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Setting Up A Baby Products Retail Store In Nigeria - Business - Nairaland

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Setting Up A Baby Products Retail Store In Nigeria by LagBlogger(m): 11:34pm On Feb 19, 2019
Nigeria has a huge market for sale of baby products ranging from diapers, to baby clothing to baby shoes, baby toys and other products that can be associated with children under 18 months of age – those that can reasonably be breast fed or still growing little teeth.

In all Nigerian homes I know, babies are the darlings of everyone. They can possibly do no wrong but they are the most destructive, restless, playful and distracting members of many households. They have needs and the loving parents know this very well.

Socially Nigerians tend to celebrate with their family member, friend, colleague, church member or neighbor who just put to bed. Guess how they choose to celebrate with them – by buying baby products as gifts presented to the parents as a way of showing their love for the new child. It is a very common

The Opportunity in Selling Baby Products in Nigeria
There are many opportunities in Nigeria to sell baby products in Nigeria. Let us start with the population of new born babies. In 2016 an estimated 5.2 million babies were born in Nigeria with over 2 million of them born to parents who reside in many Nigerian towns and cities. The main customers of baby products reside in the towns and cities of which an estimated 40% of Nigerians are resident in. The big towns and cities include state capitals, transit such as towns, trading towns and other densely populated commercial areas etc

Nigeria’s Population is growing very fast
Nigeria’s population is growing at an alarming 3.2% per annum which would make Nigeria the 3rd largest country in the world - by population - by the year 2050 when our population would reach 400 million. This is because family planning is not widespread in Nigeria. Most homes have at least 4 children even among educated middleclass families. There is also the issue of early marriages. In Nigeria women get married as early as 21. Combine that with our high fertility rate of 5.7% - this means most Nigerian women between the ages of 19-39 will bare at least 5 children which is the 10th highest in the world. Nigeria will keep producing millions of babies every year.

Huge Pool of Customers in Nigeria
There is a huge market pool of over 38 million customers to consider (parents with children less than 2 years). About 15.2 million of them reside in state capitals and cities such as; Lagos, Port Harcourt, Abuja, Benin, Jos, Kano, Ibadan, Ilorin to mention a few. This population keeps increasing year after year meaning that by next year we should be expecting a higher population of parents with children less than 2 years of age.

Products are affordable to the Nigerian Middle Class
Thirdly baby products are relatively affordable for the middle class who are 23-30% of total population according to the World Bank. In Nigeria middle class families consist on average two parents and 4 children with gross household income of N120,000 and above. Most middle class families can afford to buy this range of products and they reside mostly in the urban centers.

There are few Specialist Baby Product Shops
There are a lot of shops that sell baby product but very few of them are specialist stores. This means they can only stock their shops with the most common baby products i.e diapers and baby food but not on baby clothes. Most people buy their baby products from corner shops and Supermarkets in Nigeria. Secondly they are not likely to source quality baby wares and products at the best available price.

Family Planning is not widespread
Nigeria is one of the least compliant countries in the world when it comes to the use of contraceptives and other family planning methods. Our cultural, religious and social practices encourage larger families compared to European and Asian households.

Low Marketing Costs
Being a retail product that cuts across many social and economic divides, the cost of reaching potential customers is relatively low compared to many other products. There are marketing strategies that can achieve good results in a short time with a small budget that fits into this business. This offers a chance for investors to realize quicker sales if the marketing approach used is cost effective

High Profit Margins
Baby products also carry a higher profit margin than many fast moving consumer products. Some baby products such as diapers can attract 10% or more in sales margin compared with other kinds of consumer items.

The Challenges
There are many things that could affect your business negatively or prevent you from achieving your business goals. In Nigeria I have identified at least 9 for baby product range of businesses but I will only explain 3 in this article;

Counterfeiting of Baby Products
One thing common in the Nigerian landscape is how soon a fast moving product is counterfeited or produced using substandard ingredients in order to make a quick buck. It cuts across drinks, to clothing to bags, shoes and a lot more and certainly baby products are not excluded. The unfortunate thing is that consumers often don’t know better. This can actually discourage some people from buying from your store.

Strategic Shop locations are expensive
To have a strategic location to drive sales to your business is very hard to come by because the available spots are usually very expensive and can contribute to your already high operating cost

Stiff Competition
A lot of people already know about this business and there is no way they will sit back and allow others profit from it. Since there are many alternatives to the products you will be selling you will likely lose some potential customers so long as people can order for the same product from someone else. But this shouldn’t discourage you as aggressive marketing works well when there is stiff competition

How to Find Customers
There are at least 15 different ways I know you can find new customers for your business. There is word of mouth, targeted internet marketing, social media marketing, use of a strategic shop location, online shopping malls among other methods many of which are low budget and effective.

Source: https://lagosbusinesses..com/2017/07/how-to-setup-baby-products-retail-store.html
Re: Setting Up A Baby Products Retail Store In Nigeria by imhere: 4:29pm On Apr 13, 2020
Selling of baby products is very lucrative in Nigeria. Look around you how many new born babies or pregnant women can you see?. Yet the business is not crowded, you can check this post to see how to start, capital for starting, what to sell...
https://www.enibest.com.ng/all-posts/business/how-to-start-selling-baby-products-in-nigeria/
Re: Setting Up A Baby Products Retail Store In Nigeria by gistcity(m): 3:20am On Feb 24, 2021
The fact is that you need a BABY STORE BUSINESS PLAN to start properly with all the right information about the business
www.businessplaninnigeria.com.ng/baby-store

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