When starting a business in Nigeria, there are several considerations you have to make. One of which is registering your regulated product With NAFDAC – The National Agency For Food And Drug Administration And Control.
NAFDAC is one of the bodies in charge of regulated product registration in Nigeria. It covers both locally manufactured and imported products. However, it’s not the only body approved by government for the registration of products in the country. There’s also SON – Standard Organization of Nigeria.
But NAFDAC covers just food and drug related products. Anything that Nigerians are meant to consume falls within the purview of NAFDAC. While SON covers those products that falls outside of food and drugs.
For an entrepreneur, you need to register your regulated food and drug products with NAFDAC to avoid falling into the wrong side of the law. That would also help build consumer confidence on your product.
Why Register Your Product?
NAFDAC registration is about certifying the product and approving it for consumption and sale, while a registration number is issued to notify the public or help in verifying the authenticity of the product being consumed.
A registered product gains consumers confidence, meets all regulatory conditions and helps promoters avoids battles with the laws of the land. Any responsible business entity knows that registering their products with the appropriate authorities is an important business decision.
Moreover, you need to know how NAFDAC operates to enable you register your products without hitches. The process is not difficult but sometimes can drag for a while before your product would be approved fit for consumption.
What Are Regulated Products?
According to a Science Direct bookon An Overview of FDA Regulated Products, a product is considered regulated if a government authority determines when and how the product is allowed to be commercialized.
Although, regulated products differ by countries and territories. What may be regulated in the United States for example, may not be regulated in Nigeria. Countries regulate their products based on their own unique market challenges.
Also, a product may have been regulated in the past but later withdrawn from regulated list of products.
Products To Register With NAFDAC
Based on the definition of regulated product above, you can site some classes of regulated products to fall within these categories. In the United States, the FDA separates products into specific categories:
- Dietary supplements
- Medical devices
- Veterinary products
- And tobacco
The same applies to NAFDAC in Nigeria. Water also falls within the food category. These products are regulated due to the grave implication if their are adulterated or subsatndardly produced.
I also feel to give some few examples of previously registered products by NAFDAC to help you fully understand the Nigerian regulatory environment. I picked products from different categories, and in no particular order:
- Revup (water, yoghurt, and juice)
- Infini Clear (cream, soap and lotion)
- De-Zack Water 50Cl Sachet
- Flexi Joint Capsules And Cream
- A1 Pat Life Water
- Brave Herbal Capsules
- GINO magic pepper and onion tomato seasoning mix (MILD)
- MR CHEF seasoning
- FAMKO sweetened yoghurt
You can search and find any NAFDAC registered products on this website link.
Who Can Register Product With NAFDAC
In case you are wondering if your business qualify to register a product With NAFDAC, let me clarify those classes of businesses that can approach NAFDAC for product registration. Below are the categories of entrepreneurs that can register a product With NAFDAC.
These three classes of entrepreneurs deals directly with products, and your business have to fall within any of these three to register a product With NAFDAC. Although, it’s not like NAFDAC has restriction on classes of business as a condition. It’s even because you cannot have the right over a product unless you fall within these three classes of entrepreneur, especially as a manufacturer.
A retailer only has exclusive retail rights. It’s only a manufacturer, distributor or marketer that can have an exclusive product right in a market. That’s why NAFDAC demands that only among these classes of entrepreneurs can register a product with the commission.
NAFDAC Registration Process
The process of registrating a regulated product With NAFDAC has been further simplified. It used to be solely by visiting any of the following NAFDAC offices in Nigeria.
- NAFDAC Central Laboratory Complex, 3/4 Oshodi ? Apapa Expressway, Oshodi ? Lagos.
This office is where registration and regulatory affairs, legal process, inspections, food Laboratory tests, narcotics and controlled substances are handled.
- NAFDAC Central Drug and Vaccines Laboratory (CDVL), Edmund Crescent, Yaba, Lagos
This office is in charge of drug laboratory tests and ports Inspection jobs.
- NAFDAC Enforcement Directorate. Ahmadu Bello Way (Behind Nigerian Air Force Camp by Legico B/stop), Victoria Island – Lagos.
While this office sole responsibility is the enforcement of all NAFDAC laws.
To begin the registration process, you start with the purchase of the relevant registration application form from the NAFDAC office closest to you and pick up the applicable guidelines. This guidelines gives you proper directives on how to make your applications with the support documents required. Also read how to register a business in Nigeria.
How To Begin Registration Process
It’s takes about three months to complete NAFDAC product registration process, if all requirements are met at stipulated times. There are processes to follow when registering a regulated product. NAFDAC has laid out rules to guide applicants. Let me list each process for you:
- Application Letter And Document Submission
- Registration description of intent
- Samples for laboratory analysis
- Payments for category of registration
The first step is to submit letter of application with all required documents. Your letter of application gives NAFDAC information about your request for registration, and your documents helps them to understand who is making the application. But you have to ensure all the documents are complete, with the appropriate description so you won’t encounter any delays in the process.
