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Global TDC Ascenders 2024 Competition Is Open For Entries

Global TDC Ascenders 2024 Competition Is Open For Entries

Ascenders is a fast-growing portfolio-based competition dedicated to type in all its versatile forms, and the inspiring up and coming designers, individuals or duos, who are elevating the medium. The Type Directors Club has opened calls for entries for its global TDC Ascenders 2024 competition.

The competition celebrates international typographers, letterers, and type designers aged 35 and under. Entrants submit six projects:typography, use of type, design, lettering, etc. – with short descriptions, a statement of their role in the project’s creation, and a list of individual credits where applicable.

Entries are now being accepted, with entry fees increasing after the early-bird deadline of March 13, 2024. The final deadline is April 19, 2024. Entries will be judged by a diverse jury of global leaders in the field, to be announced shortly, and winners will be announced in June 2024.

In order to make Ascenders affordable around the globe, TDC offers a tiered pricing structure with significant discounts based on the country where the entrant is located: full-priced, mid-priced, low-priced, and, for eight countries, free. TDC members also qualify for discounts.

‘Global Ascenders 2024 winners will be a showcase for where the future of typography is headed,’ said Marta Cerdà Alimbau, a TDC Advisory Board member who runs her design studio in Barcelona, and helped develop this year’s programme branding. ‘Our community is in a constant evolution, and Ascenders attest to it!’

Last year’s Ascenders winners, selected from the highest number of entrants in the competition’s history, included 35 talented young creatives from 14 countries and regions. This year’s Ascenders branding and award are designed by Cerdà Alimbau and fellow TDC Advisory Board member Parasto Backman, who operates Studio Parasto Backman in Stockholm.

‘The design depicts the ‘ascending’ by embracing the idea of climbing the ladder towards progression, creative growth, and the future of type,’ said Backman.

TDC ASCENDERS
https://ascenders.tdc.org

Amazon’s Launch Into SA Could Offer Brands An Additional Advertising Option

Amazon's Launch Into SA Could Offer Brands An Additional Advertising Option
Grant Lapping, digital executive at +OneX.

Grant Lapping, digital executive at +OneX, says Amazon is in a prime position to disrupt South Africa’s digital advertising landscape.

Ever since rumours first started circulating about Amazon entering the South African ecommerce market, most of the speculation has been focused on how the online giant could potentially reshape the competitive landscape in retail. But Amazon’s launch into the South African market could also have a seismic effect on the digital advertising landscape, so marketers should be paying as much attention as online retailers.

Over the past few years, Amazon has grown into a formidable player in the programmatic advertising market, generating more than $40 billion a year in ad revenues. Amazon’s status as the leading ecommerce platform in the Western world means that it attracts massive volumes of traffic — and it has turned monetising this traffic into a fine art.

One survey in North America found that among North American consumers, 50% of all product searches start on Amazon versus 31% on Google. This highlights how Amazon has managed to position itself not only as an online store, but also as a search engine designed to help shoppers rapidly find the best products and deals.

Advertising Beyond The Marketplace

Amazon doesn’t restrict its advertising platform to its massive ecosystem of marketplace merchants. Although there is a long list of restricted categories, including obvious ones like alcohol, competitions, gambling and weapons and less obvious ones like financial services and food, the Amazon display network is open to non-Amazon sellers.

What this means is that Amazon’s launch into South Africa next year could offer many brands an additional advertising option in a market where Google, Meta platforms and TikTok dominate. Amazon hasn’t said too much about exactly which services it will launch on Amazon.co.za, but it seems likely that its advertising services and solutions will be part of the package.

These services are something that sets Amazon apart from even its largest local rivals, such as Takealot, which has already built a big ecosystem of marketplace sellers. Amazon’s enormous traffic and its expertise in cloud computing have enabled it to scale a programmatic platform that no South African ecommerce company could realistically compete with.

For companies that choose to list on the marketplace, advertising will most likely be a no-brainer. Those that get to the top of the listings when a customer searches for a product will generally get the most clicks, and it can be difficult to rise to the top without investing in advertising. As more sellers join the platform, it will be those that master the algorithms and ad tools that will get a competitive advantage.

