Business Intelligence: Consumer Trends 2010: What Might They Mean For South African Enterprises?

This article was contributed by Conor Godfrey, SAIBL Associate

Do South African companies have their finger on the pulse of emerging consumers? Euromonitor’s 2010 Consumer Trends Study offers forward looking entrepreneurs intriguing food for thought. Several of the highlighted trends such as the rise of ‘caring consumption’, ‘me as a product’, ‘lifestyle multi-culturalism’, ‘Web 2.0 as a need’ and ‘thrift as a consumer habit’ should factor into South African businesses jockeying for position in today’s crowded markets. Do not worry if these odd consumer catch phrases seem unfamiliar - they are merely catchy handles for concepts you will most likely recognize intuitively.

Many of Euromonitor’s top 10 consumer trends work synergistically. The ‘me as a product’ trend refers to the trend amongst consumers for self-branding in the form of apparel, food and beverage consumption, online associations, job choices, and continuing education, whilst “lifestyle multi-culturalism’ indicates an openness to exotic influences and the perceived social benefit of being influenced by exotic cultures.

To take advantage of these trends successful ‘multi-cultural’ products should facilitate this self branding; an organic South African wine should brand the drinker as worldly and socially conscious, a family thinking about a safari trip to South Africa should be convinced they will become more multi-cultural, and do so while leaving a minimal carbon footprint. Innovative companies like South Africa’s Elephant Pepper facilitate this type of branding by linking their products (and profits) with conservation charities.

The ‘caring consumption’ trend already ripples through most sectors of the world economy as consumers try “to balance indulgence with healthy consumption”, according to Euromonitor. In an effort to appeal to these so-called caring consumers, companies are increasingly promoting ‘wellness’ activities such as volunteer services and eco-tourism. Africa’s rich cultural heritage and perceived spirituality give the continent a marketing edge when engaging these consumers.

Vineyards or game reserves could benefit from this trend by offering volunteer-tourism opportunities. African teas like Rooibos and Oolong could market themselves as Bush Teas, avoiding the almost meaningless buzz word ‘natural’ in favor of a focus on wellness and Mother Nature. All enterprises, from multinational resource companies to specialty food makers, could make minor or major adjustments to their image to better align their brand with the global consumer’s new social appetites. John Seltzer from the Food Industry Center at the University of Minnesota will address this issue at the Southern Africa Specialty Foods Forum in Cape Town on May 20th.

The most obvious and important trend mentioned in the Euromonitor report is “Web 2.0 as a Need”. How do you take advantage of these consumer trends if your company is understaffed and strapped for cash? The answer – to milk every bit of the free advertising tools available online; to join professional associations or trade groups that help align your organization with the trends mentioned; to promote yourself as a ‘caring’, ‘multi-cultural’, ‘wellness promoting’ enterprise. Your presence on social media websites such as Facebook and Twitter can then help people create their own personal brands by associating themselves with your enterprise.

How do you think South African businesses could position themselves to take advantage of these trends? What do you think are the most important consumer trends in South Africa in 2010? Will these trends be influenced by the influx of foreign visitors during the 2010 FIFA World Cup? We would like to hear your thoughts – you are welcome to comment on this blog.