COMPETITION IN NIGERIAN FLOUR INDUSTRY: WHY THE B2C STAKE IS RISING

Abstract

The increasing competition in Nigerian flour industry has changed the nature of relationship between flour mills and their customers. Flour mills’ customers comprise those who buy for resale as a business (B2B) and those who purchase for direct consumption (B2C). Traditionally, the B2B constitute the majority in the market. However, with the increase in competition, there has been a surge in favour of the B2C. This study examined the reasons for the growing attention of the flourmills to the B2C as against the B2B. The study observed brand loyalty, surging consumer market and increased delivery capacity as the key motivations for the new customers’ preference. Using customers’ data from Ondo state on 5 flour mills to portray the argument, the study observed that the future flour market will be less volatile and the industry growth will correlate with progresses in the bakery market.