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Sachet packaging trends boost retail sales

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By Usman Oladimeji

Over 85 percent of microenterprise operators depend on selling sachet goods.

Companies producing Fast Moving Consumer Goods (FMCG) have seen a huge uptick in retail sales as most of their products are now packed and sold in sachets. In a country like Nigeria, where both population and demand for consumer products are incredibly high, sachets seem to have become the trend in retail and marketing. The notion was prompted by the need to adjust to the changing economic situation that has shrunk household incomes and to penetrate through to a broad market of customers with limited buying power. Particularly in a developing country like Nigeria, the majority of the population is relatively financially deprived and seeks cheaper alternative goods available in the market.

An analysis revealed that over 85 percent of microenterprise operators depend primarily on the selling of sachet goods through roadside hawkers and retail outlets that seek patronage on a regular basis. According to experts, the fundamental goal of the sachet notion is to reduce family economic pressures, increase food production sufficiency, and sustain purchase preferences while considerably expanding retail sales. Dr. Timi Olubiyi, a business development specialist, ascribed the country’s increasing sachet pack trend to the populace’s falling income levels, widespread suffering, and rising poverty levels.

Sachet idea is a business strategy to continue engaging clients.

Speaking from the company’s point of view, Dr. Olubiyi said that the move to utilize sachet packs was being extensively adopted because of the unconducive business climate and the lack of necessary infrastructure. Protracted inflation, porous borders, and declining bulk consumption are all crucial factors for the sachet pack idea. Dr. Olubiyi also voiced his dismay about the current economic climate, which has led to a general rise in prices across the board and a decline in consumer income and buying power.

Conversely, numerous manufacturers are lamenting a decline in business from consumers looking to save money by purchasing smaller quantities of individual items. Meanwhile, He claims the sachet effort is a business strategy and an alternative that has been implemented to continue engaging clients during this tumultuous period by supplying them with affordable priced goods. Benefiting the country’s vast population of low or daily income workers would boost sales and competition in the consumer goods market where price is a major determinant.

Manufacturers are optimistic about resolving customers’ myriad concerns.

More significantly, businesses who are hesitant to adopt the sachet idea needs to be circumspect of the corollary of the growing number of economically disadvantaged people in society, which might have an adverse influence on their bottom line. However, he urged businesses and the government to take action to increase sustainable consumption, cleaner products, and the circular economy in order to combat the country’s severe multidimensional poverty. According to Segun Ajayi-Kadir, director general of the Manufacturers Association of Nigeria (MAN), manufacturers are optimistic about resolving the myriad concerns of customers with the ideas to give continuous consumption notwithstanding the difficulties faced by the real sector.

The director general of MAN noted that the sachet production idea is widely used by manufacturers as a means of adapting to the harshness of the current business climate. This is achieved through measures such as reducing costs and refocusing resources on the local development and production of raw materials. He said this has led to a rise in the use of alternative energy sources to supplement the weak power from the national grid. Dr. Femi Egbesola, president of the national Association of Small Business Owners in Nigeria (ASBON), echoed this sentiment, noting the rapidity with which factories are implementing the sachet manufacturing notion.

Mini brands have increased efforts to gain more market shares.

As noted by Dr. Femi Egbesola manufacturers of consumer goods are increasingly producing products in smaller sachet units. As a result, the economic challenges are being mitigated by a reduced market price for consumers’ budgets. In Spite of this, as competition in the consumer products sector increases micro and mini brands have increased their efforts to gain market share from larger, more established brands. He cited that Beer, energy drink, and disinfectant producers, among others, have made sachet and small disposables a top priority in order to meet the price points of the consumer market.

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