Expert expresses concern over declining sales volumes, amidst eroding consumer purchasing power
By Felicia Nwosu
Boma Harrison, Head of Marketing at Rite Foods, has raised a red flag about the alarming trend of declining sales volumes within Nigeria’s Fast-Moving Consumer Goods (FMCG) sector. Her concerns highlight the urgent need for solutions that address both the rising costs faced by producers and the dwindling purchasing power of consumers. The marketing professional’s remarks underscore the precarious position of the sector.
In a recent interview, Harrison emphasized that this downward trend serves as a clear indicator of eroding consumer purchasing power, painting a concerning picture of the industry’s current state.
Her concern stems from the stark reality of the current market dynamics. While the FMCG sector has seen a 43% increase in overall value, this figure masks a troubling underlying issue.
She pointed out the alarming trend of declining sales volumes, a clear indicator of eroding consumer purchasing power.
“This disconnect between value and volume underscores the difficult choices consumers are making as their incomes diminish. Faced with rising prices, they’re either opting for cheaper alternatives or reducing their consumption altogether, directly impacting demand for many FMCG products.”
The Rite Foods marketing head emphasized the tightrope walk companies are forced to undertake.
“They must adjust pricing strategies to remain competitive, yet these very adjustments can further dampen demand as products become less affordable. This delicate balancing act is made even more difficult by the increasing costs of production, creating a squeeze that puts immense pressure on profit margins.”
She acknowledged the modest growth seen in the non-alcoholic beverage sector as a sign that innovation and value-driven products can offer some respite. However, her overall message is one of caution. The sector faces a multitude of challenges, including sluggish economic growth, global market volatility, and the constant need to innovate.
The consumers centric marketeer clearly articulated her worries about how companies can effectively navigate this complex landscape, balancing the need to manage costs while remaining competitive in a market where affordability is paramount
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