A Bizcommunity report summarised the findings of a survey by NielsenIQ, which publishes regular reports on the global consumer outlook.
“The report shows that South African consumers across the board are tightening their belts. Nearly all (99%) have changed their FMCG shopping habits. Downgrading from premium to mainstream or value products is one of the most widely adopted strategies. Nearly half (48%) have switched to lower priced options.”
Zak Haeri, MD for NIQ in South Africa, said consumer cost cutting created opportunities for innovative fast-moving consumer goods (FMCG) brands and retailers to expand their market share even in difficult times.
“In addition to value shopping, South African consumers are using mobile channels to find better deals and shopping at stores that offer loyalty points.
“While promotions and value product options are important strategies in today’s economic climate, it’s clear that retailers can also achieve breakthrough growth by focusing on their omnichannel presence and customer relationship management programmes,” he said.
