Nigerian consumers drive demand for 4G smartphones upward in 2017 – research
Market research by GfK, has identified Nigerian consumers as driver of upward demand for 4G Smartphones witnessed in 2017 as improved sales performance in chains retail sales developments for 4G Smartphones in Nigeria recorded significant growth in the category.
In actual terms 1.6 million devices were sold in Q1 – Q3 of 2017, compared to 972,000 devices in the same period last year, the statement from the report said. This represents a growth of 64%. With over 90 million internet users the savvy Nigerian consumer demands faster bandwidth and data transfer speeds, the kind that only 4G devices can provide. “GfK has since 2009 been involved tracking the retail sales developments for mobile phones in Nigeria.
“The advent of the recession in 2016, culminating in a weaker local currency impacted the market. This led to a decline in units sold, however with a marginal increase of 3% in sales value. It is expected with the end of the recession and the improved value of the Naira that negative sales growth trends will be reversed”, the report said.
According to Kenneth Doghudje, Managing Director GfK Nigeria in the statement, “The Nigerian consumer demonstrates connectedness to the world, and everything around him/her via the smartphone. This device has come to typify a better quality of life and standard of living. Today’s consumer wants to engage and remain engaged. Running out of data to browse the internet is simply not an option. And today’s network operators are data driven and focused as a result.”
The report further said that Smartphone devices with screens 5 inches or larger resonate very well with the Nigerian consumer. “A year-on-year comparison of 5 inch screen sales indicates that the market grew from 1.16 million units sold in 2016 to 1.58million units sold in 2017, a growth of 37%. This is proof that consumers desire enough screen “real estate” to enable them to maximize the use of their devices”.
Henry Egbejimba, Business Group Manager Telecoms & IT for GfK Nigeria also said in the statement that “Large screen sized phones are preferred by the Nigerian consumer. In fact, the larger the size of the screen the better. This is because Nigerians associate large screen sizes with premium quality. And everyone desires to have one or even two high quality smartphones in hand because smartphones are a status symbol.”
Today many brands are able to play in the 5 inches segment and churn out models within affordable price points that meet the yearnings and aspirations of the customers, the report said.
According to Egbejimba: “Comparing 2016 and 2017 sales performance the market recorded tremendous growth in the chain stores sales performance. This channel recorded a 22% increase in sales with a 47% substantial increase in value when comparing the first 3 quarters in both years. Even though the total market experienced the decline, the chain store segment didn’t and actually had a positive trend.”
He said more and more consumers are beginning to embrace chain stores as the best place to procure quality devices with sufficient warranty and after sales service. “They’re actually the best places because they provide an enabling environment to properly engage with the products and check out their characteristics and features, which is vital before you buy”.
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