MARKET ENTRY REPORT: LAUNCHING A

NEW FASHION BRAND IN LAGOS

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1.0 EXECUTIVE SUMMARY
Emerging markets provide an endless number of untapped possibilities for companies seeking to
establish a solid foundation and extend their influence within the ever-evolving global fashion
landscape. This study carefully examines the market entry options for a growing fashion brand in
Lagos, Nigeria, a city that has developed into a unique and dynamic hub for style, innovation,
and fashion statement. The study starts with a detailed assessment of Lagos' market
attractiveness through the lens of robust analytical frameworks, dissecting the complex
framework of factors that combine to create this bustling metropolis.
Based on this solid foundation, the study offers a carefully considered marketing plan tailored to
the unique nuances of the Lagos fashion industry. It examines advertising campaigns,
distribution strategies, localization techniques, and pricing concerns, providing a road map that
successfully appeals to the city's affluent and style-conscious customers. The plan intends to
establish the brand as a compelling and sought-after presence inside the Lagos fashion ecosystem
by effortlessly combining local preferences, cultural sensitivities, and modern marketing
strategies.

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Table of Contents
1.0 EXECUTIVE SUMMARY.......................................................................................................2
2.0 INTRODUCTION.....................................................................................................................4
3.0 ANALYSIS AND DISCUSSIONS...........................................................................................4
3.1 Market Potential and Attractiveness of Lagos.......................................................................4
3.1.1 Market Analysis..............................................................................................................4
3.1.2 Market Attractiveness......................................................................................................6
3.2 Promotion Plan for Lagos Fashion Industry..........................................................................7
3.2.1 Target Audience..............................................................................................................7
3.2.2 Marketing Channels:.......................................................................................................7
3.2.4 Localization.....................................................................................................................7
3.3 Risks and Ethical Business Dilemmas in Lagos....................................................................8
3.3.1 Risks................................................................................................................................8
3.3.2 Ethical Business Dilemmas.............................................................................................8
4.0 RECOMMENDATIONS...........................................................................................................9
4.1 Digital Marketing...................................................................................................................9
4.2 Strategic Partnerships:............................................................................................................9
4.3 Localized Experiences:..........................................................................................................9
5.0 CONCLUSION..........................................................................................................................9
6.0 REFERENCES........................................................................................................................10

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2.0 INTRODUCTION
The fashion industry is experiencing a significant transformation, with new markets offering
huge opportunities for growth and expansion. One market that has drawn the interest of fashion
industry professionals is Lagos, Nigeria's economic strength and an emerging center for fashion
and style. This market entry report looks into the huge potential and appeal that Lagos offers for
a growing fashion brand looking to make an impact in this bustling metropolis (Asmussen et al.,
2013).
The report begins with an in-depth analysis of Lagos's market potential, attraction, and reasons
for being the best choice. It uses strong frameworks and theoretical models to break down the
complex components that form this multifaceted metropolis. It examines the political, economic,
social, technological, environmental, and legal landscapes using a detailed PESTEL analysis,
giving readers a comprehensive understanding of the opportunities and limitations that face a
fashion company entering this rapidly evolving city (Ajitha et al., 2019).
Additionally, the Porter's Five Forces framework is applied to analyze the competitive
environment. This allows for a thorough examination of the threats posed by new competitors,
the buyers' and suppliers' bargaining power, the imminent emergence of substitutes, and the
degree of rivalry within the Lagos fashion industry. This comprehensive analysis lays the
foundation for a well-developed market entry and promotion plan tailored to this city's unique
characteristics (Carrera, 2023).

