- More Nigerians to Live in Cities as Urban Population Escalates
A recent report by Nielsen pointed to a fast-changing consumer landscape in Nigeria due to 50 percent growth in population in urban areas, the fastest in the world.
According to the report, 55 percent of Nigerians will live in cities or towns by 2025 as a result of urban growth. Therefore, consumers in cities previously considered rural will require different services.
This was just one of a wealth of insights that emerged at a recent Nielsen event in Lagos, which looked at whether retailers and manufacturers are equipped to beat the odds they are facing in Nigeria by anticipating and preparing for the future.
“Everyone is fighting for growth and competition for consumers’ wallets has never been tougher. In a challenging environment, finding opportunities with the right insights becomes key to help beat the odds,” said Ged Nooy, Nielsen Nigeria MD.
Nigeria is a complex market that is characterised by consumers who are upbeat and confident with 81% feeling good or excellent about the state of their financials, while at the same time 60% of Nigerians say they can only afford the basics. Forty one per cent of Nigerians feel that their quality of life is better but more than half feel that it is worse, leading to a polarisation in the market, with consumers at both ends of the spectrum. This means that marketers need to cater to the demands of those who want value and at the same time, those who are aspirational and want quality, premium products.
Another trend impacting consumer behaviour is the rise of ‘disloyalty’ with 88% of consumers across Africa & the Middle East ready to defect from a current brand choice and 45% consumers saying they love to try new things. In such a scenario, it becomes all the more important to understand consumer attitudes and perceptions and how they make choices.
Nielsen Executive Director, Thought Leadership Ailsa Wingfield, said, “Opportunities today and tomorrow are about understanding and delivering what consumers need and want. Times are changing. There are more products on the shelf today than ever before, from new and existing brands, and a plethora of information points, advocates and advertising telling consumers about them. The consumer is spoilt for choice. Brands need to identify their purpose and provide the right value to their customers, if they want to keep them loyal”.
