…Berger Paints products not for everyone – Distributors
The ongoing construction works in different parts of the country have led to significant increase in the market demand for paint with manufacturers recording huge returns on investments.
Considering the high demand for paint products across the country, it is not surprising that there are many existing paint manufacturing firms in the country, operating at different capacities and scales. However, as many, as they are, there still remain the “elite” paint manufacturers that dominate the market.
The fact that the industry is not meant for everyone, as not all existing paint manufacturing firms can afford good distribution network and access to financing, explains why only a few manufacturers are currently dominating the industry.
The few companies dominating the market space include Berger Paints Nigeria Plc, CAP Plc, Premier Paints Plc, and Portland Paints & Products Nigeria Plc.
It is pertinent to note that most of the aforementioned market players have a long history of operation in the country, and at the same time, serve all segments of the paint industry.
CAP Plc seems to be leading the pack of quoted paint companies with a market capitalisation of N17.325 billion. Berger Paints Nigeria Plc follows with N1.985 billion market capitalisation. Portland Paints & Products Nigeria Plc operates with N1.960 billion market capitalisation, while Premiere Paints operates with N1.156 billion market capitalisation.
Berger Paints’ market dominance
Being one of the leading paints manufacturing firms in Nigeria, Berger Paints has successfully created a class of its own in the market space. Nairametrics learnt from research carried out on paint products in the market that Berger Paints products are not for everyone. They are for specific persons who not only have a good eye for quality paint products but are also financially capable enough to purchase them.
Almost all the stakeholders asked about Berger Paints products heaped praises on the manufacturer. Some said the manufacturer is more concerned about selling top-notch products than its competitors. Only a few persons asserted that Berger Paints products are unnecessarily costly.
Experts’ opinions on Berger Paints products
From the painters’ perspectives
According to a professional painter who simply identified himself as Divine, people rarely make use of Berger Paints products because of the cost.
“It is very rare to see people requesting that it is only Berger Paints products they want for their paintings. People prefer to go for cheaper products in the market,” the painter added.
Another painter, Dele Oloyede, acknowledged that the products are good but not everyone can afford it.
He said:“The paints are good and I will always recommend them, but it doesn’t belong to every class of the society. I mean they have been in the market for long, and they are yet to start producing substandard products. If you make use of Berger Paints products, your paintings will last over a decade compared to others which barely last 2-3 years.”
Speaking to another painter, Babatope Raheem, the case is the same. He said, “I will say out of my 100 clients, barely 10 will insist that it is Berger Paints they want me to use for their paintings. It is mainly because of the cost; it is too expensive, not everybody can afford to use these products.”
Retailers’ and Distributors’ Opinions
Like the painters’ views on the market dominance of Berger Paints, paints retailers and distributors said they only sell Berger Paints’ products on demand. A paint retailer identified as Bose Oladeji, said there is no doubt in the fact that Berger Paints is the king of other paints in the market, but she had her reservations about its prices.
“Berger Paint is good for usage. There is hardly a place you will go to that Berger Paint is used that you won’t be impressed by the quality of paints used on the walls. It is the king out there, but it is not for everyone because all fingers aren’t equal.
“Because of the high cost of Berger Paints, retailers don’t have them in their stores, including me, and I won’t advise anyone to do so, because the demand is slim compared to how people demand for other paint products,” Oladeji told our Analyst.
Similar to Oladeji’s statement, another paint retailer, Kalesanwo Olaolu, said that retailers ordinarily don’t store Berger Paints products because of the low demand.
“Just take a look around my store, I’m sure you will notice that there are no Berger Paints here. It is because the demand is low, people don’t request for it much like others because it is costly. I only sell on request.”
Between 2013 and 2018, the revenue of Berger Paints Nigeria Plc grew by 25%. Similarly, its Profit Before Tax increased by 33%, while its Profit After Tax improved by 25%.
The Prices of Berger Paints Products
Berger Paints have different products that come with different prices. Inquiries on the company’s prices affirms the stakeholders’ points.
While the company’s 20Lt Clinstay Emulsion sells for ₦36,297.17, its 20Lt Fire Retardant Texcote sells for ₦28,644.06.
Berger Paints’ 20Lt Luxol Emulsion sells for ₦27,978.66 while its 20Lt Robbialac Emulsion sells for ₦6,221.74.
