Game's outlet in Lagos is situated in The Palms shopping centre, the first of its kind in
Nigeria. Picture: Chris Wales

South African retailer Game has successfully entered the Nigerian market and are looking at expanding the brand. Jaco Maritz speaks to Richard Fuller, Game's Director for Africa

"The opportunities are huge, but don’t think you can move in and make a quick buck. You should be in for the long term and start building a solid base from which you can grow your business."

Game’s Director for Africa, Richard Fuller, has these somewhat sobering words for investors looking to enter the much talked about Nigerian market. The retailer, owned by Massmart, has been in Nigeria for more than two years and has an outlet in The Palms shopping centre in Lagos together with fellow South African companies Shoprite and cinema operator Nu Metro. It sells a variety of products such as housewares, furniture and electronics. There are 78 Game stores in South Africa and it has a presence in ten other African countries.

Fuller says the response to Game's products has been "fantastic, so much so that we are looking at a major expansion drive over the next couple of years by opening more stores in Lagos as well as other major cities in Nigeria."

The product range is similar to that found in the retailer's South African stores. Around 35% of products are currently bought from local Nigerian suppliers, partly because of a ban on the importation of certain products such as furniture, plastics and textiles. Fuller says they do extremely well on furniture bought from local suppliers and that import restrictions have not affected sales in any way.

"Initially we had difficulties with local suppliers but as we built up a better understanding this has improved. As a business we believe in supporting local products wherever we can, as long as the customer benefits and the prices are in line. Our number of local suppliers is growing at a rapid rate."

When it first opened shop it also had problems with importing items from South Africa but Fuller says this has largely been sorted out. "It used to take ages to get stock through the port and we were very concerned about this. However, now that we have all the correct processes in place and we understand the process, it is only taking about 45 days from South Africa to the store in Lagos."

Nigeria's retail sector is far less formal than the one Game was used to in South Africa. The Palms shopping centre was also one of the first modern shopping malls built in Nigeria.

Fuller views local markets and street vendors as Game's main competition. "Nigeria has a large number of street traders and they compete with us purely on price. Traffic is a problem and it can take hours to get to shopping centres, so often it is easier for the customer to buy from a street vendor. I do however think that customers are seeing the advantage of having a guarantee on a product."

Offering a product and service guarantee are some of the ways Game differentiates itself from other competitors. Game promises to honour the manufacturer's guarantee and if an item is out of guarantee it will have it repaired at cost. Through its service guarantee Game will refund an item if it is no longer wanted as long as it is still in its original packaging and unused.

What about dealing with the Nigerian authorities that have in the past carried a stigma of bureaucracy and corrupt practices? "We have always been treated and received in a very professional manner. Nigeria has rules and laws like in any country. We will always behave like a guest in a foreign country and want to be model corporate citizens.

"South African companies are sometimes seen a being arrogant and therefore you have to work hard not to be tarred with the same brush. Our customers are treated no differently than any other place where Game has stores. We operate our stores on the same basis as we do in South Africa and everywhere else."