The next step in your registration process is the description of your intent. This includes the purpose of your registration, and the product description itself. You are letting NAFDAC know what you want to register, what it does and your reason for registration.
Then, you submit your samples for testing. Here are the requirements to bear in mind when submitting your samples for laboratory analysis.
- Make your labelling clear, accurate and informative
- And your label must carry the following details:
- The brand name
- The name and address of manufacturer, distributor, marketer
- The provision or slot for NAFDAC Registration number
- The batch number to be tested, manufacturing and expiry date
- The net content
- The complete list of ingredients
- Any product warnings that consumers should be aware of
And finally, you pay your registration fees according to your registration category.
NAFDAC Application Fees
It’s equally important to know how much it cost to get the NAFDAC number in Nigeria? The number is a symbolic representation of the product that it has been approved by NAFDAC.
So, registering your product With NAFDAC is not only to prove the quality and authenticity of it but also to get NAFDAC seal of approval, which is the NAFDAC number. And these fees are charged in two variants.
Since Nigeria imports a lot of products, NAFDAC also classified the registration fees into two. One class is for imported products, while the other one is approved for locally made products.
For imported products, NAFDAC charges as much as N200,000 plus VAT to register any imported product to be sold in Nigeria. These products that are not manufactured in Nigeria are made to pay more than those manufactured in the country.
While the locally manufactured products gets a lower fee of just N50,000 plus value added tax (VAT).
What’s NAFDAC Registration Number?
When you register a product With NAFDAC you will be issued with a registration number. This number is what NAFDAC uses to identify your product and it equally gives consumers a sense of confidence that your product is under the purview of the regulatory authority of NAFDAC.
NAFDAC issues this number as a final approval for each product that has successfully undergoes its rigorous examinations under its quality and health considerations.
Each registered product is issued a unique identification number to help NAFDAC monitor and control the quality of such product. While these efforts are meant to curb fake and substandard products, it doesn’t completely eliminates it from the market.
Unscrupulous importers and manufacturers also explore the porous nature and the inadequacies of NAFDAC to exploit consumers by using either fake or unapproved registration number on their products to deceive buyers.
Apart from the issue of registration number, NAFDAC also issues product certificate after registration. But this certificate is not issued immediately. It takes about a maximum of six months after the product approval date. So, it can be issued anytime within the six months period after registration.
Inasmuch as you can process NAFDAC registration yourself, it’s usually helpful to seek the services of a consultant. It helps to simplify things for you and make it work faster. An experienced consultant knows the process better and understand NAFDAC modus operandi better than you who is doing it for the first time.
Since China dominates Nigerians import destination, NAFDAC also has a Chinese office, which enables Chinese products to be registered right there in china before being imported into Nigeria. This option may be suitable for you, but try and check the cost implications compared with registering in Nigeria before choosing this option.
Finally, any product you want to sell in Nigeria, find out first if it requires registration. If it’s not a product under the NAFDAC purview, it would be under the Standard Organization of Nigeria (SON). Avoid importing or selling unregistered products in Nigeria.
Do you want to start distributing your product in Nigeria? There’s a simple way to get product distributors anywhere in Nigeria. It’s the secret successful brands have used to dominate the market and spread across the country. And you too can use the same method to grow your business.
If you are an importer, brand owner or a manufacturer, you can start distributing your products to increase sales across Nigeria. There may be demand for your product in places you have never known or heard across the country.
Sometimes, you may not even have the resources to get your products there. Or the brand advantage to spend heavily on advertising. But you can distribute your product to every part of Nigeria without stress.
Although, the challenge is usually how to get started. Some companies have tried online advertising to get distributors, but that doesn’t yield the best result always. Most of who may get are people who are interested but lack the experience or financial requirement to start distributing your product.
What you need is distributors who have both experience and the financial ability to represent your product in their local market. This kind of partners is what would help grow your product in every market.
Understanding Product Markets In Nigeria
The first thing you need to understand when you want to start distributing your product across the country is, who are your target customers. Your target customers would help you understand what kind of markets you should be interested in.
High end products may not require distributors, and so you don’t have to use this method. But low end products means that your customers are at the lower end of the demand curve. They are the common people who probably have primary access only to local markets as well.
And Nigeria has many of these markets all over the country. If you have the statistics of these markets you will agree with me that until you start distributing your product in these markets you cannot grow your business in Nigeria.
This goes for foreign brands as well. Any product that’s not available in the markets doesn’t have access to the right consumers, unless it’s a high end product.
Local Market Statistics
I don’t have all the information about every market in the country but I recently stumbled on that of Ariaria market in Aba, Abia state. Just because this market is not in Lagos would make many investors overlook it. What if I tell you that this market has 37,000 shops and over 1 million traders, would you believe me?
Ariaria is not even the biggest market in the eastern part of Nigeria. Onitsha main market is an acclaimed winner with an international status. If Ariaria has over 1 million traders, how many do you think Onitsha main market would have?