The company’s 20Lt Robbitex Emulsion sells for ₦11,451.43 while its 20Lt Rufhide Emulsion sells for ₦16,399.19.
Berger Paints’ 20Lt Supatex Emulsion sells for ₦19,660.68 while its 20Lt SuperStar Emulsion sells for ₦17,171.51.
Its AutoLUX 1LT sells for ₦1,798.45 while its Bergernol 5Lt sells for ₦11,623.56.
Lignolac Wood Finish 4Lt sells for ₦5,192.16 while its Luxol Gloss 4Lt sells for ₦9,473.49.
Berger Paints’ Robbialac Gloss 4Lt sells for ₦4,774.79 while its SuperStar Gloss 4Lt sells for ₦6,993.05.
Going by the product prices of other companies, it is true that Berger Paints products aren’t competitive, probably because the products are made for a specific class.
Berger Paints Nigeria Plc has successfully created a name in the paints market space. As a result, most of the stakeholders spoken to would really love to recommend the company’s products ahead of other companies, but for the prices.
During the research, Nairametrics learnt that if a painter is required for a painting service and the prospective client insists on using Berger Paints, that automatically gives an impression that the prospective client has a lot of money to spend. Thus, the service cost will be increased
More so, painters whom we interviewed expressed their confidence in the ability of the company to produce quality paint products.
Berger Paints can leverage on the class it has since created in the market space. The company may have to consider dropping its price or produce product options that can serve the middle class and the general public at large. This will have a great impact on the company’s revenue growth and profits.
COVID-19 Update in Nigeria
On the 12th of August 2020, 453 new confirmed cases and no deaths were recorded in Nigeria.
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 47,743 confirmed cases.
On the 12th of August 2020, 453 new confirmed cases and no deaths were recorded in Nigeria, having carried out a total daily test of 13,233 samples across the country.
To date, 47,743 cases have been confirmed, 33,943 cases have been discharged and 956 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 338,084 tests have been carried out as of August 12th, 2020 compared to 319,851 tests a day earlier.
COVID-19 Case Updates- 12th August 2020,
- Total Number of Cases – 47,743
- Total Number Discharged – 33,943
- Total Deaths – 956
- Total Tests Carried out – 338,084
According to the NCDC, the 453 new cases were reported from 16 states- Lagos (113), FCT (72), Plateau (59), Enugu (55), Kaduna (38), Ondo (32), Osun (26), Ebonyi (20), Ogun (9), Delta (8), Borno (7), Akwa Ibom (6), Oyo (5), Bauchi (1), Kano (1) and Ekiti (1).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 16,187, followed by Abuja (4,597), Oyo (2,895), Edo (2,399), Rivers (1,972), Kaduna (1,666), Kano (1,644), Plateau (1,643), Delta (1,621), Ogun (1,506), Ondo (1,326), Enugu (969), Ebonyi (908), Kwara (882), Katsina (746), Borno (697), Osun (678), Abia (663), Gombe (635), and Bauchi (579).
Imo State has recorded 485 cases, Benue (430), Nasarawa (371), Bayelsa (346), Jigawa (322), Akwa Ibom (241), Niger (226), Ekiti (194), Adamawa (185), Anambra (156), Sokoto (154), Kebbi (90), Taraba (78), Zamfara (77), Cross River (73), Yobe (67), while Kogi state has recorded 5 cases only.
