Retail in South Africa
In this paper we highlight the puzzle of why certain practises in developing and developed retail markets are converging, despite these markets differing strongly in their underlying consumer bases (demographics, median income, etc.). We look at the case of South Africa, where the percentage-of-basket of private label brands is converging with that of developed markets and where South Africa is experiencing the fastest growth in demand for green consumption. We argue that while the relative size of middle-class consumers is underdeveloped compared to that of developed nations, with much of South Africa's retail taking place in the informal sector, the growth rate of South Africa’s middle-class is immense. This, and the rapid adoption of product labelling legislation, have allowed retailers with integrated supply chains to strongly enforce their standardized retail strategy, as seen through the increased adoption of private label brands. Unique challenges and responses by retailers are discussed. [Andrew Montandon. European Retail Research, 2014] [Link]
Consumers willing to pay more for sustainable goods converging around 40-50% in 2013.
Awareness of private label brands in South Africa increases year-on-year by 2%.
