Product Branding as a Money-Spinning Business
By Sulaiman Adenekan
He says there is intense competition in the industry despite the fact that the entry point is expensive, adding that there is no regulatory body or association for the product branding business in the country for now.
A major threat to the business, according to him, is electricity, noting that his firm spends a minimum of N300,000 on fuel to power generators every month, which adds up to the cost of production.
He urges the government to provide uninterrupted power supply for industrial activities to blossom.
Ogunrinde said that the product branding business is a very profitable one.
The Managing Director, Leather Craft Ventures Limited, Mr. Ichu Chukwuma, who started the business of product branding four years ago, says that monogramming involves the branding of T-shirts, faze-caps and towels among others.
He adds that the demand for product branding and the level of awareness are increasing, noting that Nigeria has a lot of potential and the citizens are beginning to appreciate monogramming over screen printing and heat transfer because it is more durable and less expensive compared to some years back, as a lot of people have gone into it.
Chukwuma says that computerised monogramming machines and the parts are expensive because they are not produced locally; adding that acquisition of machines depends on affordability as one single head machine costs almost N2m.
He says that the major problem facing the players in the industry is power, since the business cannot be done without electricity.
The only aspect of the business that is manually done is clearing and cleaning, while the rest must be done using electric power.
As regards his experience with customers, he says most customers are always in a hurry, as they want their jobs done on time, but always bring the jobs late.
Chukwuma urges the government to look into the problems of power supply and high interest rates on bank loans, noting that most entrepreneurs who bought their machines with loans are paying back interests of up to 50 per cent of the sums borrowed, saying this is unhealthy for the growth of the business.
He says government should create an industrial opportunity centre in form of an industrial layout similar to that of Turkey where people can rent manufacturing machines for weeks or months for a token, while the machines remain the property of the government, which also provides essential facilities like power, water and factory premises among others.
- Culled From Punch
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