Nigeria Consumer Goods (Personal care and Home care) Executive Summary This sector fact sheet provides key trade and investment related statistics for the Nigerian consumer goods sector, particularly personal and home care products segment. Specifically, it shows global trade and investment flows including an analysis of top markets and products for South Africa and the Western Cape, highlighting the largest and fastest growing products and sub-sectors. The key highlights in the consumer goods sector are provided below: TRADE: Since 2004, Nigeria s demand of personal and homecare products greatly outstripped its supply, registering consecutive trade deficits. Ivory Coast was Nigeria s largest export market for personal and homecare products, while the United Kingdom was the largest import market. South Africa was Nigeria s 10 th largest import market experiencing significant import demand from the West African nation. All of Nigeria s top 10 imported products experienced robust growth exceeding 85%. South Africa has been a net exporter of personal and homecare products to Nigeria since 2005. South Africa s leading export to Nigeria was polishes, creams for footwear or leather valued at ZAR58.5m and accounted for 31% of the country s personal and homecare products exports to Nigeria. In 2013, the Western Cape registered its highest export level breaking the ZAR7m barrier for the first time in six years. By growing by an astounding 6600%, hair preparations was the province s largest personal and homecare export product to Nigeria INVESTMENT: Between January 2004 and December 2014 a total of 17 FDI projects were recorded in the Nigerian consumer goods sector. 41% of the projects were into the cosmetics, perfume, personal care & household products subsector. Nigeria-based Jumia recorded the only investments into the global consumer goods sector. The online retailer, invested into 3 projects into Ghana, Cameroon and Uganda.
Table of Contents Executive Summary... 1 1. Product Description... 3 2. African Market... 3 3. Nigeria Consumer Goods Market... 4 3.1 Distribution Channels... 4 3.2 Companies... 5 4. Trade... 6 4.1 Nigeria global trade in consumer goods... 6 4.2 South African trade of Consumer goods with Nigeria... 9 4.3 Western Cape Trade of consumer goods with Nigeria... 11 5. FDI... 13 5.1 Inward FDI... 13 5.2 Outward FDI... 14 2
1. Product Description The global consumer goods industry consists of any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or non-durable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and consumption is spread over this span. Examples of durable goods includes autos, furniture, and appliances. Non-durable goods are purchased for immediate or almost immediate consumption and have a life span ranging from minutes to three years. Examples of non-durable goods include food, clothing, and gasoline. This factsheet will focus on the personal care products and homecare products Personal Care Products: This segment includes shampoo, toothpaste, soap, deodorants, and make-up. Homecare Products: This segment includes household cleaners and kitchenware. 2. African Market The consumer goods sector is rapidly growing within Africa, its growth potential lies not just in the expanding middle class but also in Africa s overall population growth. Africa s collective population is estimated at around 1 billion people at present, and it is expected to grow rapidly to 1.4 billion by 2025, where China is currently. According to data from the Population Reference Bureau, Africa is a young continent with around 41% of the total population under the age of 15 years. In addition, Africa is becoming increasingly urbanised. According to an Africa Progress report (2010) by consulting group Frost & Sullivan, African city populations will increase by 25% by 2025, while by 2050, 60% of Africa s population will reside in urban areas. Urbanisation is linked to an increased demand for fast moving consumer goods (FMCG), in which the personal and homecare products segment belongs to. The figure below shows Africa s top 10 retail companies. The companies are all headquartered in South Africa. AFRICA'S TOP 10 RETAIL COMPANIES, USDbn Shoprite holdings Massmart Holdings Pick n Pay The Spar Group Woolworths holding Limited Edgars Consolidated Stores JD Group Masscash Foschini Clicks Group 1,9 1,9 3,4 3,1 3 2,7 5,1 7 7,2 9,87 3 Source: The Habari Network, 2015 0 2 4 6 8 10 12 Several analysts have compared the African potential for FMCG favourably to the Indian potential. Both are huge, emerging consumer markets, but unlike India, Africa has 55 countries, and that means around 55 different rules, regulations and border controls to consider when moving FMCGs. This is one of the biggest barriers FMCGs companies will need to overcome to maximise growth on the continent. Despite these issues, the future looks bright for FMCG on the continent as the number of consumers and their expendable income continues to rise in the coming decades.
