₦airaland Forum

Gboom:
No place in Africa is like Nigeria in terms of rate of turnover and return on investment especially Lagos.
I remember Shoprite opened this first outlet in The Palms in Lekki and they were successful in the first 3 years, and they moved to Ghana thinking that the grass is greener, but they were wrong as they could make 10% of their turnover there after they started opening other outlets all over Nigeria

This is false news. Nigeria has one of Africa's lowest GDP per capita,.. meaning most people in your country have little or no spending power..

ZeemsPropeties:
There's no high horse. Nigeria is one of the biggest markets in Africa. Shoprite's model will struggle though because of other competitors and generally because they have failed to make the market "need" them.

Nigeria have the market in terms of numbers but interms of big buying power is South Africa. Same with Netflix they make more out of the 60 million in South Africa than millions of Nigerians.

RandDigital:
Changing tune? Originally you said "No place in Africa is like Nigeria in terms of rate of turnover and return on investment especially Lagos". 😂😂😂

Shoprite's biggest and most advanced competitors are in SA, not Mama Put in Nigeria. When Shoprite exited Nigeria the BBC reported Nigerians were broke and only used Shoprite to take selfies and ride it's escalators. How can anyone not need a one-stop supermarket?

Nigeria has one-stop supermarkets. It's called the general markets. And Nigerians patronize one-man/family owned business for various reasons. If ShopRite is unable to convince people to choose their brand, that's on them. It is the responsibility of any brand to ensure that people recognize and need them. That's the entire foundation of marketing.
Again, ShopRite is a foreign company, you don't just expect patronage, you ensure patronage. I maintain that the failure of the company is on the board for expecting that a formula that worked in one market would work in another without taking into consideration that there are factors unique to different markets.

PS: You are probably mixing the comments up. I didn't make that comment.

KingCold:
This is false news. Nigeria has one of Africa's lowest GDP per capita,.. meaning most people in your country have little or no spending power..

Ranking by GDP per Capita puts Nigeria on 21st place out of 53 African Countries. I don't know how that qualifies to "one of Africa's lowest". Before you judge based on that, we have to ask "who are the market target of this brand"? What part of the market does your brand target since the Nigerian economy has a lot of successful companies. Why has the little GDP per Capita not affected those? The company failed in its strategy to penetrate the market and that's an irrefutable fact.

KLEINBASS:
Nigeria have the market in terms of numbers but interms of big buying power is South Africa. Same with Netflix they make more out of the 60 million in South Africa than millions of Nigerians.

Again, a company's failure in a market is an indictment on that company. Are we to believe that the company moved into a market without comprehensive study on the buying power of the people in that market or the brand failed in its strategy and just assumed success in one market would translate into success in another?
I'd say the latter but even the former does not do the board any favors.

ZeemsPropeties:
Ranking by GDP per Capita puts Nigeria on 21st place out of 53 African Countries. I don't know how that qualifies to "one of Africa's lowest". Before you judge based on that, we have to ask "who are the market target of this brand"? What part of the market does your brand target since the Nigerian economy has a lot of successful companies. Why has the little GDP per Capita not affected those? The company failed in it's strategy to penetrate the market and that's an irrefutable fact.

Bra, even the poorest of countries have their own companies, isn't that so? So the examples you're making don't fly.. A grocery shop like Shoprite doesn't even need a target market to succeed because basics are sold there.. eg. Bread, sugar, etc.. You don't need a target market for those, and yes, Nigeria has one of Africa's lowest GDP per capita, which directly affects the spending of the people.. You're just used to open markets and there's nothing wrong about that

ZeemsPropeties:
Nigeria has one-stop supermarkets. It's called the general markets. And Nigerians patronize one-man/family owned business for various reasons. If ShopRite is unable to convince people to choose their brand, that's on them. It is the responsibility of any brand to ensure that people recognize and need them. That's the entire foundation of marketing.
Again, ShopRite is a foreign company, you don't just expect patronage, you ensure patronage. I maintain that the failure of the company is on the board for expecting that a formula that worked in one market would work in another without taking into consideration that there are factors unique to different markets.

