Doing Business in The Nigerian Beauty Space
The beauty industry in Nigeria has a capacity of employing over a million people which in turn contributes billions to the country’s economy, therefore, it is high time its impacts are taken seriously.
It is assumed that with the rate at which Nigeria’s population is increasing by 2050 it will be the 3rd largest population in the world. Which puts Nigeria among the fastest-growing markets in Africa. It is said to be faster than Russia and Brazil according to the report by IMF and this is a massive potential.
The beauty and wellness industry market is expected to increase twice its size over the next 20 years with an estimated annual growth rate ranging from 5% to double digits. Euromonitor’s report in 2012 showed the Nigerian beauty and wellness market to value about $3 billion in 2017 but the industry has already made over $2 billion in 2014 with skincare owning a market share of 33%, makeup – 17%, hair care – 25% and fragrance – 17%. Having that type of market growth has made Nigeria an African rising star in the beauty market.
“World over, the makeup industry is a multi-billion dollar one, with Nigeria and the African continent as a whole at the heart of it all. The singular fact that international brands like Maybelline are making their way into the African market with Nigeria as its main market is a sole testimony to the fact that we are ripe for business. And that is the reason I’m standing here before you, for us to enlighten one another on innovative ways to globally position our indigenous beauty and makeup brands” Says Idy Enang, the Managing Director of L’Oréal Central West Africa.
The growth rate in this area is mostly motivated by the increasing population that in turn results in a strong consumer base. This especially includes the young and the middle-class population, the increasing urbanization, the improving levels of education, the will to spend a higher part of their income on beauty products due to bigger exposure to the western culture and rise of female independence. The industry is therefore expanding to major cities and businesses have also started to explore new venues for rejuvenation like spa, beauty, and wellness centers across the country. All this development in the sector will provide a huge potential benefit for consumers using the services.
Due to these growth perspectives, it is easy to grasp the reason why Nigeria is targeted as a major country of focus by key international beauty brands like Unilever, P&G, and L’Oreal, representing over 20% of the market share.
One prominent Indian group, Godrej also came into the market as a major player to bank heavily on buyouts. They have made a key acquisition in Nigeria by buying Tura for $50 million.
The holding of various events and platforms like the Beauty in Africa Exhibition and Conference, Makeup in Nigeria Conference, and Pops Concepts MakeUp Fair Series have been great means for gathering makeup professionals, makeup brands, and makeup lovers in Africa. These are educative platforms for makeup professionals, industry educators, and icons to gather, network, share and give information to stakeholders.
The Beauty in Africa event has been the region’s largest event dedicated to beauty and wellness. It launched in 2014 with 32 influential beauty brands in attendance of the event at the launch of Beauty Africa Exhibition and Conferences. It showcased the newest products and services on the market to over 1,200 attendees from across West Africa.
Beauty Africa provided a unique avenue for these key industry players to showcase the latest collections of cosmetics, the top-of-the-range wigs and extensions, and the latest skincare ranges.
Makeup In Nigeria Conference (MINC) began in 2014. With over 700 aspiring and established makeup artists, beauty bloggers and enthusiasts, TV stations, and more in attendance, the event indeed had a great start to many more.
For MINC, it was about collaboration and developing industry standards to successfully compete internationally. Having a conference of that nature was a means of providing a stepping block for present operators and those hoping to know more about the industry.
One of the oldest and leading platforms in this industry is Pops Concepts MakeUp Fair Series founded in 2010 and headquartered in Lagos, Nigeria. The MakeUp Fair Series is one of the brands of POPs! It is a cross-national industry event that annually tours major cities in Nigeria. This well-known platform was created by Omolola Faleye the Creative Director of POPs Concepts and The Vice President of The MakeUp Fair Series with the mission of greatly improving the makeup business in Nigeria by providing a credible and vibrant medium for industry professionals and businesses to showcase their brands, services, and products to an interested and engaged audience. This platform also provides opportunities for networking and learning.
Different from other platforms that hold their exhibition in one city permanently and only once a year, The MakeUp Fair Series is a cross-national event that tours Nigeria. It visits different cities in Nigeria before the year runs out.
Just like other industries the beauty and wellness industry also faces interesting challenges in its activities.
The sector is not organized in terms of the way services are rendered to consumers and also in how services are accessed by consumers. Their distribution network is unstructured and complicated.
There is also the need to make the products to the local consumer’s requirements. For example, there is a need for makeup to be according to skin texture and color.
The big international brands have overshadowed the small market players. Also, there is no set benchmark for quality despite the competition evident in the sector.
In the business sector, there is a lack of efficient tools to manage appointments, payments, and bookings.