Amidst the complex landscape of inflation affecting the Fast-Moving Consumer Goods (FMCG) industry, Tobi Adeniyi, the Customer Supply Chain Director at Unilever Nigeria Plc, has urged companies and operators to prioritize investments in consumer insights as a strategic imperative for their survival.
Adeniyi shared these insights as a distinguished panelist during the Nairametrics Industry Economic Outlook event held on Saturday, February 17, 2024.
- In stressing the critical role of consumer insights, Adeniyi emphasized, “Investing in consumer insight is crucial because, at the end of the day, the most important thing is to know your consumer and shopper.”
He underlined the nuanced distinction between understanding consumer preferences and shopper behaviour, pointing out the importance of aligning strategies with these distinct facets of the market.
- Adeniyi cautioned against the peril of assumptions, noting that, “in the industry at times, one major aspect we need to be careful of is assuming we know what the consumer wants, and we shouldn’t underrate that at all.“
This acknowledgement ties to the dynamic nature of consumer preferences and the potential risks associated with complacency or misjudgment.
More insight and examples
To illustrate the significance of consumer understanding, Adeniyi referenced the example of Mercedes in 1993.
He recounted how Mercedes introduced the C class as an entry point for consumers aspiring to drive a Mercedes, balancing affordability while retaining the brand’s elegance.
This strategic move highlighted the importance of adapting to consumer needs and preferences without compromising the brand’s essence.
- The Unilever executive further emphasized that, “overall, investing in consumer insights is very crucial because that is the basis for why FMCG companies exist. You need to understand what the consumer wants. Assume you do not know.”
This stance aligns with the evolving nature of consumer markets and the need for businesses to continually adapt and innovate based on up-to-date consumer insights.
Adeniyi reiterated the idea that understanding consumers is paramount for the FMCG sector. He cautioned against presumptions and opined on the enduring importance of consumer insights as the foundation for navigating the complexities and uncertainties within the industry.