At the recent 2024 Nigeria NielsenIQ Breakfast Conference held in Lagos, Faith Wanderi, the Managing Director of NielsenIQ East & West Africa, revealed that a staggering 70% of consumers have switched brands in the past year. This shift is largely driven by economic pressures, with price becoming a more significant factor than brand loyalty.
Wanderi emphasized the need for manufacturers and retailers to innovate their products and offer more affordable options that meet the needs of consumers who are facing financial constraints. She stated, “They need to understand consumer behavior and the recent shifts that have occurred.” Her comments highlight the importance of adapting to changing market conditions, especially as many consumers are now prioritizing cost over brand recognition.
The conference, themed “The Big Squeeze,” focused on the challenges consumers face as disposable incomes decline. Wanderi noted that while many consumers are switching brands, some product categories still experience low switching rates. This indicates that businesses must analyze their specific markets to understand consumer behavior better.
Wanderi urged businesses to use insights from consumer behavior to inform their pricing strategies and distribution channels. “From the outlook for the consumer market for the remaining months of the year, consumers will continue switching brands, and consumers are not loyal to any brand at the moment,” she warned. This calls for a creative approach to business, moving away from traditional methods that may no longer be effective in the current economic climate.
In his keynote address, Olufemi Awoyemi, Chairman of Proshare, echoed Wanderi’s sentiments. He pointed out that sectors such as fast-moving consumer goods, retail, telecommunications, fintech, and banking have a dual responsibility. They must not only predict and shape consumer behavior but also adapt to the rapid changes in consumer expectations during tough economic times.
Awoyemi highlighted the role of data providers in this evolving landscape, stating that they must transition from transactional to transformational roles. He emphasized that understanding consumer changes is crucial for linking national trends to real-world consumer behavior, which impacts management, marketing, sales, and corporate goals.
He also noted that businesses are facing new challenges beyond traditional competition. The rapid pace of change in consumer preferences and economic conditions is forcing industries to adapt quickly. “Every 5-10 years, the cycle of business transformation occurs when changes force industries to be uncompetitive,” he explained. The current technological advancements are reshaping consumer tastes and the prices they are willing to pay for goods and services.
As the economic landscape continues to shift, both Wanderi and Awoyemi stressed the importance of businesses being proactive rather than reactive. Companies must leverage data and analytics to anticipate changes and make informed decisions that align with consumer needs.
The insights shared at the NielsenIQ conference underscore the pressing need for businesses to innovate and adapt in response to changing consumer behavior. With many consumers prioritizing price over brand loyalty, companies must rethink their strategies to remain competitive in a challenging economic environment.