Now, let’s go down to Lagos, where we have several large markets like Balogun market, Alaba international market, Trade fair market, Ladipo spare parts market, and others. These markets are by no means small.
I’m not just showing you market statistics to boost their image. I want you to see how vast their reach can get. If they are big it’s because large number of people are patronizing them. That makes them a market to target with your product.
List of 20 Top Markets In Nigeria
In order to give you an idea of these markets, here is the list of just the top 20 of them in no particular order. We have Market in every state in Nigeria, all the 774,000 local government areas in the country, and virtually every village one can think of.
So, there’s market for your product everywhere in Nigeria. These top 20 of them is just a sneak view of what’s out there.
- Zaki Biam Yam Market – Benue
- Aleshinloye Market – Ibadan
- Onyingbo (White sand) – Lagos
- Alade Market, Ikeja – Lagos
- Mile 12 Market – Lagos
- Computer Village – Lagos
- Bodija Market, Ibadan – Oyo State
- Nnewi Nkwo Market – Anambra State
- Newmarket, Aba – Abia State
- Jos Main Market – Plateau State
- Oil Mill Market – Port-Harcourt
- Oja-Oba/Orita Merin Market, Ibadan – Oyo State
- Ogbete Main Market – Enugu State
- Kurmi Market – Kano
- Idumota Market – Lagos State
- Alaba International Market – Lagos
- Ariaria International market, Aba – Abia State
- Balogun Market – Lagos
- Oshodi Market – Lagos
- Onitsha Main Market – Anambra
Distributing Your Product In Nigeria
It’s not enough to identify all these markets for distributing your product in Nigeria, you should also know how best to penetrate these markets. As I have mention earlier, there are disadvantages of just advertising online for distributors.
It attracts a lot of interest from those who are incapable of managing your product in their respective markets. You don’t want to waste your efforts on strategies that doesn’t produce better results.
And you should know that not everyone who shows interest to distribute your product has the experience and capacity to do so. There are people who are just so good at what they do. They have built success in their field of business that you are just going to tap all that blessing to grow your own business.
Imagine having 10,000 other people in 10,000 different locations selling your product. What kind of sales do you expect to see each day? The beauty of distributing your products across the country is that you are reaching everyone who needs your product, making it easily accessible to them to make the choice to buy from you.
Who’s A Product Distributor?
One way to understand a product distributor is to learn about franchising. They are one and the same marketing strategy. A product distributor buys the Franchise to sell your products in a particular market or city.
Although, this arrangement doesn’t always take the form of franchising but it’s noting different from it. Because a product distributor is empowered to represent the interest of your product in that area. He or she buys from you in a large quantity and sells to small retailer who are located everywhere your customers are found.
A distributor buys your products in large quantity, warehouses it at his or her own cost, sell to retailers who can’t afford to buy in large volumes, who in turn retails to consumers as they request for it.
There’s so much benefits for your business distributing your product this way. The only requirement to tap into this form of marketing is to have a product you control in the country, even if you are not the original manufacturer.
Tips To Distributing Your Product
If you seek the benefits of distributing your product in Nigeria, you need to know how best to do it. I’m not expecting you to know everything you have to do right, but there are basic plan you need to put in place.
There are 37 states in Nigeria, including FCT, with 774,000 local government area, while communities and villages not countable. You can have your product reaching every state, local government area, communities and villages. Imagine how massive the market would be.
I’m showing you the secret of product marketing for billionaire entrepreneur. And don’t think it cost so much to achieve this. Even if it does, there are ways you can do it to make it less burdensome on your finances.
#1: Hire A Marketing Company
The first step here is to hire a product marketing company. I’m going to be very direct on the kind of product marketing company you should hire. Because there are many companies in the product marketing arena and their strategies differ as well.
The company I would recommend is one with experience in market insertion. In case you don’t know how market insertion works, let me explain in simple terms.
These kind of product marketers recruit capable distributors and retailers to distribute your product. They can also help plan your marketing program to help push the products faster into the hands of new consumers.
That is the kind of product marketer you need. They help make your product easily accessible to consumers, and recruit for you big distributors who has both the experience and the capacity to represent your product in their market.
#2: Make Your Offer Exclusive
This part is very important. If you want serious minded distributors, you have to make the offer exclusive. Nobody would like to invest so much in your product if it’s too competitive. It’s the exclusivity that would encourage them to stake their finance on your product.
An exclusive offer makes the distributors feel they are an important partners in your business. It gives them some monopoly in their respective markets. That’s also why they can buy in large quantity because they feel responsible for the product supply in their assigned market.
If your offer doesn’t include this kind of exclusivity, then it’s not enticing enough. You may still get some distributors, but may not be the experienced and capable ones. It takes a huge value proposition to entice serious and capable distributors to join your network of product partners.
