company President Roland Krueger said: “Infiniti continues to deliver strong results. I’d like to thank our customers around the world that made Infiniti their trusted choice. With new products such as the QX30 and the Q60 coming on stream, we are very confident about our prospects in the second half.”

    Infiniti Motor Company Ltd is headquartered in Hong Kong with sales operations in over 50 countries. The Infiniti brand was launched in 1989. Its range of premium automobiles is currently built in manufacturing facilities in Japan, the United States, United Kingdom and China.  Infiniti plans to also expand manufacturing into Mexico by 2017. Infiniti design studios are located in Atsugi-Shi near Yokohama, London, San Diego and Beijing.

  • Kia Motors posts 3.4 per cent rise in global sales

    Kia Motors posts 3.4 per cent rise in global sales

    Kia Motors Corporation has  announced its May 2016 global sales figures (export sales, domestic sales and sales from overseas plants) for passenger cars, recreational vehicles (RVs) and commercial vehicles, recording a total of 261,269 units sold. This figure represents a 3.4 per cent year-on-year increase compared to the same month of 2015.

    In May, Kia posted year-on-year sales increases in the domestic Korean market (19.0 per cent growth with 47,614 units sold), Europe (8.5 per cent growth with 53,298 units sold), China (0.7 per cent growth with 51,002 units sold) and North America (0.2 per cent growth with 70,032 units sold).

    Cumulatively through the first five months of 2016, Kia’s global sales totalled 1,201,936 units for a year-on-year increase of 0.5 per cent. Korea (224,244 units sold), Europe (251,129 units sold) and North America (294,533 units sold) have seen a 13.5 per cent, 7.4 per cent and 3.0 per cent rise in sales, respectively.

    Kia’s bestselling model in overseas markets during May 2016 was the Sportage compact CUV with 48,798 units sold. The B-segment Rio (known as ‘K2’ in China) was the second best seller with 36,445 units sold, while the C-segment Cerato (Known as ‘Forte’ or ‘K3’ in some markets), Soul urban crossover and Sorento midsized CUV followed with 31,372, 18,613 and 17,609 units sold, respectively.

  • Year of convergence for sales, media

    Year of convergence for sales, media

    • Online, mobile video advertising investment to increase

    Millward Brown, a research agency, has predicted that both sales and media will be united by marketers in its annual digital and media predictions for 2016. The forecast also stated that more brands will invest heavily in online, particularly mobile video advertising, in the new year.

    For the eighth consecutive year, the company is providing marketers with a clear guide on navigating the challenges and opportunities of the next 12 months.

    The annual digital & media predictions outline the need to optimise video and mobile advertising, evaluate connected TV opportunities and develop inspiring branded content.

    According to the agency, one prediction in the 2016 report identifies the opportunity for marketers to develop clearer consumer journey maps, from awareness to purchase, in order to better integrate sales and media touchpoints.

    The agency said the opportunity will become possible as digital platforms blur to an unprecedented degree the lines between media and sales disciplines, allowing marketers to optimise the consumer journey more than ever before.

    Accordingly, three key trends are expected to drive this opportunity. One, the marketing research stated that the consumer journey is becoming device and channel agnostic as people buy at the moment and in the way that best suits them. Secondly, the transformation of e-commerce sites from pure sales channels into media touch-points (where people advertise) and thirdly, the transformation of ad creative that links directly to purchase opportunities on digital channels.

    “Marketers who develop detailed consumer journey maps will be able to follow consumers along this new path to purchase, allowing them to identify the most powerful touchpoints from both sales and marketing along the way. This will give brand owners the power to deliver the seamless brand experience that consumers desire and drive brand, market share and sales outcomes, simultaneously and in harmony,” the forecast stated.

    Meanwhile, the Global Brand Director for Digital at the agency, Duncan Southgate, also said: “Sales and media touchpoints have traditionally been separate, but changes to the digital landscape and consumer behaviour now allow marketers to unify them for the first time,” “In  2016, we expect advertisers to map marketing contexts to an integrated consumer journey so that sales and brand-building content complement rather than compete with each other.”