PS: You are probably mixing the comments up. I didn't make that comment.

And what are those factors - you wanna bargain at the till?

But on a serious note, what local factors are these I keep hearing about? Please list them. Because in SA we have many international brands and they get patronage, there's enough disposable income to go around.

KingCold:
Bra, even the poorest of countries have their own companies, isn't that so? So the examples you're making don't fly.. A grocery shop like Shoprite doesn't even need a target market to succeed because basics are sold there.. eg. Bread, sugar, etc.. You don't need a target market for those, and yes, Nigeria has one of Africa's lowest GDP per capita, which directly affects the spending of the people.. You're just used to open markets and there's nothing wrong about that

The bolded is one factor. Another factor to consider is why should the prospective customer come from whatever distance to buy bread, sugar etc from ShopRite when they would have come across so many other sources to buy from?
You need to understand that societies act collectively for a reason and until they must change it, the status quo will continue. If a society chooses an open market system, the onus is on the entrant into the market to convince them otherwise. We don't have to make the job easy because it's a foreign brand.

RandDigital:
And what are those factors - you wanna bargain at the till?

But on a serious note, what local factors are these I keep hearing about? Please list them. Because in SA we have many international brands and they get patronage, there's enough disposable income to go around.

Nigeria has a fair share of international brands as well.
Every brand should have an identity that makes the customer want from them. Ease of access is one, exclusivity of products is another.

Why should I "travel long distances" to get a product I can get closer to me?
I believe the above is something ShopRite's marketing department could not solve.

THUNDER4real:
They will soon be closing shop in Nigeria. Shoprite nowadays is empty.

they already left Nigeria, I guess you didn't read the article

ZeemsPropeties:
Nigeria has a fair share of international brands as well.
Every brand should have an identity that makes the customer want from them. Ease of access is one, exclusivity of products is another.

Why should I "travel long distances" to get a product I can get closer to me?
I believe the above is something ShopRite's marketing department could not solve.

So there were no local communities with disposable income in the areas where Shoprite was located? I would like to believe the few Shoprite stores Nigeria had were strategically placed. If those stores failed, why would Shoprite take the risk of expansion to less strategic areas of Nigeria?

RandDigital:
So there were no local communities with disposable income in the areas where Shoprite was located? I would like to believe the few Shoprite stores Nigeria had were strategically placed. If those stores failed, why would Shoprite take the risk of expansion to less strategic areas of Nigeria?

Did ShopRite site their stores in areas without disposable income? If not, location is half the job. Sounds like ShopRite's plan was to site the store in a location and just hope the residents around there would automatically choose them over their competitors. That's on them.

ZeemsPropeties:
Did ShopRite site their stores in areas without disposable income? If not, location is half the job. Sounds like ShopRite's plan was to site the store in a location and just hope the residents around there would automatically choose them over their competitors. That's on them.

I'll do some research of all Shoprite locations in Nigeria and relevant stats of the areas. I believe they'll all come back as "affluent". Then we'll discuss further.

RandDigital:
I'll do some research of all Shoprite locations in Nigeria and relevant stats of the areas. I believe they'll all come back as "affluent". Then we'll discuss further.

My point still stands. It's one thing to be located in an "affluent" area, it's another to get the loyalty of said affluent people. That's what the brand didn't get right.

ZeemsPropeties:
My point still stands. It's one thing to be located in an "affluent" area, it's another to get the loyalty of said affluent people. That's what the brand didn't get right.

My guy just admit to yourself Nigerians didn't have the means to afford Shoprite. That time Shoprite is at the lower end of supermarket brands in SA 😂😂😂

RandDigital:
My guy just admit to yourself Nigerians didn't have the means to afford Shoprite. That time Shoprite is at the lower end of supermarket brands in SA 😂😂😂

remember, even Edcon couldn't make headway over there?