Importation and Marketing of Home Appliances in Nigeria

In recent times, the home appliances and electronic market in Nigeria has been polarized. While new and emerging products from this market segment keep arriving, the established brands are busy formulating marketing and sales strategies that would make them stay ahead.

Some of the players in the Nigerian home and electronics appliances market are Samsung, LG, QASA, Polystar, Sharp, Sony, Nexus, Panasonic, Haier, Hyundai, and Hisense.

These firms are all assembling products imported in ‘knocked down’ (unfinished) form, and selling to domestic and West African markets.

As foreign investors’ interest and confidence in Nigeria’s economy increase due to the economy’s untapped potentials and return on investment, QASA, (Quality Assurance; Assurance Service) one of the subsidiaries of Qlink, a Taiwanese group of companies has established office in Nigeria.

The firm which is into manufacturing and marketing of home appliances and electronics said it is ready to face the robust competitive market of home appliances and electronics. Its range of products made for the growing African market include: blenders, microwaves, electric cookers, toasters and kitchen appliance, refrigerators, generators and other electronics.

On March 3, 2014, sharp entered into an agreement with Dajcom for the sales of their products in Nigeria.

Under the terms of agreement, Sharp, renowned for its innovative Japanese technology, two years warranty, genuine spare parts and widespread professional network of service centres, will make available, at competitive prices, its products; while Dajcom will facilitate the market coverage backed up by aftersales services.

Sharp Middle East FZE is a wholly-owned subsidiary of Sharp Corporation, Japan. Its company in Dubai, United Arab Emirates is the regional hub for the Middle East, Africa and Caucuses regions, covering over 80 countries with sales, marketing and customer service operation in its core business of audio-visual, communication equipment, health and environment equipment, information equipment, as well as crystalline and thin-film solar panels.

Dajcom was established in 2002, as an importer of air conditioners and later, of electronic goods, for the domestic Nigerian market.

The firm said it had developed into one of the largest manufacturers and distributors, not only in Nigeria, but also across the larger group of 14 countries that form the Economic Community of West African States.

Turkey home appliances company, Vestel, has said that it was considering coming to Nigeria as part of its expansion. The company in a statement stated that it was already searching for trade partners/customers for a wide range of its products which include refrigerators, washing machines, cooking appliances, dishwashers, air conditioners, Flat TV, Mobile Phones business in all Africa.

Upon arrival in the country, Vestel which said that it can develop special projects according to the individual needs of the markets will be competing with firms like LG, Samsung and Sony that are the leading brands in the market.

This report highlights the financial viability or otherwise of establishing a home appliance sales and marketing outfit in Nigeria with special focus on offering after sales service to our customers. The products to be marketed would be sourced from abroad and it includes Pressing Iron, Blender, Fan and Pressure Cooker.

Table of Contents

Table of Contents: EXECUTIVE SUMMARY 1.0    Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Critical Success Factor of the Business 1.4 Current Status of Business 1.5 Description of the Business Industry 1.6 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of product 2.2 Product Packaging and delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start -up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6 Profit and Loss Analysis 5.7 Cash Flow Analysis 5.8 Viability Analysis 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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