    Millward Brown anticipates additional important changes in the media landscape and describes in the 2016 predictions how marketers can “get media right”.

    The agency predicts that brands will invest more heavily in online and particularly mobile video advertising in 2016, yet many will waste millions by neglecting to adapt content across formats.

    Also, connected TV (or Smart TV) is expected to take over the television viewing experience, bringing profound changes to the way people consume content while experimentation with workable addressable TV advertising models is expected to begin, although live TV advertising will remain dominant for now.

    In a bid to overcome low digital advertising receptivity, the forecast stated that more brands will become content creators. “As marketing moves from disruption to attraction, inspiring content marketing will move up the corporate agenda,” it stated.

    However, the forecast stated that smart marketers will involve digital considerations much earlier in the creative process and pre-test more assiduously.

    “The recent rise of ad blocking software means that consumer receptivity will be a big issue in 2016. Brands that fail to target consumers appropriately adapt content across formats or rely solely on paid advertising contentare unlikely to build engagement and drive sales. The ability to connect in digital platforms at a time when consumers are willing to do so, and with great content in a format that is not intrusive, will separate the successful marketers from those that simply annoy,” said Southgate.

  • Why back-to-school sales are low

    Traders at the Mushin Ojuwoye market in Lagos  have decried the low demand for  Back-to-School items.

    They said items, such as stationery, backpacks, school shoes/sandals , socks, etc have not been in demand since school resumed last week unlike in the past when sales would start topping demand two weeks to resumption.

    The traders told The Nation Shopping that sales were usually in September when the children were starting a new session. According to them, there is  high turnover for them during the period because parents will need to get new books, sandals, shoes, socks, uniforms, backpack, and other  items to replace the old ones.

    Manufacturers, they said, produce more in September than in other months.

    A trader at the market, Mr Uche Ndubuisi,who sells school bags, complained of low sales, saying the items are expensive from the manufacturers, leaving him with nothing to take home after selling.

    “I’ve not sold anything today because customers are refusing to buy. They walk away when the prices of items does not favour them. I cannot wait for September  when i make huge sales daily,” he said.

    Perhaps because of high prices, Mrs. Folashade Adebowale  could not buy a lunch bag and backpack. Instead, she bought one. According to her, she would buy the other next term.

    Owner of Emmy Bookshop Mushin, Mr.Emmanuel Umechukwu said the only Back-to-School items that are in high demand now are stationery, adding that they do not yield much income.

    He said textbooks are expensive directly from the manufacturers. “A textbook that we used to buy at the rate of N650 is now N730, meaning we would not be making profit, not even the N30 gain  we used to make.

    Madam Kofowola, who  sells wholesale school rubber sandals at the market, said: “We have not sold much this year, maybe because it is the beginning of a new year and most people are not back from their hometowns.”

    She added: “However, we sell more of our goods in June and in September when there is downpour and parents  would try to manage resources.”

    Optimistic that sales would pick soon, she said:  “I believe that by the end of this month when rain would have started, things would go back to normal as parents would opt for alternatives for their wards’ leather shoes.”

  • NCAA to airlines: remit over N6b debts from ticket sales

    NCAA to airlines: remit over N6b debts from ticket sales

    Nigeria Civil Aviation Authority (NCAA) has expressed concern about airlines’ failure to remit charges collected for Federal Government’s agencies.

    Domestic airlines owed the authority over N6 billion from the five per cent ticket, charter and cargo sales charges collected from the public.

    The charges, according to the NCAA, were paid to airlines to avoid collection before flights, thereby creating confusion and delays.

    In a statement yesterday, NCAA’s spokesman, Mr. Sam Adurogboye, called on the affected airlines to offset the debts, which were stunting the growth of aviation agencies.

    The statement reads:  “The NCAA notices with serious concern the huge debts of airlines as a result of failure to settle promptly invoices as at when due.

    “This poses serious financial challenges to parastatals that benefit from the five per cent ticket, charter and cargo sales charges.

    “Consequently, the NCAA would be pleased to see that the airlines put plans in place to liquidate all outstanding indebtedness. The settlement of those debts will assist the authority fulfill its statutory obligations to the country and the world.

