Operators in Nigeria’s modern retail industry have been told to adjust to the ecosystem’s quickly changing characteristics in order to stay competitive.
Ade Sun-Basorun, the Chief Executive Officer of FoodCo Nigeria, who made the call, pointed out that even though the industry recovered from the COVID-19 pandemic’s effects, it has had to deal with a world that has been shaped by a global economic downturn, significant supply chain disruptions, and digitalization, which has permanently changed consumer behavior.
The commoditization of goods, the democratization of technology, and the development of brands, among other tendencies, are the result of the changes, according to Sun-Basorun.
“All across the globe, retail has been going through fundamental changes. Depending on the category and country, the pace, severity and impact of the changes have varied and we foresee that they will continue to accelerate into the future.
“For instance, there has been a dramatic increase in manufacturing efficiency across a vast majority of the consumer goods space. This has led to a surplus in some categories which is exceeding the consumers’ ability to consume. Think for a moment how many T-shirts, water and bread brands are available today in contrast to what was prevalent 10 years ago. The minimum efficient factory scale, cost of production, access to capital and access to expertise have significantly increased global and local manufacturing capacity,” he said.
Sun-Basorun urged business leaders in the field to continuously change their practices in light of new technologies in order to provide clients with services that are less burdensome, more efficient, and speedier.