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
|Date||Confirmed case||New cases||Total deaths||New deaths||Total recovery||Active cases||Critical cases|
|August 12, 2020||47743||453||956||0||33943||12844||7|
|August 11, 2020||47290||423||956||6||33609||12725||7|
|August 10, 2020||46867||290||950||5||33346||12571||7|
|August 9, 2020||46577||437||945||3||33186||12446||7|
|August 8, 2020||46140||453||942||6||33044||12154||7|
|August 7, 2020||45687||443||936||6||32637||12114||7|
|August 6, 2020||45244||354||930||3||32430||11884||7|
|August 5, 2020||44890||457||927||17||32165||11798||7|
|August 4, 2020||44433||304||910||14||31851||11672||7|
|August 3, 2020||44129||288||896||8||20663||22570||7|
|August 2, 2020||43841||304||888||5||20308||22645||7|
|August 1, 2020||43537||386||883||4||20287||22567||7|
|July 31, 2020||43151||462||879||1||19565||22707||7|
|July 30, 2020||42689||481||878||5||19270||22541||7|
|July 29, 2020||42208||404||873||5||19004||22331||7|
|July 28, 2020||41804||624||868||8||18764||22172||7|
|July 27, 2020||41180||648||860||2||18203||22117||7|
|July 26, 2020||40532||555||858||2||17374||22300||7|
|July 25, 2020||39977||438||856||11||16948||22173||7|
|July 24, 2020||39539||591||845||12||16559||22135||7|
|July 23, 2020||38948||604||833||20||16061||22054||7|
|July 22, 2020||38344||543||813||8||15815||21716||7|
|July 21, 2020||37801||576||805||4||15677||21319||7|
|July 20, 2020||37225||562||801||12||15333||21091||7|
|July 19, 2020||36663||556||789||11||15105||20769||7|
|July 18, 2020||36107||653||778||6||14938||20391||7|
|July 17, 2020||35454||600||772||3||14633||20049||7|
|July 16, 2020||34854||595||769||9||14292||19793||7|
|July 15, 2020||34259||643||760||6||13999||19500||7|
|July 14, 2020||33616||463||754||10||13792||19070||7|
|July 13, 2020||33153||595||744||4||13671||18738||7|
|July 12, 2020||32558||571||740||16||13447||18371||7|
|July 11, 2020||31987||664||724||15||13103||18160||7|
|July 10, 2020||31323||575||709||20||12795||17819||7|
|July 9, 2020||30748||499||689||5||12546||17513||7|
|July 8, 2020||30249||460||684||15||12373||17192||7|
|July 7, 2020||29789||503||669||15||12108||17012||7|
|July 6, 2020||29286||575||654||9||11828||16804||7|
|July 5, 2020||28711||544||645||11||11665||16401||7|
|July 4, 2020||28167||603||634||6||11462||16071||7|
|July 3, 2020||27564||454||628||12||11069||15867||7|
|July 2, 2020||27110||626||616||13||10801||15693||7|
|July 1, 2020||26484||790||603||13||10152||15729||7|
|June 30, 2020||25694||561||590||17||9746||15358||7|
|June 29, 2020||25133||566||573||8||9402||15158||7|
|June 28, 2020||24867||490||565||7||9007||14995||7|
|June 27, 2020||24077||779||558||4||8625||14894||7|
|June 26, 2020||23298||684||554||5||8253||14491||7|
|June 25, 2020||22614||594||549||7||7822||14243||7|
|June 24, 2020||22020||649||542||9||7613||13865||7|
|June 23, 2020||21371||452||533||8||7338||13500||7|
|June 22, 2020||20919||675||525||7||7109||13285||7|
|June 21, 2020||20242||436||518||12||6879||12847||7|
|June 20, 2020||19808||661||506||19||6718||12584||7|
|June 19, 2020||19147||667||487||12||6581||12079||7|
|June 18, 2020||18480||745||475||6||6307||11698||7|
|June 17, 2020||17735||587||469||14||5967||11299||7|
|June 16, 2020||17148||490||455||31||5623||11070||7|
|June 15, 2020||16658||573||424||4||5349||10885||7|
|June 14, 2020||16085||403||420||13||5220||10445||7|
|June 13, 2020||15682||501||407||8||5101||10174||7|
|June 12, 2020||15181||627||399||12||4891||9891||7|
|June 11, 2020||14554||681||387||5||4494||9673||7|
|June 10, 2020||13873||409||382||17||4351||9140||7|
|June 9, 2020||13464||663||365||4||4206||8893||7|
|June 8, 2020||12801||315||361||7||4040||8400||7|
|June 7, 2020||12486||260||354||12||3959||8173||7|
|June 6, 2020||12233||389||342||9||3826||8065||7|
|June 5, 2020||11844||328||333||10||3696||7815||7|
|June 4, 2020||11516||350||323||8||3535||7646||7|
|June 3, 2020||11166||348||315||1||3329||7522||7|
|June 2, 2020||10819||241||314||15||3239||7266||7|
|June 1, 2020||10578||416||299||12||3122||7157||9|