    “The NCAA has tried many times  to get  the money from airlines that sometimes falsify and misrepresent the payment of the charges to the travelling public, accusing them of concealing the real reason behind the charges.”

    Adurogboye added that the five per cent charge was enshrined in the Civil Aviation Act and embedded in passengers’ fares, adding that airlines were supposed to collect it from passengers and pay to the NCAA.

    He explained that in line with the Civil Aviation Act 2006, the NCAA was saddled with the collection of five per cent sales charge on all tickets originating from Nigeria, cargo operations and charter/contract flights.

    After collection, the ticket sales charge is shared among aviation agencies namely: Nigeria Meteorological Agency (NIMET), Accident Investigation Bureau (AIB) and the Nigeria College of Aviation Technology (NCAT) as approved by the Civil Aviation Act 2006.

    He denied insinuations  that airlines were paying five per cent of their earnings to the NCAA as ticket sales charge.

    Adurogboye said: ‘’I wish to correct a serious misconception being sold to the public by some airlines. NCAA has reports that some airlines are purporting that the five per cent TSC is being paid to us from their earnings. This, they say, is adversely affecting their operations.

    “This is absolutely false and a misrepresentation. The TSC is content charged in the ticket sold to passengers. The airlines’ role is to collect and remit to the regulatory authority.”

  • Sales: Online shopping booms as grocery operators lament

    Sales: Online shopping booms as grocery operators lament

    Operators of large supermarkets and small businesses have raised alarm over a sharp drop in their sales, following the booming online shopping in the country.

    The News Agency of Nigeria (NAN) reports that online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet.

    Alternative names of the system include e-web-store, e-shop, e-store, online store, online storefront and virtual store.

    Some of the managers of the stores, who spoke with NAN, complained that e-commerce had slowed down their businesses as well as reduced volume of sales.

    The system has also caused decline in revenues accruing to state governments which have not perfected mechanisms to monitor activities of operators and collect revenues in their states.

    A survey on the operation of online shops in some major cities of the country, including Abuja, Port Harcourt and Kaduna, shows that small business operators are complaining of low patronage.

    Mr. Kazeem Olagoke, Manager, Samsung Telecommunications, in Abeokuta, noted that the ease in buying products online made such system more attractive to clients than buying from open markets.

    “Many people prefer to sit within the confines of their rooms and order for goods online which are being delivered to them without sweats.

    “You know it saves them transport cost, stress and time they could have spent to purchase the goods at physical markets.

    “So it is increasingly becoming difficult to attract and maintain clients,” he said.

    Mr. Adeyemi Johnson, Manager, Shallom Mega Stores at Oke-Ilewo, Abeokuta, noted that online shopping “has created serious competition in the physical market”.

    “Owners of the online businesses have their agents all around, who even visit our stores and lure away our clients.’’

    Dr Michael Simpson, a Lecturer at the Department of Economics at the Olabisi Onabanjo University, Ago-Iwoye, however, described online shopping as a positive trend in Nigeria.

    He noted that the development had contributed significantly to the entrepreneurial skill of Nigeria, particularly the youth.

    According to Mrs. Adenike Ajala, a civil servant, the advantages of online shopping is that online stores are opened 24 hours daily and internet offered many resources for products and price comparisons.

    “It provides customers with a wider range of products and services, many which cannot be found at the physical markets,” she said.

    Following the trend in business lull in open markets and the booming e-business, the Kaduna State Government said it planned to set up a structure to monitor the platforms with physical presence in the state.

    The state’s Commissioner for Commerce, Industry and Tourism, Malam Shehu Balarabe, said the ministry had begun to identify and locate all online-shopping outlets in the state.

    “We need to know where they are and how they operate with a view to checkmate their activities,’’ he said.

    The commissioner said that the measure had become necessary to protect consumers from fraudsters who would take advantage of internet’s free highway to swindle consumers.

    He noted the need to enlighten the public on the advantages and the dangers of online-markets that were fast gaining popularity with improved internet access.

