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Intelligence Applied Emerging markets
Intelligence AppliedShare this
Nigeria is often called “the giant of Africa”,
with one out of every four Africans being
Nigerian and predictions that it will overtake
the US in population size by 2050.
It also is the largest economy in Africa, having recently
overtaken South Africa, driven by its rich supplies of natural
resources and more recently its growing retail, telecoms and
financial services industries.
Yet just because it is Africa’s biggest economy does not mean it is
an easy market to enter as a new player, nor to understand what
makes local people tick. It is a buzzing, energetic and hugely diverse
country, with over 200 different ethnic groups, including a large
Muslim community in the North and a Christian population in the
wealthier Southern cities such as Lagos and Port Harcourt. The
culture and needs of different consumer groups vary hugely, from
aspiring students, returning diaspora population, trendy urban
dwellers, struggling urban dwellers, fashionable politicians, rich
executives and business people, to rural farmers.
One of the biggest changes in recent years is the phenomenal
growth of the e-commerce sector, with smartphone ownership
now among the highest out of any African country. Nigerians
own an average of two handsets each, with telecoms giants like
MTN attracting consumers with mobile data bundles that give
them unlimited internet access. The rise of online shopping is
particularly popular in major metropolis cities like Lagos, Abuja,
Port Harcourt and Enugu where gridlocked roads often mean
people can spend hours travelling to the nearest shopping mall.
Now, they can get clothing and everyday items delivered to their
door with just a click of a button. This ‘convenience culture’ is
fast-becoming a reality in parts of Nigeria, with a growing middle
class population choosing to spend their income on making their
lives quicker, easier and hassle-free.
Leading online players in Nigeria, such as Jumia and Konga, have
also invested heavily in social media campaigns to boost customer
awareness and interaction. With Nigerians being among the most
active social media users in Africa – including Facebook, Twitter,
Instagram and Tumblr - this is a smart move. Another online retailer,
Gidimall, recently launched the first Facebook store in Nigeria,
where customers can buy products directly from the site.
Getting to know the giant of Africa:
opportunities for brands in Nigeria
Intelligence AppliedShare this
Getting to know the giant of Africa: opportunities for brands in Nigeria
About TNS
TNS advises clients on specific growth strategies around new
market entry, innovation, brand switching and customer
strategies, based on long established expertise and market
leading solutions. With a presence in over 80 countries,
TNS has more conversations with the world’s consumers than
anyone else and understands individual human behaviours
and attitudes across every cultural, economic and political
region of the world.
TNS is part of Kantar, the data investment management
division of WPP and one of the world’s largest insight,
information and consultancy groups.
Please visit www.tnsglobal.com for more information.
Although online shopping is tricky for some people due to patchy
internet access (attributable to erratic power suppliers), the
majority of consumer-facing new brands in Nigeria will need to
be looped into one of the big e-commerce players to ensure they
reach their target audience.
Aside from spending time on their phones, health and fitness is
a growing phenomenon amongst the middle-class consumer in
Nigeria, with more people reading food labels, signing up to fitness
programmes and looking for high-quality, healthy meal options.
It is hardly surprising that a number of health and spa houses have
mushroomed in the middle-class residential areas. No doubt the
growing influence of Western consumption trends will continue
to drive health consciousness among this community.
When it comes to distribution, brands which ignore the enormous
rural populations will do so at their own peril. They need a well-
oiled distribution network that reaches rural communities as
well as the big cities. SAB Miller is one brand which has done
particularly well in this area – so much so that it is often referred
to more as a logistics business than a beer company. As in any
market, strong relationships with your suppliers and distributers
is a crucial ingredient for long-term success. When it comes to
media channels, brands cannot rely just on traditional media such
as TV and print. Rather, they need an integrated online strategy
that taps into the huge popularity of social media.
Africa’s giant is full of opportunities for brands which can tap
into Nigeria’s competitive energy, entrepreneurial spirit and
burgeoning middle class. For international brands willing to invest
the time to understand its people, Nigeria can be a powerful
gateway to the rest of Africa. It is also important to understand
that the infrastructural challenges are far outweighed by the
opportunities abound in Nigeria.
For more information about TNS RMS Nigeria
contact Thomas at Thomas.walker@tnsglobal.com
or Eddington at Eddington.Danda@tnsglobal.com
About the authors
Thomas Walker is Managing Director of TNS
RMS Nigeria, TNS’ second largest business
in Africa. With over 16 years’ experience,
Thomas has a broad background in general
management, business and marketing
strategy, market research leadership and setting and achieving
strategic goals.
Eddington Danda is an Executive Director
Client Services with TNS Nigeria. Ed has 20
years of market research experience across
various African markets. He has spent the
last 8 years in West Africa living in Nigeria.