Amazon DSP As A Game-Changer

But even for brands that run their own online stores and don’t want to become Amazon sellers, Amazon.co.za may become an interesting ad option. The Amazon Demand Side platform (DSP) will allow them to leverage Amazon’s user data and advertising tools to target customers that are already shopping for what they sell. Because Amazon’s traffic comes specifically from shoppers, it may offer a trove of data and algorithms that Google or Facebook can’t.

The Amazon DSP will feel familiar to anyone who has used the Facebook or Google programmatic platforms. Much like the other platforms, Amazon allows you to integrate first-party data into the DSP. You can build audiences using pixels, hashed audiences from which you can create lookalike audiences, and exclude new and existing audiences from campaigns.

You can also use a smart bidding approach, where you set a target key performance indicator (KPI) and the platform will auto-optimise the cost-per-click bidding strategy to maximise performance against your chosen KPI. Agencies that want to maximise the potential of the Amazon DSP will be able to tap into the Amazon Marketing Cloud (AMC).

This is a secure, clean room solution, in which advertisers can perform analytics and build audiences across pseudonymised signals, including Amazon Ads signals as well as their own inputs. This will enable agencies and their clients to develop even more sophisticated audience targeting capabilities and more successful customer journeys.

Amazon Can’t Be Ignored As An Advertising Player

Digital marketers will no doubt welcome more choice in the programmatic space, especially if it catalyses competition. It will take Amazon.co.za a while to build enough traffic and marketplace sellers to really turn its platform into a serious contender, but it also has deep enough pockets to run at a loss while it gathers momentum. As such, it can’t be ignored as an ecommerce or digital ad player. Brands and agencies alike may benefit from exploring the opportunities Amazon’s entry will create for them in the year to come.

+ONEX
www.plusonex.com

BRC Unveils And Enacts Updates To TAMS

BRC Unveils And Enacts Updates To TAMS

The Broadcast Research Council of South Africa (BRC) has announced updates to the Television Audience Measurement Survey (TAMS) Universe based on the 2023 TV Establishment Survey (ES).

According to Gary Whitaker, CEO of the BRC, ‘The 2023 ES reveals significant shifts in South Africa’s TV viewing landscape compared to our last universe update in 2019. Despite the continued prevalence of TV viewership, there has been a remarkable surge in streaming activities across all age groups. Additionally, we are observing the impacts of various factors such as the analogue switch-off, load shedding, and other environmental considerations.’

Key Findings From The 2023 ES:
· The number of households in South Africa have increased by 5% since the previous ES in 2019.
· 91% of the total population engages in video viewing on TVs and/or streaming devices. Streaming accounts for 28% of video viewing with the majority using smartphones for streaming.
· TAMS household universe (linear only) has reduced.
· Streaming viewing has increased across age groups and socio-economic levels, especially among the youth.
· Analogue switch-off, economic strain and load shedding have impacted linear TV viewership.
· Internet access has enabled streaming, with 69% of households having smartphone access and 15% having fixed broadband.

Whitaker further commented, ‘Aligned with international trends, individuals continue to consume a substantial amount of video content; however, the manner in which this consumption occurs has undergone significant transformation. TAMS needs to evolve to precisely mirror South Africa’s intricate viewing ecosystem.’

Last year’s TV ES, with a sample size of 8000, was conducted using a hybrid methodology combining face-to-face and online survey data to obtain a representative national SA sample. The BRC will adjust the TAMS panel composition over time to align with the new universe estimates.

Given the measurement changes, there will be impacts to TV ratings and audience sizes. The BRC recommends proper contextualisation when analysing TAMS data during this transition period.

The TAMS Universe update was implemented and released on Monday, 29 January 2024.
Complete TAMS universe update details as well as profile changes of the TV population and TV panel which include Province, Area type, Population group, Pay/Non Pay TV can be found here.  To view the full TV ES presentation, click here.

BRC
https://brcsa.org.za

The Path To Enhanced Brand Credibility Lies In The Positive Change A Brand Inspires

The Path To Enhanced Brand Credibility Lies In The Positive Change A Brand Inspires
Eclipse Communications CEO, Cheryl Reddy.