One good way to offer exclusive distribution to your partners is to segment your market either according to states or cities. Design your distribution plan in a way the distributors will know how the market is shared among distributors. And stake your integrity to maintain this exclusivity without fail.
#3: Target Experienced Distributors
In distributing your product, don’t just sign up anyone who says they want to start distributing your product. There are distributors I call road side distributors. These are people who has no experience in business but have money to buy products and stock.
The type of distributors you have can either impact positively on your sales growth or frustrate it. The best bet is to go after distributors with track record of achievements in their respective markets. And if they are new or aspiring distributors, ensure they possess the zeal and passion for the business.
These experienced distributors have already gained some relationship with fast growing retailers who they can introduce your product to. They have some experience in the market and knows how to move any product faster to the consumer.
Avoid recruiting inexperienced distributors. That’s why you need to hire a marketing company to do this one for you. Don’t waste your money on advertisements for distributors, rather spend that advert budget on promoting your products to the consumer and directing them to the stores near them.
#4: Set Standard Relationship
You don’t want your distributors to feel like they are on their own. That can discourage them or make them feel less interested in pushing your product. Think of your distributors as your partners. They are your marketing partners that should be brought closer to every plan you are making about your product.
Create an easy communication channel to reach all the distributors in real time concerning distributing your product. Update them on promos, incentives, commission increase or decrease, and other measures aimed at marketing your product.
Also, don’t ignore their complains and concerns about your product. Use them as channel to get feedback about your product. And hear what they think about how well you are compensating them for their efforts.
Most importantly, make them feel they are too important to your business. People like to be valued and appreciated. If you appreciate the value your distributors bring to your business, they will be happy to do more.
Any product that’s not built around a network of distributing partners won’t grow fast in Nigeria. The Nigerian market is still built around local markets, like in the calendar of the Igbo market days of (eke, orie, afor and nkwo). The Igbos go to different markets based on assigned market days to buy and sell.
That same structure is what’s being used today but a bit different from the past. Everyday, millions of Nigerians go to these different markets to buy or sell. And no matter how the markets transform, they will still be the congregating point for buyer’s and sellers.
Finally, use experienced product marketers to grow your distributing partners for your product. It’s not cheap but it’s worth it at long run. However, you can take one market at a time for cost consideration, until you have covered every market in the country.
If you live in Nigeria, you probably know one or two things about diaper business. It’s becoming like bread these days, the way everyone wants to go into diaper business. Everyone, I mean anyone wants to join the diaper business, and no matter what you say, their eyes are just on the heap of money pile there’s to make from it.
Of course, the huge revenue potential of baby diapers would make anyone beg for a share of it. Well, I want to clarify much of what’s going on in Nigeria when it comes to diaper business. It may be different in your country, but if you hope to do diaper business in Nigeria, you might have to follow my lead on this one.
The two main diaper competitors are Molfix and Pampers. Both are leaders in the market in their rights. Molfix is owned by Hayat Kimya Nigeria Limited, while Pampers is owned by Procter and Gamble. However, Molfix leads the diaper business in terms of retail volume, and Pampers is leading in the retail value.
Both leading brands enjoys huge market share of 81.6 percent, leaving just 18.4 percent for the rest of the brands to share. Huggies leads among the remaining brands in the 18.4 Percent market share, that puts the brand in the third leading diaper brand in Nigeria.
The Diaper Distribution Channel
If you are planning on starting your own diaper business, it’s important you understand how others who started the business before you are doing. I have classified the different value chain in the diaper distribution business.
Most diapers in Nigeria come from twos major countries, Turkey and China. In fact, Turkey has positioned itself as a major manufacturer for diaper brands in Nigeria. Any expert you ask about the best country to bring in diaper would recommend Turkey. Yet, China seems cheaper but lacks the trust to maintain quality after the first production.
All the classes of distribution are themselves important in the value chain. Your role as a diaper business owner helps to integrate all these values together for your success. Another thing you would learn from these value chain is where you can possibly start the business from.
I strongly recommend that you take the market one at a time. For example, wanting to cover the whole nigeria with your diaper brand is not a problem, but winning one state at a time could help you focus your marketing efforts to achieve market share in one state at a time. Being the third market leader in Ogun state is better than not leading in any market across Nigeria.
The Diaper Manufacturers
Manufacturing diapers in the country comes with so many advantages, but the most relevant is retail price control and regularly supply of products to markets. The diaper companies that manufactures locally are also leading the market share with over 80 percent of the market.
Although, it’s not the easiest option to manufacture locally due to the infrastructural issues in the country, but it’s the best choice against increasing exchange rates and irregular product supply. If you are regularly found in the market, your customers would keep making alternative choices, and that’s not good for your brand.
The only diaper brands that are manufacturing in Nigeria is Molfix, Pampers and Dr. Brown diapers owned by Wemy Industries. The rest for now are all importing from Europe or China. However, starting a diaper manufacturing plant doesn’t come cheap.
