The Finance Director at Cadbury Nigeria Plc, Ogaga Ologe indicated that consumer preferences and innovation are affecting the Fast-Moving Consumer Goods (FMCG) sector.
This was discussed during Nairametrics’ Industry Outlook event held on Saturday, where Ologe spoke about how consumer preferences and innovation are affecting the Fast-Moving Consumer Goods (FMCG) sector.
Ologe addressed consumer preferences and innovation as factors that are shaping the FMCG sector in Nigeria.
Consumer preferences
The insights provided by Ologe shed light on the evolving landscape of consumer preferences in the retail sector.
From a growing emphasis on value-conscious shopping to the preference for smaller packaging formats and the influence of economic factors on purchasing decisions, he indicated that businesses must remain attuned to these shifts to effectively meet the needs and expectations of their customers.
By adapting their offerings and strategies in response to changing consumer preferences, businesses can foster stronger customer relationships and drive sustained growth in an increasingly competitive market environment.
He said:
- “There are different kinds of shoppers. Consumers have either reduced the number of items purchased or bought substitutes. The consumers are getting wise.
- “Consumers now prefer to buy more sachets to maintain rations”
- “In some states some consumers are mostly civil servants with average salaries so they can only buy what they can afford.”
The need to adapt to innovation to stay in business
He pointed out that for FMCGs to remain in business businesses need to plan with the reality on the ground as consumer behavior cannot be changed, but rather adapt to the new reality.
Speaking further, he stated that FMCGs need to build resilient supply chains in a turbulent economy.
He said:
- “Covid-19 is still taking the blame as it affected FMCG’s long-term strategy
- “It has helped to see the flaws in the supply chain and has helped in our sourcing strategy. Some offshore sourcing can be done locally”.
- “Develop an even more resilient supply chain workforce.
- “What the Marketing department is doing is understanding consumer behaviour.
- “Automated selling processes, drop-off locations, combined customer products in the same location and others are some of the innovations which are helping the sector”.