The figure below shows the number of retail outlets outside South Africa in 2013. 3. Nigeria Consumer Goods Market 4 The Nigerian personal care sector is dominated by international brand names. Key role players in the industry include Unilever Nigeria, PZ Cussons, Soulmate Industries, House of Tara International, MAC Cosmetics, and Sleek Nigeria. According to Euromonitor International, mature personal care categories such as general purpose body care and lip gloss continued to grow rapidly. Stronger growth was also seen in developing categories such as shower gels, men s deodorants, and women s razors. Demand for the basic products is mainly expected to be driven by population growth, the other categories will rely on increases in disposable income. Hair care products are generally considered to be more essential than many other categories of personal care in Nigeria, thus it has performed well over the past decade, driven by the growing young working female population. Other factors that have supported the sector s performance are the rise of the internet, and the growing number of Western style shopping centres in the country. Soft Sheen Carson had an 11% share in the hair care market in 2012, with its leading brand Dark & Lovely enjoying loyal support from customers. The men s grooming category is also expected to show rapid growth, though from a low base. Demand has increased as the availability of these products improved, which indicates that there was in effect a latent demand. Growth in Nigeria s home care sector is expected to be robust over the medium term, as consumers continue to switch from (cheaper) general substitutes to products that are task-specific (e.g. switching from using a bar of soap to clean various household items to using different products to fulfil different needs), in line with rising incomes. Other factors driving this market include urbanisation and increased home ownership associated with urbanisation. 3.1 Distribution Channels According to Euromonitor (2015), with the increase in the construction of shopping malls in Nigeria across different cities, hypermarkets and supermarkets are continuing to gain share of distribution in beauty and personal care. However, open markets still lead in terms of distribution, although this channel continues to lose share due to increasing modernisation of retail in Nigeria, whilst independent small grocers are growing well as they adapt to a
more modern retail environment. The convenience and ambience of stores offer middle- and high-income consumers a stress-free shopping experience compared with open air markets, which are often crowded and unpredictable. The specificity of prices and the absence of haggling also make these stores attractive. 3.2 Companies The table below shows the list of supermarket chains in Nigeria, as well as Nigeria s selected beauty and personal care and homecare companies. LIST OF SELECTED SUPERMARKET CHAINS IN NIGERIA, 2014 Addide Supermarket HEAD OFFICE Nigeria PRODUCTS Personal care, food, drinks, cereals, household, food to go Supermart.ng Online Supermarket Nigeria Food & drink, home appliances, drinks DePrince Supermarkets Nigeria Household, Pharmaceuticals, beauty and skin Gloo.ng Online Supermarket Nigeria Household, Pharmaceuticals, Food, home appliances Game Stores South Africa Appliances, computer, home and furniture, sports and fitness Park 'n' Shop Supermarkets South Africa Food & drink, clothing, baby and wellness, small appliances Shoprite South Africa Food & drink, baby, small appliances Spar Supermarkets South Africa Food & drink, baby, small appliances Goodies Nigeria Food & drink SELECTED NIGERIA BEAUTY & PERSONAL CARE COMPANIES House of Tara International in Beauty and Personal Care (Nigeria) PZ Cussons Nigeria Plc in Beauty and Personal Care (Nigeria) Soulmate Industries Ltd in Beauty and Personal Care (Nigeria) SELECTED NIGERIA HOMECARE COMPANIES Eko Supreme Nigeria Ltd in Home Care (Nigeria) HEAD OFFICE Nigeria Nigeria Nigeria HEAD OFFICE Nigeria PRODUCTS Cosmetic & beauty supply Personal care, homecare, electrical goods, household, equipment Haircare products PRODUCTS Homecare market, powder detergent & bar soap Gongoni Co Ltd in Home Care (Nigeria) Nigeria Air fresheners, disinfectants, insecticides Hygiene Products Ltd in Home Care (Nigeria) Nigeria Hygiene products Source: Euromonitor, Princeebeano; Supermartng, 2015 5