These brands mentioned above all have the financial muscle to support a local manufacturing outfit for their brands. For a startup, it may be a huge undertaking to start manufacturing a product that doesn’t have market acceptability yet. Starting as a manufacturer is not for startup diaper businesses who doesn’t have the right financial backing.
The Diaper Importers
This group of diaper business owners are in different categories. Some are diaper brand owners, who have built a brand for their diaper business but still manufacture them outside the country. Majority of the diaper brands in Nigeria falls within this category of importers. They own the brand but outsource the Manufacturing to factories in Europe or China.
Another group are those who buy large quantities of existing brands from America, UK and Germany to sell in Nigeria. This category of importers usually buy clearance sales at major supermarkets abroad at lower prices. Their main target are customer who used to live abroad that prefers those foreign brands.
The third category are the unbranded Chinese diapers. They mostly come in transparent nylon packs. Some are branded but not registered brands in the country. I have explained more on this Chinese brands below to give you more clarity on the Chinese manufacturers encroachment into the diaper business in Nigeria.
However, diaper importers are faced with serious issues that are hampering their brand market share. They are not able to import regularly or meet up with demand before stock dries out in the market. These delays helps the locally manufactured diapers to gain more market shares. That’s why Molfix and Pampers are the strongest brands because they are constantly available.
Another problem is the dollar exchange rate. It keeps going higher and affecting regular market price for the diapers. There’s no end in sight that the Nigerian import market would ever win in this dollar exchange war. So we expect dollar to keep rising and prices of imported products, including imported diapers to keep rising. This inconsistency in retail price discourages consumers from being loyal to their preferred brand.
Chinese Diaper Business Imports
There’s so much increase in the number of Chinese diaper brands flooding the Nigerian market in the last one year. In the past, most marketers have ignored them, but I think you shouldn’t ignore them anymore. The brands are growing, with over 50 of them counted, and many more still to come into the market without government regulatory approval. Their market share is also increasing by the day, which is one reason they should not be ignored.
Interestingly, most of them are not NAFDAC approved. How they got into the markets is another thing, but they are really taking over, especially in the rural markets. According to some retailers I approached, they make more profit from selling the Chinese diapers, which are also cheaper than the branded ones. Also, they claim the customers are buying them now more than the brand diapers because they are cheaper. One of the retailers begged me if I could help her to import it that she really need to stock it more.
Nigeria has a large number of poorer population, and that’s what this Chinese brands seek to explore. However, there could be some challenges with these Chinese brands, and that may have somethings to do with the informal market being well flooded with diapers, and the fact that they possesses no brand advantage.
These are just calculated disadvantages, since these Chinese brands will have to still fight for market share without a brand to sustain their individual gains. So, anyone can bring in these Chinese diapers and compete with other Chinese importers too. It doesn’t enjoy market exclusivity and it’s also not sustaining.
Moreover, from the market view, these unbranded Chinese diapers are also considered unreliable. A retailer told me how they pick the average reliable ones, by checking if it has rubber on the sides. Generally, the only consideration for these Chinese diapers is their low prices for the consumers and higher profit margin for the retailers.
This category is an important piece in the whole diaper business value chain, but it’s mostly ignored and neglected. The marketers are the gold miners in the diaper business distribution value chain. For any brand to succeed in the diaper market, it must learn to utilize the power of good marketers.
Well, I’m going to give you the exact direction this kind of marketing takes, because my team and I have been involved in some successful diaper brand market insertions that worked very well. Showing that this kind of marketing works in Nigeria. However, finding the right marketer with experience in product insertion is not that simple. It’s not every marketer that does this well.
The real job of this kind of marketers is to build a solid distribution network for your diaper brand, which includes signing up distributors and retailers from each state or city, who has the capacity required to represent and maintain your brand availability in their respective markets.
This kind of marketing doesn’t come cheap but it’s the fastest and the best way to introduce a new diaper brand or even any other brand product into the Nigerian market, to start making sales immediately. Molfix used used sales representatives and gave them commission from sales. That seemed to work for them, but with so much difficulty and problems.
Here is again the benefits of using the marketer to build your diaper distribution network:
- They help to building strong distributors network
- Helping to network retailers to the approved distributors
- Helping to drive products deeper into the local markets
The Diaper Distributors
If you have signed up with an experienced marketer, then the job of finding distributors for your diaper business is made easier. The marketers are not only finding you distributors, they also find you money. The distributors are highly important to your diaper business.
The right distributors are those who understand the business, are passionate about it, and has the money to finance supply, with a chain of retailers to buy diapers off them. If you are trying to get such marketers through media advertising, you may not be lucky. It’s the job of your marketer to find you distributors in any city you want them.
I explained more about distributors in this post: How To Join Diaper Distributors In Nigeria. This will also give you insight on how to Franchise your distribution model as well. One thing to note about distributors is that you can’t do without them if you hope to build a strong diaper business in Nigeria. Even if you are a foreign diaper brand based outside Nigeria, you can tap into this distributors strategy to build your diaper business in Nigeria.
