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
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