Trends in Today’s South African Consumer Behaviour

Consumer behaviour is evolving once again. Today’s consumers are still affected by the lingering impact of Covid-19 as well as dynamic economic changes. These circumstances have driven consumers to reevaluate purchasing decisions as well as their own values. They seek convenience as a non-negotiable standard, with a smooth delivery and fulfilment experience being a top priority.

It is important for businesses to understand what influences a buyer’s decisions, allowing them to drive sales by shifting strategies. So who are these new consumers? Well, let’s have a look.

Significant Environmental Awareness

Consumers have a great concern for the environment and challenge businesses to conserve natural resources. Recent studies show that roughly 60% of the global consumer population rate sustainability as an important purchase criteria. And although price and quality rank higher, 85% of global consumers have shifted towards more sustainable shopping over the past 5 years.

Environmental Awareness – Planet over Profit

In fact, consumers are willing to pay more for sustainable products. In addition, consumers are more likely to stay loyal to brands that prioritise sustainability. Although, this is more true with regards to Millennials. When provided with a sustainable alternative, Millennials are 32% more likely to choose the alternative in comparison to older generations.

What does this mean for brands?

This is best explained through by the GEO of Business brief, Adapt to Survive: Business transformation in a time of uncertainty calls on businesses to dramatically reduce their environmental footprints. Failure to make the transformation, it warns, is a risk to their survival.

Ultimately, businesses have to transition to more sustainable practices and operations. Not only will they feel pressure from investors but also from tightening environmental regulations.

Preference for Digital Shopping

Since the pandemic occurred, many consumers have shifted their shopping preferences to online shopping. In an attempt to keep pace, businesses focused on their online presence. According to research, 20-30% of businesses moved online during the Covid-19 pandemic peak.

The fact is that consumers have now come to prefer the ease and simplicity of online shopping. Now this does not eliminate the want for physical stores, but this does create more work for businesses. Consumers now expect more of online stores such as a more personalised experience.

What does this mean for brands?

Online shopping has become saturated and competitive, meaning customers have high expectations. They want things to be quick, easy and personalised. In order to keep pace, businesses will need to invest a great deal on their digital marketing channels.

To learn more about how to personalise your website, see our article on the 5 Main Elements of Website Personalisation!

Consumers Prefer an Omni-channel Approach

An Omnichannel approach first became prevalent in 2010. Marketers realised that providing a multichannel buyer experience increased not only sales but brand loyalty. Research shows that companies who invest in their omnichannel strategies retain an estimate of 89% of their buyers.

What data suggests is that a brand can easily be forgotten if not present on multiple channels. This does not mean that brands should seek to entertain each channel, as not every channel is the right fit. Ideally, try to focus on at least two to three channels whilst adjusting based on audience response.

What does this mean for brands?

Essentially, brands will have to use each platform and channel to their full potential and find creative ways to provide customer experiences that last.

Below are some tips based on leading brand performance:

Use multiple channels to strengthen brand loyalty and consistent quality experiences

Personalise platforms based on different buyer journeys

Collect data about visitor behaviours on each channel

Use collected data to combine experiences

Financial Pressure

The South African consumer is no stranger to financial strain. Recently, poor economic conditions, loadshedding and rising petrol prices have left consumers overwhelmed. Recent research shows that only 1 in 10 South African consumers feel satisfied with their financial situation.

With covid barely out of the rear view mirror, consumers are now worse off financially than before covid-19. Surveys conducted by inforQuest suggest that roughly 50% of South Africans are financially worse off since covid began.

Financial Pressure

So how are consumers coping? Seems the first to go was a majority of non-essential purchases. Alongside more mindful spending, consumers have had to balance relying on savings and managing their debt accumulation.

What does this mean for brands?

Firstly, businesses must asses how consumers reassess their priorities, budget allocation, brand loyalty, and values. In addition, marketers have to improve flexibility by adjusting their tactics and strategies. Here, marketers must assume that that the financial slump will last longer than anticipated as well as prepare for the upturn.

In Summary

A new breed of consumer is coming to light. This ebb and flow is only second nature to the commerce world and requires that brands reassess how they can cater to new consumer behaviours. Only by studying the new consumer can businesses hope to stay afloat. Moreover, they need to plan ahead. Consumers want to see businesses leading the way and attempting to make their everyday life easier and more satisfied.