“Fast-Moving Consumer Goods (FMCG) industry has been an ever-rapidly evolving field with significant growth over the years.
In Nigeria, FMCGs are in high demand due to the large and growing middle class and increasing urbanization, With the FMCG market in Nigeria, is expected to reach $23 billion by 2023.
Based on research In 2022, global FMCG volume sales contracted by 2.1% due to increased costs and inflation, but unit value sales increased by 8.4%, resulting in a nominal growth of 6.3%, according to NIQ’s Retail Measurement Services.
From e-commerce to health and wellness products, sustainability, and the challenges facing FMCG marketers, we will delve into the strategies that will be essential to succeed in this market in 2023 and the coming years, especially for manufacturing companies.
Challenges Facing FMCG Marketers in Nigeria
FMCG firms are faced with a challenging macroeconomic environment which is characterized by rising inflation, high energy prices, interest rates, and weakened consumer purchasing power.
Also, the inability to reach the large rural population, which accounts for over 50% of the total population
The high market competition level is another challenge as many local and international brands compete for market share, making it difficult for new entrants to gain a foothold.
Counterfeit products with an estimated 40% of all goods sold in the country being fake. This not only affects the revenue of legitimate companies but also poses a health risk to consumers.
Strategies to Succeed in 2023
Despite a lot of challenges faced, some of the FMCGs companies employed different approaches to record positive cash flow in the third quarter of 2022.
Companies like Nigerian Breweries, Nestle, and Cadbury reported the highest positive net cash flow from financing activities of N77.12 billion, N12.46 billion, and N5.2 billion respectively. source: businesday.ng
Going forward in 2023, what are the strategies that can be deployed to be successful in 2023
FMCGs in Nigeria have employed various marketing strategies in the past years to reach their target audience, e.g TV adverts, Radio Jingles, print and outdoor marketing, Product placement in stores, packaged design, and more.
These strategies will continue evolving as the market and consumer behaviour change over time because of several factors, including population growth, urbanization, and an increasing middle class drives this growth.
As more Nigerians are becoming more health-conscious, which is driving demand for products that are perceived to be healthier, such as organic and natural products FMCG Marketers will have to adopt innovative strategies like
- Digital marketing: With the increasing use of smartphones and the internet in Nigeria, digital marketing will be a crucial strategy for FMCG marketers to reach a wider audience. This can include social media marketing, search engine optimization, and influencer marketing.
2. Product customization: Offering personalized products and packaging can be an effective way to appeal to consumers and differentiate from competitors. This could involve creating limited edition or seasonal products or allowing consumers to customize their products.
3. Sustainability: Consumers in Nigeria are becoming more aware of the impact of their purchasing decisions on the environment. FMCG marketers can adopt sustainable practices and promote their eco-friendly products to appeal to this growing consumer demand.
4. Health and wellness: As mentioned earlier, the trend towards health and wellness is increasing in Nigeria. FMCG marketers can introduce new products that cater to this trend, such as natural and organic products or those with added health benefits.
5. Innovative packaging: Eye-catching and unique packaging can capture consumers’ attention and make products stand out on store shelves. FMCG marketers can explore innovative packaging solutions, such as using biodegradable materials or incorporating augmented reality technology.
By adopting these and other innovative strategies, FMCG marketers in Nigeria can position themselves for success in 2023 and beyond