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Nigeria

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Gina Renner

on 27 May 2013

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Transcript of Nigeria

AFRICA - NIGERIA Nedda Bahadori
Gina Renner Facts Africa -54 countries
-Area: 30,221,532 km²
-Population: 1,03 bn
-number of ethnic groups: >3000
-number of languages: >2000
-worlds poorest and underdeveloped
continent
-including deceases (HIV, Malaria,...)
-high level of iliteracy
-corrupt goverments
-climate: tropical - subarctic
-highest mountain: Kilimanjaro 5895m
-longest river in the world: Nile 6650km
-largest desert: Sahara 9km²
-most populated country: Nigeria (8th) Federal Republic of Nigeria - located in West Africa with borders to Benin,
Chad, Cameroon, Niger, Gulf of Guinea
- 36 states
- capital: Abuja
- area: 923,768 km²
- population: 170,123,740 million
- currency: naira
- languages: official language English and more
than 200 others
- ethnicity/race: >300
- religion: Islam, Christian, others
- literacy rate: 68%
- president: Jonathan Goodluck
- vice presiden: Namadi Samb
- climate: equatorial in the south, tropical in the
center and arid in the north was created less than 30 years ago
4 million inhabitants new buildings are built constantly
road network is well developed Hausa Fulani Igbo Yoruba Bollywood Nollywood Hollywood Nigeria Political Economic Social Technological PEST Federal Republic (powers of the central government are restricted, states retain a degree of self-government) since 1995 democratic system Taxation system ( 'pay as you earn' system) Labour Act 1971 Deregulation of Nigeria as an economic reform problem high level of corruption and low transparency GDP growth rate Nigeria’s Inflation Accelerates to 9.4% (2013) unemployment rate 24 % (2012) low labour costs (average incomes are higher in cities) economic (2nd largest in Africa) growth is constrained by inadequate infrastructure, electricity and policies poor access to quality education improved policy environment for planning and investment in key economic sectors huge gap between the rich and the poor high birth rate and growing population high crime rates 1/5 of children die before the age of 5 due to
bad health system however has been removed from the Top 20 most corrupt countries no restrictions of public ownership of local companies and businesses foreign investment is allowed both in privat and public sectors free based market environment -> Nigeria is amongst the most open countries to foreign ownership in the Sub-Saharan Africa region use of renewable energy policies such as Solar, Wind and Biomass Strengths Strong banking and financial sector
Easy provision of medium and long-term loans
Controlled money supply
Fastest growing oil and gas as well as telecommunication sector
Many investment opportunities for the local entrepreneurs and foreign investors
Availability of young, active and mobile labor force
Great potentials for future growth and investment
Increased competitiveness and profitability in the petroleum market globally
rich reserves of natural resources such as oil
Manufacturing of textiles and plastics and strong agriculture Weaknesses Lack of power supply, road networks, security setups and other infrastructure
Lack of information system, new technology, and scientific base
inability to diversify its markets
inadequate internal resources and lack of managerial capabilities and leadership skills in its business environment Opportunities High population density creates high demand for products and services
Economic and political improvements create more opportunities and attracts investors
Petroleum industry, courier services and oil sector provide employment opportunities to local and foreigners
Opportunities of outsourcing, good bilateral relations, and more availability of ideas
Supplier Relationships, Cross-country trading, and inter-firm linkages can give opportunities of learning and improvements to a country like Nigeria
More opportunities for diversification and ultimately, progressing economy
Ease of loans provision provided to the people who start their businesses within the country Threats Increasing crimes, frauds, scams
Threat of import substitution effect to the local markets
Increasing competitors in the local markets and tougher competition globally
Lack of funds, higher costs of doing business, higher opportunity costs LUXURY x HEADLINES " Africa has immaculate craftsmanship, which lends itself to luxury" " Nigerians represent Selfridge's fifth biggest consumer segment by geography " " 200 hidden African billionaires and the emergence of the new middle class throughout the continent " " Nigeria is set to post the second-strongest gain in total champagne volume, trailing France by 2016" " Amid poverty and fuel riots, a booming
Luxury market has opened in Nigeria " Why is it a luxury market? Africa - African countries account for 7 of the ten fastest
world economies - 70% of Africa's population is under 40 years old - is estimated to wield $ 1,4 trillion in spending
power by 2020 - However the continent must be viewed as 54
separate countries because of major economic, political,
geographical and cultural differences. Nigeria - Nigeria's economy has grown 7.68% by the end of 2011,
one of the fastest in the world - Since independence in 1960 wealth flowed into Nigeria
as the crude oil industry boomed. - With democracy in 1999 also other industries have
developed including banking and telecommunications - However it is still a country of extreme contrast
-> Nigeria's oil wealth has spawned many multi-millionaires,
even while absolute poverty has increased to 60% of the population - The wealthy elite in Nigeria - business owners, oil industry
executives and corrupt politicians - have a healthy appetite for
luxury brands, but have previously had to shop for them in Dubai,
London and Paris - Nigeria's commercial capital Lagos, along with four other of
Africa's largest cities, will each have consumer spending of
$25 billion or more by 2020. That's comparable to spending in
India's business hub of Mumbai - Nigeria has become Africa's top market for luxury brands - With some real infrastructure development and opportunity
to create luxury environments for luxury brands to come in,
this market has enormous potential to become a key luxury capital " Lagos' wealthiest district, Victoria Island, a place with one of the world's highest concentrations of millionaires " Nigeria's Luxury Market Nigerian Fashion Week - Platform for Nigerian designers
by using
locally made fabrics and accessories