Although, there are limited number of distributors you can accept per state, based on the size of each market or structure of the cities. The best way to implement distributorship is to use the Franchise model of exclusivity. The power of exclusivity is the secret many traders will pour their money into a brand to secure their supply for your products.
The Diaper Retailers
When it comes to retailers it should be done aggressively. The number of retail points would greatly impact your sales figures. However, this should be strategically done to give your brand proper coverage in any given location.
However, this part of the distribution chain cannot be controlled. Many of them are in the business for the wrong reasons, which has little to do with the success of your brand, but you can’t do without them.
Imagine, you can have just one distributor in a location like a state or city, but you can have thousands of retailers without such exclusive restrictions. That’s how important the retails are to your diaper business. Also, the nature of Nigerian markets, which controls the highest percentage of diaper sales, about 70 percent of the total market sales volume, is not a sector to ignore.
The Local Retailer Networks
If your diaper brands don’t have a share of these local retailers you are not yet in the diaper business. They are the closest to your customers. How you handle this line of your distribution network would impact on your brand positively or negatively. There are many ways to handle this market. I would recommend you also read this post on How To Start Profitable Diaper Shop.
This group is also the easiest to deal with, because they don’t have much request than the usual commission per product. Although they won’t openly argue about the commission but they won’t hesitate to jump to another product that’s offering better commission.
Some smart diaper brands uses incentives to drive this segment of their value chain. This group loves incentives. If you could, they can be used to influence new customers to buy your diaper brand. Most customers are not really brand conscious, and can be influenced to move from one brand to another.
An effective use of local retail network can increase your turnover. Imagine how much ten thousand retail points can bring into your diaper business regularly. That’s the power of strong retail network.
Shoprite And Supermarket Retail Outlets
One other important channel of retail for diaper brands is supermarkets, of which Shoprite is leading the market with both national spread and volume. For a new brand, pushing your diapers through retail outlets like the supermarket could give you instant sales volume, and save you huge marketing cost as well.
However, there are things to consider helpful when considering retail outlets as supermarkets. The first one is quality diapers. The supermarkets have brand identity to protect, and they sell their brand promise through the quality of products they allow on their shelves, but you only going to get paid after they have sold your products.
The next thing is stock availability, which is even more critical to supermarkets over quality, because it creates a wrong impression on the minds of their customers. So, you have to have a proven record of product availability to gain the trust of supermarkets, especially Shoprite. In 2017, Shoprite threatened to take off Dr. Brown diapers from their shelf due to product availability issue.
Another key strategy when dealing with supermarket brands is price. These supermarkets love to use price as a selling point. If you can play this price point to your advantage they would like to stock your brand.
Hospitals Retail Partnership
Molfix diapers explores this strategy to its success, even though it was originally Pampers diaper business strategy that has worked so well for them. If these two major diaper brands are doing something it’s surely because it works so well.
According to recent statistics, an estimated 20 percent of total diaper market volume sales are generated through hospital partnerships. That’s a lot of market for any diaper brand to overlook. It’s opportunity to impress a brand upon mothers, and they might continue using it after they leave the hospital.
The huge selling point here is just lower prices. It’s done as promotional marketing, lower than market rates but a better way to sell your diaper brand to mothers using their doctors or nurses influence. It’s a type of influence marketing, and it has worked so well, generating about 20 percent of the total diaper market volume.
One major issue with this option of retail is that you have to risk a large percentage of your diaper stock, as you only get paid when sales are made. You don’t get upfront payment for the stock like with the local retailers.
Diaper business has proven to be a lucrative business. However, it’s not all success stories for all the diaper brands. Some have closed shop after losing market share due to certain challenges. Some others simply came to offload their shipment of diapers and disappeared after just one shipment.
The dominance of Molfix and Pampers with over 80 percent of the market is proof that there’s enough room for new entrants in the diaper market. The problem is that the majority of other diaper brands either don’t have the required financial muscle to fight for market share, or they don’t know or want to do what is required to gain substantial market share.
There are two ways you can use a marketer to build your diaper distribution network. You could either hire them and pay them for their services, which is good but requires huge capital outlay if you want to do it faster. The other option is to sign them up on a commission based service. You can sign them up for the next two years or more depending on the commission type agreed with them.
The major advantage of the hospital retail partnership is the power to win you new customers. Nigerian like recommendations from qualified people. They take their advice seriously, and would do as told. That’s why you should have a hospital partnership for your brand if you hope to build new customers. How you do this is important. It’s one good reason you need to hire an experienced marketer for your diaper business.
Do you want to start baby diaper business as a Molfix diapers distributor? Do you know what is required and how to go about it? There is a process to follow if you want to become a Molfix Distributor in Nigeria, where ch opportunity is still available now.
The baby diaper product in Nigeria is in high demand, and Molfix happens to be the number diaper brand in the market. That makes it the highest selling diaper in Nigeria.