Gone are the days when brand credibility was built solely on the quality of products or services. Today’s consumers are discerning, seeking authenticity and a deeper connection with the brands they support.

In an era where consumers seek not just products but a connection with the values they represent, businesses are now realising the significance of community engagement as a key strategy to elevate brand credibility. According to Eclipse Communications CEO, Cheryl Reddy, ‘Beyond the traditional realms of marketing, brands are recognising the power of aligning with local causes, contributing to not only the welfare of society but also fostering a sense of community around their brands. Community engagement emerges as a guide for brands to establish a meaningful connection with their audiences,’ Reddy said.

‘One powerful avenue for businesses to bolster brand credibility is to actively participate in local community initiatives. By aligning with causes that resonate with both the brands and its audiences, brands can create a positive ripple effect that extends far beyond the immediate surroundings,’ Reddy continued.

Reddy gives the example of a local bakery partnering with a charity that provides meals for the homeless in the community in which it operates in. ‘Beyond the immediate impact on those in need, this initiative becomes a story worth telling – a narrative of a business that cares, fostering a connection with customers who share similar values.’

While traditional sponsorship has its merits, the shift towards genuine collaboration with community initiatives is becoming increasingly prevalent. Brands are moving beyond mere financial contributions, actively involving their teams in volunteer work and co-creating initiatives that align with their core values. ‘Consider a tech company collaborating with local schools to provide coding workshops for underprivileged students. This not only supports education but also positions the brand as an advocate for equal opportunities, resonating with audiences who are passionate about bridging the digital divide,’ Reddy mentioned.

In addition, she said, ‘As brands authentically engage with communities, they accrue a social currency that goes beyond the financial transactions. Purpose-driven initiatives become a shared experience, creating a sense of belonging among customers who appreciate the brand’s commitment to a greater cause.’

This social currency extends beyond the immediate community, reaching a wider audience through word-of-mouth, social media and media coverage. A brand that genuinely cares about its impact becomes a magnet for positive attention, building credibility not through self-promotion but through authenticity.

Community engagement is not just a strategy. It’s a commitment to shared values, a journey toward building not just customers but ambassadors. ‘In the ever-evolving landscape of business, the concept of brand credibility is undergoing a profound transformation. No longer measured solely by financial success, it now encompasses the impact a brand has on the world around it,’ Reddy enthused.

In this time of purpose-driven consumerism, the path to enhanced brand credibility lies in what a brand sells, but also in the positive change it inspires.

ECLIPSE COMMUNICATIONS
https://eclipsecomms.com

What Can Marketers And Business Owners Learn From Dricus Du Plessis?

What Can Marketers And Business Owners Learn From Dricus Du Plessis?
David Jenkins, Founder of Mickey Llew.

David Jenkins, Founder of Mickey Llew, discusses the strategic parallels between MMA warfare and corporate success.

South Africans are incredibly lucky. This might not be something you hear every day, but it is true in many respects. One notable aspect is that we have an abundance of great sporting icons that we can be inspired by. This time ‘round’ I have been personally and professionally motivated by Dricus du Plessis, also known as Stillknocks or DDP.

What can we learn from DDP as marketers, business owners, entrepreneurs and just as South Africans? More than you think.

Du Plessis has an inspiring story but I want to focus on his biggest and most recent victory, securing the UFC middleweight championship, as I believe his approach highlights a few key characteristics and tactics that we can draw inspiration from:

1. Failing To Plan Is Planning To Fail

Du Plessis is without a doubt one of the best strategists in the game; you won’t find him carelessly charging into the octagon relying solely on raw talent and a ‘wing-it’ attitude. Instead, his entire team has an in-depth understanding of their opponents, – their weaknesses, strengths, and a carefully devised plan to capitalise on their own advantages to overcome the adversary.

This single characteristic sets him up for success, no different to the importance of an owner, marketer, or entrepreneur knowing, both individually and as a team, knowing what their specific plan is to achieve success in any client, campaign or business challenge.

