Changing consumer needs in South Africa
These findings appeared in the Brands Balancing Act report, which focuses on how inflationary pressures are changing the way small and medium brands can justify their worth and remain aligned to the core values sought by consumers. The analysis also highlighted:
- 55% of South African consumers prefer to buy locally made products from small businesses in their area
- 62% try to support small brands where possible, but are finding it harder to find them on the shelf
- 48% feel that small brands are more authentic and trustworthy than big brands
- 43% think that small brands are usually more expensive, but consumers are prepared to pay a bit
NielsenIQ Global Director of Thought Leadership Lauren Fernandes says; “Despite being largely ‘unfamiliar’ by respondents in terms of notoriety, small and medium brands have a great opportunity in today’s changed consumer landscape. Our data shows that the pandemic has changed consumer needs, values and priorities, and this has had a significant impact on their buying behavior.”
Amongst the list of reasons to buy a brand, good value for money (97%), availability (96%) and a satisfying customer service (95%) are of utmost importance when making their purchasing decisions. As prices continue to rise across categories, affordability is a top reason backing this trend in functional buying.
“With 48% of global respondents saying that they plan to buy more from smaller brands in the future, clearly, the small and medium sized businesses who can understand motivators for purchase in this new landscape will most likely benefit from consumers’ updated preferences,” says Fernandes.
“Today’s macroeconomic environment has created a perfect storm for small and medium-sized businesses to connect with consumers. The key will be finding the right levers, based on the right consumer data, to innovate within this space.”