NielsenIQ has disclosed that 60 per cent of Nigerian consumers have responded to the country’s high inflation by switching brands in the last year.
It stated this in a study titled “NIQ H1 State of the Nation: Nigeria”, which was carried out in Nigeria in the third quarter of 2023.
“It is interesting to note that six out of 10 consumers have switched brands in the last year because of price increases,” the report said.
It noted that 86 per cent of Nigerian consumers were actively saving for the future, adding that in response to inflationary pressures, many individuals were employing coping strategies to navigate the increasing cost of living.
Meanwhile, it explained that traditional trade was still greatly important thanks to at least 57 per cent of consumers citing more reasons to buy store brands rather than brands they love or prefer.
It asserted that store brands were leaving the shelves faster because consumers were getting value for their money by getting the same weighted products for a lower price.
It further indicated that the FMCG market slowed in value to +15.1 per cent in Q2’23 from +16.1 per cent in the previous period, and consumption further dropped to -4.9 per cent.
“Traditional trade dominates the retail market with a contribution of 98 per cent estimated at N2.1tn and growing in value in the same period,” it added.
According to the report, consumers were exercising heightened scrutiny over the contents of their shopping carts, with a substantial 63 per cent opting either to reduce the number of items they purchase or to buy larger sizes or brands, not typically their preferences.
“This shift in consumer behaviour underscores a deliberate approach to shopping, reflecting a desire for more thoughtful and strategic consumption choices,” it declared.
The NIQ Managing Director for East & West Africa, Faith Wanderi, said, “Consumer reactions to inflation are solely pegged on the value of products that are directly influencing different shopping habits and choice of brands.
“The retail space continues to evolve, but the good news is that both the modern and traditional markets continue to grow.”
SOURCE: PUNCHNG