|May 31, 2020||10162||307||287||14||3007||6868||7|
|May 30, 2020||9855||553||273||12||2856||6726||7|
|May 29, 2020||9302||387||261||2||2697||6344||7|
|May 28, 2020||8915||182||259||5||2592||6064||7|
|May 27, 2020||8733||389||254||5||2501||5978||7|
|May 26, 2020||8344||276||249||16||2385||5710||7|
|May 25, 2020||8068||229||233||7||2311||5524||7|
|May 24, 2020||7839||313||226||5||2263||5360||7|
|May 23, 2020||7526||265||221||0||2174||5131||7|
|May 22, 2020||7261||245||221||10||2007||5033||7|
|May 21, 2020||7016||339||211||11||1907||4898||7|
|May 20, 2020||6677||284||200||8||1840||4637||7|
|May 19, 2020||6401||226||192||1||1734||4475||7|
|May 18, 2020||6175||216||191||9||1644||4340||7|
|May 17, 2020||5959||388||182||6||1594||4183||7|
|May 16, 2020||5621||176||176||5||1472||3973||7|
|May 15, 2020||5445||288||171||3||1320||3954||4|
|May 14, 2020||5162||193||168||3||1180||3815||4|
|May 13, 2020||4971||184||164||6||1070||3737||4|
|May 12, 2020||4787||146||158||6||959||3670||4|
|May 11, 2020||4641||242||152||10||902||3589||4|
|May 10, 2020||4399||248||142||17||778||3479||4|
|May 9, 2020||4151||239||127||11||745||3278||4|
|May 8, 2020||3912||386||118||10||679||3115||4|
|May 7, 2020||3526||381||108||4||601||2818||4|
|May 6, 2020||3145||195||104||5||534||2507||1|
|May 5, 2020||2950||148||99||5||481||2370||4|
|May 4, 2020||2802||245||94||6||417||2291||2|
|May 3, 2020||2558||170||88||2||400||2070||2|
|May 2, 2020||2388||220||86||17||351||1952||2|
|May 1, 2020||2170||238||69||10||351||1751||2|
|April 30, 2020||1932||204||59||7||317||1556||2|
|April 29, 2020||1728||196||52||7||307||1369||2|
|April 28, 2020||1532||195||45||4||255||1232||2|
|April 27, 2020||1337||64||41||0||255||994||2|
|April 26, 2020||1273||91||41||5||239||994||2|
|April 25, 2020||1182||87||36||3||222||925||2|
|April 24, 2020||1095||114||33||1||208||855||2|
|April 23, 2020||981||108||32||3||197||753||2|
|April 22, 2020||873||91||29||3||197||648||2|
|April 21, 2020||782||117||26||3||197||560||2|
|April 20, 2020||665||38||23||1||188||466||2|
|April 19, 2020||627||86||22||2||170||436||2|
|April 18, 2020||541||48||20||2||166||356||2|
|April 17, 2020||493||51||18||4||159||317||2|
|April 16, 2020||442||35||13||1||152||277||2|
|April 15, 2020||407||34||12||1||128||267||2|
|April 14, 2020||373||30||11||1||99||263||2|
|April 13, 2020||343||20||10||0||91||242||2|
|April 12, 2020||323||5||10||0||85||228||2|
|April 11, 2020||318||13||10||3||70||238||2|
|April 10, 2020||305||17||7||0||58||240||2|
|April 9, 2020||288||14||7||1||51||230||2|
|April 8, 2020||274||22||6||0||44||226||2|
|April 7, 2020||254||16||6||1||44||204||2|
|April 6, 2020||238||6||5||0||35||198||2|
|April 5, 2020||232||18||5||1||33||194||2|
|April 4, 2020||214||5||4||0||25||185||0|
|April 3, 2020||209||25||4||2||25||180||0|
|April 2, 2020||184||10||2||0||20||162||0|
|April 1, 2020||174||35||2||0||9||163||0|
|March 31, 2020||139||8||2||0||9||128||0|
|March 30, 2020||131||20||2||1||8||121||0|
|March 29, 2020||111||22||1||0||3||107||0|
|March 28, 2020||89||19||1||0||3||85||0|
|March 27, 2020||70||5||1||0||3||66||0|
|March 26, 2020||65||14||1||0||2||62||0|
|March 25, 2020||51||7||1||0||2||48||0|
|March 24, 2020||44||4||1||0||2||41||0|
|March 23, 2020||40||10||1||1||2||37||0|
|March 22, 2020||30||8||0||0||2||28||0|
|March 21, 2020||22||10||0||0||1||21||0|
|March 20, 2020||12||4||0||0||1||11||0|
|March 19, 2020||8||0||0||0||1||7||0|
|March 18, 2020||8||5||0||0||1||7||0|
|March 17, 2020||3||1||0||0||0||3||0|
|March 16, 2020||2||0||0||0||0||2||0|
|March 15, 2020||2||0||0||0||0||2||0|
|March 14, 2020||2||0||0||0||0||2||0|
|March 13, 2020||2||0||0||0||0||2||0|
|March 12, 2020||2||0||0||0||0||2||0|
|March 11, 2020||2||0||0||0||0||2||0|
|March 10, 2020||2||0||0||0||0||2||0|
|March 9, 2020||2||1||0||0||0||2||0|
|March 8, 2020||1||0||0||0||0||1||0|
|March 7, 2020||1||0||0||0||0||1||0|
|March 6, 2020||1||0||0||0||0||1||0|
|March 5, 2020||1||0||0||0||0||1||0|
|March 4, 2020||1||0||0||0||0||1||0|
|March 3, 2020||1||0||0||0||0||1||0|
