Faith Wanderi, the Managing Director of NielsenIQ East & West Africa, highlighted the necessity for manufacturers and retailers to continually innovate their products. She stressed the importance of offering cost-effective options that still meet consumer needs, especially as many consumers are facing financial constraints with little or no extra income.
During her remarks at the 2024 Nigeria NielsenIQ Breakfast Conference titled “Growing Around: The Big Squeeze,” held recently in Lagos, Wanderi pointed out a significant trend. According to their research, seven out of ten consumers have switched brands in the past year, revealing that price has become the primary factor influencing consumer choices rather than brand loyalty.
Wanderi urged businesses to gain a deeper understanding of the categories in which they operate and the changing behaviors of consumers. This insight is crucial for making informed decisions regarding pricing strategies and restructuring distribution channels to better reach target audiences.
She further noted that the outlook for the consumer market in the coming months indicates a continued trend of brand switching. Consumers currently lack loyalty to any particular brand, which necessitates a creative approach from businesses rather than reliance on historical practices.
As economic pressures mount across various sectors, Wanderi emphasized the importance of adapting to these changes. She stated that this pressure is essential for rediscovering the true purpose of data and analytics, urging management to transform predictive insights into proactive measures.
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In his keynote address, Olufemi Awoyemi, Chairman of Proshare, echoed similar sentiments. He pointed out that sectors such as fast-moving consumer goods, retail, telecommunications, fintech, and banking have a dual responsibility. They must not only predict but also shape consumer behavior during challenging economic times.
Awoyemi acknowledged that these industries bear the burden of addressing shifts in consumer expectations and trends, particularly during periods of economic decline. The increasing rate of decline in consumer disposable incomes amplifies these challenges.
In conclusion, both Wanderi and Awoyemi highlighted the critical need for businesses to adapt to evolving consumer dynamics and economic conditions. By understanding consumer behavior and leveraging data effectively, companies can position themselves to thrive even in difficult times.