- colourful, bold designs

- Special interest in sustainability Target
Audience Demographics Psychographics Age: 25-50 Location: main cities, especially Lagos Gender: mainly male, female
(spouse) Educational level: Elite Marital status: married Occupation: business owners, oil executives, (corrupt) politicians Dangote
Listed two years consecutively as Nigeria's richest man, his net worth in 2005 was $1.6 billion, and $4billion in 2006, now he's valued at $8billion in 2007.

The chairman of Dangote group, a conglomeration that manufactures everything from cement to sugar is the biggest private employer of labour in Nigeria with over 25, 000 employees.

He is today said to be ranked on the top 20 richest men in the world.

He has an all-glass and granite house in Victoria Island, a yacht, two private jets and many choice properties.

The Kano-born businessman is married with kids Personality: ambitious, focused, conspicuous consumers Lifestyle: destination shoppers, like to show-off, bold lifestyle (private jet) Attitudes, Values: change, differentiation, expressive, feel good Rising middle class and upper class -launched in 2005 by Erdem Moralıoğlu -stocked in 90 stores worldwide -known for fanciful, floral, romantic and
feminine pieces Example: Hugo Boss enters Nigeria "Nigeria is big market and it's very huge market for retail and there's no much retail and boutiques here, so it was our idea to come to Lagos and Nigeria for Hugo Boss because I was working in Dubai, nine years for Hugo Boss and I have a lot of Nigerian customers there, a lot," he said. http://uk.reuters.com/video/2013/02/21/hugo-boss-dresses-for-success-in-nigeria?videoId=241241399 Aims to increase awareness by 20% by the end of the year in order to position themselves as one of the luxury leaders in Nigeria

maximize profits within one year by 15% Marketing Strategy Product offering Erdem designs match the taste of Nigerian consumer
however still add the European style in order to satisfy the need for westernisation
consider menswear because of men dominance in spending power
Focus rather on bold designs Communication Questionnaire to measure brand awareness
Opening event with special guest list. Invitation sent via direct mail
Focus on stores as Nigerian customers prefer face to face service
Elegant with a twist, luxurious store layout
Online media including interactive ads and banners on websites How to enter Franchise
->difficult tax system, corruption, variety of ethnics
->difficult business environment
Location proposal: Lagos Product offering: elegant yet colourful Sophisticated and luxurious store Conclusion Africa is a continent of contrast, while economy is growing rapidly, it is still the poorest continent
huge gap between rich and poor
Several growing industry sectors led to huge opportunities in the luxury market with Nigeria being the biggest one
Very young population
High consumption rates expected in the next years, as the middle class is growing -> Future Developments should focus on improving health system, infrastructure and decrease of corruption level in order to attract international brands
Due to expected growth in online usage, Nigerians will have more access which will lead to more sophisticated and well informed customers " Tomorrow, it won't only be about the BRICS, but also about Africa, the new luxury Eldorado "
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