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The South African consumer landscape has changed drastically in 2022, with shoppers looking for a seamless shopping experience, better value for money and more payment options than ever before. Staying in the know about the latest retail trends will keep SMEs one step ahead before the busier season approaches. Here are 4 SME retail trends making waves this festive season:
Social media commerce
As digital literacy increases, so does the need for a more convenient and speedy shopping experience. “South African consumers want to purchase products where and when they want to, especially on the platforms and apps they are already using.” Says Ashleigh Butterworth, Content Marketing Specialist at Finch Technologies. China has already seen great success with WeChat’s SuperApp functionality, where you can use the platform for both messaging and purchasing. Instagram, TikTok and Snapchat are the biggest players for Gen-Z with them spending 2x as much shopping on social channels than an average consumer. In contrast, Gen X are more inclined to make purchases on Facebook. Increasingly more businesses are turning their social media channels into shoppable ones, with Instagram making it a quick switch to a shoppable Instagram feed. Hand in hand with social media commerce, comes the rise of influencer marketers, with 61% of shoppers trusting influencer recommendations.
Hybrid commerce channels
Click & collect continues to grow in popularity for South African consumers. Physical brick-and-mortar stores are a long way from ever being obsolete. Click &collect models provide benefits for both consumers and retailers, they keep delivery costs low and provide consumers with a more streamlined and convenient shopping experience. Plus, if you are bringing people into your store to pick up goods, they are more likely to make another purchase. South African retailers will need to continue focusing on integrating their online shops with physical store offerings.
Sustainable change
Consumers are a lot more sustainably conscious. For retailers, this will mean ensuring every step of your supply chain from ordering products all the way to delivery will need to consider environmental impact. Transparency is at the core of this trend, with consumers wanting to be told what measures the retailer is taking to lessen their impact. Consumers will be more inclined to buy a product if they know that the packaging and product are sustainable. In the US, 66% of consumers are willing to pay more for sustainable products.
Price vs brand loyalty
As a direct impact of inflation, the average South African shopper is feeling more stretched than ever. According to McKinseyGlobal Consumer Sentiment Survey, 32% of shoppers in South Africa report substituting branded products with cheaper alternatives. Retailers will need to appeal to a more budget-aware consumer, by stocking products that appeal to a range of earning powers.
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