Shift in consumer behaviour in South Africa
As the high cost of living continues to rise, it is becoming ever more difficult to save and put money away, notes say Tlalane Ntuli, chief marketing officer at financial services group Metropolitan, who points to some peculiar trends that have come from consumers during these difficult times.
Now more than ever, people have been forced to take a long hard look at their finances and make a conscious effort to manage their money to still make room for life’s little pleasures.
“We are noticing that people are demonstrating interesting trends when it comes to saving. The average consumer is tired of advice that forces them to completely sacrifice and live an almost miserable life to save every penny,” said Ntuli.
“Rather, what they are telling us is that they want strategies which are relevant and are in line with the lives they want to live.”
Ntuli notes that savings trends that have emerged recently include:
Increased financial education to manage money
Recent Google trends data reveal that South Africans are increasingly concerned with how matters such as inflation are impacting their lives and personal finances. Consumers are now also cognizant of the economic impacts of things like the volatile petrol price.
“People are not only interested in when the petrol price is going up so they can fill up their cars before that happens. They are also now becoming increasingly aware of how the fuel price impacts other financial areas of their lives and in turn implement strategies to be able to cope,” said Ntuli.
Leisure time still a priority
“Respondents to an on-the-street survey conducted by Think Africa, agency partner of Metropolitan, revealed interesting insights regarding the importance of leisure time for South Africans,” said Ntuli.
A few respondents insisted that “jolling” is still manageable during the current economic pinch. It’s all about looking for strategies that enable you to maximize the good time at a minimal cost.
Instead of going out on weekends, for example, people have now realized that it’s more cost-effective to take advantage of weekday drinks specials at local hangout spots.
Group savings are more relevant than ever
Two heads are better than one. When saving towards a common goal like grocery shopping, that power of the collective is put into action through Stokvels, which remain a popular savings vehicle South Africans implement.
The survey research highlighted some ineffective usage cases for Stokvels though that consumers should aim to avoid. “These include over-investing in Stokvels and therefore, not having any money left over for a rainy day or other forms of savings and investments.”
A popular form of Stokvel in South Africa is the grocery stokvel through which consumers save enough to collectively spend on household items that every member in the Stokvel needs on a monthly or annual basis.
“Another handy savings tip involving Stokvels is that savvy South Africans are investing their stokvel savings (payout) to boost the benefits of the Stokvel even further,” said Ntuli.
Beyond not giving up what they love and simply cutting costs around these practices, South African consumers also have their own unique practices around how they choose to save.
Whether that is saving earnings from their side hustle or saving weekly (particularly popular with consumers earning inconsistently), South Africans like to find a Mzansi-way of saving that works for them and their circumstances.
“However you choose to put money away, remember; saving money is like losing weight – in that if you don’t get it right the first month, don’t give up. Just continue on your own savings journey undiscouraged, knowing that this journey ultimately leads to a more prosperous future and life for yourself,” Ntuli said.
Loading ...