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Getting to know the giant of Africa: opportunities for brands in Nigeria

  • 1. Intelligence Applied Emerging markets Intelligence AppliedShare this Nigeria is often called “the giant of Africa”, with one out of every four Africans being Nigerian and predictions that it will overtake the US in population size by 2050. It also is the largest economy in Africa, having recently overtaken South Africa, driven by its rich supplies of natural resources and more recently its growing retail, telecoms and financial services industries. Yet just because it is Africa’s biggest economy does not mean it is an easy market to enter as a new player, nor to understand what makes local people tick. It is a buzzing, energetic and hugely diverse country, with over 200 different ethnic groups, including a large Muslim community in the North and a Christian population in the wealthier Southern cities such as Lagos and Port Harcourt. The culture and needs of different consumer groups vary hugely, from aspiring students, returning diaspora population, trendy urban dwellers, struggling urban dwellers, fashionable politicians, rich executives and business people, to rural farmers. One of the biggest changes in recent years is the phenomenal growth of the e-commerce sector, with smartphone ownership now among the highest out of any African country. Nigerians own an average of two handsets each, with telecoms giants like MTN attracting consumers with mobile data bundles that give them unlimited internet access. The rise of online shopping is particularly popular in major metropolis cities like Lagos, Abuja, Port Harcourt and Enugu where gridlocked roads often mean people can spend hours travelling to the nearest shopping mall. Now, they can get clothing and everyday items delivered to their door with just a click of a button. This ‘convenience culture’ is fast-becoming a reality in parts of Nigeria, with a growing middle class population choosing to spend their income on making their lives quicker, easier and hassle-free. Leading online players in Nigeria, such as Jumia and Konga, have also invested heavily in social media campaigns to boost customer awareness and interaction. With Nigerians being among the most active social media users in Africa – including Facebook, Twitter, Instagram and Tumblr - this is a smart move. Another online retailer, Gidimall, recently launched the first Facebook store in Nigeria, where customers can buy products directly from the site. Getting to know the giant of Africa: opportunities for brands in Nigeria
  • 2. Intelligence AppliedShare this Getting to know the giant of Africa: opportunities for brands in Nigeria About TNS TNS advises clients on specific growth strategies around new market entry, innovation, brand switching and customer strategies, based on long established expertise and market leading solutions. With a presence in over 80 countries, TNS has more conversations with the world’s consumers than anyone else and understands individual human behaviours and attitudes across every cultural, economic and political region of the world. TNS is part of Kantar, the data investment management division of WPP and one of the world’s largest insight, information and consultancy groups. Please visit www.tnsglobal.com for more information. Although online shopping is tricky for some people due to patchy internet access (attributable to erratic power suppliers), the majority of consumer-facing new brands in Nigeria will need to be looped into one of the big e-commerce players to ensure they reach their target audience. Aside from spending time on their phones, health and fitness is a growing phenomenon amongst the middle-class consumer in Nigeria, with more people reading food labels, signing up to fitness programmes and looking for high-quality, healthy meal options. It is hardly surprising that a number of health and spa houses have mushroomed in the middle-class residential areas. No doubt the growing influence of Western consumption trends will continue to drive health consciousness among this community. When it comes to distribution, brands which ignore the enormous rural populations will do so at their own peril. They need a well- oiled distribution network that reaches rural communities as well as the big cities. SAB Miller is one brand which has done particularly well in this area – so much so that it is often referred to more as a logistics business than a beer company. As in any market, strong relationships with your suppliers and distributers is a crucial ingredient for long-term success. When it comes to media channels, brands cannot rely just on traditional media such as TV and print. Rather, they need an integrated online strategy that taps into the huge popularity of social media. Africa’s giant is full of opportunities for brands which can tap into Nigeria’s competitive energy, entrepreneurial spirit and burgeoning middle class. For international brands willing to invest the time to understand its people, Nigeria can be a powerful gateway to the rest of Africa. It is also important to understand that the infrastructural challenges are far outweighed by the opportunities abound in Nigeria. For more information about TNS RMS Nigeria contact Thomas at Thomas.walker@tnsglobal.com or Eddington at Eddington.Danda@tnsglobal.com About the authors Thomas Walker is Managing Director of TNS RMS Nigeria, TNS’ second largest business in Africa. With over 16 years’ experience, Thomas has a broad background in general management, business and marketing strategy, market research leadership and setting and achieving strategic goals. Eddington Danda is an Executive Director Client Services with TNS Nigeria. Ed has 20 years of market research experience across various African markets. He has spent the last 8 years in West Africa living in Nigeria.