To help brands effectively target this audience, the annual South African Township CX Report, produced by digital agency Rogerwilco and market research company Survey54, unpacks the saving, spending and shopping behaviour of over 1,400 township residents across South Africa.

Coupled with the inaugural 2021 report, it reveals trends in consumer behaviour to help marketers make more strategic investments moving forward.

Self-sustaining ecosystem

Significantly, the findings from the 2022 study demonstrate the emergence of a holistic, self-sustaining ecosystem in the kasi economy, with many residents opting for home-grown brands that are trusted by the local community.

Spaza shops, eateries and delivery services are capitalising on this trust, taking advantage of opportunities in communities historically underserved by large brands. For example, 29% of respondents report having ordered online from small independent food outlets – the majority of which evolved out of the Covid crisis.

On a related note, township e-commerce is growing exponentially, with 70% of respondents having made online purchases in 2022, compared to 28% in 2021. And new delivery services are springing up around traditional township food.

“The kasi economy is alive and visible in townships across the country where entrepreneurship is the lifeblood of these communities,” says Mongezi Mtati, brand strategist at Rogerwilco. “This year’s findings show a leaning towards building and leveraging kasi brands, where township residents are looking more to their own for services and products – from the small fruit, vegetable and snacks stall to the premium café.”

The spaza shop opportunity

Spaza shop spending is much higher than in 2021, and brands are responding, developing products specifically for distribution in these outlets, which also lowers the barrier to trying new products by selling smaller, single items.

For grocery shopping, convenience is key. Transport costs and proximity to Sassa offices make large supermarkets a strategic monthly venture, while spaza shops are used for daily items.

While special offers at larger retailers still attract township consumers, there is an overwhelming consensus (90%) that respondents would welcome spaza loyalty programmes. In this light, spaza shops hold a wealth of potential for brands wishing to break into or retain their presence in the township market.

Wear local

Home-grown fashion is also gaining more attention from local consumers, with South African fashion brands increasingly being seen as premium and desirable, Clothing forms an integral part of the shopper experience, and 74% of respondents report being more likely to buy local fashion brands with their store accounts if their favoured brands are readily available in the stores where they shop.

“We’re excited that the concept of ‘local is lekker’ is making way for the idea that local is premium,” says Mtati. “Wearing a home-grown fashion label is now as good as, if not better than being donned in international fashion brands, and local designers are benefitting from the demand for authentic, unique local clothing.”

Courtesy of Bizcommunity – read full article here.