|March 2, 2020||1||0||0||0||0||1||0|
|March 1, 2020||1||0||0||0||0||1||0|
|February 29, 2020||1||0||0||0||0||1||0|
|February 28, 2020||1||1||0||0||0||1||0|
FG approves N8.49billion to procure COVID-19 testing Kits, others
The fund is to procure 12 items in various quantities to strengthen the testing for COVID-19.
The federal government has approved N8.49 billion to procure 12 items in various quantities to strengthen the testing for COVID-19 by Nigeria Centre for Disease Control (NCDC).
The approval was given during the 11th virtual meeting of the Federal Executive Council presided over by President Muhammadu Buhari on Wednesday.
The approval was based on a memorandum presented to the council by the Minister of Health, Osagie Ehanire.
He was joined at the post-FEC press briefing by the Minister of Information and Culture, Lai Mohammed; and the Minister of Environment, Muhammad Mahmood.
He explained that the approval was made to further equip the NCDC to respond appropriately to the community transmission phase of the pandemic.
COVID-19: Russia to start mass inoculation of vaccine this month as it insists on its safety
The vaccine is said to be undergoing Phase 3 trials, which is the final stage.
Russia has announced that it was going to start mass vaccination of the world’s first COVID-19 vaccine this month before the completion of clinical testing. This is just as it waved off concerns by the international community and some scientists about the safety of the vaccine.
These views were made known by the Russian Health Minister, Mikhail Murashko, on Wednesday, August 12, 2020, during a press briefing.
The Health Minister in his statement said, ‘’Western colleagues, who can sense the competitive advantage of the Russian drug, are trying to express some opinions that are completely unjustified in our view. This vaccine is a platform that is already well-known and studied,” he said, adding that other countries have developed antidotes under accelerated testing programs.’’
Murashko also said that the authorities plan to start inoculating medical workers and other risk groups within 2 weeks on a voluntary basis while pointing out that the vaccine will be made available to the general public from October.
Nairametrics had reported yesterday that the Russian President, Vladimir Putin, in a televised meeting, announced that Russia has registered the first COVID-19 vaccine in what they see as a propaganda coup amid the global race for the development of a vaccine against the coronavirus disease.
This announcement has raised a lot of international concerns with the German Health Minister, Jens Spahn, saying on Wednesday, that Russia’s COVID-19 vaccine has not been sufficiently tested, adding that the aim was to have a safe product rather than just being first to start vaccinating people.
He said in a radio chat that it’s not about being first but rather about having an effective, tested and safe vaccine.
Experts have expressed their concerns over Russia’s decision to grant approval before the final trials of the vaccine have been completed.
He said that as much as he will be pleased to have a good vaccine for the virus, he pointed out that the Russians are not disclosing much about this vaccine.
This vaccine which is developed by Gamaleya Institute in collaboration with the Defence Ministry and the Russian Direct Investment Fund (RDIF), is said to be undergoing Phase 3 trials, which is the final stage.
However, a World Health Organization (WHO) database still lists the vaccine as still only in Phase 1 trial, which is the earliest stage.
The RDIF said that it can produce over 500 million doses of the new vaccine in a year in 5 countries, just as it disclosed that a minimum of 20 countries are currently interested in having access to these vaccines.
The WHO had earlier revealed that it is currently discussing with Russia and pointed out that in granting prequalification of the vaccine, a detailed review of data from clinical trials will be required.