Latest news with #consumerlandscape
Zawya
5 days ago
- Business
- Zawya
The 2025 Mzansi Barometer: What are South Africans up to?
From the burbs to big city lights, eKasi hustle and everything in between. 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. 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.
Yahoo
17-06-2025
- Business
- Yahoo
Häagen-Dazs, Starbucks Mull Overhauls in China to Fend Off Powerful Local Rivals
(Bloomberg) -- The consumer landscape in China was very different in the 1990s, when Häagen-Dazs and Starbucks ventured in with premium products that were alien to most people. They made huge inroads nonetheless, opening outlets at breakneck pace and raking in revenue. But times are changing, and they, like many other Western brands, are reassessing their approach to the world's second-biggest economy, including possibly selling their businesses. Security Concerns Hit Some of the World's 'Most Livable Cities' As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space As American Architects Gather in Boston, Retrofits Are All the Rage How E-Scooters Conquered (Most of) Europe General Mills, which owns Häagen-Dazs, is working on a potential sale of its more than 250 stores in China. Starbucks Corp. is sounding out interest in its business in the country, where it has over 7,750 outlets. Sporting goods retailer Decathlon SA has started a process to sell about 30% of its China business. Reasons for this shift include the fierce competition from Chinese companies, which have evolved into nimble and sophisticated rivals with a deep connection to local consumers. Iconic brands including Apple Inc. and Nike Inc. face intensifying rivalries with local names such as Huawei Technologies Co., Xiaomi Corp., Anta Sports Products Ltd. and Li Ning Co. The economic malaise in the wake of Covid has also affected spending habits. 'Multinationals face competition from local rivals and shifting demands, especially younger generations prioritizing value for money and emotional resonance,' said Chen Jie, global head of mergers and acquisitions at China International Capital Corp. 'To survive and succeed, they must develop localized strategies.' Häagen-Dazs and Starbucks have both introduced products catering more directly to the local market, such as specialty Lunar New Year mooncake ice creams and braised pork flavored latte. Starbucks, feeling the heat from rapidly rising homegrown chains like Luckin Coffee Inc., also recently announced price cuts in China on tea-based and Frappuccino beverages, a strategy that contrasts with its US operations, where it is streamlining its menu to emphasize coffee. McDonald's Corp.'s China menu includes offerings such as congee and luncheon meat burgers, while Yum China Holdings Inc., which operates KFC and Pizza Hut, has egg tarts, Peking duck-style wraps and durian pizzas in addition to its more traditional fare. Even with decades of experience in China under their belts, international firms are considering fresh partnerships to help weather today's challenges. 'In many cases, these brands have long operating histories in the country, and identifying Chinese partners who can bring skills, technology and capital is another form of localization,' said Richard Wong, head of Asia Pacific M&A at Morgan Stanley. 'MNCs continue to view China as a highly important market.' China's sluggish economy has been difficult for most retailers and uncertainty is likely to keep swirling as tariff threats and armed conflicts overseas persist. 'With this backdrop, some are evaluating strategic options for their assets, including bringing in a minority partner or selling out entirely,' said Weiwen Han, a senior partner at Bain & Co. in Hong Kong. 'This trend is particularly clear in sectors such as consumer and retail.' Beijing is prioritizing domestic consumption in its pursuit of 5% economic growth this year, and May retail sales were encouraging, accelerating at the fastest pace since December 2023. But economists are unconvinced that momentum will persist, and companies need to be positioned to capture what growth they can. 'The Chinese market is getting more mature, so there is no more low hanging fruit with fast growth and development,' said Jean-Christophe Vallat, managing director and head of industrials and consumer at BNP Paribas SA. 'Chinese consumers still have cash to treat themselves when it comes to small personal expenses, and they are more educated and mature, so they have developed fancy local tastes that only local players can identify and adapt to, given the fast-changing tastes and low loyalty,' he said. In another case, after buying the remaining equity interests in Burger King China in February, Toronto-based Restaurant Brands International Inc. said it planned to engage advisers to help find a new local partner. There's a rising number of 'China operation carve-out deals, which involve introducing local strategic partners through equity restructuring,' CICC's Chen said. 'Such moves could potentially help multinational corporations thrive in China's market and capture new growth opportunities.' --With assistance from Dong Lyu. Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros American Mid: Hampton Inn's Good-Enough Formula for World Domination How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants The Spying Scandal Rocking the World of HR Software US Allies and Adversaries Are Dodging Trump's Tariff Threats ©2025 Bloomberg L.P.
Bloomberg
17-06-2025
- Business
- Bloomberg
Häagen-Dazs, Starbucks Mull Overhauls in China to Fend Off Powerful Local Rivals
The consumer landscape in China was very different in the 1990s, when Häagen-Dazs and Starbucks ventured in with premium products that were alien to most people. They made huge inroads nonetheless, opening outlets at breakneck pace and raking in revenue. But times are changing, and they, like many other Western brands, are reassessing their approach to the world's second-biggest economy, including possibly selling their businesses. General Mills, which owns Häagen-Dazs, is working on a potential sale of its more than 250 stores in China. Starbucks Corp. is sounding out interest in its business in the country, where it has over 7,750 outlets. Sporting goods retailer Decathlon SA has started a process to sell about 30% of its China business.
