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Macro trends presentation about Nigeria, focusing on the consumer market.
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NIGERIA BY THE NUMBERS
TRENDS
BNN
ᵠ Nigerians are getting their information from the Blackberry News Network
ᵠ Big stories, real and fake break over BBM networks, Twitter and even Facebook before the traditional media has a chance to file a story
ᵠ From fake tsunami warning, to where and where the occupy protests were going to happen, Nigeria is getting its news on the move, in real time
RIP
News (including pictures) of the murder of Suzie Q, a Lagos socialite were on BBM & twi?er within the hour
The full document of the House’s recommendaCons on the fuel subsidy probe were emailed and tweeted within hours of the report’s release
“I joined a group on BlackBerry group called ‘Occupy Nigeria’ and almost every second, somebody would broadcast messages to the forum. The forum was also a major avenue for discourse. It was through the forum that we got so many people to be a part of the protest and it was through it that we learnt about those who were killed in the crisis.”
Social [media] Activism
ᵠ One result of all this technology is a greater degree of transparency, there’s no hiding anymore. The minute something happens, it’s out there on the social networks
ᵠ As far back as 2008, a viral video of naval officers beating Uzoma Okere led to the almost unprecedented prosecution and sanction of armed forces personnel in an assault on a civilian
ᵠ It is giving young people a pulpit and an organizing tool. They don’t just complain in their offices and dorms anymore
ᵠ This is causing a new level of engagement, fuelled by frustration and in some cases incredulous anger at our situation
ᵠ Light up Nigeria was the first ‘movement’ to really utilize social networks
8 of the top10 topics trending on Twi?er were issues emanaCng from the protests against removal of fuel subsidy
#lightupnigeria
Think Local, Act Global
ᵠ Next to oil, popular culture is our main export
ᵠ Nigerian film makers, artists, designers, musicians are aggressively pursuing regional and international opportunities
ᵠ For young Nigerians, the ‘global village’ has always been a reality, our content/style/culture is seen as worthy of a global stage – no one is interested in just being a local champion
ᵠ YouTube etc gives them a platform to broadcast themselves internationally, and the world is watching/listening/buying
Rob Marrio?, Complex Magazine, on D’Banj show at Irving Plaza
“Prior to this event, the American market was small money to D’Banj—a genuine global phenom from the urgent, populous city of Lagos. But now that he’s a G.O.O.D. Music arEst, D’Banj is looking to add the U.S. to his list of conquests”
The London ���Pop- Up Dress Shop
Afropolitan Victoria and Albert Museum
Local Content
ᵠ Nigerians understand the value we represent as a market and more and more are demanding content be customised for us
ᵠ And international brands are complying: Nigerians don’t really eat fries, so KFC serves Jollof rice
ᵠ Young people are customising on their own, adding local flair to international brands, items: ankara print Toms
ᵠ After years of jealously guarding its platform, Blackberry is actively engaging programmers to develop local apps (as is Nokia)
ᵠ Increasingly, international brands are producing products, content, communications for a local audience… and producing it locally
Nigerian ConsCtuCon App for Blackberry Hits 10,000 Downloads in 72 hours
Styling Streets
ᵠ According to McKinsey research 52% of Africans 16-‐24 feel its VERY important to follow the latest fashion and trends vs. 33% of those 45 and over
ᵠ Cool is very important to a population as young as ours. It’s Target or IKEA principle, just because it’s cheap doesn’t mean it should be ugly or stripped down
ᵠ This means that form is as important as function at the bottom of the pyramid
ᵠ Tecno, a Chinese phone brand, has been gaining popularity with little marketing because it offers Blackberry looks and [almost] functionality at pure water pricing
ᵠ Cheap Chinese imports of on trend clothing mean anyone can match the look of their favourite local and international celebrities
Click & [no] mortar
ᵠ All these ecommerce sites were launched within the last 12 months
ᵠ It’s to early to tell if they will be able to get over Nigerians security fears. But if they do, this will mark a huge change in retail in this country
ᵠ Most are integrating mobile payments, so that even the unbanked can access ecommerce
ᵠ Interestingly, Kasuwai and Sabunta are backed by Rocket Internet, who have been very successfully across the world with Amazon clones
ᵠ Jobberman isn’t an ecommerce site, but it is the 14th most visited site in Nigeria and is rapidly changing the way young Nigerians approach job search
ᵠ Slim Trader is tackling ecommerce for the bottom of the pyramid with SMS based e-‐tail and payments
Single Serve Society
ᵠ Nigeria is a sachet society, everything from toothpaste to gin comes in single serve packaging
ᵠ This is not only about cash management, but a result of a younger, more mobile, more urban consumer – less space to store things, more time spent out of home
ᵠ Our power situation contributes, storage is a problem once something is opened (no power for refrigeration)
FUTURE VIEW
While experts esCmate a significant growth in populaCon over the next 10 years, about 48 million, the make up of the populaCon remains fairly stable. 82% of the populaCon has at least had access to GSM since adulthood, most for their whole lives (those in their 50s were in their 30s when GSM launched in Nigeria)
10 year projecCons are dependent on many variables – if the power sector is fixed, for instance, tariffs should fall significantly, as will bandwidth (as providers turn their money to improving quality rather than powering base staCons)
Smartphone penetraCon driven by second hand market and value entrants from Asia
Combined with our demographic shib, the major implicaCon is a consumer that expects interacCvity and immediacy -‐-‐ but be warned, even with growth in Smartphone/feature phones, Nigeria will sCll be an SMS based market in 2015
UrbanizaCon generally results in a savvier consumer, with greater choice
Time constraints/convenience will play an increasing role in purchase decisions – a significant opportunity in convenience foods
UrbanizaCon also has significant implicaCons for entertainment and hospitality industries as a result of more Cme spent outside the home
The consumer space conCnues to offer significant opportuniCes
A young, urban populaCon with discreConary income will drive a consumer culture – understanding the right price point and lifestyle triggers will be key to success
70% CBN’s goal for percentage of financially included
382 CBN’s goal for number of POS terminals per 100,000 Nigerians by 2020
65,000 CBN’s goal for the number of mobile money agents by 2020
Given populaCon projecCons and cost issues, even CBN acknowledges that extensive brand rollout is not the pracCcal answer
In their financial inclusion strategy, they point out that agent banking is the obvious soluCon and that policy supporCng it is vital for it to meet its own goals
If the ‘cashless’ policy is successful, ecommerce soluCons (SMS and internet based) could radically transform both retail landscape and supply chain management
DALU Ẹ SE
NA GODE [THANK YOU]