Streaming issues? Report here
Refilwe Moloto 2019 1500 BW
Breakfast with Refilwe Moloto
06:00 - 09:00
volume_up
volume_mute

Up Next: Today with Kieno Kammies
See full line-up
Breakfast with Refilwe Moloto
06:00 - 09:00
Home
arrow_forward
Business

South Africa has the 3rd most discount-obsessed consumers in the world

10 July 2019 4:23 PM
Tags:
The Money Show
Bruce Whitfield
Black Friday
36ONE Asset Management
Evan Walker
Portfolio Manager
NIELSEN
discounts
Arabile Gumede
discount
promotion
promotions
Kerith Botha
Nielsen Connect
We're also the 2nd-most price-sensitive in the world. The glut of discounts by retailers is backfiring bigtime (Nielsen survey).

Consumers are being trained to buy on promotion.

Kerith Botha, MD - Nielsen Connect

About 30% of all fast-moving consumer goods sold in 2018 in South Africa retailed at a discount.

Only consumers in the UAE and Australia are more bargain-crazy than South Africans.

A survey by research company Nielsen shows that a glut of promotions by retailers have made South African shoppers used to buying on sale and resistant to buying at regular prices.

Nielsen estimates that more than two-thirds of promotions result in losses for retailers.

Arabile Gumede (in for Bruce Whitfield on The Money Show) interviewed Evan Walker (Portfolio Manager at 36ONE Asset Management) and Kerith Botha (MD at Nielsen Connect).

Listen to the interviews in the audio below (and scroll down for quotes from it).

We are very much a price-sensitive country… the second-most price-sensitive in the world…

Kerith Botha, MD - Nielsen Connect

…23% of consumers in South Africa feel worse off than five years ago…

Kerith Botha, MD - Nielsen Connect

This country is completely oversaturated by retail outlets… We’re seeing discounts of 20%, 30%, 40%... I’ve never in 25 years seen such distortions…

Evan Walker, Portfolio Manager - 36ONE Asset Management

Jacobs coffee normally is R110. On promotion, its R80.

Evan Walker, Portfolio Manager - 36ONE Asset Management

We have the most oversaturated retail space in the world… by far…

Evan Walker, Portfolio Manager - 36ONE Asset Management

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : South Africa has the 3rd most discount-obsessed consumers in the world


10 July 2019 4:23 PM
Tags:
The Money Show
Bruce Whitfield
Black Friday
36ONE Asset Management
Evan Walker
Portfolio Manager
NIELSEN
discounts
Arabile Gumede
discount
promotion
promotions
Kerith Botha
Nielsen Connect

More from Business

insurance-policyjpg

When insurance claims go wrong

22 January 2020 8:52 PM

Be mindful of what you're disclosing at the time you take out a policy.

Share this:
Read More arrow_forward

climate-change-droughtjpeg

'Scrubbing' the atmosphere and other high-tech climate friendly innovations

22 January 2020 8:27 PM

Data ssystems use a great deal of energy and tech providers must start reducing emissions.

Share this:
Read More arrow_forward

Eskompresser_0638

How is 'steely' Pravin Gordhan coping under pressure from detractors?

22 January 2020 7:48 PM

Pravin Gordhan, the minister of public enterprises, wants to be left alone to do his job.

Share this:
Read More arrow_forward

170811naspersjpg

Naspers plans to sell shares in Prosus - will it decrease the Tencent gap?

22 January 2020 7:37 PM

Naspers plans to sell about 22 million shares in Prosus - will it decrease the Tencent gap?

Share this:
Read More arrow_forward

davos7jpg

Davos 2020: How well did Team South Africa pitch today?

22 January 2020 7:13 PM

Day two of Davos, where business heavyweights are attending the annual meeting of the World Economic Forum.

Share this:
Read More arrow_forward

vat-bjpg

Punch-drunk consumers should brace themselves for a VAT hike

22 January 2020 2:22 PM

It is difficult to see what other options the government has, despite the likely political fallout, says Absa.

Share this:
Read More arrow_forward

171023-sikonathi-mantshantsjpg

Eskom announces new spokesperson: Sikonathi Mantshantsha

22 January 2020 1:43 PM

Seasoned financial journalist Sikonathi Mantshantsha has been appointed as the national spokesperson of Eskom.

Share this:
Read More arrow_forward

Informal-settlement-shacks-Soweto-poverty-township-123rf

'In SA, if you’re born rich you stay rich and if you’re born poor you stay poor'

22 January 2020 11:11 AM

Where you’re born – and who your parents are – largely determines your destiny in South Africa, according to the WEF.

Share this:
Read More arrow_forward

Bruce Whitfield and Lesetja Kganyago

'Davos is depressing. SA is barely here! We used to have a dominant position'

22 January 2020 10:31 AM

South Africa is at risk of becoming irrelevant, warns The Money Show’s Bruce Whitfield from the World Economic Forum in Davos.

Share this:
Read More arrow_forward

191119-saa-edjpg

SAA CCO downplays flight-shedding, says 'not that many flights cancelled'

22 January 2020 8:57 AM

All airlines review their schedules and cancel and consolidate flights in event of low demand says SAA's Phillip Saunders.

Share this:
Read More arrow_forward