Education around smartphones and mobile payments is essential to grow this market. Cash remains king, with trust in mobile payments and banks from a transactional perspective low.Fifty-eight percent of respondents belong to at least one stokvel these are diversifying beyond the traditional saving model to offer investment opportunities. While trust in banks has increased, they are seen as saving rather than investment vehicles.New delivery services are springing up around traditional township food.Township ecommerce is growing exponentially, with 70% of respondents having made online purchases in 2022, compared to 28% in 2021.South African fashion brands are increasingly seen as premium and desirable, with three-quarters of respondents choosing local over international when using their store accounts.Key insights can be summarised as follows: Payments are made 35% cash 30% card 18% mobile phones 17% store accounts.The most powerful influencers in terms of purchase decisions are Family/friends newspaper inserts social media radio special offers TV.Supermarkets and Spaza shops co-exist with Spaza shops increasingly upping their game technologically and becoming increasingly competitive with 29% growth.The respondents were evenly spread across all provinces Food delivery services are on the rise, currently at 29% Social media plays an increasing role in purchase decisions Facebook 59% WhatsApp 10% Instagram 7%.E-commerce purchases have grown from 29% two years ago to 70% in 2022.75% prefer to buy local with many products growing their global presence such as Bathu footwear Tsepho jeans and Tsonga sportswear.The aggregate township market represents hundreds of billions of rands in spending power 820 000 stokfels with 11.4 million members control R5 billion in savings.Half of SA’s population live in townships.The SA Township CX report gives some fascinating insights: Increasingly market researchers are trying to understand the changes in living circumstances, purchasing power, brand awareness, the use of technology etc. There are an estimated 532 Townships in South Africa.
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