3.0 ANALYSIS AND DISCUSSIONS

3.1 Market Potential and Attractiveness of Lagos
A broad analysis is necessary to fully evaluate Lagos's market potential and attractiveness for a
growing fashion business (Grassi, 2020). Utilizing the strong PESTEL framework, we can
dissect the complex web of variables that mold this lively metropolis, shedding light on the
potential and challenges that lie ahead.
3.1.1 Market Analysis

I. Political
Lagos's prosperity stems from its semi-presidential political framework, which is quite stable.
This creates a stable environment that encourages business expansion and attracts foreign
investment. The Lagos State Government actively supports the fashion industry since it has the
potential to diversify the economy and create jobs (Asmussen et al., 2013). One obvious example
of this is the Eko Micro, Small and Medium Enterprises (MSME) Garment Hub, which provides
state-of-the-art equipment and facilities to the fashion manufacturing sector.

II. Economic
Nigeria's economic engine is Lagos, which contributes far more to the country's GDP than Accra
does for Ghana. Lagos alone accounts for 20% of the country's GDP, totaling 41.17 trillion naira.
IMF (2024). As a result, there are more potential customers in a bigger market. Lagos boasts a

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rapidly growing middle class with greater disposable income, creating an important market for
fashion goods (Sonia et al., 2016). The middle class in Accra is small, despite its existence.

III. Sociocultural
Lagos is home to a multitude of cultures, each with its own distinct fashion customs and tastes.
This diverse texture has fostered a fashion-oriented public that appreciates both classic and
modern looks. Due to the city's multiculturalism and exposure to international trends, it has
attracted an elegant market that is looking for distinctive and genuine fashion experiences (Llyod
et al., 2010). For a developing fashion company to succeed in the local market, it is imperative
that it comprehends and accommodates these unique cultural distinctions.

IV. Technological
Lagos's fashion retail scene has changed due to the city's high smartphone penetration rates and
rapid technology improvements. According to Sonia et al. (2016), e-commerce platforms and
social media influencers have become significant forces behind fashion trends, allowing
businesses to engage with customers in new ways. An up-and-coming fashion company has the
chance to take advantage of this digital transformation by utilizing innovative marketing
techniques and multichannel selling methods. Notwithstanding, it is imperative to tackle
obstacles like cybersecurity and logistics infrastructure.

V. Environmental
Environmentally conscious consumers are becoming increasingly common in Accra and Lagos,
particularly among youth (Sonia et al., 2016). This presents an opportunity for fashion brands
who value sustainability. However, Lagos might have a slight advantage in this market because
of its bigger market size, which might suggest a larger pool of environmentally conscious
consumers willing to pay a premium for sustainable fashion. Lagos also has a more established
textile industry and a wider range of suppliers. This could make it easier for businesses to source
sustainable materials locally, reducing their environmental effect (Ya-Hui Kuo, 2016).

VI. Legal
For any fashion company hoping to make a name for itself in the industry, navigating Lagos'
legal system is essential. Obtaining a thorough comprehension of regional statutes and guidelines
concerning copyright, intellectual property rights, labor practices, and import/export restrictions
is vital in order to minimize possible hazards and guarantee adherence (Hsu et al., 2013).
Neglecting to comply with these legal obligations may have serious financial and reputational
consequences.
3.1.2 Market Attractiveness
To further evaluate the market attractiveness of Lagos, a strategic analysis utilizing Porter's Five
Forces model provides valuable insights into the competitive dynamics and potential profitability
within the fashion industry (Ahn et al., 2013).

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 I. Threat of New Entrants
Although there is a lot going on in the Lagos fashion sector, things like supply chains that are
well-established, cash availability, and brand recognition serve to reduce the threat of new
competitors. Nonetheless, established players face problems due to the city's entrepreneurial
spirit and the possibility of disruptive business models (Hsu et al., 2013). To lessen this threat, an
up-and-coming fashion brand needs to carefully distinguish its products and develop a strong
sense of identity.

II. Bargaining Power of Suppliers

Lagos gains from having a wide range of domestic and foreign suppliers, from producers of
accessories to textiles. Fashion brands may be able to negotiate better terms and conditions as a
result of the multiplicity of options available, which may lessen the negotiating power of
individual suppliers (Grassi, 2020). It is challenging to establish an appropriate balance between
cost-effectiveness and ethical and environmental sourcing practices.

