An opportunity for growth – the main market in South Africa

2018-04-17 | by Smollan

Over 52% of the South African population fall between LSM 4-6. This segment of the market is in a constant state of flux – moving between formal and informal retail spaces to search out the best fulfillment method for their needs – value, experience, convenience, trust and connection.  These needs are universal but the way in which they are met and the weighting of importance varies by market segment.The untapped opportunity for brands and retailers is to establish connection points in the shopper’s day-to-day lives by leveraging modern trade spaces to build brand awareness and loyalty through experiences whilst simultaneously driving penetration and consumption occasions in the informal/independent trade.

In order to effectively target the diverse and widespread South African middle-market consumer, brands need to approach this segment with precision rather than broad-based tactics. Some key considerations in targeting the main market consumer are:

  • Community conscious brands

These consumers have a strong sense of social duty – they value advancing oneself while trying to uplift neighbours and peers at the same time. Connect with the consumer on what matters to them.

  • Relevant content that connects with the market’s aspirations, needs and culture

Brands that show consumers that they understand and respect their roots, values, language and culture will establish loyalty and brand love. Authenticity is key.

  • Great experiences

Main market consumers are more likely to talk about their experiences as they share information more readily than other South African market segments. Winning them over can easily result in a brand being advocated across social media platforms and in person.

  • Shopper engagement and point of sale as key influences

The main market consumer generally places more trust in traditional advertising and slightly less trust in information from peers. This is a great opportunity for brands to leverage in-person activations and instore displays to reinforce the brand message and convert shoppers to buyers.

  • Correct pack formats and price points tailored to the retail channel

Understanding shopper mission and behaviours are key in deciding the correct pack size, price point and promotion for a spaza shop, a hypermarket and a wholesaler. Shopper mission and frequency by channel can vary significantly.

An effective retail solution for the main market in South Africa requires differentiation, indvidualisation, resilience and focused but adaptable strategies.

To find out more about our retail solutions for the main market in SA in both the formal and informal trade, contact Anni Callander.