BrandsLaduma Insights connects directly with the fastest growing market in South Africa, the black consumers. We do this through our 29 000 and growing community (potentially reaching 3.3 million), and a relationship built up through 18 years.
One of the biggest issues faced by black South African consumers is employment. Even though this market shows an estimated unemployment rate of more than 40%, many earn income through the informal sector. The informal sector alone is estimated at roughly R280 billion (UCT Unilever Report 2014).
Our most recent research focused on the Banking Habits of this market, and we are happy to share some of the insights in the attached infographics.
The voluntary online survey was open for two weeks, and promoted through our website, and social media. We had 870 consumers who entered, with an 11.7% drop-off rate.
Because of our relationship with black consumers we can provide you with a better understanding into the daily habits of this massive market. Our feedback is real time, and we identify trends in a constantly fluctuating environment
So, what can we learn from the banking habits of black consumers? To start off with, community plays an integral part in the decision making process. We are seeing the emergence of what we’d like to call Ubuntu Millennials, a combination of consumers who are tech and digitally savvy individuals, but still reliant on their traditional community when deciding which products to use. Innovative financial benefits like rewards programs are important, and these consumers want value for the money they invest with banks.
There are however, some crucial differences between the Ubuntu Millennials and their peers in developed countries. Millennials in developed countries are more self-centered when it comes to investing and spending money, and look after their own wellbeing first.
Many Ubuntu Millennials have to look after siblings and elderly parents, and this combined with the fact that they would still like to keep up with the global trends, puts them under constant financial pressure.
These consumers need money now, and short-term loans are the most popular way of achieving this. Because of this need, Ubuntu Millennials rarely own products like home loans and vehicle finance.
This trend continues through to the older black consumers. This group spreads their debt across different bank accounts and use credit cards, overdrafts and short-term loans to manage their expenses.
The financial insights we’ve gained, allow us to help banks develop tailor made products for these consumers. Financial education, for instance, would certainly go a long way in helping people to manage their credit situation. But, how do you do this? It turns out, the answer is less complicated than you expect. Ask us! We’d be happy to tell you.
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