Showing posts with label consumer spending. Show all posts
Showing posts with label consumer spending. Show all posts

Thursday, February 17, 2011

Urban Consumer spending



A few weeks ago I wrote about the Bottom of the Pyramid and the importance of catering to that sector specifically. Whilst it is true that South Africa’s Bottom of the Pyramid is very large, there is another sector that is growing at an increasing rate and cannot be overlooked, urbanites. An article I recently read dubbed them; Citysumers.

The article defines them as: “The hundreds of millions of experienced and sophisticated urbanites, from San Francisco to Shanghai to São Paulo, who are ever more demanding and more open-minded, but also more proud, more connected, more spontaneous and more try-out-prone, eagerly snapping up a whole host of new urban goods, services, experiences, campaigns and conversations.”

These citysumers present a host of new challenges for retailers. Their loyalty does not lie with a particular brand, but rather they look for brands that “challenge, thrill, titillate, or even shock.” In addition, each city has its own unique citysumers, meaning that a campaign that has swept Cape Town might crash and burn in Johnannesburg or Bloemfontein. City specific marketing is essential. They’re eager for new experiences and not shy to spend a little bit extra to find them.

A recent UNICEF report showed that in 2008 61% of the South African population was urbanized and growing at a rate of 2.1% annually. This is a massive portion of the population, many of whom have considerable disposable income, but not somewhere to spend it.


   BRAND NEW
FRUITY PLANET - New Refreshing Coffee, Cappuccino, Milk and Tea Drinks
Convenient, Healthy taste experience that is out of this world
read more

SODA KING - King Malta the new king of malt beverages!
It’s dark. It’s strong. It’s irresistible. Of course we’re talking about the new premium malt King Malta drink.
read more

SODA KING - Big applause for the new Soraya apple malt drink!
It’s light. It’s refreshing. And it’s simply delicious. It’s the brand new Soraya!
read more

The Berry Company introduces a delectable new flavor, Pomegranate Juice
An exciting new addition, Pomegranate juice has been added to the deliciously healthy range of juices from The Berry Company.
read more

Get ready for winter with Durbanville Hills
In the run-up to winter, warm your palate with the newly released 2009 Durbanville Hills Cabernet Sauvignon.
read more

FLO Baby Saline+® Nasal Spray
FLO Baby Saline+® nasal spray for infants and children is imported from Australia and treats the source of nasal problems rather than merely the symptoms.
read more

Tuesday, January 25, 2011

Outlook for African Retail in 2011



An insight for the year to come
From what’s come through my desk and over the internet over the last few days, it seems reasonable to speculate that the local retail industry has enjoyed a decidedly positive Christmas trading period for the first time in two years. Although details for the December /January period have not yet been released, several retailers have reported improved results despite seeing significant price deflation for the period.

Shoprite Holdings reported 9.5% rise in first-half turnover, with comparable store sales up 2.8% in the six months to end December and an internal deflation of 1.2% for the period. Massmart also reported a 13.3% increase in sales in the latter half of the year and an estimated 2.9% deflation was recorded year to date. The Clicks Group enjoyed an increase in sales of 16.8% with selling price inflation of only 0.9%.

In the final weeks of 2010 TNS Research Surveys released its latest Economic Confidence Index (ECI) results for metropolitan adults, conducted in the first week of November. The overall ECI was up four points from the previous quarter to 137, maintaining the highest levels it has seen for 2 years. Click here for more

This increase in consumer confidence, together with the lowest interest rates seen in the last 30 years, could make 2011 the year of the consumer comeback. Prof Deon Tustin, executive research director of the Bureau of Market Research (BMR) at Unisa, provides further impetus with the release of his report, Forecast Of Economic Indicators And Formal Retail Sales By Product Group For 2011. Amongst other things the report forecasts a 3.4% real growth rate for formal retail sales in 2011 which, if it holds, is cause for optimism amongst retailers. Click here for more

Despite very high levels of debt amongst consumers, 2011 has the potential to be a year of strong sales growth for the FMCG industry. The sales growth is positive but retailers will have to cope with very low levels of price inflation, this environment should provide a platform for the most efficient retailers to outperform competitors and gain market share. It will be interesting to see who the 2011 winners are.

BRAND NEW
New Sonicare for kids
KidTimer trains to a 2-minute brushing routine-helps children develop healthy brushing habits on their own.
read more
Baked Beans for one
Rhodes is proud to introduce a 215 gram Baked Beans in Tomato Sauce into the existing Choice Grade canned range.
read more
New Liqui-Fruit Vitality™ – The new generation of Health Drinks
Liqui-Fruit, South Africa’s leading and most innovative fruit juice brand, proudly introduces the new generation of health drinks - the Vitality range with Superseed™; 100% pure pressed superfruit juices, loaded with grape seed extract.
read more