    Mr. Jenom Nyam, a Kaduna businessman who utilised online platforms for over 10 years, said highlighted the high risk associated with it and the need for monitoring.

    “Sometimes when you make purchase online, after supplying your credit card details, money would be deducted from your account, but the goods will never get to you.’’

    However, an economist with the Kaduna State Ministry of Budget and Planning, Mr. Yusuf Auta, said in spite of the huge risk associated with e-shopping, government could still tap from its huge revenue potentials.

    Auta explained that the platforms provided huge employment opportunities and wide range of taxes that could be derived from the markets, if allowed to flourish.

    “Manpower is needed to run the market, thereby creating employment opportunities.

    “ The staff are paid salaries and obliged to pay Personal Income Tax (PIT) which is a huge source of revenue to the government.’’

    “Also, the organisations that run online-market platforms usually have physical presence where their goods are stocked for delivery to customers; government could charge ground rent on the land,’’ he said.

    Financial experts in Port Harcourt expressed divergent views on the potentials and benefits of the platform to the nation`s economy.

    Mr Emmanuel Jumbo, a management expert, said the system was not in the interest of the nation`s economy.

    “ It makes the buyer to pay more for any service.

    “ For instance, I ordered for a handset (phone) worth N28,000. I paid extra N2,000 as cost of delivery. It means that for anything you buy online, you pay extra.

    “ Meanwhile, the owner of the shop pays nothing as tax to government because he does not have a rented shop and operates from home,“ he said.

    However, Ephraims Okon, a stockbroker, said online shopping had brought a new dimension to commerce in the country.

    He also said that the proprietors paid tax to government because they also bought such goods from somewhere and in the process, paid Value Added Tax.

    Corroborating the position, the Director, Communications and Liaison Department, Federal Inland Revenue Service (FIRS) Mr. Emmanuel Obeta, said the operators were collecting agents, working on behalf of the Federal Government.

    Obeta said that every item sold by the online shop was inclusive of VAT element of five per cent, which would be remitted to the FIRS.
    “The five per cent VAT is attached to every product you buy so long as this goods is not VAT exempted.

    “ At the end of every month, these online shops which operate as registered businesses, when piling up their returns, remit the VAT to us (FIRS),” Obeta said.

  • Apple reports record sales of iPhone 6s, 6s Plus

    Apple (AAPL.O) said it had sold more than 13 million iPhone 6s and 6s Pluses during their first weekend on the market, setting a record for its marquee product.

    The company beat its previous record of 10 million in sales for the previous generation of iPhones in its first weekend in 2014. This year’s results benefited from the inclusion of the Chinese market, where regulatory problems delayed the gadget’s debut last year.

    Analysts had expected the company to sell 12 million to 13 million phones this past weekend.

    “Customers’ feedback is incredible, and they are loving 3D Touch and Live Photos,” Apple Chief Executive Officer Tim Cook said in a statement. “We can’t wait to bring iPhone 6s and iPhone 6s Plus to customers in even more countries on October 9.”

    Analysts had said Apple was virtually assured to set a new record for iPhone sales with the inclusion of China, which many expect will soon be the company’s largest market.

    But the figures announced on Monday suggest Apple’s iPhone sales were up overall, said FBR Capital Markets senior analyst Daniel Ives. He said the sales figures should ease investors’ concerns about how Apple will fare amid economic turmoil in China.

    “Demand out of China looks white-hot,” Ives said.

    Moor Insight & Strategy analyst Patrick Moorhead said the sales figures also suggested Apple seized some market share from Samsung Electronics Co Ltd (005930.KS), its chief rival in the smartphone market.

     

    Apple said the new iPhones would be available in more than 40 additional countries starting October 9, reaching more than 130 countries by the end of the year.

    The iPhone 6s and 6s Plus arrived in stores on Friday, kicking off a sales cycle that will be scrutinised for signs of how much allure remains for the smartphone.

    The company relies heavily on the sale of its flagship iPhones, which generated nearly two-thirds of its revenue in the latest quarter.

    Shares of Apple were down 1.5 percent at $112.97 in early trading.