A busy market place | File Photo
Penetrating a market is something that has, over the years, proven easy for Nigerian retailers wherever they find themselves in other African countries.
In Accra, at Kwame Nkrumah Circle, one of Ghana’s largest informal markets, Nigerian traders have infiltrated it with their supplies and services, ranging from mobile phone accessories and repairs, laptops, computers, tablets, the sale of car parts, etc.
The most repeated testimony often given by Ghanaian customers is that the supplies and services by the Nigerian retailers are of good quality and a good price. For example, the price of an iPhone 17 protector could be 25 cedi if sold by a Ghanaian retailer, whereas it’ll just go for 15 if it’s sold by a Nigerian retailer.
While many Ghanaian retailers accuse Nigerians of selling goods of low quality or securing their supplies from a cheap supplier, hence pricing their supplies low, they fail to understand that Nigerian traders have an innate business penetration strategy that is characterized by two factors: (1) Unique Selling Proposition and (2) Customer Satisfaction.
Nigerians always penetrate the market with a unique selling proposition. The first rule to this is no greed in pricing. They go about it by concentrating on selling more volumes at an affordable price.
So if it’s an iPhone 17 protector and the unit price is 10 cedi, they’ll price it at 15. This same product, bearing the same quality and brand, and in the same market, the Ghanaian retailer will offer it at 25 cedi.
More customers will, as a result, find their way into the Nigerian shop, and by the close of the business day, they may have sold at least 25 pieces, making just 5 cedi profit per head.
But when it’s added up, their profit margin will scale up to 100%. Unlike the locals, who’ll keep their prices at an higher rate and could only sell three to five pieces for the day, making a profit margin of 30%. Femi Otedola exploited this strategy while operating Zenon, and it worked perfectly for him.
With all these, it’s very typical of Nigerian traders to first think of satisfying their customers rather than seeking their own comfort and aggrandizement.
Even when the account is being balanced and it’s time for closing, and a customer shows up, they will think first of meeting her needs before holding onto their terms that it’s time and they’ve thus closed.
To a Nigerian retailer, it’s easier to lose a customer than to gain one. They are trained to keep their part of any bargain, should it come with a consolable disadvantage to them.
And that turns a one-off purchase into routine purchases and transactional relationships with a customer into relational ones where customers feel a sense of belonging and will go about and tell other potential customers about their business.
It’s clear that Nigerian retailers are intentional about their market penetration tactics. Wherever there is an opportunity, they grab it with their two hands. They mean business by being busybodies. And if they are to enter into a market to sell, they set the pace, face the risk, define the taste, and finally own it.
Source:
www.ghanaweb.com