III. Bargaining Power of Buyers

Lagos's fashion-conscious customer base has a lot of negotiating power because they may choose
from a large variety of local and foreign brands. According to Sonia et al. (2016), in order for a
developing fashion company to stay competitive, it is imperative that it prioritise customer
satisfaction, provide unique benefits propositions, and cultivate brand loyalty using focused
marketing initiatives. It is critical to establish a close emotional connection with customers to
understand how their fashion preferences are changing.

IV. Threat of Substitutes

The threat of substitutes within the fashion industry in Lagos is relatively high, as consumers
have access to a diverse range of product categories and alternative shopping experiences. Online
platforms, fast-fashion retailers, and secondhand markets pose potential threats, necessitating a
differentiated and compelling brand proposition (Ahn et al., 2013). An emerging fashion brand
must stay ahead of trends, offer innovative product designs, and provide exceptional customer
experiences to mitigate the risk of substitution.

V. Competitive Rivalry
Lagos's fashion business is very competitive, with well-known national and international labels
fighting for consumer money. A growing fashion brand needs to establish a unique sector, use
creative marketing techniques, and develop a strong brand identity that appeals to the local
consumer base in order to succeed in this market (Bahri-Ammari et al., 2020). Creating strategic
alliances, employing local influencers, and providing unique experiences or collections can help
set the brand apart and increase customer retention (Ahn et al., 2013).

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3.2 Promotion Plan for Lagos Fashion Industry
3.2.1 Target Audience .s
Divide and rank the target population according to psychographics, fashion preferences, and
demographics. This could include young professionals, members of the working class, and lovers
of fashion (Grassi, 2020).
3.2.2 Marketing Channels:
To effectively reach the target audience, use traditional and digital marketing channels. This
could consist of:

I. Physical Stores
To provide a fully immersive retail experience, open flagship locations in well-known malls or
fashion districts (Ajitha et al., 2019).

II. Online Presence

Create an e-commerce site and use social media to interact with clients, display merchandise, and
launch focused marketing campaigns (Sonia et al., 2016).

III. Influencer marketing

Lagos offers a strong platform to increase brand awareness and establish a connection with your
target audience thanks to its thriving fashion influencer culture (Sonia et al., 2016). Given their
popularity and extensive reach, you may choose to collaborate with these well-known Lagos
fashion bloggers and influencers: Denola Grey is a multifaceted performer renowned for his
excellent sense of style and fashion sense. By working with Denola, you can reach a large
audience on social media.
3.2.4 Localization
Modify marketing tactics in response to regional variables, such as cultural variations and
seasonal patterns. This could consist of:

I. Customized Product Collections

Provide traditional designs and textiles in fashion collections that adapt to regional tastes (Ajitha
et al., 2019).

II. Local Partnerships

They ought to think about working with some of the most well-known fashion designers in the
city, to enhance the fashion brand with a dash of Lagos flair and take advantage of local
knowledge.
Mai Atafo is a well-known designer of menswear that emphasises luxury and reinterprets
indigenous Nigerian materials.
Yadichinma Ukoha-Kalu: A multidisciplinary artist known for her bold and innovative textile
designs, Yadichinma could create unique prints or embellishments for your garments.

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Lagos Space Programme: under the direction of Adeju Thompson, produces avant-garde and
futuristic clothing that pushes the envelope of African design.