Value (ZARm) 4. Trade 4.1 Nigeria global trade in consumer goods The graph below depicts Nigeria s trade in personal and homecare goods. Since 2004, trade in these goods has been steadily increasing, with Nigeria s demand greatly outstripping its supply. Nigeria s high demand for personal and homecare goods is demonstrated by the continual trade deficits in the period analysed (2004-2013). In 2013 Nigeria s exports grew by 21% to be valued at ZAR138m while its imports grew by 29% and reached ZAR4.8bn. 6 000,0 NIGERIA GLOBAL TRADE OF CONSUMER GOODS, 2004-2013 4 000,0 2 000,0 0,0-2 000,0-4 000,0-6 000,0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Exports (ZARm) 20,0 27,8 32,5 25,9 35,0 58,8 51,7 73,0 113,8 137,4 Imports (ZARm) 953,2 1 011,8 1 080,8 1 472,9 2 243,7 2 236,1 2 183,3 2 720,3 3 685,7 4 771,8 Trade balance (ZARm) -933,2-984,0-1 048,3-1 447,0-2 208,8-2 177,2-2 131,6-2 647,3-3 571,9-4 634,4 Source: TradeMap, 2015 Nigeria s largest export market, Côte d'ivoire commanded 32% of all personal and homecare products from Nigeria, these exports grew by 29% from the previous year. Ghana (ZAR33m) was Nigeria s second largest export market, followed by Togo (ZAR27m) and Niger (ZAR4.2m). Togo, Niger, Benin are all Nigeria direct neighbours, this suggests if one is to invest in the Nigerian market, they will have direct access to these markets and regions by virtue of proximity. In fact 8 of the top ten export markets were all within Africa. 6 TOP 10 DESTINATION MARKETS FOR EXPORTS OF CONSUMER GOODS FROM NIGERIA, 2013 VALUE % % DESTINATION RANK 2013 GROWTH SHARE MARKET (ZARm) 2012-2013 2013 1 Côte d'ivoire 43.4 29.24% 31.61% 2 Ghana 32.7 10.30% 23.83% 3 Togo 27.3 26.66% 19.90% 4 Niger 4.2 52.89% 3.04% 5 Benin 3.7 25.84% 2.70% 6 Congo 3.3 85.21% 2.42% 7 South Africa 2.7 18.65% 1.96% 8 United States 2.6 164.85% 1.91% 9 United Kingdom 2.6 197.92% 1.88% 10 Burkina Faso 1.7 60.55% 1.22% TOTAL EXPORTS 137.4 20.73% 100.00% Source: TradeMap, 2015 The United Kingdom (ZAR737m) was Nigeria s largest personal and homecare import market. The second largest import market, China (ZAR633m) commanded 48% of Nigeria s personal care and homecare imports, followed by the United States (ZAR502m) with 16%. The major import markets grew in excess of 16% with Republic of Korea
and South Africa exhibiting the largest growth in demand for their goods. This is particularly encouraging for South Africa as we are Nigeria s largest market within Africa. TOP 10 SOURCE MARKETS FOR IMPORTS OF CONSUMER GOODS TO NIGERIA, 2013 RANK SOURCE MARKET VALUE 2013 (ZARm) % GROWTH 2012-2013 % SHARE 2013 1 United Kingdom 737.0 39.32% 15.44% 2 China 633.0 47.54% 13.26% 3 United States 501.7 16.30% 10.51% 4 Indonesia 363.0 25.02% 7.61% 5 Togo 350.6 37.79% 7.35% 6 Côte d'ivoire 290.1-21.70% 6.08% 7 Korea, Republic of 254.9 74.63% 5.34% 8 Malaysia 241.4 34.82% 5.06% 9 India 235.5 32.06% 4.93% 10 France 198.6 54.95% 4.16% 12 South Africa 171.3 55.06% 3.59% TOTAL IMPORTS 52 716.8 29.47% 100.00% Source: TradeMap, 2015 The top 5 exported consumer products by Nigeria to the top 5 destination markets are listed below: Côte d'ivoire (HS6) Ghana (HS6) Togo (HS6) Niger (HS6) Benin (HS6) Dentifrices (ZAR89.2m) Surface-active prep, washing & cleaning prep put up for retail sale (ZAR2.2m) Anionic surface-active agents (ZAR1.8m) Surface-active prep, washing & cleaning prep put up for retail sale (ZAR108.8m) Toilet