Unlike in the past when supermarkets printed and affixed prices on items on display, prices are now hand-written so that shop owners can flexibly adjust the prices in-line with the rates of dollar increases
By Uche Nworah
The fluctuating rate of exchange of the Naira to the dollar and other foreign currencies has pushed up prices of imported products in our local markets. The Naira has been on a free fall for months now, and analysts do not see the trend bucking anytime soon.
A visit to any local supermarket leaves one with his heart in his mouth because of the prices of groceries and other goods on display. I was at a local supermarket recently to pick up some groceries and was shocked to see the prices of items on display. These prices are surely above the reaches of millions of families in Nigeria. I noticed that a small plastic bottle of Heinz salad cream was retailing for N6,300.
Unlike in the past when supermarkets printed and affixed prices on items on display, prices are now hand-written so that shop owners can flexibly adjust the prices in-line with the rates of dollar increases.
Using Heinz salad cream as a metaphor, one could see that in the circumstances, consumers will begin to look for economic-value alternatives. Coincidentally, on the same Sunday that I was shopping for salad cream, I saw on the internet that indigenous food manufacturing brand, Don Ebubeogu – led Tiger Foods Limited was collaborating with rising Awka social hub- Obalende Awka, in organizing a tasting event for its newly launched Tiger mayonnaise. This got me thinking. Surely, this is the time for indigenous brands to fight for market share.
To be able to do this successfully and scale up their output, they need the support of the consumers through increased patronage, as well those of critical stakeholders in the manufacturing value-chain to surmount some of the challenges that indigenous manufacturers face in Nigeria. These challenges have been identified as distribution and logistics challenges including poor road conditions, scarce foreign exchange to import spare parts and raw materials, energy challenges, complex tax regimes by both the federal, states and local governments, staff-related issues, competition from imported brands and so on.
Perhaps the distortion in the economy occasioned by rising and fluctuating dollar exchange rate presents good growth opportunities for indigenous Nigerian brands. Will they seize the moment and the emerging opportunities? Time will tell.
* Nworah, PhD, is adjunct Professor of Marketing at the Continents States University, U.S.A.