The lag effect from an economy that has been growing at just over half a percent for close to a decade, is beginning to impact on consumption in most retail sectors in South Africa. This was exacerbated by the Covid-19 pandemic in 2020 with the economy losing 6% before an over correction of 4.7% in 2021 and the economy now settling back to its fundamentals.
Global scenarios of persistant supply chain barriers and the conflict in Ukraine continues to impact global markets and place pressure on consumer spend. The poor & fluctuating Rand exchange rate has contributed to inflation in various sectors. This is best reflected in the graphic below that shows that in nearly every food item there has been a decline in consumption Y-o-Y from January 2021 to December 2013, including staples like bread and mielie meal.
The Marketing All Product Survey (MAPS) trended data shows that in several sectors there has been a decline in spend and brand loyalty whether it be in the grocery, clothing, financial, media, print or fast food industries. This has resulted in clear changes within the market share of brands as consumers look at maximising their disposable income and buying cheaper products and services.
Download MAPS Data Overview Jan 2021 – Dec 2023 presentation here.
Despite these challenges significant opportunity still exists within South Africa through the development of targeted retail strategies that take a multitude of factors into consideration. Foremost of these factors is understanding consumer spend and behaviour in relation to brands, products, and services in the market. In this stressed consumer environment, knowing geographic consumer trends, especially in relation to brand’s retail networks becomes vital.
GeoScope in partnership with the Market Research Foundation (MRF) offers subscribers access to a globally innovative product called GeoMAPS that allows any variable in MAPS to be mapped, so that brands can visualize their market penetration and that of their competitors. These insights enable businesses to understand consumer behavior, preferences, and market trends at a neighborhood level. This granular data is crucial for targeted marketing strategies, optimizing retail and service networks, and identifying growth opportunities in specific demographics and economic sectors
Amidst these economic challenges, political uncertainty and market shifts, business must take decisive action to ensure sustainability and generating a ROI. By leveraging GeoMAPS, precise geographic insights into consumer behaviour and market trends becomes available. Moreover, with GeoMAPS, businesses can visualize their market penetration, optimize your retail strategies, and identify niche markets for growth.
In these trying times, businesses tend to cut on their R&D, but it is specifically in these times that businesses should be investing in data to make more informed decisions to keep your businesses moving in the right direction. GeoMAPS is a vital tool in your arsenal and we would love to help you access it.
Interested in accessing GeoMAPS and the suite of products that are available from MAPS, which now includes KasiMAPS (township data from MAPS) and Circle Point Analysis (CPA) that visualizes the survey results at a granular level?
Contact us by clicking here