soap & prep, shaped; papers & nonwovens impreg with soap toilet use (ZAR69.5m) Room perfuming or deodorizing preparations, nes (ZAR9.6m) Soap & orgn surf prep, shapd, nes; papers & nonwovens impreg w soap/prep,nes (ZAR5.9m) Hair preparations, nes (ZAR3.7m) Toilet soap & prep, shaped; papers & nonwovens impreg with soap toilet use ZAR19.6m) Hair preparations, nes (ZAR6.8m) Perfumery, cosmetic or toilet preparations, nes ZAR55.1m) Agarbatti & other odoriferous preparations which operate by burning (ZAR39.5m) Hair preparations, nes (ZAR2.5m) Hair preparations, nes (ZAR7.7m) Organic surface-active products and preparations for washing the skin, (ZAR1.8m) Toilet soap & prep, shaped; papers & nonwovens impreg with soap toilet use (ZAR1.4m) Surface-active prep, washing & cleaning prep put up for retail sale (ZAR115,000) 7 The top 5 imported consumer products by Nigeria from the top 5 source markets are listed below: United Kingdom (HS6) Beauty or make-up preparations nes; sunscreen or sun tan preparations (ZAR24.7m) Surface-active preparations, washing and cleaning preparations, nes (ZAR19.5m) Personal deodorants & antiperspirants (ZAR8.4m) Tableware and kitchenware of plastics (ZAR7.0m) Dentifrices (ZAR6.6m)
China (HS6) Beauty or make-up preparations nes; sunscreen or sun tan preparations (ZAR111.9m) Dentifrices (ZAR68.8m) Anionic surface-active agents (ZAR48.3m) Household and toilet articles nes, of plastics (ZAR34.8m) Agarbatti & other odoriferous preparations which operate by burning (ZAR23.3m) United States (HS6) Beauty or make-up preparations nes; sunscreen or sun tan preparations (ZAR41.1m) Surface-active preparations, washing and cleaning preparations, nes (ZAR18.1m) Hair preparations, nes (ZAR9.2m) Perfumes and toilet waters (ZAR2.9m) Hair lacquers (ZAR2.4m) Indonesia (HS6) Anionic surface-active agents (ZAR31.8m) Surface-active preparations, washing and cleaning preparations, nes (ZAR14.7m) Soap nes (ZAR13.5m) Eye make-up preparations (ZAR1.6m) Personal deodorants & antiperspirants (ZAR864 000) Togo (HS6) Beauty or make-up preparations nes; sunscreen or sun tan preparations (ZAR11.7m) Hair preparations, nes (ZAR451 000) Toilet soap & prep, shaped; papers& nonwovens impreg with soap toilet use (ZAR403 000) Nigeria s largest export of personal and homecare products were powders, skin care, whether or not compressed to value of ZAR579m. Hair preparations was second at ZAR213m. Exports of the top two exports products made up 60% of Nigeria s exports of personal and homecare products. The leading import product by Nigeria was beauty or make-up preparations, valued at ZAR361. Anionic surfaceactive agents (ZAR324m) and Surface-active preparations, washing and cleaning preparations, nes (ZAR137m); were ranked second and third, respectively. As can be seen with Nigeria s largest trade deficit, there is a great demand for personal and homecare products in Nigeria, furthermore, the individual growth of imported products solidify the notion that this market segment Is far from saturation and will continue to grow for the considerable future. 8 NIGERIA'S GLOBAL TOP EXPORTS OF CONSUMER GOODS, 2013 NIGERIA'S GLOBAL TOP IMPORTS OF CONSUMER GOODS, 2013 RANK 1 PRODUCT Powders, skin care, whether or not compressed VALUE 2013 (ZARm) % GROWTH 2012-2013 RANK 578.6 1089.23% 1 PRODUCT Beauty or make-up preparations nes; sunscreen or sun tan preparations VALUE 2013 (ZARm) % GROWTH 2012-2013 361.1 125.72% 2 Hair preparations, nes 213.2 617.38% 2 Anionic surface-active agents 323.8 24.05% 3 4 Surface-active prep, washing & cleaning prep put up for retail sale Toilet soap & prep, shaped; papers &nonwovens impreg with soap toilet use 115.1 216.29% 3 5 Dentifrices 92.3 143.23% 5 6 7 8 Perfumery, cosmetic or toilet preparations, nes Room perfuming or deodorizing preparations, nes Agarbatti & other odoriferous preparations which operate by burning Surface-active preparations, washing