NIGERIAN LUXURY MARKET

Erica Chan Yongtong

Siddharth Himmatramka
Feiyun Peng
Yenan Gong



Brief Introduction
About Nigeria
Federal constitutional republic (36 states) in West Africa
Most populous country in Africa
Second largest economy in Africa (2011)
7.68% growth in the last quarter of 2011
Highest average GDP growth in the world 2010-2050
Majority of population living in the rural areas
Petroleum plays a large role in the Nigerian economy,
accounting for 40% of GDP and 80% of Government earnings
Wide array of underexploited mineral resources including
natural gas, coal, bauxite, tantalite, gold, tin, iron
ore, limestone, niobium, lead and zinc.


The development of
Nigerian luxury market

From the
1980 to 2010
Billionaires
Government
policy
That
purchasing
power is
starting to
draw new
brands into
Nigeria
From 2010 to
now
Gems
Super-rich elite
and a growing
middle class
Civilian
government are
more likely to
fawn over
foreign brands


The early
1970s

oil boom

Nigerias problem
was not making
money but finding
ways of spending it
Nigeria: The New Paradise
for Luxury
Economic and Purchasing power
Politicians in Abuja are the amongst the worlds most highly paid
80% of the population are living on less than 1.5 euro per day + a small % of the
population are millionaires 160 million population
A growing number of young and professional middle class salary improve

Bank Encouragement
New generation banks offer varieties of loan and finance packages

Physiological needs
The middle class need to show
that they have arrive, and what
better way than to purchase the
atest cars in the luxury market?
Judgment + social approval


The Approach to
Luxury
Shopping abroad remains the ultimate mean (Paris, London,
Dubai)








Travelling abroad is a reflection of high social status
Even in Victoria Island, the heart of Lagos wealthiest district,
a place with one of the worlds highest concentrations of
millionaires, only a small number of luxury brands can be
found

Gems
Nigeria bears on the national
and international market demand
for large, high-value gems.
Gems found in Nigeria:
tourmaline, topaz, sapphire,
emerald, beryl, in addition to
garnet, amethyst.
--Nigeria Minister of Mines and Steel Development announced that, although some
people think Nigeria gem is not perfect, but in fact, gems of Nigeria are the world's
best.
--Indian jewelers Amrapali sold a $37,000 necklace in Nigeria that set a diamond
in 22-karat gold with blue, yellow and red sapphires and hope to sell others at the
store they stock in Nigeria.

Private Jets

Private Jets
Private Jet industry valued at around $7.5 Billion
Nigerians acquired, at least, 130 private jets with a sum of US$ 6.5
billion within the last five years
Preferred brands of private jets in Nigeria include Gulfstream 450,
550 and 650; Bombardier Challenger 604, 605Top aviation officials
indicate that Nigeria currently rivaled China as one of the two
fastest growing private jet markets in the world.

Bombardier Business Aircraft Sales Manager Robert Habjanic, told
PunchNG.com ,Nigeria was the company's largest market in
Africa, with about 35 Bombardier-made business aircraft currently
flying its airspace.
Clothing
Hugo Boss recently entered Nigeria's
emerging luxury market.
LVMH Moet Hennessy Louis Vuitton
SA, is starting to open boutiques in
Nigeria.
Nigeria is the largest market in
Africa and the Middle East for Moet
Hennessy," said the company's Nigeria
marketing manager
We Will Play Big In Nigerias
Luxury Market, Says Cartiers Boss
Online sites like jumia.com offers
international brands
Home Grown Luxury
Labels
Jewel by Lisa
Lanre Da Silva Ajayi
Eki Orleans
Odio Mimonet
Tiffany Amber
5th + Quansah

International Luxury Brands
Already Present

Car Brands Present In
Nigeria
Cars
All major car brands have dealerships in Africa
Porsche opened a showroom recently
Range Rover Evoque, Jeep,SyonSang some of the
luxurious SUVs
Nigerians love for SUVs Competition among big
brands
Positive results for Luxury segment despite
slowdown in the sector

Luxury Real Estate
Starwood Hotels & Resorts to add three hotels to its
existing Nigerian portfolio by 2015.
Radisson Blu, Four Points by Sheraton, Ibis and
Legacy hotels opened in Nigeria
Accor, Hilton, IHG and Protea have projects under
development
Banana Island
Victoria Island



http://www.hotelmanagement-
network.com/news/newsnew-marriott-hotel-to-
open-in-lagos-nigeria-in-2014
Luxury And Internet

Largest number of internet users in Africa
Total market for online shopping-$38 Million
Total investment in e-commerce to reach $30 million by 2014
Concept of online designer boutiques


Online Luxury
Luxury Customer
Profile
Upstart business owners, oil industry executives and
politicians are the regulars
Sophisticated
Travel a Lot
Purchase luxury products from London, Paris, Dubai

Future Of Nigerian
Luxury

High-net-worth wealth in Nigeria grew 13.6% to $1.2
trillion between 2009 and 2010 faster than any
market in Europe, North America, Latin America and
the Middle East.[Merrill Lynch and Capgemini]
Projected to become Africa's biggest economy by
2015 and the world's fifth most populous by 2050
Lagos will have consumer spending of $25 billion or
more by 2020, according to a McKinsey & Co. report

Challenges To Nigerian
Luxury Market
Lack of Urban Infrastructure
Shortage of good shopping malls
Shortage of decent hotels and restaurants
The poor standard of domestic air travel
Safety Issues in General
Presence of Cheap Fakes[http://www.wazobiareport.com/reports/Louis-
Vuitton-to-open-store-in-Nigeria-For-purchase-of-fake-goods]




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