South African Township Shoppers

Wildly Inventive
Having a mind that constantly conjures up the new.
R EPORT: SA TOW N SH IP SH OPPER S

Copyright © The Jupiter Drawing Room Cape Town
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“The scale, profitability and potential of the informal
sector is totally unquantified. It’s invisible, seen out
of the car window and considered insignificant,
subsistence and survivalist.”
GG Alcock

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Every community, culture, and generation, has
different ways of viewing, and moving in, the world.
The Township consumer, often seen as a survivalist,
a ‘hustler’ moving through poverty, has been a
market that is both rich in opportunities, and multi-
layered in understanding.

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It is the implementation from true understanding that
tends to be a challenge for brands and marketers.
Townships, like culture and society, evolve as the
people evolve. No township is the same.
So how do we stay in and on track with this shopper
and consumer, at various levels and dynamisms?

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We explored key topics that were presented at the
Marketing Mix Township Shopper Marketing conference
to further see how we can galvanise connection and
engagement with Township consumers from 2019
onwards.

1. TH E BOTTOM OF PYR AMID SH OPPER
2. TOW N SH IP IN FLU EN C ER S
3. STOKVELS – MAN AGEMEN T AN D BU YIN G BEH AVIOU R S
4. IN FOR MAL R ETAIL – N AVIGATIN G H AW KER S AN D SPAZAS
5. EXPER IEN C E & EN GAGEMEN T OPPOR TU N ITIES

1.
THE BOTTOM OF PYRAMID SHOPPER

1.
THE BOTTOM OF PYRAMID SHOPPER
Living on les s than R 5000 hous ehold inc ome per month w ill
c r eate a r es our ceful and r es ilient minds et. It w ill als o pos e
c hallenges to br ands to think of new w ays to be available, to
be c ons umed, and to be of value. Unders tanding that this
c ons umer is not a vic tim, and r ather that they ar e value
c ons c ious and c r eative entr epr eneurs, is the fir s t s tep to
s eeing oppor tunities to meet this s hopper w her e they ar e.

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OUTLINE OF THE BOP CONSUMER
• 70% of South Africa’s population are living below R5000
(HH income) per month.
• Of this 70%, 69% are below the age of 40 years, and 56%
are females.
• Half of the BOP audience sits between SEM 1 and 3, with
majority in SEM 2.
• Across the 3 SEM segments, majority are living in rural
areas.
• 83% of consumers earning R5k or less are responsible for
putting food on the table.
What does this mean?
• Brands needs to rethink advertising channels (no TV and
traditional channels).
• Rethink storing of foods (no electricity and therefore, no
fridges).
• Consider their cooking behaviour (use of paraffin),
consumption behaviour (no family eating around the dining
table), and purchasing behaviour (buy enough for today
with what we earned today).
BOTTOMOFTHEPYRAMID
Source: Kantar

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LOOKING AT GENERATIONS, NOT
AFFORDABILITY
It is important to delve deeper as well to build
meaningful relationships with this consumer, without
focusing solely on their affordability.
Generations go beyond lifestage. Generations are
formed by the experiences that form their worldview
and marketplace behaviour.
Their unique perceptions yield differentiation.
Differentiation in perceptions, talents, styles, and
expression to the societal conditions common to all
individuals.
Generations provide a future view. They help to
anticipate how a trend(s) will interact with different
consumers.
BOTTOMOFTHEPYRAMID
Source: Kantar
Source: Motheo Moeng

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GENERATIONS AT A GLANCE
Here is a reference guide on the key differences among the four major generations.
BOTTOMOFTHEPYRAMID
Source: Kantar

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BOTTOMOFTHEPYRAMID
Source: Kantar
Source: Motheo Moeng
From:
Have. Do. Be.
“You have to have money to do what you love and in
order to be who you are supposed to be.”
To:
Be. Do. Have.
“Be who you are now and in the doing of it you will
redefine what having is to you.”
SEE THE SHIFT IN VALUES.
The intent of the Hustle has changed.

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BOTTOMOFTHEPYRAMID
Source: Kantar
HOW BRANDS CAN WIN WITH THE BOP
CONSUMER
Brands can look to creating a BOP Protocol – a
program that which aligns the business’s priorities and
purpose with the UN Sustainable Development Goals.
A BOP Protocol is essentially a framework for poverty
alleviation while growing brands.
It requires that you see this consumer as resilient,
creative entrepreneurs and value conscious; rather
than as victims or a burden.
Not all goals need to be met. Picking one or two goals
to be part of an engagement strategy helps brands add
value to the BOP consumer’s world.

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BOTTOMOFTHEPYRAMID
Source: Elevator
CASE STUDY: LIFEBUOY
A brand that is a good case study of how to
engage with a BOP consumer (in a different,
yet similar market) is Lifebuoy.
Lifebuoy targeted the issue of diarrhoea in
India from the lack of washing hands. The
brand found an opportune space and channel
to convey their message and priority of
washing of hands for preventative measures.
Ad: https://www.youtube.com/watch?v=e_2tQekUDy8

2.
TOWNSHIP INFLUENCERS
Influenc er s us ed to be the medium, now they ar e the mes s age.
It is not about the amount of follow er s influenc er s need for
br ands to be at the c enter of c ultur e and c ons umer. The mos t
effec tive influenc ers to partner with are thos e that mirror the
ver y s tor ies the tar get audienc e c ar r ies today. R es onanc e,
r ather than quantity, is w hat to look for w hen par tner ing w ith
in flu e n c e r s – es pec ially for tow ns hip c ons umer.

For the full r epor t , email hello@ jupiter c t.c o.za .

South African Township Shoppers

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