WB How women handle competition in a wide market
Small and Medium Enterprises are constantly faced with a challenge - dealing with big competitors. While some get threatened and give up, some take the bull by the horn and face their competitors and become big brands as well.
Haowa Bello, CEO of Madame Coquette, is one of the success stories. She started a handbag manufacturing company in Lagos eight years ago. She said though it was not easy to compete with the big names in the industry, but she has maintained good quality and good customer relations and carved a niche for herself in the wide handbag market.
“When I started my business, a lot of people were not accustomed to buying made- in- Nigeria handbags. A lot of people were curious to know the “designer” every time they saw Madame Coquette’s products. They were a little sceptical in trusting a local brand. It took a few years for people to start appreciating the products and the commitment in quality control and customer service.
“Over the years, Madame Coquette has been able to build and maintain a customer base which not only returns for more products but also introduces others to the brand,” Bello said.
Bello said though Nigerians love fashion and the big brands in the hand bag industry, she was able to weather the storm and eight years down the line, her customers keep coming back.
“Nigerians love fashion and they love big brands. Going into the market under the assumption your brand is in competition with top brands like Louis Vuitton (LV), Chanel, Prada and the likes is not the best approach in my opinion. Those brands have decades of experience in product development and market research. Some of these brands have been around for 100 years. They have built strong global brand awareness.
“The niche the market gives a business is a chance to use their competitive advantage to gain market share. Not everyone will buy Madame Coquette over LV, but those that do buy Madame Coquette appreciate its exclusivity and origin. Luxury brands don’t sell products, they sell an idea. They sell a feeling. There’s no price tag when it comes to that, for this reason, consumers are willing to break the bank,” Bello explained.
For Kingsley Ifesinachi, a business man, always leaving a memorable experience with your customer will make them come back whether you are big or small.
“Whatever the size of your business, always think of your customers first. Make their experience with your business as wonderful as it can be and they will not want to leave,” Ifesinachi said.
But some experts say competition with a large company can be the thrust for creating strategic alliances with other small businesses to expand the range of products and services they can offer and bid for projects as a team.
Mr Sunday Emmanuel, a business expert, explains this further. “Partner with the larger company or become a subcontractor. Identify what your company can bring to the table that increases the success of both companies.”
For Jacintha Bright, a make-up artiste, the product or service you sell is not necessarily the item on your invoice.
She explains further: “DHL moves freight as fast as they can but sells dependability. Apple makes phones and iPads but sells fashion and design. What does your customer want from you? When you define your offering, you can decide how to compete.”
Your customer base is the most important asset you have. When a bigger business moves into your space, it is even more important to understand your clientele, know who they are and what they need from you.
Whether a larger presence has hit your market or not, it is essential to stay in touch with your clients/customers and keep them aware of your products and services.