2023 Township CX Insights: The Value-Driven Township Economy

During and post-pandemic, the township economy underwent many significant changes. With the growth of small businesses, increased spending power, and a shift in consumer behaviour, we see an upward trajectory in the growth of the Kasi Economy. But what are the drivers of this growth?

With factors such as trust, value and availability in mind, consumers are constantly looking for the best way to stretch the Rand. While availability is an essential factor of the buying process in the township economy, consumers favour trust and value.

With 60% of consumers stating price is the highest motivator for their purchases, it is clear that the township economy is value-driven. While trust sits as the second highest contributing factor in the buying process, consumers also want to know that brands understand them.

Noting the rise in unemployment and heightened price sensitivity among the population, spaza shops have begun embracing different models to ensure affordability.

Bongani Mabuza, founder of African Accent, says, “To adapt to consumer price sensitivity, spaza shops have embraced more affordable options, leading to the implementation of a weigh-and-pay model”.

While value is still king when it comes to buying decisions, consumers are placing a growing emphasis on trust in locally produced goods. The report also found a noticeable increase in trust between consumers and spaza shop owners, with 54% of customers stating they purchase goods that have been removed from their original packaging and repackaged by shop owners.

Thus, the growth of the township economy continues to climb. Local brands and spaza shops are being favoured for being more in touch with the country’s unique challenges and cultural nuances, building trust with consumers in townships and other areas.

To gain more insights on consumer trends and drivers down the full 2023 Township CX Report.