This presentation gives an introduction on doing business in Nigeria by assessing its attractiveness for entry strategy for fashion and luxury companies.
2. AGENDA
1. Country Overview
1.1 Key Facts
1.2 The Business Environment
1.3 Foreign Direct Investment
2. The Nigerian Fashion Industry
2.1 Industry Definition
2.2 Key Local Players
2.3 International Players
2.4 Customer Profile
2.5 Distribution
2.6 Fashion Shows
2.7 Media
2.8 Production & Sourcing
2.9 Retail Environment
2.10 Summary
3. Key Success Factors
4. NIGERIA
THE GIANT OF AFRICA
POPULATION: DEMOGRAPHICS:
ECONOMY:
24th
Largest Economy in the World
1st
Largest Economy in Africa
CURRENCY:
Naira (NGN)
181.56 Million
URBAN:
49.6%
LITERATE:
61.3%
43.8% 53.2% 3%
0-14Yrs 15-64Yrs 65Yrs+
RELIGION:
50% 40% 10%
Muslims Christians Others
ECONOMIC CENTRE:
Lagos
MAJOR CITIIES:
Lagos 13.12 Million
Kano 3.59 Million
Ibadan 3.16 Million
Abuja 2.44 Million
P.Harcourt 2.43 Million
Benin 1.49 Million
(2015 est.)
Capital is Abuja
36
STATES
+
FCT
NATURAL RESOURCES:
Natural Gas
Tin
Iron Ore
Coal
Limestone
Niobium
Lead
Zinc
Ruby
Bitumen
Gold
Marble
Gypsium
Clay
Kaolin
Sappire
Cotton
Arable Land
OIL & GAS
=
35% GDP
LANGUAGE: ETHNIC GROUPS:
250 +English …
500 +
OFFICIAL:
5. 1.1 KEY FACTS ON NIGERIA
• Located on the coast of West Africa
• A democratic country with 36 states and a federal capital territory with a land mass of
923,786 sq.km
• The capital is Abuja while the economic centre is Lagos
• Total population of 181.56 million people (2015) making it the most populous country in
Africa and the 7th most populous country in the world
• Nigeria’s internet penetration of 51.1% (2016) is 28% of total Africa internet users
(http://www.internetworldstats.com/stats1.htm )
• Nigeria’s film industry, Nollywood, is the 2nd largest film industry after India, in terms of
films produced annually
• Nigeria textile market is the 3rd largest market in Africa
6. 1.2 THE BUSINESS ENVIRONMENT
OPPORTUNITIES THREATS
• Large and vast population
• Untapped natural resources
• Favourable demographics expected to spur
demand for goods
• Growing middle class
• Rapid urbanisation growing at 4% p.a.
• Rising household consumption expenditure
($438 billion by 2017)
• Young, educated, entrepreneurial population
• Nigerian diaspora investing back home
• Security issues in the North and South of the
country
• Unsure political stability
• Failing oil price
• Poor infrastructure which can result to higher
operating expenses (energy and transport)
• Difficult regulatory processes and undue
influence
7. 1.3 FOREIGN DIRECT INVESTMENT
• Nigeria is one of the top 3 recipients of FDI in Africa
• FDI attractiveness is due to the large market size and the natural resources present
• The oil and gas sector is the most preferred and biggest beneficiary of FDI
• FDI inflows grew in the past years reaching an all time peak of $3,084.90m in the forth
quarter of 2012.
• In 2015, there was a decline in FDI inflows due to election, change in government and
unstable macroeconomics factors thereby relying on local investors
• In the first quarter of 2016, FDI in Nigeria increased by $887.32m
• From 2007 to 2016, FDI has averaged $1,366.45m
• Considering the high risk of investment, the Nigerian government offers generous
incentives such as tax incentives in order to attract FDI inflows
9. 2.1 INDUSTRY DEFINITION
Increasing
Middleclass & New
Rich Consumers
Highly
Fragmented
Rich in
Creative
Talents
KEY DRIVERS
• World Renowned Nigerian Fabrics
• Fashion Shows
• Prints and Online Media
Huge Impact on
Fashion Trends