Nigeria's retail market is both capturable and too large to ignore. Buying into the winning retail business model will be taking advantage of one of Africa's biggest growth opportunities.
Investing in a viable business - opens up the question of franchises: Are retail franchises good investments? How can a Nigerian acquire a retail franchise? And how does retail franchising work in Nigeria?
Just a week ago, a prospective franchise buyer sent a DM to FBDS Nigeria's Page on Instagram asking - ' I like sales, what franchise will be best for me?'. After asking a few questions about his personality and preferences, we advised him to invest in retail franchise. So, what makes the retail franchising an untapped goldmine for the Nigerian investor?
Let's take a closer look.
For best retail Franchises, the brand's success is a combination of best performance, best practices and a demonstrated expertise in operating successfully in different cultures and retail environments that have also helped them win recognition. In Nigeria today, consumer-facing industries have quietly grown into a significant economic force and are poised to continue growing.
Brand loyalty is also high among Nigerians. 70% say they are brand loyal versus 59% in Africa as a whole. Thus, leveraging an existing retail brand means automatic sales due to the loyal nature of Nigerians.
Despite the current slow economic situation, statistics have projected that 11 to 18 per cent of Nigeria's urban households, numbering over 2 million, have purchasing power and annual incomes over $10,000. Much of this income will invariably go into the retail sector. Similarly, in line with a recent FBDS Study, there are over 450,000 Nigerian career professionals with minimum investible funds of one million naira, looking out for investment opportunities - In the majority, these funds are looking for franchise type opportunities for ease of venturing and minimal failure risk.
Nigeria is a growth market for franchising and franchise development services. The retail industry comes second to the food industry among sectors with best franchising opportunities.
Impediments To Retail Franchising in Nigeria
As with other emerging markets, one of the challenges of franchising in Nigeria remains the strengthening of intellectual-property regimes so that franchise companies can transmit knowledge and franchise system concepts with the confidence that such know-how will be protected. Franchise Business Development Services (FBDS), the country's pioneer franchise development company, has developed effective support solutions and has helped brands who are now successfully franchising. Our support in building an enabling environment which has introduced solutions to ease off erstwhile franchising challenges have resulted in an impressive increase in franchising interest among franchisable businesses in Nigeria.
Are you about starting a business? Are you interested in the retail sector? Are you finding it difficult to decide which industry to invest in? Are you in the trial and error phase of business? Are you looking for a viable business with a guaranteed profit? FBDS Nigeria has the best business opportunities for you at the 3rd franchise matchmaking forum. Click here to attend.
Have you built a viable business with a proven and profitable model? Have you replicated your business model in two or more locations? Do you want to expand your brand globally? Register to be one of our 80 exhibitors at the 3rd franchise matchmaking forum. Click here to attend.