The survey revealed the power that brand names hold for this market; when compared to the national average, 5% more Kasi consumers tend to buy well-known brands for household products. Nine percent more than the national average believe that well-known brands are better than a shop's own brands and 4% above the average indicated that it is worth paying more for quality products. The majority of the spend 51%, is spent on groceries in townships, compared to 28% in other urban areas.
"We must not confuse ROI with quality. It is what it can do for 'me' as a Kasi shopper. I'm not saying quality is irrelevant. It depends on who you are. However, it is always about what it can do for 'me', linked to what is important to 'me'. For example, 'I can cook, so I can fix most things I cook with. Cleaning products need to work, I am not going to overspend on something that is not giving me a tangible benefit'," quotes Sarina de Beer, MD at Ask Afrika.
Kasi consumers buy where they get the best deal. They are often part of a Stokvel that helps them save for Christmas and Easter and helps to share and shop in bulk and transport goods together. Forty-eight percent use taxis to transport goods bought, only 10% have access to personal or family transport. Townships are often not home, but where many people live, so they will save to take supplies home. They look out for promotions, but these are not always timed conveniently to fit in with their lifestyle. Foreign-based spazas often provide good prices and credit.
"Retailer's success in townships is largely dependent on proximity and the route to market; this should be a key component of brand strategies, making access to shops convenient and close to the consumers' homes," says de Beer.
Key elements that marketers should take into account are accessibility, affordability and an in-depth understanding of how the Kasi consumer lives, avoiding stereotypes. There is a complex system of calculation and planning in the buying behaviour of this target market.
Retailers should offer products in quantities that suit the consumers' needs, both in terms of available budget and to ensure that there is no wastage. Often the consumers do not have fridges, so small amounts of perishables need to be bought on a regular basis. Malls are perceived to be expensive but convenient. Kasi consumers will use all shopping avenues, depending on their immediate needs, but they plan to ensure their ROI.
Townships dwellers' money needs to work for them and they do save. Status carries a high value and, if this is the driving force, the consumer will find a way. If a product carries a high status in this environment, even if it is expensive, it supplies the required ROI.
One cannot think of township residents as walking demographics. Proximity does not create homogeneity, it is important for brand owners to understand how to deliver the best ROI. Marketers need to understand the complex levels of planning, calculated living in the township environment, where purchase decisions are often less impulsive and spontaneous.
