How brands can survive in a volatile economy, by stakeholders

Economic uncertainty impacting negatively on consumption pattern
While today’s economic realities may have significantly changed the behavioural and consumption paradigm of consumers, there is need for brand owners and advocates to explore innovative channels growth and profitability, stakeholders have said.

According to the stakeholders at the recently concluded Brand Innovation Summit in Lagos, consumers have become more discerning and selective in their consumption habits owing to the lull in the economy, therefore impacting sales and revenue while weakening corporations’ overall performance.

Besides, the recently released Nielsen Consumer Confidence Index survey of African countries, has estimated the first significant consumer confidence drop in Nigeria due to a weak macroeconomic environment, inflation, weakened consumer income, all of which impacted on the way consumers begin to feel about the future.

Indeed, the index showed that there is a decline in consumption of FMCG products, “as people will have to start reprioritizing on goods they spend their money.”

To address these challenges, the stakeholders noted that brand owners need to innovatively and strategically connect their brands with the consumers’ minds to remain relevant and ensure continuity in patronage, growth and profitability.

Managing Partner, Brandzone Consulting LLC and the Convener Brand Innovation Summit, Chizor Malize, said: “the marginal propensity to consume and the disposable income of consumer in a wobbling economy is shrinking due to the prevalent uncertainties. Consumers become more discerning and selective in their consumption habits owing to the lull in the economy.

“Today’s economic realities have significantly changed the behavioural and consumption paradigm of consumers. Therefore, there is the ‘battle’ to maintain a share of the consumers mind and wallet through cutting edge branding solutions. There is, therefore, the need for strategic and conscientious approaches towards attracting, engaging and retaining consumers of goods and services of companies and organisations in meeting their expectations”.

Keynote speaker and President, The Nigerian Stock Exchange, Aigboje Aig- Imoukhuede, while speaking on the theme: “Leading Growth In Volatile Times”, charged other stakeholders on the need to look at the brighter side of the current economic realities in Nigeria, noting that, “volatility does not connote negativity in the strictest sense, as it holds out as the best time for bold, discerning leaders to identify potential opportunities and key into it”.

He also identified technological innovation as a key ingredient to surviving under a volatile economy.He also pointed out that a good side of volatility is that it portends a moment for reflection and deep thinking on where and how things went wrong vis-à-vis fashioning a new course of action for business owners and brand managers.

“Another critical success factors in a difficult economic times is the Human capital. Your human resource capital is the most strategic resource during difficult times. Organisation must be disciplined in their finances and coherent in their finances. They must show consistency and purposefulness.

“Discerning corporations, business owners and brand managers must see volatile times as time to explore new frontiers in business, aspire to do new things and consolidate on the existing ones. The resultant effect of this is that it would always keep brand managers and corporations ahead of competition and give them a large share of the marketplace thereby putting them at leadership positions. Strong brands that are daring and innovative and wade through turbulent times are characteristically bullish and innovative brands and end up as market leaders in their categories”, he added.

Managing Director, Nielsen West Africa, Lampe Owoyele, noted that the way out the prevailing situation is for corporations and brand manager to begin to take more seriously and invest more in Research and technology with a view to effectively and sufficiently position their businesses and brand for growth and profitability.