III. Social Responsibility Initiatives

To improve the brand's reputation, they should participate in social projects like helping your
community or advocating for morally and environmentally sound behaviour. Also, match
employee volunteer hours with local NGOs or initiatives focused on empowering communities
through fashion or skills development (e.g., tailoring workshops). The company could offer
additional pay or paid time off to incentivize participation (Ya-Hui Kuo, 2016).
3.3 Risks and Ethical Business Dilemmas in Lagos
3.3.1 Risks

I. Infrastructure
Inadequate logistics and transportation infrastructure may affect the prompt delivery of goods,
this is because the notoriously heavy traffic in Lagos is known to cause considerable delays in
delivery times. The company's merchandise may be delayed for hours by trucks, frustrating
customers and making them arrive late.

II. Counterfeit Products

Lagos has a high rate of counterfeit goods, which could jeopardize a company's reputation and
undermine consumer confidence (Lloyd et al., 2010).

III. Political and Legal Environment

Uncertainty and Modifications to Regulations may impact business operations, including
import/export regulations and intellectual property rights (Hsu et al., 2013).
3.3.2 Ethical Business Dilemmas

I. Supply Chain Transparency

Ensuring transparency and ethical practices throughout the supply chain, including fair labour
conditions and responsible sourcing of materials (Baldus et al., 2015).

II. Cultural Sensitivity

Respecting local cultural norms and customs to avoid any unintentional offence or cultural
appropriation (Bahri-Ammari et al., 2020).
To overcome these risks and ethical dilemmas, the following strategies can be implemented:

I. Robust Supply Chain Management

Implement stringent supplier selection criteria, conduct regular audits, and ensure compliance
with ethical and sustainable practices (Sonia et al., 2016).

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 II. Brand Protection Measures
Invest in brand protection strategies, including trademark registration, anti-counterfeiting
measures, and customer education to differentiate genuine products from counterfeit ones (Bahri-
Ammari et al., 2020).

III. Government Engagement

Stay updated with the local political and legal environment and engage with government
authorities to ensure compliance with regulations and obtain necessary licenses (Bahri-Ammari
et al., 2020).

4.0 RECOMMENDATIONS
4.1 Digital Marketing
According to Ya-Hui Kuo (2016), the marketing strategy for Lagos is a comprehensive approach
that integrates cutting-edge digital marketing techniques with strategic partnerships and
immersive, regionally relevant experiences. A comprehensive digital approach utilizing
influencer marketing, social media, and targeted online advertising is the foundation of this
campaign. By using Lagos's proficient in technology customers and high smartphone adoption
rate, it is possible to create a loyal customer base, boost awareness of the brand, and make direct
connections with the target market.
4.2 Strategic Partnerships:
Another key aspect of the strategy is forming strategic partnerships with prominent stores,
bloggers, and local fashion authorities. These collaborations will not only raise awareness but
also provide invaluable insights into the cultural differences and evolving trends that shape the
Lagos fashion scene (Sonia et al., 2016). By partnering with respectable institutions and style
icons, the brand may successfully engage the discerning customer base of the city and establish
itself as a genuine and popular player in the market (Baldus et al., 2015).
4.3 Localized Experiences:
In addition to enhancing its digital and partnership operations, the fashion brand's marketing
strategy highlights the requirement of creating realistic locally relevant experiences that appeal to
the fashion-forward Lagos audience (Lloyd et al., 2010). This could entail setting up pop-up
stores, hosting invitation-only fashion events, and selecting product lines that pay respect to the
city's rich cultural history while combining current global inspirations. By expertly combining
current trends with regional traditions, the fashion brand can develop a true representation of
Lagos's fashion identity and promote brand loyalty, creating a strong emotional bond with its
customers (Ya-Hui Kuo, 2016).

5.0 CONCLUSION
Lagos offers a lot of possibilities for fashion brand expansion because of its developing
economy, fashion-conscious population, and market potential. The brand can avoid such hazards

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and ethical issues by creating a localized promotion strategy that takes into account cultural
aspects and market dynamics. Although there are challenges in the way, the brand can establish a
strong presence and achieve long-term success in Lagos through strategic planning and local
market adaption.

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Volume 6/Issue 10/Article No-3/1382-1385. ISSN: 2249-7196

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