and cleaning preparations, nes 137.2 90.56% 113.0 216.49% 4 Dentifrices 107.2 96.80% Agarbatti & other odoriferous preparations which operate by burning 93.0 266.52% 57.3 856.44% 6 Hair preparations, nes 80.3 48.34% 47.2 2.73% 7 Personal deodorants & antiperspirants 79.1 63.19% 39.5-8 Household and toilet articles nes, of plastics 52.0 97.93% 9 Personal deodorants & antiperspirants 20.9 2482.10% 9 Soap nes 49.4 85.81% 10 Perfumes and toilet waters 11.5 121.31% 10 Powders, skin care, whether or not compressed 48.2-25.47% TOTAL EXPORTS 1 328.1 25.20% TOTAL IMPORTS 1 665.7 60.39% Source: TradeMap, 2015
Value (ZARm) 4.2 South African trade of Consumer goods with Nigeria The figure below shows South Africa s trade of personal and home care products with Nigeria for the period 2005 to 2014. Trade between the two nations has been dominated by South Africa exports to Nigeria resulting in continuous trade surpluses for the 10 year period. These trade surpluses are testament to the growing demand by the Nigerian market. In 2013, South African exports grew by 11% while imports declined by 2%. 200 180 160 140 120 100 80 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Exports (ZARm) 34,9 29,2 37,7 76,9 77,3 71,8 92,3 109,1 170,2 188,5 Imports(ZARm) 0,2 0,3 0,3 0,2 0,3 0,3 1,1 2,3 2,7 2,7 Trade Balance (ZARm) Source: Quantec, 2015 SOUTH AFRICA'S TRADE OF CONSUMER GOODS WITH NIGERIA, 2005-2014 34,7 28,9 37,4 76,7 77,1 71,6 91,3 106,8 167,5 185,9 South Africa s leading export to Nigeria was polishes, creams for footwear or leather valued at ZAR58.5m and accounted for 31% of the country s personal and homecare products exports to Nigeria. The second largest export was, beauty, makeup and suntan preparations (ZAR55.2m) followed by organic surfactant washing, cleaning preparations (ZAR11.2m). Products showing the strongest growth in 2013 were: Dentifrices: 1429.3% Organic surfactant washing, cleaning preparations: 456.6% Beauty, makeup and suntan preparations: 118.4% 9 Room perfuming or deodorizing preparations, (ZAR2.3m) was South Africa s personal and homecare import from Nigeria in 2013 and accounted for 85% of imports. The remainder of imports were minimal but exhibited high growth for some products coming off a very low base from the previous year.
TOP 10 CONSUMER GOODS EXPORTED BY SOUTH AFRICA TO NIGERA, 2014 RANK VALUE % HS PRODUCT 2014 GROWTH CODE (ZAR) 2013-2014 1 340510 Polishes, creams etc. for footwear or leather 2 330499 Beauty, makeup and suntan preparations Organic surfactant 3 340290 washing, cleaning preparations 58 477 516-22.6% 1 330749 55 195 537 118.4% 2 330499 TOP 10 CONSUMER GOODS IMPORTED BY SOUTH AFRICA FROM NIGERA, 2014 RANK VALUE % HS PRODUCT 2014 GROWTH CODE (ZAR) 2013-2014 Room perfuming or deodorizing preparations, 2 276 476 4.11% Beauty, makeup and suntan preparations n 196 908 464.58% 11 200 258 456.6% 3 330590 Hair preparations 109 486-68.91% 4 330610 Dentifrices 11 056 239 1429.3% 4 330530 Hair lacquers 20 850-38.39% 5 330720 6 330690 7 330491 Personal deodorants and antiperspirants Oral & dental hygiene preparations, except dentifrices Powders, for skin care and make-up 9 879 178 64.3% 5 340120 Soaps nes 13 618 7.03% 9 313 773 29.5% 6 340119 7 634 984-35.8% 7 330300 8 330300 Perfumes and toilet waters 3 568 059-23.3% 8 330430 9 340220 10 330520 Washing and cleaning preparations, retail Hair waving or straightening preparations 3 332 674 17.0% 9 330710 3 014 929-74.3% 10 340111 Soaps for purposes other than toilet soap, solid Perfumes and toilet waters Manicure or pedicure preparations Pre-shave, shaving and after shaving preparations Soaps, for toilet use, solid 12 971 79.08% 8 034-52.86% 4 819-87.56% 3 436 5824.14% 2 795 962.74% TOTAL EXPORTS 188 516 917 10.7% TOTAL IMPORTS 2 660 742 100.00% Source: Quantec, 2015 The top export products (HS6) from South Africa to Nigeria have been analysed to determine the other top markets for these export products: Polishes, creams etc. for footwear or leather: Nigeria (ZAR76m) Zimbabwe (ZAR20m) Mozambique (ZAR10m) Zambia (ZAR6m) Ghana (ZAR4m) 10 Beauty, makeup and suntan preparations: United Kingdom (ZAR186m) Zimbabwe (ZAR125m) Angola (ZAR91m) Zambia (ZAR84m) Australia (ZAR83m) Organic surfactant washing, cleaning preparations: Mozambique (ZAR135m) Zimbabwe (ZAR109m) Zambia (ZAR100m) Angola (ZAR11m) Mauritania (ZAR10m)
