Friday, June 19, 2020 /07:54 PM / Content & Header Image by Nielsen
As
Nigerian consumers emerge from a restricted living scenario unlike any they
have experienced before, there are already big shifts in their consumption
dynamics with some behaviours set to never return. This insight stems from
Nielsen research which reveals that 48% of Nigerians feel the pandemic has had
a sizeable impact on their lives amidst the COVID-19 pandemic.
Nielsen
Consumer Insights Lead for West Africa, Abiodun Olawale-Cole comments; "The reality is that the consumer emerging from lockdown is a changed consumer,
facing the reality of juggling work and home against the backdrop of a
fundamentally altered world, severely constrained finances and a hyper
vigilance on health and safety.
"The
past few weeks have also seen a significant shift to a homebound mindset where
health and safety is a number one priority with a resultant desire to shop from
home (online) or close to home. These changes have been exacerbated by
restricted shopping in some areas and constraints like supply shortages and
delivery/fulfilment challenges."
A
Nielsen Consumer Insights survey shows that this has resulted in fundamentally
altered shopping habits with 71% Nigerians shopping less in malls, 70% reducing
shopping in hypermarkets and supermarkets and 58% shopping less at tabletops.
In addition, 39% of Nigerians say they are shopping more online for food and
beverage products.
With
a strong shift to home based lifestyle, unsurprisingly 74% of Nigerians also
said they are eating out less and more than half claim to now eat more at home,
They are also seeking safer banking options with 62% using ATMs less and 51%
say they are banking online more.
Product performance
Against
this backdrop, there have been significant movements in product selection
during lockdown. Essentials such as sanitation & safety products such as
hand care, household cleaners and health products/supplements showed good
growth as did staples such as pasta, noodles, and coffee.
Nielsen
Nigeria MD, Ged Nooy explains; "Consumers are juggling their category
basket to cope with the current times. They have learnt to appreciate
essentials with the aim of maintaining pantry reserves to ensure an
uninterrupted supply and have also gravitated towards simplified product
repertoire."
However,
perhaps unsurprisingly, during the same timeframe non-essentials such as soft
drinks, candies and biscuits saw steep declines and consumer purchases also
shifted away from laundry and self-care. This may be due to the fact that as
consumers experienced more financial constraints they have forgone certain
groceries and discretionary purchase.
Scenario planning
Looking
to the future, as Nigeria transitions into 'post lockdown' living Nielsen has
created various consumer scenarios that could play out over the next 12-18
months.
Nooy
explains; "One of the scenarios we have identified is a 'Mixed Scenario',
which applies to Nigeria where we are starting to relax certain restrictions in
order to reactivate business, while maintaining or implementing additional
precautionary measures to guard against further spread of the virus.
"This
will create conditions that we have never seen before with consumers who are
increasingly concerned about the presence of the virus and catching it. They
are also focused on the origin and transparency of products which will see a
growth in locally produced and sourced goods.
"Demand
for these offerings will also be driven by long term shortages of imported
products and their resultant higher price points, which may well further
strengthen preference for locally produced products and ensure long-term
loyalty."
Nooy
adds that as FMCG manufacturers and retailers reflect, rebuild and reconsider
the orientation of their businesses and brands for the future, they will need
to predicate their ecosystems and strategies upon a deep understanding of what
economies and consumers have endured and how they will emerge.
"The
key to success will be anticipating how these lifestyle changes will drive new
consumer needs and mindsets and as a result, businesses will need to carefully
(re)consider and plan for how to solve and adapt to the future conditions
through new and unfolding patterns."
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