For blue chip companies looking to maintain their steady growth rate in an ever more competitive market, Africa offers a unique opportunity. Many of the fastest growing economies in the world are located on this continent and, whereas many Western Countries are seeing little to no population growth, Africa’s population continues to increase.
Nigeria is one of the most important markets in Africa due to its large population, over 205 million people, and has the continent’s biggest economy.
The economy has seen some turbulence in recent times due to covid and fluctuating oil prices but according to a Trading Economics, Nigeria has a growth rate of over 3.5% pa.
It is important to note that 90 percent of Nigeria’s retail market transactions happen in the informal channels, and the food and consumer goods-retail market is worth an estimated $40bn.
Frontline Research Group – specialists in the informal trade
The Frontline Research Group (FRG) are informal market experts and they generate helpful tactical and strategic insights into what may appear to be a chaotic environment.
Steve Johnson, Managing Director at FRG says that they have worked in Nigeria for many years, but have become more active recently.
“We have completed a partial census of the Nigerian market in 2021 and 2022 and have developed market landscape data which provides great insights into Nigeria’s key cities, Abuja, Ibadan, Enugu, Lagos, Owerri, Port Harcourt,” says Steve.
Steve says, “We have been running a Monthly Retail Audit Panel since May 2022 and we now have a year’s worth of tracking data. The insights this data provides has been remarkable.”
The Monthly Retail Audit tracking measures include sales volume and share, sales value and share, facings share, distribution, price and merchandising.
Changes in the economy of Nigeria and the need for a new retail census
Nigeria, like other countries around the world, saw significant changes in shopper behaviour post covid and these changes have yet to quantified.
Steve says, “It has become crucial for businesses in the FMCG industry to understand the current market conditions, consumer behavior, and the overall state of the retail sector.”
To this end FRG are looking for partners who would be interested in sharing the costs of a retail census in Nigeria.
A syndicated Retail Audit in Nigeria
FRG have experience and success in retail audits in the alcoholic beverage industry and have made the decision to diversify their retail audit offering in to new market sectors and are looking to syndicate this research.
They are well-equipped to apply their methodologies and expertise to confectionery, canned food, dairy, tobacco, soft drinks, and energy drinks, aiming to provide comprehensive insights and analysis
By syndicating their retail audits, Frontline Research Group offers businesses access to valuable data and insights. Companies can gain a deeper understanding of market trends, consumer preferences, and competitor activities specific to their respective sectors at a competitive cost.
“A syndicated approach to retail census and audits makes very good financial sense as the cost of collecting much of the data may be shared across the participants. Many of the FMCG products share common characteristics in the supply chain and so tracking costs may be reduced per product,” adds Steve.
If you are interested in finding out more about a retail census and audits in Nigeria contact Steve Johnson, DIRECTOR OF NEW BUSINESS DEVELOPMENT, on +27 (0) 84 2000 111 or steve@frontlineafrica.com