As South Africa continues to navigate complex socio-economic challenges, understanding consumer behaviour is more crucial than ever for brands. Kantar’s Mzansi Consumer Barometer 2024 provides valuable insights into the concerns and behaviours of South African consumers. This annual report, now in its fourth year, surveyed connected South Africans to uncover their primary worries and how these concerns impact their purchasing habits.
The State of the Nation
According to the barometer, the top five concerns for South Africans are loadshedding, unemployment, the rising cost of living, crime and violence, and government corruption. Notably, this is the second consecutive year that loadshedding has topped the list. Interestingly, corruption has moved from the third spot to the fifth, possibly due to efforts by anti-corruption movements, such as Transparency International, as well as the current talk of the country, the Government of National Unity (GNU)
Unemployment has risen in concern, bumping the cost of living to third place. Crime and violence remain a consistent worry in the fourth position. As costs for essentials like electricity, water, meat, eggs, and petrol increase, consumers are adjusting their spending behaviours.
Optimism Amidst Challenges
Despite these challenges, there is a silver lining. The report reveals a growing optimism among South Africans, particularly the youth. Approximately 40% of respondents believe that conditions will improve, a significant increase from the previous year. This optimism is most pronounced among younger and higher-income South Africans.
Financially, 50% of household incomes come from salaries, grants, and piece work. Interestingly, 54% of households are hopeful for a better financial position in the coming year. This optimism is fuelled by a hustler mindset, with 39% actively seeking additional income streams, 22% having started a business, and 9% holding a second job.
Making a Way Through The Storm
To manage economic pressures, South Africans are becoming more strategic in their spending. The barometer highlights a reduction in spending on luxuries and an increase in value-hacking behaviours. About 40% of the population now buy only what is necessary, while 32% are saving or investing their money.
Luxuries like eating out, unnecessary food items, alcohol, holidays, clothes, shoes, and social outings are being cut back. Consumers are spending the same amount per shopping trip but purchasing fewer items, opting for products with multiple uses, and trying out cheaper brands. This indicates a shift towards smart shopping strategies, with consumers seeking brands that offer value and convenience.
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The Rise of Value-Hackers
South Africans are becoming value-hackers, finding clever ways to maximise value from their purchases. They prefer brands that provide a frictionless, value-filled experience. This means brands must work together to alleviate consumers’ mental loads and cater to their needs proactively.
Kantar’s research shows a heightened demand for brands that add meaningful value to consumers’ lives. This involves understanding the whole consumer and offering seamless, integrated options. South Africans no longer want to compromise on value or convenience.
The Most Popular Loyalty Programmes in Mzansi
Loyalty Programmes and Brand Partnerships
Loyalty programmes are central to the value-hacker ecosystem. The top five loyalty programmes in South Africa are Shoprite Xtra Savings, PnP Smart Shopper, Checkers Xtra Savings, Clicks ClubCard, and Spar Rewards. Among higher income levels, Checkers Xtra, FNB eBucks, and WRewards are most popular.
Beyond loyalty programmes, there is power in partnering with existing platforms to create value. Brands that can consolidate services and offer seamless experiences are favoured. For instance, apps like MoyaApp consolidate various services, creating opportunities for brand partnerships.
Shopping Preferences: Online vs. In-Store
Despite the rise in online shopping, South Africans still predominantly prefer in-store shopping, especially those in townships. The barometer shows that 43% prefer shopping in-store, 28% prefer online, and 30% use both equally. While 80% of people shop online, there is still a strong preference for physical stores.
The Conclusion
Kantar’s Mzansi Consumer Barometer 2024 offers a comprehensive look at South African consumers’ evolving behaviours and preferences. Brands must adapt to these insights by offering value, convenience, and seamless experiences to meet the sophisticated demands of today’s consumers. By understanding these trends, Three66media can better tailor its marketing strategies to connect with South African consumers effectively.
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