Sometimes we overlook the simple practice of sitting down, leveraging the team’s collective knowledge, and creating a strategic plan.

2. Stick To The Plan

Du Plessis intentionally dedicated the first two rounds to ‘fighting Strickland’s fight’ – he willingly conformed to his style of fighting and allowed the fight to unfold on Strickland’s terms. Why? Well, I feel that there are multiple strokes of genius at play here, but crucially it was to lull him into a false sense of security while providing du Plessis with a deeper understanding of his opponent’s weaknesses and to plan how he might overcome them. This is incredibly bold and brave despite being super risky playing to your opponent’s strengths.

In my mind, the takeout here is clear and two-fold: plan boldly and, no matter how tough it gets (as evidenced by du Plessis taking his worst blows and more hits than he anticipated during these rounds), stick to the plan.

3. Execute, Assess, Repeat, And WIN

This is often the part that catches people out – take decisive action, fully commit to and back your plan. Go into the metaphorical Octagon, whether that is your office, business, or dealing with clients, and confront the challenge with all you’ve got.

After executing, assess how you are doing – listen to the ringside feedback, evaluate your trajectory, and adapt as quickly as possible where needed. This phase often proves to be the key factor between victory or defeat. The funny thing (but never in the moment) is that plans seldom go as anticipated. So plan for the unexpected!

Apply what you’ve learnt from your initial foray and get back into the metaphorical ring with all you got, and, much like du Plessis, you are very likely to achieve a nail-biting, extremely close, yet historic win, with more positive upsides than you could’ve imagined for the short, medium and long term.

We live in an increasingly hyper-competitive landscape, no matter what field we engage in. The margin for victory seems to get narrower and narrower. I truly believe that South African sporting greats serve as a testament that self-belief, meticulous planning, unwavering commitment, and the ability to adapt, are key factors to succeeding in today’s challenging and competitive environment.

MICKEY LLEW
https://mickeyllew.com/za/

Online Retail In South Africa Will Start To Accelerate This Year

Online Retail In South Africa Will Start To Accelerate This Year
Bob Group Managing Director, Andy Higgins.

Bob Group Managing Director Andy Higgins believes 2024 will be the year online retail in South Africa will start to accelerate and catch up with international uptake. There are opportunities to look out for, and trends to leverage in the flourishing world of ecommerce.

Higgins, who took the reins when bidorbuy (now Bob shop) and uAfrica (now Bob Go) amalgamated to form the Bob Group ecommerce ecosystem last year, fully expects online retail to grow its market share from 5% to 10% in the next few years.

According to the Online Retail in South Africa 2023 report, online sales grew by 30% in 2022 to surpass the R50-billion milestone. They were also significantly faster than total retail sales, which grew by only 1.7% in the same year.

Analysts are seeing emerging consumer needs and expectations that go beyond being able to shop online. The result is that growth in online retail comes not from increasing demand but from consumers shifting existing purchase behaviour from physical shops to online stores and apps.

‘Buyers are embracing online shopping and using their mobile devices more and more,’ Higgins noted.

Higgins and Bob Group Marketplace head Craig Lubbe pointed out that a number of trends emerged in 2023 that are expected to redefine this space going forward. One of the biggest was an increase in cross-border ecommerce, with buyers purchasing more from outside South Africa and having items delivered locally using services specifically set up for this purpose.

Another was the increasing use of lockers for ecommerce deliveries ‘Due to the lower cost and greater convenience, more buyers are making use of lockers and pickup points to have their orders delivered,’ Higgins said.

Lubbe said as ecommerce matures and more South Africans become accustomed to buying online, so their expectations are likely to rise. This means that merchants have no choice but to invest in areas that will keep up with the demand for better ecommerce experiences. ‘We’ve seen an increasing number of retailers and other sellers investing in better imagery and rich content for certain products.’

Partnering with the right courier has also become essential to building a brand, he said. Since these service providers are effectively an extension of the seller’s business, their performance is critical when it comes to offering customers an excellent shopping experience.

