South Africa: Engaging consumers in a country with 11 different languages

SADIE DE WET, BOCCONI ALUMNA AND GROUP HEAD OF MARKETING AT AVACARE HEALTH GROUP, TALKS ABOUT THE SPECIFICS OF THE COUNTRY'S MARKET, WHERE TRADITIONAL MARKETING STRATEGIES ARE GIVING WAY TO SOCIOECONOMIC CONSUMER MEASUREMENT TO DIFFERENTIATE DEMOGRAPHICS

South Africa's economic landscape reflects a blend of tradition and modernity, characterized by a tech-savvy market and a growing middle class. As remarked by Sadie De Wet, Group Head of Marketing at Avacare Health Group, who did her MBA at SDA Bocconi School of Management, “South African consumers are increasingly drawn to international brands due to exposure on social media platforms. Despite the challenges posed by high import duties and a devaluating currency, there are numerous opportunities to meet this demand, particularly in sectors such as fashion and beauty”.

However, the South African market faces its share of challenges, with legacy infrastructure issues at the forefront like the practice of load shedding, the deliberate shutting down of power supply to customers during periods of peak demand or when there is insufficient generation capacity. This practice is often implemented in South Africa to prevent a complete blackout and protect the electricity grid from overload. Load shedding has a significant impact on South African consumers, both personally and economically. It can disrupt daily routines, cause inconvenience, and lead to financial losses. However, this has opened up many opportunities for companies and products that offer alternative energy solutions like solar power and related services, says De Wet.

Understanding the South African market requires a transformation in marketing and advertising strategies. In a country with 11 different idioms, language becomes a crucial factor for engaging consumers. De Wet points out that LSM (Local Store Marketing), which has traditionally served as the key benchmark for target market measurement in South Africa, categorizes people based on factors like race, gender and age has shifted to SEM (Socio-Economic Measure) marketing. SEM aims to delve into audiences at a deeper, more personal level, creating a differentiated and relevant brand experience for each single segment. SEM is a measurement tool that depicts how South Africans live socially and economically – based on what they have access to in and near their homes, rather than just looking at standard target market characteristics like demographics and income.

Looking ahead to 2050, the United Nations predicts that 1 in 4 people on the planet will be African. De Wet sees this as “a significant opportunity for companies to understand and successfully navigate the African market”, emphasizing the importance of having strong local stakeholders who understand the market and the customers, facilitating a smoother traversal of the local landscape and preventing potential misinterpretations in messaging.

In conclusion, the South African market presents a unique blend of challenges and opportunities. With a dynamic approach to marketing, a keen understanding of the shifting economic landscape, and an appreciation for the cultural diversity within the country, companies can position themselves for success in this evolving market.

by Camillo Papini