Perhaps because disposable income is limited, African consumers are selective and smart about what they purchase. According to Boston Consulting Group’s 2013 Africa Consumer Sentiment Survey, 70% of people interviewed said they knew a lot about the details of the products they buy. When compared with a global average of 57%, this suggests that African consumers are both knowledgeable and diligent in their decision-making process.
Rather than buying indiscriminately, 74% of African consumers, compared with a global average of 67%, said they focus their spending on the few product categories that matter most to them. Important categories, where consumers are most willing to trade up and least willing to trade down, include clothing, healthcare and baby products. Less than a third of consumers said they want to spend the bare minimum or to save money in those categories. Moreover, almost 75% reported saving and cutting back on spending in other areas to pay more for products that are important to them. Consistent with consumers in other developing economies, 72% of African shoppers said they value quality over quantity; the global average was 53%.
This focus on quality also affects decisions about trading up and trading down. Of the African […]