In Higgins’ view, ecommerce merchants should subscribe to five key criteria to be successful:

– Build their brand by establishing their own website but also sell on multiple online marketplaces to increase exposure.
– Offer multiple payment options to buyers.
– Give buyers a choice of shipping methods, including collection, express and standard courier delivery as well as pickup points/locker collection where appropriate.
– Offer where possible money-back guarantees and warranty support to build trust; and
Make it easy for potential buyers to contact their business to ask questions and keep them informed throughout the fulfilment process once orders have been placed.

BOB GROUP
https://www.bob.co.za/

Builders Unveils Dynamic Brand Platform

Builders Unveils Dynamic Brand Platform

The ‘Do Day’ campaign is aimed at breaking the chains of procrastination. The campaign, tailored for DIY enthusiasts, homeowners, small business owners, and contractors, taps into the emotional resonance of personal growth, community building, and national progress to encourage everyone to embark on those long-awaited projects with the support of Builders.

‘The Builders’ ‘Do Day’ campaign is our commitment to help shatter the chains of procrastination, empowering our customers to turn their dreams into reality. We believe that every moment of delay is a missed opportunity for growth, and through this initiative, we inspire action, fostering a community of doers and achievers. In this way, we build a connection with our customers that inspires them to tackle unfinished DIY tasks and projects, leveraging the extensive expertise and assistance offered by Builders,’ said Katherine Madley, Massmart’s Vice President of Marketing.

Accenture creative directors behind the ‘Do Day’ campaign shared insights into the thinking behind the campaign and how its purpose is to empower and inspire people to take a different perspective on DIY projects no matter the size.

‘If you have a home, then you will know very well that there is always a to-do list as long as your arm waiting to be finished and often, we are very good at procrastinating. With our new campaign, we wanted to create a bold rallying cry that says ‘Enough!’ Today’s the day we do something about it! We wanted to motivate and inspire people but we also wanted them to recognise themselves and make them smile at the same time. Do Day felt like the right solution for that,’ said Devin Kennedy, Executive Creative Director of Accenture Song.

‘When we are spurred into action, we can do amazing things, as people, as communities and as a country. Whether it is tackling long-postponed tasks or bringing dream renovations to life, as a category leader, Builders champions the cause of proactive achievement, fostering a positive ripple effect for all. Our new campaign sets out to be the spark that ignites us to look around us and decide what we will tackle on our Do-Day,’ concluded Cameron Watson, Executive Creative Director of Accenture Song.

ACCENTURE
www.accenture.com

CSA.global Launches Specialist Consultancy In The UK

CSA.global Launches Specialist Consultancy In The UK
Davin Phillips, Executive Director at CSA.global.

The creation of specialist brand-talent solutions consultancy, C&E Partners, in London, came after CSA.global identified the stiff challenges agencies and brands often face in the evolving culture and entertainment space, from overinvestment to unsuitable brand talent matches and forced messaging. CSA.global also has offices in Cape Town and Los Angeles.

‘Having executed numerous global culture and entertainment campaigns and talent partnerships, we have seen a massive gap where brands are often over-paying while not taking into consideration where an artist or influencer is in their individual journey – all of which impacts on the right brand-talent fit. This also results in brands then being a distraction rather than authentically in culture,’ said Davin Phillips, Executive Director at CSA.global.

With substantial experience in artist management, the agency also understands the key factors and metrics that influence the pricing of talent partnerships in today’s market, all of which informs a balanced brand-talent spending approach.

Outside of helping cast and manage the right talent for a brand role, C&E Partners London will also provide a focus on transforming contractual agreements into symbiotic collaborations, where both parties value the relationship equally, along with authentic narratives and analytics development.

CSA.GLOBAL
https://csa.global/

Authenticity Is Key When Marketing To Millennials And Gen Z

Authenticity Is Key When Marketing To Millennials And Gen Z
Photo credit: Yoav Aziz on Unsplash

According to the Pew Research Center, millennials were born between 1981 and 1996, while those in Gen Z were born between 1997 and 2012. In 2024, millennials are between 28 and 43 years old, while Gen Zs are between 11 and 27. Melanie-Ann Feris, Flow Communications’ social media manager and content producer, discusses marketing strategies for these groups. 