Value (ZAR) 4.3 Western Cape Trade of consumer goods with Nigeria In the period shown below, the province has been a net exporter of personal and homecare products to Nigeria as its exports have been far greater than its imports. After years of subdued growth, the Western Cape s trade surplus grew to ZAR12.7m in 2013. The growth in the trade surplus was due to a 148% increase in exports and 117% increase in imports, however the import growth was due to low trading levels from the previous year. WESTERN CAPE TRADE OF CONSUMER GOODS WITH NIGERIA, 2004-2013 14 000 000 12 000 000 10 000 000 8 000 000 6 000 000 4 000 000 2 000 000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Exports(ZARm) 7 357 42 10 575 1 10 129 5 5 380 03 6 782 23 6 565 92 4 710 29 5 793 20 5 133 47 12 751 5 Imports (ZARm) - 1 316 3 540 6 157 112 9 313 18 591 14 515 37 394 81 266 Trade Balance (ZARm 7 357 42 10 573 8 10 126 0 5 373 87 6 782 12 6 556 61 4 691 70 5 778 68 5 096 08 12 670 2 Source: Quantec, 2015 With its exports growing in excess of 6000%, hair preparations (ZAR5.8m) was the provinces largest export to Nigeria, this was followed by beauty, makeup and suntan preparations (ZAR4m). The growth seen in these two products increased their export share to 77%. Also showing strong growth were exports of organic surfactant washing, cleaning preparations (ZAR386 634). 11 In terms of imports, manicure or pedicure preparations (ZAR35 630), hair preparations (ZAR20 491) and hair lacquers (ZAR19 746) were the only significant imports. High growth of other products can be attributed to low import amounts in previous years. TOP 10 CONSUMER GOODS EXPORTED BY THE WESTERN CAPE TO NIGERA, 2013 % HS VALUE RANK PRODUCT GROWTH CODE 2013 (ZAR) 2012-2013 1 330590 Hair preparations 5 842 063 6575.0% 1 330430 2 330499 3 330720 Beauty, makeup and suntan preparations nes Personal deodorants and antiperspirants 4 330610 Dentifrices 406 769 13.6% 4 340119 5 340290 6 330749 7 392490 8 330430 9 392410 Organic surfactant washing, cleaning preparations nes Room perfuming or deodorizing preparations, nes Plastic household, toilet articles not table, kitchen Manicure or pedicure preparations Plastic table and kitchen ware TOP 10 CONSUMER GOODS IMPORTED BY WESTERN CAPE FROM NIGERA, 2013 VALUE % HS RANK PRODUCT 2013 GROWTH CODE (ZAR) 2012-2013 Manicure or pedicure 35 630 76.41% preparations 4 027 242 325.0% 2 330590 Hair preparations, nes 20 491 421.53% 864 379-55.1% 3 330530 Hair lacquers 19 746 121.19% 386 634 432.6% 5 330420 181 394 9.0% 6 330499 158 507 2.9% 7 330300 107 755 63.9% 8 330491 106 352-75.2% 9 330790 Soaps for purposes other than toilet soap, solid Eye make-up preparations Beauty, makeup and suntan preparations Perfumes and toilet waters Powders, for skin care and make-up Perfumery, cosmetic or toilet preparations, nes 1 977-6.08% 978 1037.21% 899-30.58% 617 1042.59% 378 3.85% 259-10 330510 Hair shampoos 92 357-14.1% 10 330410 Lip make-up preparations 249 - TOTAL EXPORTS 12 751 524 148.4% TOTAL IMPORTS 81 266 117.32% Source: Quantec, 2015
The top export products (HS6) from the Western Cape to Nigeria have been analysed to determine the other top markets for these export products: Hair preparations: Nigeria (ZAR5.8m) Angola (ZAR2.3m) Zambia (ZAR848 584) UAE (ZAR488 382) Mauritius (ZAR452 655) Beauty, makeup and suntan preparations nes: United Kingdom (ZAR161m) Australia (ZAR79m) United States (ZAR68m) Japan (ZAR68m) Germany (ZAR51m) Personal deodorants and antiperspirants: Zambia (ZAR8m) Angola (ZAR4m) Mozambique (ZAR2m) Mauritius (ZAR912 281) Nigeria (ZAR864 379) 12