According to Fastweb market feasibility report for baby diapers, there are over 40 baby diapers brands in the market but Molfix has over 44 percent of market share. You can see full list of all the known and unknown baby diaper brands in the market below.
The turnover rate for Molfix diapers is higher than any other diaper in the market. So, starting a diaper business to sell Molfix is a profitable business decision. However, you need to know how diaper business works and how to become a Molfix Distributor. If you are new to business, I would recommend you do a little apprenticeship with an existing baby diaper retailer or distributor.
A lot of startups overlook the idea of apprenticeship, but it’s the best step in starting a trading business. You will learn how the market works without risking your own money. You will be able to learn about best products, the turnover rates and why customers prefer certain brands above others. Plus, what customers look out for in a diaper or what’s even more important in their purchase decision.
Understanding Molfix Diapers
Molfix baby diaper took the diaper market by storm, off-staging all the known and powerful brands like Pampers. The entry of Molfix into the Nigerian diaper market was a case study that every new extract into the diaper market needs to study. Yet, almost all the new entrants into the diaper market ignore this simple truth, or rather lack the financing to build a strong market brand.
Although, Molfix baby diaper is of good quality but it doesn’t mean the other diapers are not of good quality. What made Molfix brand standout in the diaper market is the huge marketing budget of the company and its market inserting strategy. This strategy made their product available nationwide. They also ensure that there Brand quality is maintained and at a price that’s not constantly changing.
Molfix diapers brand at the inception wooed many distributors and retailers with mouth watering incentives and sales bonuses. Honestly, if you are looking to become a Molfix distributor now, you may have been too late. A fast selling diaper like Molfix shouldn’t have a problem filling out its distributors list nationwide.
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However, if you consider the case of Pampers diapers that sometime cancelled its partnership with a known distributor for their product, and that action created openings for new Pampers distributors in the South-South and South-Eastern region. Then, you shouldn’t lose hope entirely. If you really want to become a Molfix diapers distributor the options are not all gone.
How Molfix Diapers Distributor Works
A Molfix Distributor buys Molfix brand products at discounted rates for distributors, which they sell to retailers, who in turn sell to the final consumers. In the case of baby diapers, you buy in large quantities from Molfix and you resell to retailers and consumers.
Some Molfix distributors buy more than a 40 feet container load of baby diaper regularly. By estimate, a 40 feet container load of baby diaper would cost as much as N40 million. That’s not to imply that’s the cost requirement of becoming a Molfix diaper distributor.
You need to know the difference between being a distributor and being a retailer. If you want to be a retailer, all you have to do is find the nearest Molfix diapers distributor to you and start buying from them. You can enquire about the closest distributor either by contacting Molfix or asking those who sell the product where they get it from. If you trace that link you will surely find the main distributor for your city or state.
Since Molfix diapers is already a huge brand and everyone wants to be a Molfix distributor, it has become a challenge as well. You can start off this dream as a diaper retailer if you don’t have millions of naira as startup capital to invest, or you can just use it to learn the ropes before investing million into the diaper business.
The Molfix Diapers Brand Success
Molfix Diapers is not the only brand in Nigeria. There are other existing diaper brands in the market before Molfix was introduced into the market. It wasn’t like the other diapers were not doing very well. There are certain things Molfix did well that helped it grew its diaper market share to the top brand in Nigeria in just two years of operation.
However, amongst many things where are not open to public knowledge, the most important thing Molfix did was to create an effective marketing strategy. This network helped to push its products deep into the markets and create huge followership among mothers.
Apart from having distributors and retailers, Molfix also introduced local representatives. These guys worked heavily to it’s success. In some markets it was these reps that built the market for them. Their job was simple, they were responsible for Molfix diapers brand in their location, and Molfix gives them sales cut as commission incentives to boost their morale.
Another thing Molfix did was to reduce its diaper price and gave big sales bonus to distributors, retailers and sales representatives. That way they all work for the success of the product in each market. They understood that the more the product sold the more money they would make.
How Molfix Defeated It’s Competitors
The major big reason consumers buy Molfix diaper is due to the elasticity of the diaper at that time. It can stretch and give babies comfort and also prevent leaking. That was then because non of that is a major factor anymore, as most diapers are even better compliant than Molfix. However, this should give any new brand some ideas on how to defeat the giants.
According to a report in the Nation Newspapers, the paper reports that Molfix brand is produced by Hayat Kimya Nigeria Ltd, is said to be cheaper and significantly offers quality that consumers love. It means mothers needs like preventing leaks, foul smell and reduces number of times they change their baby diapers.
However, Molfix claims that it’s product is designed to give “babies full protection and keeps their skin dry and healthy around the clock”. That promise could mean different things to different people. One thing that was certain was that mothers love Molfix diapers, It’s Molfix and then the rest of them, as they say.
