A new report from consumer intelligence company NIQ, shows that 44% of South African consumers believe they are in a worse financial position this year compared to the previous year.
Among these respondents, 82% attribute their recent financial struggles to increased living costs, a rise from 76% last year.
Additionally, nearly two-thirds (62%) attribute their financial downturn to the economic slowdown, up from 57% a year ago.
The survey revealed that half (50%) of respondents express concerns about job security, an increase from 43% the previous year. Some 27% attribute their financial situation to ongoing disruptions and setbacks caused by Covid-19, down from 45% a year ago.
These insights are highlighted in the "Consumer Outlook 2024" report, the latest NIQ Thought Leadership report reflecting the mindset and sentiment of consumers globally.
The report indicates that South African consumers are universally adopting cost-saving measures. Almost all (99%) have altered their FMCG shopping habits, with many opting for lower-priced options and switching from premium to mainstream or value products.
“South African consumers have lived through several years of load shedding, rising costs and slow economic growth. Our data shows that they are becoming increasingly proactive and creative in their strategies to reduce costs — creating opportunities for innovative FMCG brands and retailers to expand their market share even in difficult times,” said Zak Haeri, MD for NIQ in South Africa.
“In addition to value shopping, South African consumers are using mobile channels to find better deals and shopping at stores that offer loyalty points. While promotions and value product options are important strategies in today’s economic climate, it's clear that retailers can also achieve breakthrough growth by focusing on their omnichannel presence and customer relationship management programmes.”
The report also reveals:
South African consumers are hopeful about their financial prospects, with 65% believing their situation will improve by the end of 2024, while 20% fear it will worsen.
Rising food prices are a major concern for South African consumers over the next six months, with more than half (55%) reporting they only have enough money for basic needs.
Close to half (46%) of consumers are closely monitoring overall expenses, with 39% opting for promotional brands and 45% focusing only on essential purchases.
Bulk buying is a popular saving strategy, with 48% purchasing in bulk during sales, and 31% opting for larger package sizes.
Shopping habits are shifting, with 46% frequenting discount or value stores, 31% shopping online for better deals, and 59% choosing stores with loyalty programs.
Health is a top priority for consumers, with 38% aiming to enhance their wellness, and 57% opting for healthier products.
Seven in 10 consumers in South Africa purchase only what they can use to avoid waste, with 52% consuming leftovers more frequently and 25% skipping meals.
Comments