They presented insights like the fact that Black households in the upper income bracket earning R154 000+ per annum, had grown by 368% from 1998 -2004; white households only 16% and predictions that by 2007, black disposable income would account for 47% of all retail spend.
All this is of course pointing to the fact, and not a moment too soon, that it is indeed not the market that should be emerging, but the marketers themselves!
Statistics are encouraging and may even be enough to send everyone scurrying to amend their media schedules. Currently retail sales figures from December 2004 reflect a five year record high with the best performing sectors being clothing and shoes showing a 20% growth and food only a 12% increase. Despite this, our GDP has only grown at about 4%. This is largely due to retailers being able to sell imports from overseas at lower than inflation rate prices, which in turn puts increasing pressure on our manufacturing industries. So cheap imports are not benefiting the economy in a broad sense.
A slightly worrisome factor in all of this is the access to credit and the accompanying debt incurred by South Africans in the pursuit of keeping up with the 'Khumalos, the Naidoos and the Joneses', but it is generally felt that at present this is more or less under control.
The session also revealed insights into new markets via case studies from the insurance, education, motor vehicle and property sectors. The latter being a particularly dynamic sector with 35% of homes having a female head of house, often involved directly in entrepreneurial activity. At the other end of the spectrum even Pam Golding Properties is showing increased sales to the new BMC - up from 7% to 20%.
Another interesting fact is that the changes in education on this country are kicking in much sooner than expected. In the Dept. of Business Science at UCT for example - of the 205 out of 650 1st years that have six or more A aggregates, 103 are black. This, coupled with the optimism and vibrancy of SA's youth indicates a very different style of marketing in 10 years time.
Forthcoming Insight series events: 'To develop and share cutting edge South African strategic marketing insights and understanding' - will be held in June in Jo'burg, Durban and Cape Town. All info can be found www.unileverinstitute.co.za. Topics will include: My Home: Shack, Shelter or Showroom; Gender, Stokvels and Youthtrends 1&2.