Millennials and Gen Zs were born in the digital age, so technology is their playground. They regard smartphones as powerful tools that are easy to use and can help them get what they want in life. What is it exactly that they want and how can marketers tap into their minds and digital devices to get their products, brands and services seen and sold?

Millennials are more likely to be found on Facebook, LinkedIn, and X while Gen Zs prefer the fast-paced video formats of TikTok and YouTube. This is good to keep in mind when considering marketing to them.

Both of these generations want new and updated technologies that enhance their lives by providing convenience, entertainment and facilitating connections with what matters to them.

While these generations have a different approach to life and their careers, they have similar consumer qualities. As digital natives, they are naturally inclined to engage in online shopping and they prefer brands with a strong online presence. In most cases, their first contact with a brand will be online. They expect a brand’s talk to be backed up by effective online systems that make purchasing and exchanging products easy.

As consumers, they are discerning: they seek brands, products or services that enhance their lifestyle, and they often value experiences over material possessions, shaping their purchasing behaviour.

Authenticity Is Key

These two generations don’t fall for the fake. They can spot inauthenticity from miles away, and they are not shy to expose a dodgy brand using their online connections and digital savvy. Good content should not be a sales pitch; it should rather feel like a conversation. Most importantly, good content needs to be authentic.

How To Connect With Millennials And Gen Zs:

– Your content must be digital first (i.e. designed first for the digital experience, not just copied from old print material) and must work properly. Millennials expect a seamless user experience.
– Make sure your content is mobile-friendly, these generations are never far from their smartphones.
– Millennials and Gen Zs are active and very effective communicators on social media, so use these platforms to talk to them (not at them).
– Both generations have heart and align themselves with social causes. Concepts such as sustainability, ethical practice and social justice strike a chord with them, as will aligning your brand with social responsibility initiatives.
– To tap into their experiences-over-possessions ethic, create opportunities where they can engage directly.
– They want personalised experiences, so tailor your marketing efforts to include opportunities for this.
– Video content is king, so be sure to provide this.
– They want honesty, and they want to be entertained.
– They respond to high-quality, clever visuals and simple but effective messages that are backed up by brand responsiveness and online effectiveness.
– Above all, millennials and Gen Zs appreciate authenticity and gravitate towards brands that display this.

Think of campaigns such as Dove’s ‘Real Beauty’ campaign, which promoted body positivity and self-acceptance by using real women of different ethnicities and body sizes to challenge industry beauty standards – this is the sort of campaign these generations respond well to.

Another is Coca-Cola’s hugely popular ‘Share a Coke’ campaign, where the brand swapped out its logo, replaced it with names and popular phrases, and encouraged people to share their personalised bottles on social media.

Other examples include Nike’s ‘Dream Crazy’, Spotify’s ‘Wrapped’ and Bumble’s ‘The Ball is in Her Court’ campaigns. Tap into these campaigns’ winning formulas by doing the required research, and you just might have a successful campaign.

If brands are to succeed at winning over millennials and Gen Zs and getting them to spend their plastic money and bitcoins, they need to be clever and agile. They need to invest time and money into not only understanding how this massive consumer segment thinks and behaves currently, but also into anticipating how they will evolve and how their spending behaviour will change.

Being future-facing and agile means gaining crucial insights into the behaviour patterns of the world’s major consumers and digital influencers. Millennials, followed by Gen Zs, have been a driving force in changing what consumers want from marketing. They want online marketing that is real, relevant, engaging and helpful. They want content that speaks to them as individuals, that entertains them and makes their lives easier.

In The Digital Realm, Millennials And Gen Zs Want Content That:

– Is smartphone-friendly.
– Is relevant to their lives.
– Is entertaining.
– Is engaging and interactive.
– Educates.
– Shows them that you understand their struggles and challenges and that you care enough to try to make things better.
– Uses humour and storytelling.
– Is personalised and makes them feel as if it was made just for them.
– Is concise and captures shorter attention spans.
– Has a social conscience – is environmentally/socially responsible or stands for a cause.
– Shows diversity and inclusivity.

One thing is certain: brands that succeed in effectively engaging with these generations can position themselves for long-term success.

