JOHANNESBURG - A NEW NielsenIQ study, Unlocking Consumption, this year has found that 78 percent of South African consumers have changed their purchase behaviour since Covid-19 began and the economic fallout.
South African consumers were navigating uncharted territory as a result of the pandemic, which had wreaked havoc on their income, financial situations and spending intentions.
The study identified a rapidly growing group of newly constrained consumers, representing 66 percent of South African shoppers compared with the global average of 46 percent.
“Interestingly, of the 15 countries surveyed, Thailand (73 percent), South Africa (66 percent), Turkey (65 percent) had the highest numbers of newly constrained consumers across the globe,” the study revealed.
Newly constrained consumers had experienced a worsening of their household income/financial situations and were consciously watching what they now spend.
In addition, 17 percent of consumers were categorised as cautious insulated spenders, who had a limited income/financial situation impact, and were watching what they spent a lot or much more.
Unrestricted insulated consumers represented only 2 percent of consumers, with the more unrestricted ability to spend, which had translated into demand for premium products and presented new opportunities for product innovation, the study found.
“This means that brands will be under much more scrutiny as consumers weigh up which brand attributes really matter to them to justify a place in the basket, with a substantial 64 percent saying they will switch to the lowest-priced option among their preferred brands and products to save money – a sure sign that brands will need to work hard to ensure they are catering for their new consumer needs within their portfolios,” the study said.
BUSINESS REPORT