From the Streets to the Boardroom: Unpacking the Township Economy with Industry Leaders
The township economy is a marketplace full of energy, shaped by people, culture, and innovation. It is not just a concept but a daily reality for millions of South Africans. Businesses operating in townships must keep up with rapid changes, customer expectations and shifts in the digital landscape.
In a conversation hosted by Mongezi Mtati on the Township Marketing Podcast ( TMP), Garth Fraser of Tiger Brands and Brian Makwaiba of Vuleka, shared insights on how businesses engage with township communities. Their discussion covered customer experience, digital transformation and the importance of building trusted brands.
Understanding the Township Economy
Garth described the township market as a space that challenges the status quo, emphasising that it works, despite external assumptions.
Brian, on the other hand, pointed out that township commerce is not limited to one area. "Shisanyamas exist in the CBD. They exist in areas that are not necessarily considered a township." This perspective shifts the conversation from location to lifestyle and consumer habits.
Why Digital Verification Matters
Customers want to know the source of their products. The 2024 Customer Experience (CX) Report found that 30% of respondents are open to digital verification, such as QR code scanning. This can improve supply chain transparency and ensure quality products reach township consumers.
Brian explained, "People want quality foods... just because I’m in a certain area does not mean I want an inferior product." Businesses that invest in traceability tools will gain customer trust and reduce counterfeit risks.
Brand Engagement in Township Markets
Brands need to meet customers where they are. Social media plays a significant role in shaping buying decisions. When Albany bread appeared in a viral photo of an uncle and niece, it resonated with people. Brian highlighted how organic engagement drives loyalty: "It wasn't something that was forced on people... it grew and had a life of its own."
Traditional media and out-of-home advertising still hold value. Spaza shop branding remains a familiar sight, but younger store owners are moving towards custom branding. Garth noted that "some don’t want a branded approach, and we need to be respectful of those decisions." The shift signals the need for brands to collaborate with store owners rather than impose their strategies.
Customer Experience of the Future
Affordability is key. Township consumers often buy smaller packs as part of a trial-and-repeat purchase pattern. Brian mentioned that people will try an alternative "not necessarily knowing exactly what the problems or issues are with that product." Brands must consider price-pack architecture to remain competitive.
Brands that ignore township markets risk being left behind. "If they are not engaging, they’re going to be forgotten," Garth stated.
The Need for Purpose-Driven Marketing
Marketing strategies must be built around community-driven insights. Digital transformation is already happening, and businesses must adapt to these future digital marketing trends. The brands that succeed will be those that invest in trusted brand-building agency partnerships and prioritise customer experience over traditional top-down approaches.
Township consumers expect quality, affordability, and engagement. Businesses that respond to these needs will remain relevant, while those that do not will lose market share. The opportunity lies in understanding people, their habits, and how they interact with brands every day.
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