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2012 trends presentation


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Macro trends presentation about Nigeria, focusing on the consumer market.

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2012 trends presentation

  2. 2. TRENDS  
  3. 3. “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   BNN  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.”   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  
  4. 4. Social  [media]  Activism   ᵠ  One  result  of  all  this  technology  is  a  greater   #lightupnigeria   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  8  of  the  top10  topics   organizing  tool.  They  don’t  just  complain  in  trending  on  Twi?er  were   their  offices  and  dorms  anymore  issues  emanaCng  from  the  protests  against   ᵠ  This  is  causing  a  new  level  of  engagement,  removal  of  fuel  subsidy   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  
  5. 5. 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   Afropolitan   interested  in  just    being  a  local  champion   Victoria  and  Albert  Museum   ᵠ  YouTube  etc  gives  them  a  platform  to   broadcast  themselves  internationally,  and  the   The London world  is  watching/listening/buying   Pop- Up Dress Shop “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”   Rob  Marrio?,  Complex  Magazine,     on  D’Banj  show  at  Irving  Plaza  
  6. 6. 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,  Nigerian  ConsCtuCon  App  for  Blackberry  Hits   items:  ankara  print  Toms  10,000  Downloads  in  72  hours   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  
  7. 7. 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  
  8. 8. 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  
  9. 9. 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)  
  10. 10. FUTURE  VIEW  
  11. 11. 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)  
  12. 12. 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  
  13. 13. 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  
  14. 14. 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  
  15. 15. 70%  CBN’s  goal  for  percentage  of  financially  included  382  CBN’s  goal  for  number  of  POS  terminals  per   Given  populaCon  projecCons  and  100,000  Nigerians  by   cost  issues,  even  CBN   acknowledges  that  extensive  brand  2020   rollout  is  not  the  pracCcal  answer   In  their  financial  inclusion  strategy,  65,000   they  point  out  that  agent  banking   is  the  obvious  soluCon  and  that   policy  supporCng  it  is  vital  for  it  to  CBN’s  goal  for  the   meet  its  own  goals  number  of  mobile  money  agents  by  2020   If  the  ‘cashless’  policy  is  successful,   ecommerce  soluCons  (SMS  and   internet  based)  could  radically   transform  both  retail  landscape     and  supply  chain  management  
  16. 16. DALU   Ẹ  SE   NA  GODE  [THANK  YOU]