FLOW COMMUNICATIONS
https://www.flowsa.com/

The Ripple Effect Of Global Megashifts And Local Trends On Retail

The Ripple Effect Of Global Megashifts And Local Trends On Retail

Nicola Allen, Senior Retail Analyst at Trade Intelligence, unpacks the nuanced understanding of the interplay between macro factors, global shifts, evolving shopper behaviours, and the strategies adopted by local grocery retailers. She also looks at the implications for the South African retail sector and its stakeholders.

Global Tides, Local Currents

Retail trends do not occur in isolation – they are the result of macro influences that shape consumer and shopper behaviour and retailer strategies. In the ever-evolving world of retail, understanding the broader landscape is essential to anticipating and adapting to emerging trends. A new report by Trade Intelligence offers a nuanced understanding of the interplay between macro factors, global shifts, evolving shopper behaviours, and the strategies adopted by local grocery retailers. The report dissects their implications for the South African retail sector and its stakeholders – implications that could have a profound impact. The Trade Intelligence team share some insights and considerations from the report.

Global Megashifts – The Ripple Effect on Retail

Global megashifts are reshaping the world we live in, creating a ripple effect, influencing shopper behaviour, supply chains, and market dynamics. Economic turbulence has impacted most countries around the world and is unlikely to wane in the short term. Elections across the globe have businesses increasingly risk averse and investment shy. In 2024, over 2 billion people – a quarter of the world’s population – will go to the polls including the US, UK, EU, Russia, India, Taiwan and South Africa. Meanwhile, geopolitical conflict in Ukraine and the Middle East is wreaking havoc, and the global energy crisis is intensifying the race to net zero.

These shifts have a profound impact on the retail landscape. According to the World Bank, the impact of the Israel-Hamas conflict on commodity prices to date has been muted. However, an escalation in the conflict could drive up commodity prices (especially oil) and disrupt key trade routes. Overall, these trends and events combine to paint an unsettling picture of a fragile world, and even the glimmering possibilities posed by artificial intelligence cannot brighten this picture enough to lift the mood.

Global Retail Trends – Swirling Currents and Eddies

As with every facet of society, the retail industry is having to adapt constantly to meet the rapidly evolving needs of shoppers and other retail stakeholders. The convergence of online and offline worlds is reshaping the retail landscape in which shoppers are both more demanding and less loyal. Retailers’ ingenuity and shopper-centric strategies play a pivotal role in navigating this blended retail space. Our report provides insights into the innovative approaches retailers are adopting to stay ahead in this dynamic environment.

South Africa In 2024 – Navigating Rough Economic Seas

Let’s dive into the economic context impacting the retail trade: the deep and murky waters of the South African economy. High inflation rates, constrained economic growth, energy supply struggles, the rising cost of living and dismal consumer confidence all continue to contribute to a challenging trading landscape.

One bright spot in the gloom is that employment in Q3/2023 finally exceeded the pre-pandemic level at 16.7 million people, however youth unemployment ​remains dire.
Understanding these macro factors is crucial for consumer goods brands and retailers aiming to navigate the intricate web of challenges and opportunities that define the South African retail space. These may be rough seas to navigate in the coming year, but at least (or rather, unfortunately) these are not uncharted waters and local retailers are known for their buoyancy.

Local Retail Trends – Full Steam Ahead

South Africa’s retailers have shown themselves to be among the best globally, and we are increasingly delighted to see how close our local retail industry is to our global counterparts and the trends that are shaping the industry globally. The challenge remains balancing the needs of shoppers (whether for more personalisation, faster delivery, more conveniently located stores, better prices or an elevated shopping experience) with the squeeze for margin. Interestingly, instead of revenue from the sale of goods, retailers are focusing beyond this space – on revenue from data monetisation, and cost containment through the leveraging of technology, AI and ESG savings and rebates.

Hoist The Sail Or Drop Anchor

In the current fragile context, consumer goods brands and retailers cannot afford to have strategic blind spots. Success requires a clear vision, the right information and well-calibrated GPS.

TRADE INTELLIGENCE
https://tradeintelligence.co.za

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