The South African consumer landscape is evolving in fascinating ways. From the bustling townships to the urban centres, the pulse of the nation is beating with a mix of challenges and optimism. Let's dive into some key insights and explore how businesses can tap into these trends to connect with consumers in a meaningful and engaging way.
Our fifth annual check-in with South African consumers, Kantar’s 2025 Mzansi Consumer Barometer, tracks key consumer behaviours and explores how South Africans are thinking, acting, and feeling. Whether you market to Gogo, Gen Z, or the guy selling kotas with card payments - this is your playbook.
The state of our nation: a snapshot
South Africans are navigating a complex web of concerns, with crime and violence, the rising cost of living, and corruption in government topping the list (surprisingly, according to Transparency International’s Corruption Index, South Africa is in the top 50% of least corrupt governments). Yet, amidst these challenges, there's a growing sense of optimism. More South Africans believe that things will get better in the next five years, a significant increase from previous years. This optimism is particularly strong among higher-income groups and Gen Z, and may well be linked with reduction in load shedding and the formation of a government of national unity.
Employment and entrepreneurship: the hustle is real
With one in three South Africans unemployed, the entrepreneurial mindset is both a necessity and a growing focus. Many are turning to informal businesses to generate income, with services like food sales, social media marketing, nail and hair salons, and IT repairs leading the way. This resilience and creativity are driving a new wave of self-employment and small business growth. We also see a rise in gambling and online betting as a source of income for households.
Digital engagement: the rise of the creator economy
South Africans predominantly access Wi-Fi at home and work, with a third accessing the net via mobile data. We noted an increase in instant messaging and emails, and the growing consumption of online video and social networks. South Africans are increasingly engaging with digital platforms, with a notable rise in the use of social media, online videos, and streaming services. The creator economy is booming, with short-form video advertising becoming a key tool for brands to connect with consumers. Podcasts are also gaining popularity, with one in four people listening in daily.
Yet consumers prefer to be spoken to on offline channels. Data from our Media Reactions study tells us that OOH, POS, Digital OOH, sponsored events and TV sponsorship are in the top five most preferred channels. And while Gen Z are the most engaged in online behaviour, when it comes to marketing communications, we see the best place to engage them is offline. The key reason we believe is linked with the type of branded content that tends to be shared in online spaces; the reality is that traditional marketing principles don’t always apply and it’s all about creating entertainment in the name of your brand.
Senamile Zungu and Zine Magadlela,
Kantar 27 Nov 2024 Consumer spending: prioritising essentials and trusted brands
Kantar’s shopper panel shows FMCG inflation is significantly higher than CPI, with the result that consumers are literally getting less food into the home. The result is that spending on luxuries and out-of-home entertainment has decreased, and South Africans are also forced to down trade to cheaper brands. Interestingly, there is a simultaneous tendency to prioritise budget behind trusted brands even when they are more expensive, since they carry less risk. This loyalty for trusted brands presents a significant opportunity for businesses to build and maintain strong consumer relationships through continued articulation of price point based on meaningful difference. Rewards programmes are valued and we see an increase in supermarket and hypermarket usage and the decline in traditional trade.
The dual channel shopper: blending online and offline experiences
The trend of dual channel shopping is on the rise, with 94% of South Africans having shopped online. Platforms like Takealot are making significant strides in township development, providing opportunities for local entrepreneurs to thrive through their personal shopper programme. This shift towards e-commerce and social shopping is reshaping the retail landscape.
Connecting with South African consumers: tips for brands
Create entertainment, not ads: Consumers prefer engaging and entertaining content over traditional advertisements. Brands should focus on creating content that resonates with the audience's interests and lifestyles.
Fit seamlessly into their lives: Products and services that integrate smoothly into consumers' daily routines are more likely to succeed. Understanding the unique needs and preferences of South African consumers is key.
Be part of the national solution: With social and societal issues top of mind, consumers expect brands to take a stand and contribute to positive change. Businesses that align with these values can build deeper connections with their audience.
Embrace the future with optimism and innovation
As we navigate the dynamic South African consumer landscape, businesses have a unique opportunity to connect with consumers in meaningful and impactful ways. By understanding the evolving trends and leveraging the power of digital engagement, brands can not only survive but thrive in this vibrant market.
TL:RD? Catch Stacy Saggers, Commercial Growth Director, SA & WECA, Kantar, chatting to Dan Corder about the Mzansi Consumer Barometer:
Want more? Hear Stacy live at the IMC Conference on 18 September, get your tickets here: https://imcconference.com/
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