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South African consumers are trying to survive the cost-of-living crisis in various ways, with 32% in a survey saying they moved to shopping online to get better deals, save on petrol and minimise shopping trips, while 26% said they only have enough money for food, shelter and the basics.
According to the 2023 NIQ Consumer Outlook Report for South Africa, living in a financial pressure cooker and a continued barrage of power cuts, 70% of surveyed consumers already feel like they are living in a recession while 76% say increased cost-of-living is to blame for their recent financial struggles.
One interesting move that became evident was that local consumers still plan to spend as much on groceries and household items in 2023 as they did before, even with the additional burdens on family spending.
South Africans are deploying tactical manoeuvres by adapting their spending habits to counter growing price pressures to sustain their lifestyle, with key moves including buying in bulk (50%) and chasing promotions (36%), while 56% are keen to take advantage of loyalty schemes.
After being forced to shop online during lockdown and now struggling to make ends meet, consumers have merged the two shopping realities, with 32% of respondents saying they have turned to online to get better deals and minimise shopping trips.
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“In 2023, the digital and physical worlds of retail will merge in ways we have never seen before and companies must think holistically about where consumers look for their products. Instore and online have roles to play in consumers’ shopping behaviour and it is up to retailers and manufacturers to understand where they must focus to best serve the consumer across the omnichannel experience,” Gareth Paterson, NIQ (formerly Nielsen IQ) South Africa market leader, says.
The survey also found another fascinating aspect of consumer behaviour: the difference between shopping and buying habits. NIQ’s study confirms that, while offline channels are essential to consumer buying habits, there is also strong omnichannel shopping familiarity across the globe.
Consumers have blurred their shopping habits and overall, the study found that consumers move fluidly across channels to fulfil their needs, meaning growth will come from a balance of online and offline sales strategies.
They have a heightened omni familiarity thanks to the conditions of pandemic lockdowns and limited store access. Paterson says as they build on that familiarity, while re-introducing physical store interaction, NIQ forecasts a blurring of shopping habits across channels and sparked a renewed interest in shopping e-commerce, particularly as a strategy to save money.
“Although the bulk of local shoppers still spend the most offline in physical stores, shopping habits are evolving and will continue to influence how spending budgets are allocated across online and offline channels.
“This reinforces how vital brand presence and impact are during the formative selection process and the importance of retailers and suppliers focusing on the right areas to best serve consumers across the omni channel experience,” Paterson says.