Molfix Brand Market Potential
Hayat Kimya, which started producing Molfix baby diapers in 1998 in Turkey, came into Nigeria in 2015. At this time, Pampers owned 41.9 per cent of the diaper market share, but presently it now controls only 37.3% of the market share. If we go by volume, 1% of Nigerian diaper market share is a lot if we go by the UN annual childbirth of 5.9 million in Nigeria.
According to A.C. Nelson data, it took Molfix just 2 years after entering into the Nigerian market to become a market leader in baby diaper, with over 44.3% of the total market share. This position was previously held by Pampers in the diaper market for many years. Now, Pampers only has 37.3% share of the market, while the remaining 18.4% is shared by the rest of the brands.
How much more of this market Molfix can take is still unknown. If it exceeded its launch projection of 30% by as much as 14.3%, it’s not difficult to predict what Molfix market share could be in a decade.
However, what is already known of the Molfix diapers brand owners, Hayat Kimya is that it’s the 5th largest diaper producer in the world, with 22 manufacturing sites across the following countries of Turkey, Egypt, Algeria, İran, Bulgaria, Romania, Bosnia Herzegovinia and Russia. It’s revenue is in over $3 billion, with approximately 14,000 employees.
Complete List of Baby Diaper Brands In Nigeria
However, Molfix is not the only popular baby diaper in the market. Nigeria boasts of many brand of diapers and more is still being introduced into the market yearly. Below are just a few of the ones seen and purchased by families in Nigeria.
- Molfix baby diaper
- Pampers baby diaper
- Prince and Princes baby diaper
- Sunfree baby diaper
- Champion baby diaper
- Golden care baby diaper
- Infinity baby diaper
- Unac baby diaper
- Dumpas baby diayper
- Drylove baby diaper
- Huggies baby diaper
- Bino baby diaper
- Witlux baby diaper
- Just On Baby diaper
- Confy baby diaper
- Puréed Dry baby diaper
- Babysoft baby diaper
- Toujour baby Diaper
- Royal baby diaper
- Cuddsies baby diaper
- Swadllers baby diaper
- Dr. Brown baby diaper
- Virony baby diaper
- Babem baby diaper
- Angel baby diaper
- ASDA baby diaper
- Lakebaby diaper
- Chicco baby diaper
- Little Angel baby diaper
- Holife baby diaper
- Cussons baby diaper
- Neworldline baby diaper
- Sanwood baby diaper
- Bluelans baby diaper
- Coorland baby diaper
- Bluelife baby diaper
- Nice Baby diaper
- Dumpas baby diaper
- Leri baby diaper
- Kejo baby diaper
Note: If your brand is not mentioned, do contact us. The new diaper brands are constantly being introduced into the market and some old ones are also going out of the market.
Tips To Become A Molfix Distributor
If you want to start selling Molfix diapers, you might as well be sure there is an opening for the type of dealership you want to be, and you are prepared to meet the financial requirement as well.
Tip #1: Get to know more about Molfix diapers business and if the comoany would be needing new distributors or reseller in your area. You can start by contacting the company or checking on their website here. You should also utilize other sources available to you.
Note that if a brand has been in the market for a while and they are already popular, they are likely to have distributors, but it shouldn’t stop you from asking.
Tip #2: Contact Molfix to verify if they has a slot for more distributors for your location. It’s only Molfix Diapers company that would have that information now, since they are not in a desperate position for distributors.
Tip #3: Confirm the current startup cost for new distributors for your location. It’s always important to equip yourself with the right information about the company before you start your pursuit.
Tip #4: Find out what the other basic requirements might be, like warehouse size and type of location approved. Some companies might have some strict conditions about where you can be located in any city. Remember that distributorship is a form of Franchise business.
Tip #5: Contact the Molfix distributor in your city to negotiate how to become a sub distributor if option for main distributor is taken. It’s better to share in the market than lose it entirely. Most brands have only one distributor in the state. Identify a part of the state that’s a potential market and negotiate a sub distributor position with the existing distributor.
One thing you must consider is that Molfix is a big diaper brand, and with the current market share makes it a huge opportunity for anyone who wants to go into diaper distribution business.
The diaper business is no doubt one of the fastest selling products in the market. The huge demand for baby diapers makes it a good retail opportunity for anyone who wants to start a distribuorship business. However, to become a Molfix diapers distributor may require you to work even harder to become one.
Molfix already have distributors in almost every part of the country, unless areas where their market share is low or their existing distributor is either not serious or has quit from the brand.
Alternatively, you may also come across one who may want to sell their Molfix diaper distributor licence. Although this is rare, but not entirely impossible.
Finally, you should also understand that diaper market is a shared market. It’s not only Molfix diapers that’s in the market. In fact, there are other brands that may be more stronger in your market, or even new brands that may take over your market soon. You can start with new brands and build a successful market for yourself.
I have listed most of the existing diaper brands in Nigeria above. Take advantage of most of their newness entry, which is also cheaper to buy as a distributor, and become a major dealer in baby diapers.