5. FDI 5.1 Inward FDI Between January 2004 and December 2014 a total of 17 FDI projects were recorded in the Nigerian consumer goods sector. These projects represent a total capital investment of ZAR4.96bn which is an average investment of ZAR291.75m per project. During the period, a total of 2,497 jobs were created. 41% of the projects were into the cosmetics, perfume, personal care & household products subsector. Two projects by The Foschini group and Woolworths were from the Western Cape, these projects were mainly concerned with retail activities. PROJECT DATE INVESTING COMPANY INWARD FDI INTO NIGERIA'S CONSUMER GOODS SECTOR, 2004-2014 SOURCE COUNTRY Jan-14 Dufry Switzerland Aug-13 MAC Cosmetics United States Feb-13 MAC Cosmetics United States Feb-13 Procter & Gamble (P&G) United States Sep-12 Grohe Germany SUB-SECTOR Cosmetics, perfume, personal care & household products Cosmetics, perfume, personal care & household products Cosmetics, perfume, personal care & household products Cosmetics, perfume, personal care & household products Furniture, homeware & related products (Consumer Products) CLUSTER INDUSTRY ACTIVITY CAPEX (ZARm) Jobs Created Retail Trade Retail 432.4 179 Retail Trade Retail 432.4 179 Retail Trade Retail 432.4 179 Consumer Goods Manufacturing 191.0 243 Consumer Goods Jun-12 3M United States Other (Consumer Products ) Consumer Goods Sales, Marketing & Support Sales, Marketing & Support 51.6 18 51.6 18 Nov-11 The Foschini Group South Africa General merchandise stores Retail Trade Retail 432.4 179 Sep-11 Woolworths (South Africa) Sep-11 L'Oreal France South Africa Miscellaneous store retailers Retail Trade Retail 432.4 179 Cosmetics, perfume, personal care & household products Consumer Goods Sales, Marketing & Support 51.6 18 Aug-11 Massmart United States Other (Consumer Products ) Retail Trade Retail 432.4 179 Oct-09 Procter & Gamble (P&G) United States Other (Consumer Products ) Consumer Goods Manufacturing 191.0 243 Jul-09 Swatch Group Switzerland Jewellery & silverware Retail Trade Retail 432.4 179 Jan-09 Cilek Turkey Nov-07 Africa Consumer Care Limited (AFCC) India Furniture, homeware & related products (Consumer Products) Cosmetics, perfume, personal care & household products 13 Retail Trade Retail 432.4 179 Consumer Goods Manufacturing 46.9 130 Dec-05 Game Stores South Africa Dolls, toy, & games Retail Trade Retail 432.4 179 Apr-05 Tura International UAE Feb-04 Avelon Greece Source: FDI Intelligence, 2015 Cosmetics, perfume, personal care & household products Building material & garden equipment & supplies dealers Consumer Goods Manufacturing 52.7 37 Retail Trade Retail 432.4 179
5.2 Outward FDI Between January 2004 and December 2014 a total of 3 FDI projects were recorded from Nigeria. These projects represent a total capital investment of ZAR182.79m which is an average investment of ZAR60.93m per project. Nigeria-based Jumia, an online retailer, has established warehouse s in Ghana and Cameroon and a sales support base in Uganda. These investments are part of the company s wider growth strategy. PROJECT DATE INVESTING COMPANY OUTWARD FDI INTO NIGERIA'S CONSUMER GOODS SECTOR, 2004-2014 DESTINATION COUNTRY Jul-14 Jumia Ghana Nonstore retailers Jul-14 Jumia Cameroon Nonstore retailers Apr-14 Jumia Uganda Nonstore retailers Source: FDI Intelligence, 2015 SUB-SECTOR CLUSTER INDUSTRY ACTIVITY Consumer Goods Consumer Goods Consumer Goods Logistics, Distribution & Transportation Logistics, Distribution & Transportation CAPEX (ZARm) Jobs Created 65.6 30 65.6 30 Sales, Marketing & Support 51.6 18 For more information on this publication and other Wesgro publications please contact research@wesgro.co.za or for more publications visit the Wesgro publications portal on our website at http://wesgro.co.za/publications 14